Transport Infrastructure Investment

Options for Efficiency

image of Transport Infrastructure Investment

Surface transport plays a fundamental role in nearly all social and economic activity. Providing and maintaining the infrastructure consumes enormous resources. Thus, it is essential that this be carried out in the most efficient and effective way possible. 

Many options are available to provide surface transport infrastructure – public ministries and agencies, public-private partnerships (PPPs), state-owned companies, private and non-profit entities, and outright privatisation. There are also various means of paying for it, including user charging, subsidies, public borrowing or private financing.  

This report examines key principles that should be considered by governments in deciding how to provide and pay for surface transport infrastructure, with a view to best serving societies’ needs and employing public resources. It also considers the key issues that must be resolved in making more use of private financing and expertise.

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Annex. case studies - networks

International Transport Forum

Czerny (2006) describes motorway provision in Austria. Much of the following is based on that work. Austria provides an example where the entire motorway network has been devolved to a state-owned enterprise. At the same time, the government retains control over tolling rates. Furthermore, public guarantees for loans reduce the costs of borrowing, although the company’s debt is not consolidated with that of the state. Finally, this is also an example where a state-run company is planning to outsource important new projects by way of PPP arrangements.

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