Similar to Portugal, Spain uses both real and shadow tolls. The government conducts a feasibility analysis to deter- mine whether the expected traffic volume will permit the use of real tolls. If not, shadow tolls are generally used in lieu of any real toll. In the case of real toll concessions, the Spanish government has recently begun to establish the tolling rate and structure. This is a change in philosophy from earlier concessions in which tolling rates and struc- tures, as well as the concession period, were bid param- eters. The basic rationale for the change is that fixing these parameters increases competitive pressure.
Of the 4,300 km (2,672 mi) of the National Highway System under PPP contracts, 3,800 km (2,361 mi) use real tolls, while 500 km (310 mi) use shadow tolls. In the Madrid metropolitan area, shadow tolls alone are gener- ally used for PPP projects. The shadow tolls paid during a period usually are linked to traffic volume and the level of service provided. Only one PPP project in the Madrid region relied exclusively on real tolls. Other regions in Spain rely more heavily on real tolls. Like Portugal, Spain also requires construction of toll-free connector roads as part of some of its concession agreements.