Spain and France are closing the agreement to operate the Perpignan- Figueres high speed rail (HSR) line in case the concessionaire owned by ACS and Eiffage, currently in state of insolvency, leave the project. 

According to sources, state-owned Adif (Spain) and Réseau Ferré de France (France) are coming to terms for the potential operation of the project. 

The Perpignan- Figueres high speed rail (HSR) involved the development of a 44 km high speed rail line linking Spain and France from Figueres to Perpignan. The total project investment reached (US$1.3 billion).

In May, we reported that the Spanish Infrastructure Ministry (Fomento) rejected to inject more money in TP Ferro, the 50/50 joint venture formed by ACS and Eiffage, to develop the project.

Both companies had previously requested a rescue package of €450 million (US$510 million).

In July 2015 we informed that TP Ferro had filed for insolvency. The concession project was in trouble due to the fact that traffic was much lower than anticipated and the investment was much higher. 

The concessionaire also failed to achieve an agreement with the Spanish and French government to get compensation for the low revenues. According to the concessionaire, the governments prioritized domestic rail traffic against the high speed rail link.