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https://nap.nationalacademies.org/catalog/27432/critical-issues-in-transportation-for-2024-and-beyond

Financing and implementing road management in different countries

Tienpidon rahoitus ja toteutus eri maissa

This report examines international practices of funding, budgeting and implementing road management. There is a wide range of alternative models for financing, budgeting and implementing road management in use in different countries. They are applied in different ways, depending on national legislation and the operating environment. The various models and the development trends associated with the use of these models will be illustrated in this report through examples. The alternative ways of funding, budgeting and implementing road management are characterised by the following framework models: - state budgetary funding, - state budgetary funding and advanced implementing methods, - state budgetary funding and road network user charges, - earmarking of road transport taxes, - earmarking of road transport taxes and road network user charges, and - road network user charges. A variety of applications of these framework models are in use, and can be combined to suit national requirements. Road management can be implemented through state or road authority operations, the partial or total privatisation of operations, or the application of PPP (public-private-partnership), life-cycle or concession models at specific locations or parts of the road network. Most countries use state budgetary funding in one form or another. In some cases, the earmarking of taxes collected from transport and road funds have been introduced to supplement or replace state budgetary funding. Systems based entirely on state budgetary funding are clearly being phased out around the world. This trend is especially evident in transitional economies, e.g. in many Asian countries, where economic growth is promoted through large-scale investments in transport and infrastructure. The earmarking of taxes and the use of road funds does not seem to be increasing. However, these models are used extensively e.g. in the United States, New Zealand, Switzerland and Estonia. The most widely used - and increasingly common - financing and budgeting model is road network user charges. They are in use e.g. in several European countries such as Austria, Switzerland, Germany and the United Kingdom, as well as in New Zealand and Australia. Road use charges are also being increasingly introduced on specific road network sections e.g. in Norway, Ireland, Southern Europe, Australia, the United States, China and Southeast Asia. The model provides a user-based solution to road funding in places where there is significant need for investment and high transport demand. The EU and international investment banks also support the use of user-based funding. Road network user charges offer an extra-budgetary funding solution for the entire road network or parts of it (e.g. motorways). The model allows independent funding of infrastructure to meet the needs of road users, but leaves the instruments of fiscal taxation of road transport to the state. User charges also enable cost-based pricing and funding of road management services. The model defines the relationship between the road authority and road users more clearly and makes funding more transparent. The international examples included in this review also seem to suggest a link between the use of different funding and budgeting solutions and the different ways in which road management operations are implemented. Under state provision, road management is usually funded from the national budget. The privatisation of road management has increased the use of alternative financing and budgeting models. The user-based funding of road management has, in most cases, increased co-operation between the public and private sectors, as well as the use of innovative management solutions. When taken to its extremes, road management and the provision of road management services become a corporate activity. Publicly or privately owned road companies can construct and finance road networks, as well as be in charge of network operating, maintenance and charge collecting. This report may be found at http://alk.tiehallinto.fi/julkaisut/pdf/3200911-vtienp_rahoitus_kv_katsau.pdf

Language

  • Finnish

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Filing Info

  • Accession Number: 01011829
  • Record Type: Publication
  • Source Agency: TRL
  • ISBN: 951-803-407-9
  • Files: ITRD
  • Created Date: Dec 20 2005 11:24AM