Private Sector Finance of Transport Infrastructure: Progress and Prospects

This paper discusses private sector finance of transport infrastructure. The paper addresses key issues which have emerged with a particular emphasis on understanding the changing contractual and market conditions. The recent literature on public-private relationships, asymmetric information and incomplete contracts is reviewed. Reference is made to a number of major projects with alternative contractual and funding structures to illustrate the problems that have emerged, and not least of all, to obstacles to the completion of the Trans European Transport Networks in an enlarged EY. The main conclusion of the chapter is to reinforce the view that, without sectors, there is little hope for major infrastructure projects to be seen as free of public sector interference or control. At the same time the nature of most such projects is likely to require the retention of a public sector interest in both the planning and management if such projects.