Project Finance in Accelerating Tollways Infrastructure Projects
Toll way financings benefit from an exceptionally low level of operating cost: technology risk. It is essentially a civil construction exercise. However, the estimation of traffic risk is full of difficulties. There are many types of traffic studies, yet no one technique has been proven reliable.
Engineering risk can be high because of poor ground conditions. Good geotechnical studies are essential. Because toll fees are very visible, inevitably governments will wish to regulate the tolls (political risk). For toll roads through cities or environmentally sensitive areas, getting the approval is best done by government to cover the environmental risk.
Another factor that needs to be examined in toll road projects (bridges, tunnels, and people mover systems) is the real estate or property development content of the proposal (infrastructure risk).
Balancing economic development with environmental sustainability remains a key challenge. It is imperative for the sector to leverage adapting to change, adopting innovative approaches and fostering sustainability for resilient growth in the industry.
In addition to the above, this White Paper prepared by the Brickstone Africa Team, in much more detail explains on the Key issues for consideration by developers in Accelerating Tollways Infrastructure Projects.
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