Introduction - IRF | International Road Federation - Better Roads, Better World

Sustainable Financing for Roads

Road Financing An ever recurrent problem in the road sector is to have funding at a sufficient level to keep road assets in a stable condition and to find ways to finance necessary extensions of the road network.

Structural underfunding has led to infrastructure deficits. According to the World Economic Forum “…economic and demographic growth, coupled with severe underinvestment in infrastructure, has created an infrastructure deficit that some estimate would require an annual investment of over US$ 2 trillion each year over the next 20 years.” (WEC, Positive Infrastructure Report, 2010). The figure from Deloitte’s much quoted Closing the Infrastructure Gap report of 2006 provides an indication of regional differences of infrastructure investment needs.

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Source: Deloitte, Closing the Infrastructure Gap, Deloitte Research, 2006

Finding other mechanisms to fund roads than by public budget, based on paradigm shift from viewing road fully as public goods towards a more economic approach enabling the application of the user-pay principle, might offer opportunities, as could increasing involvement of the private sector.

IRF is committed to advocate sustainable funding for roads to serve nations’ economies as the infrastructure backbone and to preserve value for road users and tax payers.

To find out more about IRF's activities in the field of Road Financing & Economics, please contact Mui-Ling Wang at mwang@irfnet.ch