The author traces the history of private sector involvement in funding roads and considers the issues raised by the use of private funding today. Issues discussed include a) risk and uncertainty, b) future government Acts or ommissions, c) financial security of the project, d) revenue security and `real tolls', e) financing costs and returns, f) taxation environment, g) front end activities, environmental and planning factors, h) design and construction issues, i) project delays and j) operations. It is concluded that more attractive and reasonably secure packages of revenue and controllable risks are required to involve the private sector. More consultation between governmnent and concessionaires is required on long term regulatory frameworks.
Abstract