What Are the Needs and Aspirations for Privatisation of an Emerging Economy?



What Are the Needs and Aspirations for Privatisation of an Emerging Economy?

Authors

PENGAL P, Ministry of Transport and MILJEVIC J, Omega Consult, Slovenia

Description

A shortage of funds for construction and maintenance of motorways and other parts of a road network is not a problem only in the underdeveloped and developing countries, but it is also a great problem of the majority of the developed countries. It is no c

Abstract

A shortage of funds for construction and maintenance of motorways and other parts of a road network is not a problem only in the underdeveloped and developing countries, but it is also a great problem of the majority of the developed countries. It is no coincidence that the main topic of the last World Road Congress in 1999 in Kuaia Lumpur was the question, if the road sector pdvatisation can solve this problem. And the general opinion of the people, present at the Congress, was not: "yes", but: 'maybe". A search for possibilities is still continuing and Slovenia is involved in it in a special way, adapted to its features. According to our opinion the results of our current work are encouraging. In the hope that our good and bad expedencas can be interesting also for a wider public and pdvate sector public, they will be presented in the continuation.

The inclusion of the private sector into the road economy develops in Slovenia step by step, considering the pdnciples of shadng dsks between the public and private sector and the pdnciplas of free competition. A privatisation model elaborated in this sense (ROPT), was adjusted to the needs of Slovenia. After a preliminary estimation it was supported by EBRD, so that an intemational consortium under the control of FINNRA is currently preparing its operationalisation. It is expected that the first concession contracts on the performance of state road rehabilitation and maintenance, will be concluded with the private sector on this basis at the beginning of 2002. The value of the entire project is estimated to be approximately 5 milliards USD with a 20-year period duration.

Our understanding of road economy pdvatisation needs an explanation: For us the term "pdvatisation' does not mean a buy-out of the state property, but an inclusion of the private sector into construction, maintenance and road infrastructure management, i.e. co-investment. Therefore our views and opinions are presented on this basis and on our expedencas gained so far. The generaiised estimates used for the countries similar to Slovenia are made on the basis of our knowledge of studies, analyses and findings, presented in the Bibliography of this paper, and simultaneously also on the basis of our previous intemationai co-operation.

Publisher

Association for European Transport