Friday, May 15, 2015

SPAIN: The Court of Auditors urges the Government to curb the AVE … – EntornoInteligente

SPAIN <- - AUGURE_NOTICIA_INICIO!>: The Court of Auditors urges the Government to curb the AVE ‘irrational’ / World / The Court of Auditors is added to the chorus of warnings about the unsustainability of the 3,000 kilometers of high-speed network if outstanding investments are not rationalized and accumulated debt financing is secured, which this year will exceed 18,000 million euros, according to the State Budget.

Stop the AVE is one of the open debates in an election year, much given to openings of this mode of transport in which Spain is a world leader. But for the regulatory agency of public accounts no doubt. Or model or high-speed infrastructure changes will be unsustainable in the long term

“Given the current economic climate, funding problems , compliance with the objective of budgetary stability and financial sustainability of ADIF-AV long term, it is especially advisable in unprofitable investments to introduce the principle of rationality in the execution of public spending, limiting the investments that are highly deficient, “he says institution headed by Ramon Alvarez de Miranda.

The Court of Auditors’ analysis focuses on the situation of Adif -the company that supports the entire debt as high-speed network in the years 2011- 2013 is unqualified to ask the Government to reconsider about the need to complete a project of 70.000 million euros of which, at the time of preparation of the report were to run 30,000 million. Also he asked to restructure the fees it charges for Adif Renfe can cover their costs; reconsider their depreciation criteria pathways towards more realistic forecasts and more transparent in the presentation of accounts.

For good measure, the situation of the railway infrastructure in Spain has reached the limit in recent years the government has spent most of the legislature to restructure AVE. Among the measures taken are suppressing soterramientos projects inlet AVE stations of the capital, issuing bonds to refinance debt to continue investments and the launch this year of 1,000 km network in some cases remains high speed performance as single-track sections. In total, Development estimates that of the 30,000 million to invest, end cost half AVE.

Today, according to the financial rating agency Fitch, Adif will spend 12,000 million euros, of which 55% will be financed through debt. Although with all the trimmings and the increase in the number of passengers the company to achieve operating income, the deficit caused by its liabilities require capital injections of EUR 2.700 million from the state.

The report Court of Auditors also makes a second warning on the conventional network, often overshadowed by the AVE network. According to the institution, lack of funding for these 11,000 kilometers loaded 25 million a year on trains middle and long distance makes it convenient to secure resources for a period of four years to “ensure the safety and efficiency of their management.” In 2013 Adif had to ask the Finance Ministry to arrange an extraordinary Coagulant injector certain sections where the speed was reduced to 30 km / h for safety. The latest asset stripping of Adif as solar Azca purchased by El Corte Ingles 136 million have been allocated for this purpose, according to the company.

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