innovative ways for financing transport infrastructure...innovative ways for financing transport...
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UN
ECEInnovative w
ays for Financing Transport InfrastructureU
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NATIO
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Inno
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Printed at United Nations, Geneva – 1805722 (E) – April 2018 – 675 – ECE/TRANS/264
ISBN 978-92-1-117156-3
Palais des NationsCH - 1211 Geneva 10, SwitzerlandTelephone: +41(0)22 917 44 44E-mail: [email protected]: http://www.unece.org
Information ServiceUnited Nations Economic Commission for Europe
Innovative ways for Financing Transport Infrastructure
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NOTE
The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.
Copyright © United Nations, 2017
All rights reserved.
No part of this publication may, for sales purposes, be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, electrostatic, magnetic tape, mechanical,
photocopying or otherwise, without prior permission in writing from the United Nations.
UNITED NATIONS PUBLICATION
Sales number: E.18.II.E.11
ISBN: 978‐92‐1‐117156‐3
eISBN: 978‐92‐1‐363246‐8
ECE/TRANS/264
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ACKNOWLEDGMENTS The report was coordinated and prepared by Mr. Konstantinos Alexopoulos and Mr. Lukasz Wyrowski who would like to express their thanks to all members of the UNECE Working Party on Transport Trends and Economics (WP.5) for their invaluable inputs in the cause of drafting this report and especially to Dr. András Timár Professor at the University of Pécs Department of Infrastructure for preparing chapter one, Mr. Jonathan BECKITT, CMS Cameron McKenna LLP for preparing chapter two on public private partnerships as well as Mr. Thomas Sigel and Mr. Gilbert Konzett of Kapsch TrafficCom AG for preparing chapter three on electronic tolls.
Disclaimer:
Views expressed in this document are of the authors. They should not be considered as the views of UNECE or as binding on any United Nations entity.
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ACKNOWLEDGMENTSThe report was coordinated and prepared by Mr. Konstantinos Alexopoulos and Mr. LukaszWyrowski who would like to express their thanks to all members of the UNECE Working Party onTransport Trends and Economics (WP.5) for their invaluable inputs in the cause of drafting thisreport and especially to Dr. András Timár Professor at the University of Pécs Department ofInfrastructure for preparing chapter one, Mr. Jonathan BECKITT, CMS Cameron McKenna LLP forpreparing chapter two on public private partnerships as well as Mr. Thomas Sigel and Mr. GilbertKonzett of Kapsch TrafficCom AG for preparing chapter three on electronic tolls.
Disclaimer:
Views expressed in this document are of the authors. They should not be considered as the views ofUNECE or as binding on any United Nations entity.
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UNITED NATIONS ECONOMIC COMMISSIONFOR EUROPE (UNECE)The United Nations Economic Commission for Europe (UNECE) is one of the five United Nationsregional commissions, administered by the Economic and Social Council (ECOSOC). It wasestablished in 1947 with the mandate to help rebuild post‐war Europe, develop economic activityand strengthen economic relations among European countries, and between Europe and the rest ofthe world. During the Cold War, UNECE served as a unique forum for economic dialogue andcooperation between East and West. Despite the complexity of this period, significant achievementswere made, with consensus reached on numerous harmonization and standardization agreements.
In the post‐Cold War era, UNECE acquired not only many new member States, but also newfunctions. Since the early 1990s the organization has focused on analyses of the transition process,using its harmonization experience to facilitate the integration of central and eastern Europeancountries into global markets. UNECE is the forum where the countries of western, central andeastern Europe, Central Asia and North America – 56 countries in all – come together to forge thetools of their cooperation. That cooperation concerns economic cooperation and integration,statistics, environment, transport, trade, sustainable energy, forestry and timber, housing and landmanagement and population. The Commission offers a regional framework for the elaboration andharmonization of conventions, norms and standards. The Commission’s experts provide technicalassistance to the countries of South‐East Europe and the Commonwealth of Independent States.This assistance takes the form of advisory services, training seminars and workshops wherecountries can share their experiences and best practices.
Inland Transport Committee (ITC) – Centre of United Nations Transport Conventions
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TRANSPORT IN UNECEThe UNECE Sustainable Transport Division is the secretariat of the Inland Transport Committee (ITC)and the ECOSOC Committee of Experts on the Transport of Dangerous Goods and on the GloballyHarmonized System of Classification and Labelling of Chemicals. The ITC and its 17 working parties,as well as the ECOSOC Committee and its sub‐committees are intergovernmental decision‐makingbodies that work to improve the daily lives of people and businesses around the world, inmeasurable ways and with concrete actions, to enhance traffic safety, environmental performance,energy efficiency and the competitiveness of the transport sector.
The ECOSOC Committee was set up in 1953 by the Secretary‐General of the United Nations at therequest of the Economic and Social Council to elaborate recommendations on the transport ofdangerous goods. Its mandate was extended to the global (multi‐sectoral) harmonization of systemsof classification and labelling of chemicals in 1999. It is composed of experts from countries whichpossess the relevant expertise and experience in the international trade and transport of dangerousgoods and chemicals. Its membership is restricted to reflect a proper geographical balance betweenall regions of the world and to ensure adequate participation of developing countries. Although theCommittee is a subsidiary body of EC OSOC, the Secretary‐General decided in 1963 that thesecretariat services would be provided by the UNECE Transport Division.
ITC is a unique intergovernmental forum that was set up in 1947 to support the reconstruction oftransport connections in post‐war Europe. Over the years, it has specialized in facilitating theharmonized and sustainable development of inland modes of transport. The main results of thispersevering and ongoing work are reflected, among other things, (I) in 58 United Nationsconventions and many more technical regulations, which are updated on a regular basis and providean international legal framework for the sustainable development of national and international road,rail, inland water and intermodal transport, including the transport of dangerous goods, as well asthe construction and inspection of road motor vehicles; (ii) in the Trans‐European North‐southMotorway, Trans‐European Railway and the Euro‐Asia Transport Links projects, that facilitate multi‐country coordination of transport infrastructure investment programmes; (iii) in the TIR system,which is a global customs transit facilitation solution; (iv) in the tool called For Future InlandTransport Systems (ForFITS), which can assist national and local governments to monitor carbondioxide (CO2) emissions coming from inland transport modes and to select and design climatechange mitigation policies, based on their impact and adapted to local conditions; (v) in transportstatistics – methods and data – that are internationally agreed on; (vi) in studies and reports thathelp transport policy development by addressing timely issues, based on cutting‐edge research andanalysis. ITC also devotes special attention to Intelligent Transport Services (ITS), sustainable urbanmobility and city logistics, as well as to increasing the resilience of transport networks and services inresponse to climate change adaptation and security challenges.
