Concessionaire of the Alicante ring road faces bankruptcy proceedings
The Ministry of Transport, Mobility and Urban Agenda (Mitma) announced a financial figure of 302.7 million euros related to the Administration’s Guardian responsibility on the Alicante ring road, part of the A-7 corridor around the city. This is the amount the government may owe to prior investors and expropriated parties following the concession’s collapse. After the concessionaire’s bankruptcy, the publicly traded Seittsa was tasked with managing the infrastructure and its eventual return to operation, alongside other recovered routes.
Mitma stated this in an official release regarding the opening of the hearing window for claim submissions ahead of a new calculation. This marks the second accounting review after a 308 million euro figure was presented in November of the previous year, an estimate whose operation was paused due to a dispute raised by one of the involved parties. Several Supreme Court rulings subsequently affected the interpretation of contracts for multiple recovered highways, prompting adjustments to the previously announced amount. The new period for presenting claims opened on Friday, July 22, and will run for 15 working days.
The Alicante ring road began operation in December 2007 to alleviate daily traffic jams along the A-70 as it traverses the provincial capital. The concession company, Ciralsa, is a joint venture of ACS, Abertis and Globalvia.
Yet, the crisis tempered expectations. As with many highway projects started at the same time, traffic on the ring road did not meet projections tied to Madrid radial corridors.
Consequently, five years after opening, Ciralsa filed for bankruptcy. In 2018 the Ministry of Public Works reclaimed ownership and integrated the route into the publicly listed company Seittsa, along with seven other highways that had been recovered.
The ongoing process and current calculations
Although there is interest in re-bidding the concession for these highways, for now the government retains control. The calculation under the Administration’s Homeland Responsibility (RPA) framework for the Alicante ring road stands at 302,712,677 euros according to the interpretation agreement approved by the council of ministers in April 2019 and the criteria validated by Supreme Court decisions. The ministry estimates an RPA of 276.6 million euros realized but not amortized, plus 74.1 million euros for expropriations, bringing the total to over 350 million euros. However, deductions include 18 million euros for works necessary to ensure the facilities function under normal conditions, and 15.6 million euros in compensation already paid to those expropriated by the state. An additional 14.4 million euros would be withheld to cover potential future expropriation payments.
The Alicante toll ring road, a 33.2-kilometer route intended to channel long-distance traffic near the city, connects with the A-70 at the city’s edge to relieve urban congestion. Its best year on record was 2008, when daily traffic averaged about 10,000 vehicles. Traffic declined with the economic crisis and remained low through 2014, dipping to about 5,303 vehicles per day. After a rebound post-2014, the route saw traffic fall again during the 2020 pandemic, hitting a low of around 4,966 vehicles per day, before recovering to roughly 6,421 users per day in the following year.
The Ausur highway linking Alicante with Torrevieja and Cartagena was also nearly derailed but survived through a refinancing deal in 2014 totaling 196 million euros, supported by about 15 different lenders. Unlike other routes, lenders perceived sufficient traffic volumes to support the loan. The owners, Pralesa (holding 75%) and the Fuertes Group, initiated a process to sell the concession late in the previous year. Market reports indicated potential offers from DIF Capital Partners and Bestinver funds, according to financial press coverage.
The publication of the finalized calculation remains pending. It is expected to take time, with a six-month window after the initial RPA decision for a supplementary ruling, and approximately one year for the final determination as remaining issues are resolved, including any expropriation payments.
The Alicante ring road stretches the long 33.2-kilometer corridor that channels external traffic around the city of Alicante. The key significance lies in its potential to reduce congestion where the A-70 intersects local movements, a feature that has driven debates over traffic levels since inception.
The Torrevieja toll road, also known as Ausur, remains a candidate for privatization. It connects Alicante with Torrevieja and Cartagena and was saved as the ninth road by the State. While 2014 brought a refinancing agreement backed by a large syndicate of lenders, discussions continue about the concession’s future, including potential offers from new investment groups.
Notes: figures reflect current ministry estimates and official statements. Data reliability relies on ongoing administrative processes and subsequent court interpretations that may adjust values or timelines. All figures are in euros.