How PPPs can improve funding of transport infrastructure

The “Better Regulation of Public-Private Partnerships for Transport Infrastructure” report just released by the International Transport Forum at the OECD looks at public-private partnerships (PPPs), which have become an important tool for governments to attract private finance for infrastructure investments. In the face of tight budgets, PPPs are seen as a means to maintain transport investment and limit public spending at the same time.
October 15, 2013 Read time: 2 mins
The “Better Regulation of Public-Private Partnerships for Transport Infrastructure” report just released by the 998 International Transport Forum at the 7353 OECD looks at public-private partnerships (PPPs), which have become an important tool for governments to attract private finance for infrastructure investments. In the face of tight budgets, PPPs are seen as a means to maintain transport investment and limit public spending at the same time.

Experience with PPPs has been mixed, however. Some transport PPP projects have delivered major cost savings, many others have exceeded their budgets. PPPs are prone to overestimating revenues from the investment, and the associated risks often fall on the taxpayer when projects run into financial difficulty.

The report examines the nature of risks and uncertainties associated with different PPP types and looks at the practical consequences of transferring risks to private partners.  It assesses the fiscal impact of PPPs and discusses budget procedures and accounting rules and reviews the relative merits of tolls, availability payments and regulated asset base models.

For more information on companies in this article

Related Content

  • Demand management schemes, is there a better way?
    January 31, 2012
    The European Commission is placing too much emphasis on the use of demand management, according to the FIA. Here, Wil Botman, Director-General of the FIA's European Bureau, explains why. Towards the end of last year, the European Bureau of the Fédération Internationale de l'Automobile (FIA) released a statement which criticised the European Commission's (EC's) approach to urban traffic congestion following the adoption of the Action Plan on Urban Mobility. In particular, the FIA voiced concerns over what it
    Read More
  • ASECAP conference debates EU’s changes to concessions
    April 30, 2015
    Colin Sowman picks some highlights from a one- day ASECAP Conference about the EU's new regulations on Concessions. ASECAP, the association of European tolling companies, has outlined the scale of the challenge facing authorities and tolling companies in complying with the European Union’s Directives 2014/23/EU and 2014/24/EU in a new report and at a special conference in Brussels.
    Read More
  • MaaS by any other name
    February 6, 2020
    Has the roll-out of Mobility as a Service stalled - or could it just be that multimodal travel is simply happening under a variety of different names?
    Read More
  • Mexico City seeks solutions to improve air quality
    December 6, 2017
    David Crawford ponders prospects for one of the world’s most congested and polluted cities. In 1992, the United Nations named Mexico City as the world’s most polluted urban centre. In the first half of 2016, following the updating of pollution alert limits to meet international standards, Mexico recorded 115 days where ozone concentrations exceeded the acute exposure health limit.
    Read More

Highlighted Content