Knowledge Note

PPIAF is supporting a number of developing country clients who are looking to use public-private partnerships (PPPs) as a means of financing highway construction, rehabilitation and maintenance. However, before government decides on if and how to structure a PPP for a highway project, it needs to tackle the more rudimentary policy question of whether it is possible to charge tolls to highway users so as to create a more reliable and dedicated funding source for improving highways. This can be a challenging policy area and PPIAF is currently working in both Laos and Uganda with central government to help formulate policy and strategy towards tolling in advance of launching major highway PPP projects in both countries. PPIAF’s technical assistance in this area has a key role in helping government understand the inherent policy trade-offs and risks associated with charging road-users.