The Motorway system is based on the principle of works and public services’ concession (financing, building and operating), according to the law 18th of April 1955.
Concession agreement, completed by specific terms of reference, is a contract by which the State (the granting authority) leaves to the concessionaires companies all the responsibilities for financing, building and exploiting the motorways.
Originally, the length of the concession had been fixed at 35 years, but the result of several reforms and privatization process was the extension of the initial period, varying between 2028 and 2032 for most companies.
For new concessions granted after 2001, the length is variable and can range from 50 to
70 years. At the end of the concession the concession assets used in operation are handed over to the concessionaire.
There were several steps in the French toll road development. First companies created between 1956 and 1961 were public owned companies. 4 private owned companies were created between 1971 and 1973 but only one of them survived after the first oil crises in 1973 (Cofiroute). From the beginning and up to 2000, the State gave a guarantee to all newly created concessionaire companies either public or private. This specific measure was adopted in order to attract companies to develop the French motorway network. Actually, this measure was applied to 3 private companies created in the 70’.
Most part of the network was developed thanks to the system of "backing” "(adossement)”.This practice consisted in partly financing new motorway sections with toll income from existing sections operated by the same company, whose concession was extended for the purpose. To broaden competition and allow new operators to enter the market, the State has ended these specificity. In practical terms, backing was incompatible with a fair competition between candidates for new concessions, as it could give an advantage to existing concession-holders over new operators. But one has not to forget that thanks to this system the main motorway network was built in France.
Henceforth, any public funding needed to ensure the financial balance of future motorway concessions will be supplied in the form of subsidies. The new sections, assigned under the provisions of the "Works Directive" and the Sapin Act, will be covered by a specific contract. This procedure will allow a more effective comparison between competing bids.
Since the latest reform in 2000 the State no longer stands as guarantor. There may be subsidies from public funds for new concessions. The legal and financial regime of the totally public owned companies having been adapted to standard company law, the French government was able to announce, on 16 October 2001, the opening of a minority share of ASF’s capital, along with an initial public offering (IPO) followed by APRR and SANEF.The year 2005 was notable for the full privatization of three major public motorway groups: On 18 July 2005, the government announced its decision to totally privatize APRR, ASF, and SANEF through a bidding procedure. Specifications were published on 22 August 2005.
After consulting the Commission on Shareholdings and Transfers (CPT), the government selected the following buyers on 14 December 2005: Vinci for ASF, the Eiffage-Macquarie consortium for APRR, and the Abertis-AXA-Caisse des Dépôts-CNP-FFP-Prédica consortium for SANEF.
In 2010, the French motorway network is managed by 15 privately owned companies and
2 public owned companies (ATMB, SFTRF), 1 company by local authorities (CCI du Havre). Of the 11,000 km of motorways in service at the 1st of January 2010, 8,700 km are operated by concessionaires.
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