In addition, the UNECE Sustainable Transport and Environment Divisions, together with the WorldHealth Organization (WHO) – Europe, co‐service the Transport Health and Environment Pan‐European Programme (THE PEP). Finally, as of 2015, the UNECE Sustainable Transport Division isproviding the secretariat services for the Secretary General’s Special Envoy for Road Safety, Mr. JeanTodt.
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TableofContentsList of Figures ............................................................................................................................... .......... ix
List of Tables ............................................................................................................................... ........... ix
Chapter 1. Transport Infrastructure Financing Theory and Practice – an overview............................... 1
1.1. Tasks to be financed .................................................................................................................... 1
1.2. Sources and instruments of transport infrastructure financing .................................................. 2
1.2.1. Primary and secondary sources ............................................................................................ 2
1.2.2. Financing instruments........................................................................................................... 4
1.2.3. Taxation............................................................................................................................... ..6
1.2.4 User charges........................................................................................................................... 9
1.2.5. Non‐user funding ................................................................................................................ 12
1.2.6. Borrowing and private sector involvement ........................................................................ 12
1.2.7. Criteria for selecting and evaluating funding sources ........................................................ 15
1.3 Case studies on financing transport infrastructure .................................................................... 17
Chapter 2. Public‐Private Partnerships ................................................................................................. 23
2.1 Introduction ............................................................................................................................... .23
2.2 PPP Models ............................................................................................................................... ..23
2.2.1. Types and Examples of Transport Sector PPPs ............................................................. 23
2.2.2. Best Practice.................................................................................................................. 24
2.3 Policy and Legislative Framework............................................................................................... 24
2.3.1. Ensure PPP policy and legislation is robust and consistent with other policies ...........24
2.3.2. Prepare an evidence‐based delivery plan........................................................................... 25
2.3.3. Obtain formal support for the structure and policy from potential lenders......................25
2.3.4. Ensure that there is political and civil service support ....................................................... 25
2.3.5. Develop a focussed specialist office to manage the programme....................................... 25
2.3.6. Establish a suite of standard procurement protocols and documentation..................26
2.4. Economic context and affordability ........................................................................................... 26
2.4.1 Carry out transparent business case assessments for each project.................................... 26
2.4.2. Ensure the programme will enable competitive project financing .............................. 26
2.4.3. Develop a standardised ‘shadow’ cost model against which to compare value ................26
2.4.4. Offer robust payment security that guarantees investment return and debt repayment.27
2.4.5. Establish robust long‐term governance structures and processes..................................... 27
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TableofContentsList of Figures ............................................................................................................................... .......... ix
List of Tables ............................................................................................................................... ........... ix
Chapter 1. Transport Infrastructure Financing Theory and Practice – an overview ............................... 1
1.1. Tasks to be financed .................................................................................................................... 1
1.2. Sources and instruments of transport infrastructure financing .................................................. 2
1.2.1. Primary and secondary sources ............................................................................................ 2
1.2.2. Financing instruments ........................................................................................................... 4
1.2.3. Taxation ............................................................................................................................... .. 6
1.2.4 User charges ........................................................................................................................... 9
1.2.5. Non‐user funding ................................................................................................................ 12
1.2.6. Borrowing and private sector involvement ........................................................................ 12
1.2.7. Criteria for selecting and evaluating funding sources ........................................................ 15
1.3 Case studies on financing transport infrastructure .................................................................... 17
Chapter 2. Public‐Private Partnerships ................................................................................................. 23
2.1 Introduction ............................................................................................................................... . 23
2.2 PPP Models ............................................................................................................................... .. 23
2.2.1. Types and Examples of Transport Sector PPPs ............................................................. 23
2.2.2. Best Practice .................................................................................................................. 24
2.3 Policy and Legislative Framework ............................................................................................... 24
2.3.1. Ensure PPP policy and legislation is robust and consistent with other policies ........... 24
2.3.2. Prepare an evidence‐based delivery plan ........................................................................... 25
2.3.3. Obtain formal support for the structure and policy from potential lenders ...................... 25
2.3.4. Ensure that there is political and civil service support ....................................................... 25
2.3.5. Develop a focussed specialist office to manage the programme ....................................... 25
2.3.6. Establish a suite of standard procurement protocols and documentation .................. 26
2.4. Economic context and affordability ........................................................................................... 26
2.4.1 Carry out transparent business case assessments for each project .................................... 26
2.4.2. Ensure the programme will enable competitive project financing .............................. 26
2.4.3. Develop a standardised ‘shadow’ cost model against which to compare value ................ 26
2.4.4. Offer robust payment security that guarantees investment return and debt repayment . 27
2.4.5. Establish robust long‐term governance structures and processes ..................................... 27
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2.4.6 Develop an economic framework for fiscal commitments .................................................. 27
2.5. Planning, Timing, Objectives, and Business Cases ..................................................................... 27
2.5.1 Develop a clear planning context for the PPP programme ................................................. 27
2.5.2 Establish clear and objective approval processes ......................................................... 27
2.5.3 Establish a robust format for business cases ................................................................ 27
2.5.4. Use clear and objective output‐based specifications ................................................... 27
2.5.5. Consider the use of a ‘Reference Solution’ ................................................................... 27
2.5.6. Incorporate robust business case risk allocation and value for money assessment .... 28
2.6 Training and Resources ............................................................................................................... 28
2.6.1 Plan programme management resources and training ....................................................... 28
2.6.2. Build strong, objective commercial understanding into project teams ....................... 28
2.6.3 Develop a robust induction and support programme for stakeholders ....................... 28
2.7 Market Assessment and Engagement .................................................................................. 28
2.7.1 Realistically match capacity .......................................................................................... 28
2.7.2 Draw on proven experience ................................................................................................. 29
2.7.3. Clearly set out risk transfer proposals ................................................................................ 29
2.8 Transparent Procurement and Management Processes ...................................................... 29
2.8.1 Implement robust and transparent programme governance ...................................... 29
2.8.2 Standardise the procurement process and procedures ............................................... 29
2.8.3 Evaluate tenders transparently and publish formal evidence of value for money ...... 29
