Private Sector Involvement In Financing Transport Infrastructure: a Historical Sketch, Current Practice and Some Lessons

The key role of transport infrastructure in the emerging European network has provoked many questions as to the financing of new infrastructure. In the course of the twentieth century govemments in all countries have assumed responsibility for financing transport infrastructure. In the past decade, however, serious doubts have been expressed on the efficiency of a strong public financial involvement in infrastructure. The paper addresses the question whether infrastructure financing is a necessary competence of govemments. It appears that in the past century the private sector has had a much stronger position in providing financial resources for infrastructure involvement. Therefore, the necessity for government financing is a stake in the current debate. In the paper several arguments pro and contra public financing are systemically evaluated and illustrated by various uses related to various modes of transport. The conclusion is that there is much scope for the private sector in financing new transport infrastructure in Europe.