By Ian Graeme Heggie, Piers Vickers
In constructing and transition economies, 60 to eighty percentage of all passenger and freight shipping strikes via road—the major kind of entry for many rural groups. but many of the eleven million kilometers of roads in those economies are badly maintained and poorly controlled. This paper discusses some of the most potent how you can advertise sound guidelines for coping with and financing highway networks—commercialization. It discusses the rising important thought of bringing roads into undefined, placing them on a fee-for-service foundation, and dealing with them like a enterprise.
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Additional info for Commercial management and financing of roads, Volumes 23-409
For example, in China only 11 percent of the national trunk highway system, itself a small fraction of the total network, is estimated to generate enough toll revenue to attract 100 percent foreign private finance, while a further 36 percent could be funded by less costly domestic loans. Although experience in many industrial economies suggests that road building can never outpace the growth in demand for road space, some countries are responding to the predicted large growth in traffic by investing in limited-access, frequently tolled expressways.
They keep their accounts on a cash basis, have no balance sheet, and are subjected to little market discipline. And yet what is often a country's largest business is perfectly capable of standing on its own feet. Most government departments do not have a commercial orientation, and general budget financing is a failure for commercial undertakings. Government budgets were not designed to finance a major business. Roads are big business and should be managed like a business. They should be brought into the marketplace and put on a fee-for-service basis.
Cover photos clockwise from top left: "Road construction in Ghana," Ministry of Roads & Highways; "Labor-based road rehabilitation in Lesotho," Labor Construction Unity, Ministry of Works; "Periodic maintenance in Colombia," lan G. Heggie; and "Microenterprise road maintenance unit in Colombia, lan G. Heggie. ISSN: 0253-7494 lan G. Heggie is a roads adviser and Piers Vickers is a rural transport specialist in the transport division of the World Bank's Transportation, Water, and Urban Development Department.