Europe is facing a wave of expiring road Public-Private Partnership (PPP) contracts, with approximately 40% set to conclude between 2025 and 20311. So, what should concessionaires and grantors be doing about it? Below, we look at key considerations for grantors (public authorities) and concessionaires (private partners), drawing lessons from our own experience and established best practice.
Defining handback requirements
Handback is the transition phase, where assets revert from private operators to public authorities and meticulous planning is needed to avoid service disruptions, financial pitfalls, and legal disputes.
Clear contractual terms for asset condition, inspections, and obligations are vital, but tend to be missing from many older contracts set up in the 1990s or are not sufficiently detailed. In one example, from France our contract stated that “the motorway must be given back in good condition”. What is ‘good’? How do you assess this? In another contract, “residual life” is the benchmark – but how will that benchmark be calculated? Will the Grantor and the Concessionaire use the same approach?
Grantors are looking to get the asset back in good shape. They will want to avoid unexpected expenses, hidden defects and service interruption.
Concessionaires will want to focus on maintaining a good reputation and maximizing profit. They will also want to avoid unexpected expenses, guarantees and disputes.
To minimize risks and improve customer satisfaction it’s important to have a clear and common understanding of the concession contract. Key points to address:
- The expected technical standards for all assets: road surfaces, signage, bridges, drainage, power equipment, ancillary infrastructure, etc.
- The maintenance records and as-built drawings to be provided
- The handback process
- Financial securities or penalties for non-compliance.
The problem is that the agreements already in place may not have handback clauses or may miss crucial details. That’s why starting the preparations early is crucial.
Early preparation and governance
Delayed planning exacerbates risks. Grantors and Concessionaires should establish dedicated handback teams at least seven years before contract expiry. Why? Because it can take time to assess the missing
information, agree risk allocation, responsibilities, milestones and processes. See our recommended schedule in Figure 1.
It’s a good idea to involve a steering committee, technical experts, and consultants with project-specific knowledge. We also recommend involving impartial experts to define and advise on transfer conditions for staff.
Concessionaires must maintain comprehensive asset registers and lifecycle records. Projects will benefit from real-time access to maintenance logs, simplifying final inspections. It’s also worth noting that ‘assets’ are all documents related to the asset, drawings, history of development, etc.
Figure 1: Countdown to handback - planning schedule
Planning doesn’t stop when handback has happened. It’s important to plan for the post-handback transition. Grantors will need to develop operational readiness plans, including staff training, transfer of equipment and budget allocations. On some contracts, they will also need to audit the concessionaire’s final maintenance spend to comply with the contractual requirements.
Try to avoid ambiguity in risk-sharing for force majeure or legislative changes. For example, evolving environmental regulations may impose unplanned costs if not addressed contractually.
Asset management
Assets are a huge topic in the handback process. But facilities and mobile operating equipment which include vehicles, furniture, computers and servers, utilities contracts, spare parts, and more, should not be underestimated as they are key for the continuity of services.
In a UK survey undertaken in 2020, fifty percent of Private Finance Initiative (PFI) contracts lacked asset registers, complicating condition assessments for the wave of UK contracts beginning to expire from 20252.
It’s a good idea to conduct joint inspections seven years pre-expiry, and in any case no later than two to three years before to identify defects and allocate repair costs. The M4 Tollway in Australia3 used phased inspections to resolve issues incrementally, avoiding last-minute disputes, and bi-monthly meetings between the concessionaire and the grantor during the final two years of the contract.
Beware of overlooking “soft” assets like intellectual property or tolling software. Contracts must clarify ownership of digital systems to prevent service interruptions.
Innovations can be useful. At Egis we are exploring the use of Digital Twins as a means of easing the handback process.
Retaining talent during transition
While technical and financial aspects of handback are often prioritised, the human resources (HR) dimension is equally critical. Employees are the backbone of operations during the final years of a PPP contract, and their morale and productivity can directly impact the quality of the handback process.
How many employees are there, and with what types of contract? What will happen to them at the end of the contract, how and when? What legislation will apply? How to manage confidential data? What costs might be incurred in relation to termination? How to provision for holidays, retirement, training?
In Canada, Golden Ears Bridge teams gave staff access to an on-site Job Shop to assist with internal & external job search, and promotion of staff to local employers. In other instances, upskilling workshops have taken place as well as tailored support for employees through external HR consultants.
It’s important to build trust with transparent, two-way communication. That means announcing transition timelines early to reduce uncertainty, and providing regular updates on handback progress, role changes and severance terms.
It can help to offer retention bonuses and transition incentives tied to milestones (eg, completing final inspections, or training replacements). Other ideas can include providing healthcare, on-site childcare, flexible schedules or retirement contributions for employees staying until handback. It’s best to avoid
generic incentives that ignore tenure or role criticality, or uniform strategies that fail to address role-specific needs.
Case Study: Attiki Odos Motorway (Greece)
The Attiki Odos Motorway handback (2025) exemplifies proactive management:
- Preparation: Began early with a mix of internal staff and external advisors.
- Inspections: A handover committee was set up to supervise the whole procedure. A pavement study was undertaken by the National Technical University of Athens and took into account pavement monitoring data.
- HR Successes: In a win for employee morale, it was agreed to rehire all employees in their current positions, except for the General Manager and President. A ‘Know How’ Agreement was signed, facilitating a smooth transition where all personnel were dismissed and rehired overnight.
- Documentation: Weekly coordination meetings were set up by the external advisors with the concession contract parties, and the advisors were responsible for reporting. Full asset registers covering mobile equipment, Operator’s equipment and Concessionaire’s equipment were established, and accepted as part of the delivery protocol.
Conclusions
With Europe’s road PPP expiry wave approaching, grantors and concessionaires must prioritise collaborative planning across technical, financial, and HR dimensions alike. In our experience, early action across these domains mitigates risks while fostering smoother transitions that protect the value of public assets for the benefit of the Concessionaire/Grantor, and the dignity of those who maintain them until the very end of their contracts. It also presents an opportunity, when addressed early, to implement advanced technology (such as Digital Twin) to ease the handback process and offer enhanced services to the incoming teams.
By addressing both infrastructure quality and workforce stability during handbacks with equal diligence, stakeholders can ensure seamless transitions that meet public expectations while preserving institutional knowledge for future projects—a win-win outcome for all parties involved.
