Private sector participation in the delivery of highway infrastructure in Central America and Mexico

Abstract

A case study of private sector involvement in the provision of a roadway infrastructure network reviewed negative experiences in Mexico between 1989 and 1995. The aim of this case study was to identify improvements that must be considered for successful private sector participation on future transport infrastructure projects. The recommendations presented were developed as a result of a review of research and practice in Mexico, and in both developed and developing countries around the world where the private sector has been involved in the delivery of highway infrastructure. Key findings relate to the need for integrated infrastructure planning; the bundling of concession projects and possible use of shadow tolls to make them attractive to the private sector; and, the implementation of more robust financial models in developing countries. These findings have a broader applicability than highways in Central America and may relate to a variety of projects in other developing countries.

Keywords:

• Integrated Transport Infrastructure
• Private Sector Participation
• Private Finance
• Central America