2.8.4 Promote Zero Tolerance to Corruption ........................................................................ 30
2.8.5 Record and publish procurement and management information ................................ 30
2.9 Sector Specific Issues ............................................................................................................ 30
2.9.1 Regulation ..................................................................................................................... 30
2.9.2. Patronage ............................................................................................................................ 30
2.9.3 Mixed Economy Infrastructure ..................................................................................... 31
2.9.4 Cost Overruns ................................................................................................................ 31
2.9.5 Early Termination Arrangements .................................................................................. 31
2.10 Case Studies .......................................................................................................................... 31
2.10.1. Nottingham Express Transit .......................................................................................... 31
2.10.2. Railway Infrastructure Enhancements .............................................................................. 34
2.10.3. Rolling Stock Procurement ............................................................................................ 37
2.10.4. Analysis of contractual structures for procurement of net phase two ............................ 38
2.11 Conclusions ........................................................................................................................... 45
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Chapter 3 Electronic Tolls ..................................................................................................................... 46
3.1. Introduction ............................................................................................................................... 46
3.2. Main technologies for electronic toll collection systems .......................................................... 47
3.2.1. Electronic vignette .............................................................................................................. 47
3.2.2 Electronic distance‐based systems ............................................................................... 49
3.3. Necessary factors for successful deployment of electronic toll system ............................... 55
3.3.1. Legislation, some specificity for electronic toll system ...................................................... 55
3.3.2. Enforcement ....................................................................................................................... 56
3.3.3. Public acceptance ............................................................................................................... 58
3.3.4. Users of roads ..................................................................................................................... 59
3.3.5. Road network ...................................................................................................................... 60
3.4 Life cycle overview ................................................................................................................ 61
3.4.1. Definition of transport policies ..................................................................................... 61
3.4.2. Feasibility ...................................................................................................................... 62
3.4.3. Planning ......................................................................................................................... 62
3.4.4. Contracting .................................................................................................................... 63
3.4.5. Project setup ................................................................................................................. 63
3.4.6. Project start ................................................................................................................... 63
3.4.7. Project operation .......................................................................................................... 63
3.4.8. Extension / Renewal / Migration / Elimination ............................................................. 64
3.9. Case studies ............................................................................................................................... 64
3.9.1. BelToll – Belarus’ electronic toll collection system ............................................................. 64
3.9.2. Chile ............................................................................................................................... ..... 65
3.9.3. viaTOLL – Poland’s electronic toll collection system .......................................................... 66
Chapter 4 Alternative Ways to finance transport infrastructure ......................................................... 68
4.1 Land Value Taxation .................................................................................................................... 68
4.1.1 The advantages of Land Value Tax ....................................................................................... 69
4.1.2 LVT Finances transport infrastructure ................................................................................. 70
4.2. Infrastructure plus Property approach. ..................................................................................... 74
4.3. The regulated asset base (RAB) model. ..................................................................................... 75
4.4 The Least Present Value of Revenue’ (LPVR) mechanism. .......................................................... 77
4.5 Non‐fare box revenue (NFR) ....................................................................................................... 78
4.6 Ride sharing services ................................................................................................................... 79
Chapter 5 Conclusions and recommendations ..................................................................................... 82
References ............................................................................................................................... ............. 87
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ListofFiguresFigure 1 Overlapping of cost bearers’ groups taking part in road funding ............................................. 3 Figure 2 Budget funding vs traffic volume and performance ................................................................. 8 Figure 3 Investment in road infrastructure in selected EU member States in 2007 (€ million). (ERF, 2009) ............................................................................................................................... ........................ 9 Figure 4 Investment in road infrastructure in selected EU member States in 2007 (€/km). (ERF, 2009) ............................................................................................................................... ................................. 9 Figure 5 General government debt (general government consolidated gross debt as per cent of GDP). ............................................................................................................................... ............................... 13 Figure 6 Investment commitments to transport projects with private participation in Europe and Central Asia, by subsector, 1992–2008 ................................................................................................. 14 Figure 7 Investment commitments to road projects with private participation in developing countries, by type of investment, 1990–2008 ...................................................................................... 14 Figure 8 Financial proposals and financial decisions supported by pre‐feasibility and feasibility study in the cycle of operations..................................................................................................................... . 16 Figure 9 Estimated cost of pre‐feasibility and feasibility studies expressed as percentage of project cost ............................................................................................................................... ......................... 17 Figure 10 Overview of European practices in motorway concessions (with or without toll) (Bousquet‐ Fayard, 2005) ............................................................................................................................... ......... 20 Figure 11 Installation of a toll plaza for a manual toll collection system ............................................. 47 Figure 12 Installation of a gantry for an electronic toll collection system ........................................... 47 Figure 13 Exemplary figure of an ANPR camera ................................................................................... 48 Figure 14 Exemplary figure of a DSRC on‐board unit that is mounted on a vehicle’s windscreen ...... 50 Figure 15 System architecture of DSRC based electronic toll collection system .................................. 50 Figure 16 Exemplary figure of a GNSS on‐board unit that is mounted on a vehicle’s windscreen in comparison to a smaller DSRC on‐board unit ....................................................................................... 52 Figure 17 System architecture of satellite based electronic toll collection system ............................. 52 Figure 18 Exemplary figure of a sticker tag that is mounted on a vehicle’s windscreen...................... 55 Figure 19 Public acceptance for the introduction of toll collection systems ........................................ 58 Figure 20 Life cycle overview of a toll collection system ...................................................................... 61
ListofTablesTable 1 Financing Instruments: and overview ........................................................................................ 5 Table 2 At the pump fuel prices in EU25, 2007. (ERF, 2009) .................................................................. 7 Table 3 Motor vehicle tax revenue in EU 15, 2007, € billion. (ERF, 2009) .............................................. 8 Table 4 Toll net revenues in EU member States (€ million) (ERF, 2009) .............................................. 11 Table 5 Shares of revenue from road related taxes and fees in selected European countries in 1998 ............................................................................................................................... ............................... 18 Table 6 Road related revenue and its components (percentages) ....................................................... 19
