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 (as amended) - 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

Act on Toll Motorways

 

United Kingdom 

Toll Road Legislation

 

 

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

National: The National Highways Authority of India Act 1988

Orissa State: Toll Roads Act 2010 and Tolling Rules 2011

 

Sub-Saharan Africa

Draft Model Legislative Provisions: Road Network Financing and Management 5th draft, developed by the Southern Africa Transport Communications Commission (SATCC) and USAID in March 1999

 

South Africa 

The South Africa National Roads Agency Limited (SANRAL) and National Roads Act 1998  (including powers of SANRAL to charge tolls)

Standard Template for Legislation to Set Up an Autonomous Road Authority

 

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

British Columbia: Guidelines for Tolling (2003)

 

Ireland

National Roads Authority – Key PPP Principles and Tolling Guidance

 

India

National: National Highways Fees (Determination of Rates and Collection) Rules 2008

Andhra Pradesh: Andhra Pradesh Tolling Policy (2007)

 

Serbia

Tolling Policy in Serbia

 

South Africa

A Users Guide to Tolling

 

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

 

A Review of International Legal Instruments - Facilitation of Transport and Trade in Africa (Les instruments juridiques internationaux de facilitation du transport et du commerce en Afrique), second edition, Jean Grosdidier de Matons, Sub-Saharan Africa Transport Program (SSATP), March 2014 (English and French


International UNECE Transport Agreements and Conventions
- The UN Economic Commission for Europe (UNECE) guides the process of harmonizing and simplifying border crossing procedures for the various modes of inland transport and provides an overview of international UNECE Transport Agreements on its website.

 

Last Updated : Tue,2016-02-16