Spanish construction firm Abertis Infraestructuras (ABE) is to spend €580m ($730m) to upgrade the French motorway network, reducing the original investment of €700m.

Abertis chief financial officer Jose Aljaro said the company lowered its investment plan in the project as the French Government reduced the length of a concession extension for one of the highway networks.

The project involves the upgrading of the Sanef and Sapn networks. While Sanef’s concession has been extended for two years, the initial extension of Sapn has been reduced by the government due to which the company had to reduce the extra capex, Bloomberg reported.

"We are always flexible to negotiate different conditions on any concession, which is a win-win scenario for both."

As a result of the government dropping a trucking tax system due to public opposition, the French energy minister Segolene Royal has asked owners Vinci, Eiffage SA and Abertis to invest more in infrastructure. The government has replaced the tax by a diesel surcharge.

Royal has also said in a statement that the European Commission has approved a €3.2bn stimulus package that will be invested by French highway operators. Previously, Vinci and Eiffage had stated that the project would cost approximately €3.6bn.

The minister had earlier suggested higher taxes or reduced highway tolls as the competition authority had asked the government to increase oversight of highway operators. However, prime minister Manuel Valls had rejected the proposals.

Bloomberg quoted Abertis chief executive officer Francisco Reynes as saying that the current contracts would be honoured.

"We would never have invested in a country where we could not rely on its legal framework," Reynes said.

"Having said that, we are always flexible to negotiate different conditions on any concession, which is a win-win scenario for both."