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ListofFiguresFigure 1 Overlapping of cost bearers’ groups taking part in road funding............................................. 3Figure 2 Budget funding vs traffic volume and performance ................................................................. 8Figure 3 Investment in road infrastructure in selected EU member States in 2007 (€ million). (ERF,2009) ............................................................................................................................... ........................9Figure 4 Investment in road infrastructure in selected EU member States in 2007 (€/km). (ERF, 2009)............................................................................................................................... ................................. 9Figure 5 General government debt (general government consolidated gross debt as per cent of GDP)................................................................................................................................ ............................... 13Figure 6 Investment commitments to transport projects with private participation in Europe andCentral Asia, by subsector, 1992–2008................................................................................................. 14Figure 7 Investment commitments to road projects with private participation in developingcountries, by type of investment, 1990–2008...................................................................................... 14Figure 8 Financial proposals and financial decisions supported by pre‐feasibility and feasibility studyin the cycle of operations..................................................................................................................... .16Figure 9 Estimated cost of pre‐feasibility and feasibility studies expressed as percentage of projectcost............................................................................................................................... .........................17Figure 10 Overview of European practices in motorway concessions (with or without toll) (Bousquet‐ Fayard, 2005) ............................................................................................................................... .........20Figure 11 Installation of a toll plaza for a manual toll collection system ............................................. 47Figure 12 Installation of a gantry for an electronic toll collection system ........................................... 47Figure 13 Exemplary figure of an ANPR camera ................................................................................... 48Figure 14 Exemplary figure of a DSRC on‐board unit that is mounted on a vehicle’s windscreen ......50Figure 15 System architecture of DSRC based electronic toll collection system.................................. 50Figure 16 Exemplary figure of a GNSS on‐board unit that is mounted on a vehicle’s windscreen incomparison to a smaller DSRC on‐board unit....................................................................................... 52Figure 17 System architecture of satellite based electronic toll collection system ............................. 52Figure 18 Exemplary figure of a sticker tag that is mounted on a vehicle’s windscreen...................... 55Figure 19 Public acceptance for the introduction of toll collection systems........................................ 58Figure 20 Life cycle overview of a toll collection system...................................................................... 61
ListofTablesTable 1 Financing Instruments: and overview ........................................................................................ 5Table 2 At the pump fuel prices in EU25, 2007. (ERF, 2009) .................................................................. 7Table 3 Motor vehicle tax revenue in EU 15, 2007, € billion. (ERF, 2009).............................................. 8Table 4 Toll net revenues in EU member States (€ million) (ERF, 2009) .............................................. 11Table 5 Shares of revenue from road related taxes and fees in selected European countries in 1998............................................................................................................................... ............................... 18Table 6 Road related revenue and its components (percentages)....................................................... 19
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Table 7 Highway concessions in Europe, as of February 2004 ............................................................. 22 Table 8 Key areas of franchise agreement risk and their mitigants ..................................................... 36
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Chapter1.TransportInfrastructureFinancingTheoryandPractice–anoverview__________________________________________________________________________________
1.1.TaskstobefinancedDuring recent decades governments all around the world were faced with a complicated set of options for investing in transport, including transport infrastructure. This report examines main principles for determining the most appropriate models for financing transport infrastructure expenditures. Financing, in this context, means the provision of money at the time and in the quantity, that is needed to meet society’s transport infrastructure and transport service provision needs. Thus, financing is a basic underpinning of the entire process of providing and operating transport infrastructure.
Accepting the view, that transport infrastructure is needed to provide a well‐defined set of public services, at the highest‐level financing the transport sector, including transport infrastructure expenditures, is fundamentally a sovereign task, which involves determining how much of the government’s available (public) resources will be channeled into the transport infrastructure, during a given period, as opposed to other policy priorities. Sovereign tasks are fundamentally the role of government, and cannot be carried out by external parties.
A great array of tasks is involved in the provision of transport infrastructure and transport services. Some of these correspond directly to specific points in the life cycle of the transport infrastructure, while others are ongoing. The tasks associated with providing and operating transport infrastructure can be determined as follows:
(i) Administrative tasks:
(a). Establishing high‐level policy directions, development and operation strategies related to provision of transport infrastructure and transport related public services.
(b). Definition and organization of the political and administrative framework for decision making.
(c). Allotment of responsibilities. (d). Needs assessment and demand management. (e). Definition, selection (evaluation), preparation and approval of multiannual programs and
individual transport projects, based on appropriate feasibility studies (including cost‐benefit analysis and environmental impact assessment), preferably carried out following standardized (e. g. European Union (EU)) methodologies.
(f). Selection of procurement and delivery methods. (g). Supervision of works and assurance of performance and quality. (h). Education and training of transport infrastructure specialists, research & development (i). Regulation of the activities in the transport sector (permits, licenses, etc.)
(ii) Works and maintenance related tasks:
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Chapter1.TransportInfrastructureFinancingTheoryandPractice–anoverview__________________________________________________________________________________
1.1. Tasks to be financedDuring recent decades governments all around the world were faced with a complicated set ofoptions for investing in transport, including transport infrastructure. This report examines mainprinciples for determining the most appropriate models for financing transport infrastructureexpenditures. Financing, in this context, means the provision of money at the time and in thequantity, that is needed to meet society’s transport infrastructure and transport service provisionneeds. Thus, financing is a basic underpinning of the entire process of providing and operatingtransport infrastructure.
Accepting the view, that transport infrastructure is needed to provide a well‐defined set of publicservices, at the highest‐level financing the transport sector, including transport infrastructureexpenditures, is fundamentally a sovereign task, which involves determining how much of thegovernment’s available (public) resources will be channeled into the transport infrastructure, duringa given period, as opposed to other policy priorities. Sovereign tasks are fundamentally the role ofgovernment, and cannot be carried out by external parties.
A great array of tasks is involved in the provision of transport infrastructure and transport services.Some of these correspond directly to specific points in the life cycle of the transport infrastructure,while others are ongoing. The tasks associated with providing and operating transport infrastructurecan be determined as follows:
(i) Administrative tasks:
(a). Establishing high‐level policy directions, development and operation strategies related toprovision of transport infrastructure and transport related public services.
(b). Definition and organization of the political and administrative framework for decisionmaking.
(c). Allotment of responsibilities.(d). Needs assessment and demand management.(e). Definition, selection (evaluation), preparation and approval of multiannual programs and
individual transport projects, based on appropriate feasibility studies (including cost‐benefitanalysis and environmental impact assessment), preferably carried out followingstandardized (e. g. European Union (EU)) methodologies.
(f). Selection of procurement and delivery methods.(g). Supervision of works and assurance of performance and quality.(h). Education and training of transport infrastructure specialists, research & development(i). Regulation of the activities in the transport sector (permits, licenses, etc.)
