The development of the congestion charging scheme in London, UK is outlined. The scheme required a contract based on PFI/PPP principles. The key PFI/PPP issues addressed included: transfer of risk vs. retention of control, an effective performance regime, an effective change mechanism, step-in rights, and a procedure for dispute resolution. Key innovative features of the scheme included a #5 flat fee, a range of options for payment, exemptions or discounts for some groups of road users, an unusual system of enforcement (area charge scheme), captured vehicle details are automatically matched to details of payments made during the day, and issuing of an #80 penalty charge notice if no payment is received. The lessons that have been drawn from the London scheme are discussed.
Abstract