Private Sector Involvement in Road Financing
Most African countries are faced with substantial challenges to meet their needs for road maintenance, rehabilitation and construction through public financing. The underfunding problems are not likely to be solved completely without increased participation from private sector investors. Thus in 2012 the SSATP member countries expressed the need for informed policy advice on private sector involvement in road financing, provision and management with focus on Public-Private-Partnerships (PPPs). Accordingly, SSATP launched in 2013 a study to consolidate good practices for advocacy on private sector involvement in road financing, provision and management applicable to African countries. The objectives of the study were to document lessons and good practices on private sector involvement focusing on road PPPs in SSA, and to enable in-depth understanding of the key issues and principles for roads PPPs, including lenders requirements and risk factors. The study involved field visits in African countries and consultations with stakeholders to underscore the need for wider understanding of benefits, success factors and challenges for road PPPs, and to create a solid platform for advocacy.
Based on the findings of the study, SSATP is releasing a paper entitled “Private Sector Involvement in Road Financing”. The paper presents three case studies with lessons on policies and practices required to understand the key issues, principles and the basic conditions that must be met for private participation to be possible in the financing of roads. It is also aimed to give accurate view on the potential for roads PPP in SSA and stimulate interest from countries on private sector investment in the road sector.