Spain’s Supreme Court has once again annulled the government’s calculation of the financial settlement owed to concessionaires for the rescinding of highway contracts dating back to the 2008 financial crisis, and is now pressing the government to finalize payment. The ruling, dated January 28, 2026, specifically concerns the R-3 and R-5 radial highways in Madrid, and invalidates a previous government resolution that proposed a payment of €570 million to the concessionaire.
This marks the second time the government’s calculation has been overturned by the Supreme Court, which previously increased the initial estimated payout by €451 million following earlier rulings that found the original formula used for the calculation to be legally unsound. However, the latest decision differs in its focus, shifting away from scrutinizing the economic calculation itself and instead emphasizing the government’s obligation to issue a final resolution and fully compensate the concessionaire, thereby preventing further delays.
The dispute stems from a 2019 government plan designed to streamline the process of compensating concessionaires whose highway projects failed during the economic downturn. Under the plan, a three-stage process was established: an initial resolution, a supplementary resolution, and a final, definitive resolution, with a maximum of six months between each stage. However, according to reports, only one of the nine highways affected by the crisis has reached this final resolution in the nearly seven years since the plan’s implementation.
The R-3 and R-5 highways were originally awarded in 1999 to a consortium comprising ACS, OHLA, Sacyr, and FCC for a 50-year period. Operational since 2004, the concession entered bankruptcy protection in 2012, with funds including TDA, Bothar, and Kommunalkredit acquiring the debt in anticipation of future state compensation.
To date, the state has disbursed a total of €1.684 billion in compensation for the nine highways, though this figure remains provisional as most projects are still in the second resolution phase. Payments made to date include €134 million for the R-4, €319 million for the A-36, €41 million for the A-41, €278 million for the AP-7 Cartagena-Vera, €307 million for the AP-7 Alicante, and €46 million for the M-12. No payments have yet been made regarding the R-2 highway.
The Supreme Court’s latest ruling seeks to prevent further delays in the process, urging the government to expedite the final settlement with the concessionaires.
