Financing of Transport Infrastructure
Faced with persistent fiscal crises and slow growth prospects, the past decade has seen a
dramatic increase in the liberalization of transport policies in developing countries,
occasioning a bigger role for private operators and investors in transport infrastructure.
For the both the government and the private sector, this should have meant a change in
their fundamental roles in transport infrastructure provision, and to a certain extent, it has, as
evidenced by the different modes of public and private sector partnerships. However, the
movement of private finance into infrastructure has been slow, accounting for only 30 percent
of total infrastructure investment, with much of this figure concentrated in a small number of
countries (Pernia 2003, in Weiss, 2003).
Private finance has likewise been problematic. The private sector has no effective
mechanism to deal with issues such as right of way and resettlement. In most cases, the
private sector is interested in investing in transport projects only when they can also benefit
from land and property development along the new transport route. Therefore, private sector
investments have been more extensive and successful in large urban cities or peri-urban
populated areas. The track record of success has been in projects such as mass transit
systems and tollroads.
Experience points to the fact that government is likely to continue to play a key role in
transport infrastructure while new and innovative modes of financing will have to be tested.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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Post a CommentWe welcome your feedback on this publication. Post a comment. ADBI is not obliged to acknowledge or publish comments and may abridge or edit them before web posting. Comment(s)
There are [1] comment(s) for this entry. Post a comment. - Mohammad Ziaul Ahsan
(posted 23 April 2006 / 09:49:14 PM)
Transport not only makes econmic development but also saves climate. This book has given us such path to make sustainable development for poverty eradication. Thanking you for your great participation.
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