The Bad and the Good

This article examines the importance of private sector investment in transport infrastructure. Huge sums are being invested by the private sector in public infrastructure worldwide, but transport projects represent only a small but growing part of that market. Principles of risk allocation and equity investment in infrastructure, such as return on equity and payback requirements, are sensible, but the public and governments are entitled to know the exact worth of risk allocations and whether they are getting good deals for their investments. Well-structured project finance can bring value to money to governments and to the public. Benefits that private finance of public transport infrastructure can offer governments includes tighter cost controls, ensures better used transport infrastructure which increases its asset values, better controls on fares and toll evasions, and higher levels of customer satisfaction. The article presents recommendations to ensure avoidance of public and private sector misunderstandings.

  • Availability:
  • Authors:
    • Memmott, Carl
    • Ronteix, Stephane
  • Publication Date: 2003-5

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01011013
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 28 2005 2:55PM