Last Updated:
21 Feb 2020

PPP Insights: Road PPPs and Payment Mechanisms for Road PPPs

A well-constructed and maintained road system is important to both developed and emerging economies but they are expensive to build and properly maintain. In most countries, the majority of the road systems are designed, built, maintained and financed by government. Private sector contractors have been used by governments to carry out construction work but problems of bad design and construction, together with the tendency by governments to neglect maintenance, have led governments to look at alternative solutions and longer term contracts with the private sector. This PPP Insight looks at the different ways that the private sector has been engaged in the road sector around the world and the extensive variety of payment mechanisms that have been developed for remunerating the private sector for participation in roads, in response to local and project specific challenges.





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