The administrative concession is the most commonly used contractual figure for developing public-private partnerships, whereby public and private sector entities reach agreements for the design, construction, financing and long-term management of a public infrastructure, service or public activity whose organisation is the responsibility of an Authority, by the private sector. Spain has pioneered developing infrastructure through concessions, thus enabling the country’s economic and social development.
This type of contracting offers numerous advantages over traditional works and service contracts, including, among others, bringing forward social benefits in times of budgetary restrictions and the efficiency derived from the integrated management of the project cycle from start to finish (design, construction, operation, maintenance and renovation). It also highlights the improvement in the quality of service to users, which is necessary to maximise the profitability of the private operator and intergenerational equity by spreading the investment over the useful life.
Its essential characteristic lies in the correct definition and transfer of risks to the private company, a transmission that guarantees management efficiency, motivates the reduction of costs and deadlines and encourages innovation to differentiate from competitors. In addition, it avoids counting the investment as public debt, making it a fundamental tool for the future development of large infrastructure projects and public facilities in the country.
20 years of experience in the concessions sector
Sando began its activity and participation in this sector 20 years ago and has sufficient experience and training to develop this type of project in the future. During its career, it has managed: road concessions, with the maintenance and operation of roads; road infrastructure management; car park concessions, with the management and operation of car parks; concessions in health centres and the operation of hospitals and hospital management..
The accumulated know-how is also very versatile, as a result of having successfully participated in large projects of different types, including transport and mobility infrastructures (roads, metros and trams, underground car parks), social infrastructures (hospitals), facilities (hotels, offices, commercial premises), renewable energies and activities related to leisure and the environment, such as the operation of El Caminito del Rey in Malaga.
To meet the strategic objectives of governments, such as the 2030 Agenda for sustainable development, the use of green energies, managing the integral water cycle, promoting sustainable mobility, etc., it will be necessary to promote the model of administrative concessions to carry them out. To this end, Sando’s experience endorses it as a strategic ally of public and private entities in the participation and active collaboration in this sector over the coming years.
