Regulatory Framework for Public-Private Partnerships in Roads

When considering to engage the private sector into road projects, the host country’s legal and regulatory framework needs to be examined. Specific laws may be required to allow the public sector to contract with private parties to perform functions normally undertaken by the government and existing sector-specific policies, laws and regulations will also have a significant bearing on the structuring of a public-private partnership (PPP) road project (e.g. laws and regulations governing the right of the private operator to charge users). Bilateral or multilateral international transport agreements can become relevant for cross-border road projects. 

Listed below are sample laws for road, highway and bridge infrastructure projects (providing for PPPs, tolling etc.), sample tolling policies as well as links to international transport agreements.

Sample Laws and Regulations

Europe and Central Asia

Ireland

  • Roads Act 1993 - sections 56 to 63 provide for the tolling of roads and for the entry by the government into PPPs (including arrangements to design, build, finance and operate roads) and for the charging of tolls by the private operator.

Poland

United Kingdom

North America

Canada

  • British Columbia: Transportation Investment Act 2002 - Provides a framework for developing public-private partnerships (in Canada referred to as "P3s") to expand and improve provincial transportation infrastructure, and also creates the Transportation Investment Corporation, a public corporation established with the purposes of delivering, managing, operating, tolling or funding transportation projects, including P3s. The Act also provides for the charging of tolls.

United States

California: California Toll Road Law

South Asia

India

Sub-Saharan Africa

South Africa

Sample Tolling Policies

A number of countries have introduced toll roads to allow for cost recovery of capital costs and maintenance. Some of these toll roads will be privately financed and tolling will be carried out by the private sector. In other cases the government itself uses tolls to generate funds to pay for the infrastructure or to manage traffic flow. Where tolling of users is considered as providing the most appropriate means for recovering some or all of the costs of a significant investment in new highway infrastructure, governments typically develop guidelines or policies for use of tolls.

The World Bank online resource Toll Roads and Concessions provides a summary of tolling policies around the world.

A number of examples of tolling policies and guidelines from different jurisdictions are set out below:

Canada

Ireland

India

Serbia

South Africa

United States

  • California: 91 Express Lanes in Orange County - The Orange County Transportation Authority (OCTA) uses congestion management pricing to establish tolls for the 91 Express Lanes. OCTA also created "Three Ride Free" as a separate toll policy to encourage carpooling on the 91 Express Lanes.

International Transport Agreements

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Updated: October 10, 2021