Good highway infrastructure is essential to economic develop-ment. The Colombian gov- ernment backed this concept in July 2010 when it awarded the concession of the third and final section for the construction and expansion of the $2.6 billion Ruta del Sol highway. This 1,071 kilometer road connects the capital, Bogotá, with other large urban areas of the country’s interior and Caribbean coast. When completed, Ruta del Sol will help foster the country’s competitiveness in these sectors and improve road and travel conditions for pas- sengers and goods.

Over the past decade growing demand for infrastructure has driven the private provision of roads, power, telecommunications, water and sanitation, and other public services in developing countries. Governments short of resources have sought alternative methods of financing transport improvements without affecting their fiscal situation. Charging tolls, too, has become an attractive option for managing traffic on increasingly congested roads.

PPIAF ISSUE BRIEF • DECEMBER 2016

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PPIAF, 2013

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PPIAF, July 2014

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Terms of Reference: Review and Redrafting of Model Toll Road Documentation

Author: Victoria Rigby Delmon

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By delivering efficient, cost-effective and innovative maintenance services, well-designed output and performance-based road maintenance contracts can help maintain road assets and achieve value-for-money. Output-based contracts can also help governments build experience in undertaking Public-Private Partnerships (PPPs).

Infrastructure development is a precondition for economic growth. Due to Paucity of funds it is not possible for the Government to provide road connectivity to the increasing population. Thus emerged an idea of PPP to provide finance for infrastructure development under which the government seeks the participation of private sector for development of roads. BOT is a popular model for the road development in which the sharing is between public and private sector. Maharashtra state has taken proactive measures towards the PPP/BOT approach for the development of roads.

This paper reviews main factors affecting the efficiency of road agencies and describes the steps taken in creating a new institution, or transforming an existing one, and assesses the effort required to achieve such results. In all countries reviewed, the ministry responsible for the transport sector remains the authority responsible for the overall transport policy and for putting in place checks and balances for good governance and management of fiscal risk.

Short-Form Generic Risk Allocation Table for Toll Roads

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