Analysis of the Interface Between Road Financing and Road Management - Observations of Current Trends in Europe



Analysis of the Interface Between Road Financing and Road Management - Observations of Current Trends in Europe

Authors

BOUSQUET F and FAYARD A, Highway Directorate, France

Description

Methods of financing road infrastructures and their maintenance and operation are closely linked to the organization of the road administrations for various reasons. First, there is a strong tendency in Europe for constraints on traditional methods of fin

Abstract

Methods of financing road infrastructures and their maintenance and operation are closely linked to the organization of the road administrations for various reasons. First, there is a strong tendency in Europe for constraints on traditional methods of financing the pubfic services to become more severe, particularly in the road sector. To cope with this situation, policy-makers are endeavoring to change and even to restructure the organizational pattern of public road administrations. The need to satisfy Maastricht convergence criteria also provides momentum for reform in some countries of Europe and it accordingly leads to a further constraint on public spending.

Secondly, the interface between road financing and road administration organization is becoming increasingly important with the development of new technologies. In terms of road services, the emergence of telematics and its attendant sub-themes (remote control, electronic pricing, for example) poses a problem not only of pricing but also of the place of the private sector in the development of the service. This is because road information is tending to become a customized production task, which is thus marketed relatively easily.

Thirdly, links between road financing and road management have been tightened by the decentralizing reforms in the European road sector. Many European countries that have decentralized have had to radically modify their road financing system as a result.

Given this strong interface between road financing and road management reforms, it is useful to establish a typology (part 2) of various organizational structures to finance roads. The aim of this typology is double. First, it can help reduce the risk of confusion between different concepts such as concession, toll, BOO, BOT,DBFO,...Secondly, this typology can help to identify some trends in the road sector both at the financing and at the organizational levels (part 3).

Publisher

Association for European Transport