A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Attracting private capital to finance toll motorways in Hungary
After a general description of the poor legacy left behind by long years of central planning, characterized by decaying transport facilities, it is shown that a persistent shortage of capital is curtailing transport infrastructure projects. In the wake of political changes, during the transition toward a market economy, there is now an opportunity to diversify sources and mechanisms of transport infrastructure funding. Strong budgetary constraints are limiting public financing or borrowing. As a result, Hungary seeks new forms of public/private partnership in financing tolled transport facilities, first of all motorways and bridges. On the basis of a recently enacted law of concession, tendering procedures are under way aiming at an award of motorway concessions to entirely private companies. The concession is documented in a concession contract that specifies the rights and responsibilities of the sponsoring government entity and the concessionaire and allocates the risks. These latter are identified and analysed, and extraordinary circumstances hampering ‘build‐operate‐transfer’ type motorway project financing in Eastern Europe are dealt with. The last section tells the story of the tendering procedure related to M1/M15 motorway sections completing the Vienna‐Budapest motorway of European interest, won by an international consortium led by the French company TRANSROUTE S.A. Depending upon the success of this attempt, several other projects are in preparation.
Attracting private capital to finance toll motorways in Hungary
After a general description of the poor legacy left behind by long years of central planning, characterized by decaying transport facilities, it is shown that a persistent shortage of capital is curtailing transport infrastructure projects. In the wake of political changes, during the transition toward a market economy, there is now an opportunity to diversify sources and mechanisms of transport infrastructure funding. Strong budgetary constraints are limiting public financing or borrowing. As a result, Hungary seeks new forms of public/private partnership in financing tolled transport facilities, first of all motorways and bridges. On the basis of a recently enacted law of concession, tendering procedures are under way aiming at an award of motorway concessions to entirely private companies. The concession is documented in a concession contract that specifies the rights and responsibilities of the sponsoring government entity and the concessionaire and allocates the risks. These latter are identified and analysed, and extraordinary circumstances hampering ‘build‐operate‐transfer’ type motorway project financing in Eastern Europe are dealt with. The last section tells the story of the tendering procedure related to M1/M15 motorway sections completing the Vienna‐Budapest motorway of European interest, won by an international consortium led by the French company TRANSROUTE S.A. Depending upon the success of this attempt, several other projects are in preparation.
Attracting private capital to finance toll motorways in Hungary
Timár, András (author)
Transport Reviews ; 14 ; 119-133
1994-04-01
15 pages
Article (Journal)
Electronic Resource
Unknown
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