(ii) Works and maintenance related tasks:
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(a). New construction (increasing capacity of the existing transport network by extension,building new elements).
(b). Upgrading the existing transport infrastructure (increasing capacity by widening,strengthening pavements and bridges, improving alignment, etc.).
(c). Major repairs/rehabilitations.(d). Maintenance.
(iii) Operation related tasks:
(a). Traffic survey, regulation and management, ensuring availability and safety.(b). Survey and assessment of the condition of the transport infrastructure, i. e. quality of
services provided.(c). Establishment and operation of a transport infrastructure data bank.(d). Asset management and accounting.(e). Toll collection (if applicable).
All tasks outlined above must, of course, be financed, including the necessary administrativestructures within the public sector required to oversee transport infrastructure and transportservices provision, no matter what model is employed. Governments must also decide how theamount of available public (and potentially private) resources will be distributed among the differenttasks, and between transport infrastructure and transport service provision.
This chapter is intended to study first, how the amount of public resources allocated to finance newconstruction and its share among total transport expenditures are determined for medium and longterm, and what measures are needed to secure, that the allocated money will spent for that purposeand nothing else.
1.2. Sources and instruments of transport infrastructure financing
1.2.1. Primary and secondary sourcesConcerning the resources available for transport infrastructure financing, at the most basic level,there are only two primary sources of revenue: taxpayers and transport infrastructure users.Although demand for provision of (more) transport infrastructure and (improved) transport servicesappear to be growing, the public revenues available for transport spending are becoming moreuncertain. Motor fuel and vehicle taxes—which account for approximately two third of publicfunding for road projects—have not kept pace with inflation in many countries – especially incountries of UNECE Trans European Motorways (TEM) project ‐ and nationally have declined in valueand purchasing power. With the cost of fuel remaining high at the pump, motor vehicle fuel taxincreases to pay for transportation projects are politically unpopular.
Other primary sources of public funding—such as tolls, vehicle registration fees, driver’s license fees,special truck license fees, and a host of miscellaneous taxes and fees—can be politically unpopular,making it difficult to derive additional funding from these mechanisms to compensate for theincreased need for transport network development.
Secondary, or additional resources may come from:
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3
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1.2.2. Financing instrumentsThere are many different types of instruments a government, public institution, or any corporateentity may use to finance its expenditure. In general, financing instruments fall into one of twocategories ‐ debt or equity. Although there are certain exceptions, debt instruments generallyrepresent fixed obligations to repay a specific amount at a specified date in the future, together withinterest. In contrast, equity instruments generally represent ownership interests entitled to dividendpayments, when declared, but with no specific right to a return on capital. Public budgets’contributions, subsidies and grants of international organizations can be considered as specificequity instruments stripped from (direct) reimbursement in form of dividend payments or return oncapital.
Within each of these two general categories, there are a wide variety of rights, privileges, andlimitations that may be established by the investing or borrowing entity (see Table 1). Commonstock is the most basic form of equity instrument. It represents an ownership interest in acorporation, including an interest in earnings, that translate into declared dividends as well as aninterest in assets distributed upon dissolution. Preferred stock is another form of equity instrument.It represents a hybrid in the sense that it is an equity interest with certain features resembling debt.Holders of common stock (stockholders, or shareholders) have the greatest opportunity to share in acompany's profitability because of the unlimited potential for dividends, appreciation in the value oftheir common stock, and realization of liquidation proceeds. However, common stock holders alsobear the greatest risk of loss because they are generally subordinate to all other creditors andpreferred stock holders.
Debt instruments, such as notes, bonds, and debentures, are generally entitled to receive paymentswhich are senior in priority to preferred or common stockholders. Debt instruments may be securedby certain assets of the corporation or may be unsecured (i.e., backed by a simple pledge of theborrower's credit). Debt instruments may be long‐term or short‐term in duration, and carry variableor fixed interest rates. Debt instruments may impose certain affirmative or negative obligationsupon the borrower, including restrictions on the ability of the borrower to complete certaintransactions (such as incurring other indebtedness or issuing capital stock). Several advantages toissuing debt instruments include: predictability of payments to investors, no dissolution inmanagement's interest in corporate growth and voting power, and investors assume less risk of lossin their investment. Disadvantages include: potential restrictions on operations, limitations on theuse of working capital due to debt service obligations, and tying up assets through pledges ascollateral.
There are numerous considerations involved in the transport infrastructure funding planning processto make use of debt or equity instruments. The planner should consider the various types ofinstruments which may be used and the respective advantages and disadvantages of each type fromboth the viewpoint of incumbent government or public entity as well as prospective taxpayers asinvestors or borrowers. Both near‐term and long‐term objectives for each should be duly consideredwhen developing transport infrastructure financing strategies.
4
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4
1.2.2.FinancinginstrumentsThere are many different types of instruments a government, public institution, or any corporate entity may use to finance its expenditure. In general, financing instruments fall into one of two categories ‐ debt or equity. Although there are certain exceptions, debt instruments generally represent fixed obligations to repay a specific amount at a specified date in the future, together with interest. In contrast, equity instruments generally represent ownership interests entitled to dividend payments, when declared, but with no specific right to a return on capital. Public budgets’ contributions, subsidies and grants of international organizations can be considered as specific equity instruments stripped from (direct) reimbursement in form of dividend payments or return on capital.
Within each of these two general categories, there are a wide variety of rights, privileges, and limitations that may be established by the investing or borrowing entity (see Table 1). Common stock is the most basic form of equity instrument. It represents an ownership interest in a corporation, including an interest in earnings, that translate into declared dividends as well as an interest in assets distributed upon dissolution. Preferred stock is another form of equity instrument. It represents a hybrid in the sense that it is an equity interest with certain features resembling debt. Holders of common stock (stockholders, or shareholders) have the greatest opportunity to share in a company's profitability because of the unlimited potential for dividends, appreciation in the value of their common stock, and realization of liquidation proceeds. However, common stock holders also bear the greatest risk of loss because they are generally subordinate to all other creditors and preferred stock holders.
