Road and Rail Infrastructure in Asia

Investing in Quality

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Road and Rail Infrastructure in Asia: Investing in Quality discusses the challenges facing the region and possible policy options, including those previously or currently used in Emerging Asian countries, with reference to the experiences of OECD member countries. It provides analysis and recommendations for the region’s policy makers to consider in their efforts to improve the quality of infrastructure. In particular, it highlights the importance of considering the spill-over effects of infrastructure in investment decisions. A comprehensive infrastructure impact evaluation does not simply consider the financial feasibility of an individual project, but attempts to judge the full extent of the externalities of planned investments, looking at the positive and negative economic, social and environmental effects over different time periods. The report first presents project case studies, illustrating how policy makers have incorporated the principles of quality infrastructure. It then examines the local economic impact of infrastructure, the role of local governments in infrastructure development and the benefits and challenges of their involvement. It then goes on to discuss different infrastructure financing options including funding from public and private sectors, as well as public-private partnerships, and concludes with a focus on fostering improved alignment between national development strategies and infrastructure planning.



Improving infrastructure financing

OECD Development Centre

Required investments in road and infrastructure in Asian countries will require governments to consider a broader range of sources of financing than have been used in the past. The public sector still bears much of the burden in financing infrastructure and is expected to continue to play a major role in future. Public revenues can be increased through improvements to tax yields generally and the implementation of taxes specifically for financing infrastructure, such as vehicle taxes and road-use charges, energy taxes and taxing project beneficiaries. Public-private partnerships and private investment in infrastructure projects are expected to continue to become more important as sources of financing. Fostering greater private involvement in infrastructure finance will require, in many countries, the development of effective governance mechanisms and of financial markets.



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