Decision Makers' Guide to Road Tolling in CAREC Countries by Asian Development Bank;

Author:Asian Development Bank;
Language: eng
Format: epub
Publisher: Asian Development Bank Institute
Published: 2018-08-15T00:00:00+00:00

5.5 Is a public–private partnership law a prerequisite for toll roads?

72. No. Indeed, the existence of specific PPP legislation is not a necessary precondition for successful PPPs in other fields. In fact, countries with long experience in PPPs, such as the United Kingdom, do not have a specific PPP law.

73. However, if toll roads are expected to be financed though PPPs, the existence of regulations governing PPPs at the highest level possible provides reassurance to prospective private investors, especially international ones. This may be even more relevant in countries with little or no experience in private delivery of public services and infrastructure. In some countries, especially in those with a legacy of centrally planned economy, the very notion of private provision of public services and the delivery of infrastructure may not be properly legislated, and both legislators and government officials may not be familiar with it.

74. Rules governing PPPs for toll roads may be either covered in specific PPP legislation, in specific roads legislation, or in both. What is important is that regulations in both laws are not contradictory. The level of detail of rules in PPP legislation should be the result of a trade-off between certainty and flexibility. However, in some countries, the approach to PPPs has been that of negotiating a contract (after a public tender or not) and, once signed, sending it to parliament for ratification and elevation to the category of law. This may be an effective approach and provides the highest level of reassurance to the private parties. However, these shortcuts may cause serious concerns about transparency, equal treatment, and good governance to citizens and toll road users.

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