Debt instruments, such as notes, bonds, and debentures, are generally entitled to receive payments which are senior in priority to preferred or common stockholders. Debt instruments may be secured by certain assets of the corporation or may be unsecured (i.e., backed by a simple pledge of the borrower's credit). Debt instruments may be long‐term or short‐term in duration, and carry variable or fixed interest rates. Debt instruments may impose certain affirmative or negative obligations upon the borrower, including restrictions on the ability of the borrower to complete certain transactions (such as incurring other indebtedness or issuing capital stock). Several advantages to issuing debt instruments include: predictability of payments to investors, no dissolution in management's interest in corporate growth and voting power, and investors assume less risk of loss in their investment. Disadvantages include: potential restrictions on operations, limitations on the use of working capital due to debt service obligations, and tying up assets through pledges as collateral.
There are numerous considerations involved in the transport infrastructure funding planning process to make use of debt or equity instruments. The planner should consider the various types of instruments which may be used and the respective advantages and disadvantages of each type from both the viewpoint of incumbent government or public entity as well as prospective taxpayers as investors or borrowers. Both near‐term and long‐term objectives for each should be duly considered when developing transport infrastructure financing strategies.
5
Table 1 Financing Instruments: and overview
Financing tools Private funding Public funding Generally: budget none General taxes Special case: extra budgetary funds or Earmarked/dedicated
Capital financing (1) Senior sharesMezzanin
financing (2)
Equity Preference shares, convertible shares Debt Subordinated loan (3), subordinated bonds,
Debt financing
Loans
Commercial loans
(syndicated loans)
Loans borrowed from governments, banks,
international financiali tit ti i l
Bonds
Private issue
Project bonds Bonds with sovereign
guarantee, municipal bonds, bonds of publicly owned companies,
bonds guaranteed by international financialinstitutions
Public
issue
Stand‐by and conditional loans, buffer stocks (5)
Guarantees
Commercial banks’
guarantee, credit line guarantee (4), standby source (5), direct insurance (6)
Sovereign guarantee,
guarantee of State financial institution, guarantee of international or regional financial institutions
Revenues generated by the project Toll revenues, revenues generated by secondary developments
Retained earnings Retained profit, warrantiesPledging assets Bonds noneCapital increase by share issue Share issue at the none
Value capture; using part of the added
value, generated by the project, enjoyed by its beneficiaries
none Increase of property
taxes, tax surplus funding, land lease fee, special charges
(1) Investment; (2) Funding facilities transient between investment and lending, showing some common features with each of them ;
5
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(3) Disbursement is conditional upon certain tests; its principal and interest are to be paidonly after scheduled debt service of senior debt was already duly met;(4) Limited guarantee amount within a given credit line opened by a bank to a client;(5) Facilities available only in case well defined conditions are met;(6) Insurance provided by the insurance company, enjoying exclusivity.
1.2.3. TaxationThe most common financing instrument for transport infrastructure is the government budget,sourced from tax revenues and eventual public borrowing. Policy decisions establish the extent ofpublic funding to provision of transport infrastructure and transport services as opposed to otherpriorities. This is based on consideration of taxpayers’ priorities, often formulated in platformsestablished by politicians during the electoral process and finalized during discussions at thegovernment level. Direct public financing may also be subject to negotiation between different levelsof government. For example, in a federal system (like Germany), some taxes may be collected by thecentral government, although responsibility for transport infrastructure development, maintenanceand operation may be at the state, or regional level. In these instances, central governmentsdistribute appropriate tax revenues to the states (Länder), or regions. In some cases, allocations areearmarked for specific purposes, and the states may lobby and negotiate for more funds. A similardynamic may exist between local (municipal) governments and regional, state or centralgovernments, or even between national governments of EU member States and the EuropeanCommission.
Table 2 shows the share of taxes within the price of fuel in EU25 member States in 2007, while Table3 provides information about motor vehicle tax revenues in EU15 member States in 2007 (no dataare available for other EU member States).
Resources from the public sector’s pool of general revenue are today, and are likely to continuebeing, a primary means of financing much of most European countries’ transport systems. Thismeans that, as governments contemplate the use of alternative financing instruments andmechanisms (including PPP‐s), they must also determine the role of public contribution andsubsidies in these.
Many models commit governments to using general revenues to pay for transport infrastructureover long time periods, and this must be accounted for when the original choice of funding model ismade.
A primary complaint regarding traditional budget funding is that it does not meet transportinfrastructure needs justified by ever growing demand reflected by the observed traffic volume andperformance (Figure 2).
However, where this is so it may be a manifestation of other priorities being put before provision oftransport infrastructure and transport services in the budgeting process, which in turn is theprerogative of political decision‐making. For example, many European countries collect much morein transport infrastructure‐related fiscal charges than they spend on provision of transportinfrastructure (see Figure 3 and Figure 4).
Direct public financing is often seen as being inflexible and subject to political considerations. It may,therefore, be difficult to address the life‐cycle costs of transport infrastructure and to prioritize
6
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accordininfrastruplans acommitmdue to tcycle co
Table 2 A
ngly. Budgetucture fundind programments to thehe inherentst managem
At the pump
t processesng may bems, insteadese programlogic of annu
ment in the tr
p fuel prices i
can, howeconsideredof individu
ms and projecual budget pransport sect
in EU25, 200
ever, be main the cont
ual projectscts, and subjprocesses, ittor.
07. (ERF, 200
ade more fltext of medi. Governmeject them tois difficult fo
09)
lexible. Forium‐ or longents can alo indexed adjor governmen
example, tg‐term deveso make lojustments. Hnts to fully a
transportelopmentong‐termHowever,pply life‐
7
-
Table 3
Figure 2 B
Motor vehic
Budget funding
le tax revenu
g vs traffic volum
ue in EU 15,
me and perform
2007, € billio
mance
on. (ERF, 20009)
8
-
Figure 3 In
Figure 4 In
1.2.4 UsUser chausuallyhaulers)purchasand expfor road
There isare notThus, tatransporIndeed,transpordrownedroad sec
A road fdepositroad rel
nvestment in ro
nvestment in ro
ser chargesarges are levrefers to to) or shippersed to allow tpressways) dfinancing in
s sometimesseen to beaxes on fuelrt infrastructa significantrt, vehiclesd into generctor (via app
fund differsrevenues wlated or oth
oad infrastruct
oad infrastruct
svied for the polls and tarif. For instancthe right to uuring a welln the EU (see
a debate abdirectly rela(especiallyture user cht portion of mand fuel. T
ral governmeropriate road
from generawhich can onher taxes as
ture in selected
ture in selected
purchase of sffs paid diree, some Eurouse an overadetermined
e Table 4).
bout what cted to consuthose leviedharges, as thmost governTransport inent revenued funds).
