Private Financing of Toll Roads

This study provides an overview of the issues and challenges related to private toll road development by considering the experience of eight privately financed toll road projects. The projects selected represent a range of physical and market characteristics, country and concession environments, public-private risk-sharing arrangements, and financial structures.

After reviewing the history of toll roads, the study examines the public policy and financing approaches used to develop private toll road concessions and to mobilize capital for their construction and operation. It analyzes key aspects of private toll road development for each of the eight projects selected, including project economics, country and concession environment, risk sharing between the public and private sectors, and financing structures and sources. The study also discusses the main public policy issues in toll road development and briefly assesses the future outlook for the private toll road industry.