Short-Term Infrastructure Concessions

Abstract

This article introduces a new tool based on short-term infrastructure concessions. The newtool described in the work includes a final reversion value as the most relevant procurement variable in short-term infrastructure concessions. This method's main advantages are that it offers both the bidders and the administration the possibility to get a close forecast on key concession variables such as expected demand, and costs, as well as on the potential increase in competition all over the process. This article also looks into the risks associated with the implementation of the method together with some solutions to mitigate the risks based on short-term concession procurements. Finally, it provides a brief outlook into the New Access to the Madrid Barajas Airport concession contract, because this project has been developed following some of the procedures revised in this article. Once the method has been outlined, this research analyzes the prospective advantages and disadvantages related to its application.