al taxation fly be spentwell. So, ca
d EU member S
d EU member S
specific servectly by tranopean countall public road period. Tol
onstitutes aumption of ad on the tohe revenuesments’ revenfrastructurees – as is usu
unding in thon road infalled „second
States in 2007 (€
States in 2007 (€
ices. Wherensport infrastries use “vigd system, orls collected
user chargea specific gop of generaresult fromnue comes fe‐related fisually the cas
he sense tharastructure.d generation
€ million). (ERF
€/km). (ERF, 20
transport isstructure usegnettes”, a flr only a partconstitute a
e versus a taood or servicl taxes, like
m the use offrom taxes ascal chargesse – or earm
t a special aThese revenn” road fund
F, 2009)
009)
concerned,ers (car ownat rate permof it (e.g. moconsiderabl
ax. Technicace, while a cTVA) couldtransport nnd charges ls and taxesmarked for us
account is crnues can cods are based
the termners andmit that isotorwaysle source
lly, taxescharge is.d well beetworks.levied oncan be
se in the
reated tome fromd on the
9
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10
principle that roads are considered a utility. An important characteristic distinguishing them from previous (first generation) road funds is the separation of the utility‐charge related to road use and a tax paid into public revenue.
However, road funds are seldom in use in European countries. User charges may be employed with different, and potentially conflicting, objectives in mind. One purpose may be to compensate the infrastructure provider for costs of operation and maintenance (including some part of external costs), plus up‐front financing of a project and generate profits, which will inevitably provide the operator with incentives to increase traffic. Alternatively, user charges may be set for demand management purposes, implying a desire to limit the use of infrastructure.
User charges exist also in railways. Infrastructure managers should set the charges using the infrastructure at the costs directly incurred by the train service. Commission Implementing Regulation (EU) 2015/909 on the modalities to calculate direct costs provides details on how infrastructure managers should calculate their direct costs. The regulation provides cost categories that are not eligible. When infrastructure managers receive funds, they do not have to pay back. However, they are not allowed to include any costs derived from such payments into their infrastructure charges. Average direct unit costs can be modulated based on vehicle, operational and infrastructure parameters. Traffic diversions at the instigation of the infrastructure manager should not increase charges. Alternatively, to calculating average unit costs and modulating them, infrastructure managers may use cost modelling in accordance with best available international practice. Regulatory body may determine and apply a simplified control of direct costs if their values remain below certain thresholds1.
1 https://ec.europa.eu/transport/modes/rail/infrastructures/charges_en
Table 4 To
Tolls areoperatiocompanWhere cnon‐speallowingexact us
Distancecharges and Switolling teOslo, Beview to
oll net revenue
e often colleon of the roaies) may colcharges are ecific public g for road tose of the syst
e based tarifon motorwatzerland, whechnologies ergen, Trond managing
es in EU membe
ected by the ad infrastruclect tolls, whnot earmarpolicy priorlling systemstem.
ffs and electrays in Europehich is suppoare used at dheim, Romedemand. Ho
er States (€ mil
entity respoture. In othehich may be ked, they arities. Technos that are ne
ronic toll cole, most notaorted as a mtoll gates one and Stockhowever, for
11
lion) (ERF, 200
onsible for eer instances, specifically re applied toology – eithetwork or sy
lection is emably in Germmatter of poln motorwayholm apply the mome
9)
either the prdifferent staearmarked fo general goer GPRS or stem‐wide, a
mployed for any, Austria,licy by the Es in France, charges to dent, there is
rovision or tate entities (for transfer tovernment asatellite‐basaimed at cha
Heavy Good, Czech RepuEuropean UnItaly, Spain adrivers in ths still no pr
he maintena(or dedicatedto the road paccounts andsed – is incarging users
s Vehicles(Hublic, Slovak nion. Other fand Greece.e urban areroven techn
ance and d private provider. d thus to reasingly for their
GV) user Republic free flow London, ea with a ology to
10
-
Table 4 To
Tolls areoperatiocompanWhere cnon‐speallowingexact us
Distancechargesand Switolling teOslo, Beview to
oll net revenue
e often colleon of the roaies) may colcharges areecific publicg for road tose of the syst
e based tarifon motorwatzerland, whechnologiesergen, Trondmanaging
es in EU membe
ected by thead infrastruclect tolls, whnot earmarpolicy priorlling systemstem.
ffs and electrays in Europehich is suppoare used atdheim, Romedemand. Ho
er States (€ mil
entity respoture. In othehich may beked, they arities. Technos that are ne
ronic toll cole, most notaorted as a mtoll gates one and Stockhowever, for
lion) (ERF, 200
onsible for eer instances,specificallyre applied toology – eithetwork or sy
lection is emably in Germmatter of poln motorwayholm applythe mome
9)
either the prdifferent staearmarked fo general goer GPRS orstem‐wide, a
mployed forany, Austria,licy by the Es in France,charges to dent, there is
rovision or tate entities (for transfer tovernment asatellite‐basaimed at cha
Heavy Good, Czech RepuEuropean UnItaly, Spain adrivers in ths still no pr
he maintena(or dedicatedto the road paccounts andsed – is incarging users
s Vehicles(Hublic, Slovaknion. Other fand Greece.e urban areroven techn
ance andd privateprovider.d thus toreasinglyfor their
GV) userRepublicfree flowLondon,
ea with aology to
11
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effectively price the use of entire road networks for all users at the point of use, although there ismuch potential in the deployment of satellite‐based systems and advances in on‐board vehicleequipment.
1.2.5. Non‐user fundingThe leasing of space for services related to transport infrastructure use can also provide sources ofrevenues. These could include, among other elements, restaurants, food outlets, stores, parking lots,motels and service stations, in old or main rail stations or alongside roads. This financing source hasconsiderable potential to provide revenues without necessarily adding “new” costs where thetransport infrastructure user or taxpayer is concerned.
A further possible source of non‐user funding of transport infrastructure development involvestaxing increases in property values that a given project may bring about – in other words chargingthe indirect beneficiary as opposed to the direct user. This creates a motive for the private sector,such as the construction industry or certain business sectors (e.g. supermarkets, warehouses,multimodal terminals, etc.), to pay for having the connecting transport infrastructure built. There arealso examples where property developers have paid for parts of the cost of building connecting roadinfrastructure. More information on that is provided in chapter four.
