Transport funding - do we understand the options?

Abstract

Transport funding is one of the fundamental challenges in providing transport infrastructure in Southern Africa. There are two trains of thought in this arena, state funding, where the state funds the construction of infrastructure from the fiscus, and the PPP, where the private sector raises the funds. When one considers the pros and cons of these two options, one needs to ask the question; is this it? Are there any other options? A further question, especially in the case of state funded infrastructure, common practice is to consider the economics of the projects. The outcome can be very different to a method that considers the way the private sector phases the implementation of infrastructure. Why? Asking the question if we understand the options may assist in developing a more optimal way to use very limited resources (funding) for the provision of transport infrastructure.