International practice of financing for the road sector in market conditions

Abstract

In the article considers the features of reforming the system of financing and management of the road industry in correlation with changes in the classification of roads as property objects. The experience of European countries in the development of the road network and transport infrastructure has been analyzed. The average cost structure for road construction in Western Europe has been determined. Authors identified the main problems of the road industry: underfunding, the lack of modern regulatory framework, the poor implementation of new technologies and innovations, the shortage of qualified personnel, and others. It is noted in the article that the most popular and most effective of the existing mechanisms for financing of the road sector are road funds. The main source of revenue for road construction is taxes. The article considers the most common taxes and fees from road users, applied in developed countries. The authors identified the advantages and disadvantages of financing infrastructure projects at the expense of bonds. Much attention is paid to projects of public-private partnership in the development of transport infrastructure in China and India. The most widespread and most widely used form of public-private partnership projects in the field of road infrastructure is the form of concession. The authors identified the most common concession models. Recommendations for financing the road sector are suggested, taking into account international experience.