Financing Road Networks in Developing Countries

During the 1960s and 1970s, developing countries received enormous loans from multilateral credit organizations and funds from developed countries to finance highway projects, mainly the paving of high¬ways and the opening of natural surface roads to mobilize production. Traditionally, each loan required a cost–benefit analysis showing that the benefits of the project exceeded its costs in terms of vehicle operating expenditures, time savings, accident reduction, and so forth. Unfortunately, many projects have been used as political drivers, and once the projects were initiated, not enough funds were allocated for maintenance and reconstruction. As a result, the roads have deteriorated; thus transportation costs increased and ultimately the theoretical benefits of the original project were negated. In this paper, the author explains that just as important as the ex ante estimation of benefits of a project is that governments guarantee the resources needed to maintain and conserve the roads built and thereby close the “virtuous circle” between the economic benefits foreseen in the ex ante evaluation, the use of the highway, and its financing through different mechanisms.

• Record URL:
  • https://doi.org/10.3141/1954-01
• 
• Summary URL:
  • http://scholar.google.com/scholar_lookup?title=Financing+Road+Networks+in+Developing+Countries&author=R.+Agosta&publication_year=2006
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/0309099633
• Authors:
  • Agosta, Roberto D
• Publication Date: 2006

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References;
• Pagination: pp 1-6
• Monograph Title: Developing Countries
• Serial:
  • Transportation Research Record: Journal of the Transportation Research Board
  • Issue Number: 1954
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Developing countries; Economic development; Financing; Government funding; Highway maintenance; Life cycle costing; Loans; Political factors; Roads; Transportation policy
• Uncontrolled Terms: Highway projects; Road networks
• Subject Areas: Economics; Finance; Highways; Policy; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 01025660
• Record Type: Publication
• ISBN: 0309099633
• Files: TRIS, TRB, ATRI
• Created Date: Jun 8 2006 11:26AM