A critical issue for all countries is financing a transportation infrastructure that supports sustainable development. Traditionally funding for roads and motorways was provided through public financing with some private sector resources that were defined by the structure and challenges of individual countries. Today countries are facing difficulties in allocating their financial resources among critically needed maintenance, the desire tosecure new infrastructure to increase network capacity and the preservation of existing roadways. Finding appropriate and viable financing mechanisms presents a challenge for the public sector. A framework for viewing thetopic of financing from a multi-country perspective is through a discussion of financial procurement strategies, cost management for long term investment and the role of public private partnerships (PPPs). One can analyzethe types of organizations that manage road networks, allocation of funds, revenue and financing mechanisms and consider future trends in administration and funding. Road network management is conducted through governmental administrations, local administrations, public agencies or public companies and private companies. These agencies are responsible for a myriad ofactivities such as maintenance, capital investment, safety control, and traffic operations. The authority of these organizations is derived from legislation, administration and contract or agreement. Several methods for funding the responsibilities of these organizations include general taxes, contributions from other levels of government, user charges or tolls, loans and private parties. Implementation of some of these funding mechanisms can be difficult. From developing an understanding on how countries administer and fund their road budgets, it is important to recognize how decisions are made on the allocation of funds for various components of the road program. Several issues arise pertaining to cost management for long term investment. Budget or economic constraints, allocations for maintenance, new development and other operations, methods of value or accounting of road assets, road infrastructure investments or projects and innovative procurement methods all affect cost management. Using cost management techniques is an effective tool in the allocation of funds for construction, maintenance and operations. An important linkage with the identification of financial procurement strategies and the definition of cost management strategies for allocation of funding for long term investment is the role of public private partnerships in financing road system investment. PPPs are viable options for delivery and financing of road infrastructure projects. Several models exist which provide a continuum from public responsibility to private responsibility. A challenge for the public sector is to develop projects that lead to sustainable development where the public interest is protected. The effectiveness of PPPs is determined by how well they meet the objectives for the country and the project. The allocation of risk between the public and private sector needs to be balanced to ensure a sustainable long term relationship. The public interest is best protected through a strong, consistent and clear regulatory framework that discourages an inequitable distribution of risk and provides for transparency and accountability. For the covering abstract see ITRD E139491.
Samenvatting