The Allocation of Public Funds to Road Transport Infrastructure in South Africa

Abstract

The estimated internal rate of return on road projects has in the past directed funds for road construction largely to the developed sector of the South African economy. A more equitable allocation requires a fund allocation technique that will take into account a larger number of objectives. The article looks at possible objectives and analyses two methods of allocating funds. Of the techniques, the STEP approach, advocated by the Division of Roads and Transport Technology, provides unsatisfactory results. The Visual Interactive method shows greater promise.