1.2.6. Borrowing and private sector involvementBorrowing means that payment is deferred, and thus that future rather than present taxpayers ortransport infrastructure users will pay. Transport infrastructure assets typically have hugeconstruction costs and very long‐life spans. This may provide an obvious rationale for borrowing toeven out payments among beneficiaries over time. In most European countries, public borrowing is,however, not specifically linked to spending on transport.
Sovereign governments should borrow to smooth national consumption or to undertake publicinvestment projects (among them socio‐economically efficient transport infrastructure projects) thatthey could not finance otherwise. The ability of a sovereign government to borrow on internationalcredit markets depends on its perceived ability to repay and on the incentives, it will have to do it. Inrecent years, the theoretical literature on sovereign borrowing has dealt mainly with the second ofthese issues: the country’s willingness to repay. The question at the heart of the sovereignborrowing literature was why governments have an incentive to repay their debts with foreigncreditors within the existing international legal framework. There is no bankruptcy code forsovereign borrowers and lenders cannot take control of a country nor seize a significant amount ofits assets in the event of a sovereign default.
Economists have offered two main explanations for why governments may want to repay:reputation (exclusion from future credit) and direct sanctions. While sovereign governments’willingness to repay is an important factor, lenders will naturally also be concerned about theirability to repay. Here, both issues of long‐term solvency and short‐term liquidity must be consideredand assessed carefully.
Turning to empirical implications, the repudiation models that allow for the existence of lendingmostly predict credit rationing in the form of a debt ceiling. This upper bound of the debt a countrycan incur depends on the costs it must pay in the event of a default. These costs are usually relatedto the links that a country has with the world (including reputation spillovers): trade and financial
12
-
linkagespunishmshould aexpect thigher lorate, wilshould hhigher in
Economwithin tEurozonpublic dmemberdebt per
Figure 5 G
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13
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In searcinto tranand Figu
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Figure 7 Ininvestmen
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Investment cor, 1992–2008
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ommitments to
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or debt,transportenues tow tolls (inelated to
14
-
performance and quality of services provided, paid by the client (public) authority, or a mixture ofthese sources.
Public‐private partnership (PPP) projects are highly leveraged capital‐intensive projects. Lenders,which provide the major portion of financing in the form of debt instruments, undertake loanapproval processes to examine the various aspects of the projects that could influence the debtservicing capability while making credit decisions. In view of this, project sponsors could also assessbeforehand how desirable is the project from the debt financing perspective to facilitate timelyarrangement of debt financing and avoid funding problems. More information on PPPs is provided inchapter three.
1.2.7. Criteria for selecting and evaluating funding sourcesEach of the sources mentioned above has potential applicability in a variety of settings. Whether asource is of potential use in a social and economic environment depends on a variety of factors,many of which are contextual and unique to individual conditions. Contextual factors requiringreview in the search for new funding sources are the following:
(a). State, regional and local governance traditions and philosophies of taxation and publicspending,
(b). The types of transport projects and transport services to be funded,(c). The elements for which funding is being sought (e.g., ongoing transport infrastructure
agency development programs or individual transport projects),(d). The type of source that is desired and that is appropriate (e.g., pay‐as‐you‐go funding or
debt financing, and(e). National, regional and local perspectives on the role of transport in the community now and
in the future.
A good understanding of these contextual factors is an important prerequisite in the search forenhanced transport infrastructure network development funding. Once contextual factors areunderstood, all stakeholders must come to a similar understanding of the general advantages anddisadvantages of available alternative funding sources as well as an understanding of how thesealternatives satisfy a set of widely used criteria. Among the most important of these criteria are thefollowing:
(a). Revenue yield adequacy and stability,(b). Cost efficiency in the application of sources,(c). Equity in the application of the alternatives across demographic and income groups as well
as jurisdictions involved,(d). Economic efficiency in balancing „who pays” with „who benefits” from transport
infrastructure investments under consideration,(e). Political and popular acceptability, and(f). Technical feasibility.
Among these criteria, revenue yield is a principal consideration. An enormous amount of effort isrequired to enact and sustain funding for any public service, including provision of transportinfrastructure and transport services. When these efforts are undertaken, sponsors should be
15
-
certain tand be p
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Figure 8 Foperation
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16
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alternatgo/no‐gbenefit a
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outcome ofements of almental impa
ty and feasibili
ncing tranof spendingoblems are pf governmenrelevant in
spective tiersinition of cerare used, bloans.
etween reinv5 summarizen selected Ef 66per centp. Revenues
fferent sourcarized in Tabseen in the p7per cent o
f a feasibilityll feasibilityact assessme
ity studies expr
nsport infon, and revarticularly pt. Differenceformation as may differrtain concepbut some co
vestment anes the propouropean cout of revenuefrom the roa
ce – the Inble 6, whichperspective oof total reve
y study, thestudies are tent.
ressed as perce
frastructuvenue fromertinent. Ones in responsabout spendacross countpts. Often, spountries hav
nd new inveortions of reuntries. Althoe emanatedads sector av
ternationalprovides in
of aggregateenue, but the
managementhe econom
entage of proje
urethe use of
ne is relatedsibilities acroing and/or rtries. The sepending on inve an active
stment is ofevenue colleough there ifrom fuel taverage 3per
Road Federformation opublic‐sectoe spread is s
nt in chargeic and financ
ect cost
infrastructuto the differoss these levrevenue is acond problenvestment isbalance sh
ften impreciected froms significantaxes and 17cent of GDP
ration’s Woron the signifior tax revenusubstantial, w
makes acial cost‐
ure is byrent tiersels makeavailable,m is thats paid foreet with
ise. Withdifferentvariance
7per centP in these
rld Roadicance ofue. Thesewith less
17
-
than 1pNotably,
In Europaverageof roadtolled intaxes, thchargingmotives
Table 5 Sh
Many cothat Grecent) hasources
per cent (Lux, there are d
pe, revenuesin Westernfunding tha
n several couhey will beg is that thefor not char
hares of revenu
ountries finaeece (26per cad a substanhas been ch
xembourg) biscrepancies
s derived froEurope and
at is deriveduntries. If thereluctant topublic roadrging for the
ue from road re
ance parts ocent), Francetial share ofanged later.
being the ms between th
om road useby up to 3‐tfrom fuel te public thino pay againnetwork is puse of non‐c
elated taxes an
f their roade (15per cenf their road‐
minimum valhe data sourc
ers greatly eto‐1 in someaxes may benks that roadin the formperceived ascongested ro
nd fees in select
transport in