Financing transport infrastrucure projects in Italy: a critical analysis of the main approaches
AbstractThis paper aims at analysing the methodology used for financing large infrastructure projects in Italy. In particular, it focuses on the Italian highway sector, where in the last years many projects have been launched using new financial instruments. The paper discusses three of these “instruments”. The first one is the Project Financing, discussed starting from a general review, analyzing also the different typologies used, the risks involved and their allocation among the various subjects that take part in the PF mechanism. A special case concerns the recently introduced model used for the Italian highways, known as “PF with takeover compensation”. There are two other important mechanisms used for financing infrastructure projects in Italy: the exploitation of road demand rigidity and the spreading of the investment over the entire network, favouring larger concessions. We conclude that all these three mechanisms present deep flaws in terms of transparency and of contradiction with economic feasibility criteria (that have to dominate the public investment rationale).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29140.
Date of creation: Apr 2010
Date of revision:
transport; investment; infrastructure; project financing; highway.;
Find related papers by JEL classification:
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-19 (All new papers)
- NEP-PPM-2011-03-19 (Project, Program & Portfolio Management)
- NEP-URE-2011-03-19 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Beria Paolo & Ponti Marco, 2009. "Lo stato della regolazione dei trasporti in Italia," Economia dei Servizi, Società editrice il Mulino, issue 3, pages 465-484.
- Olivier Debande, 2002. "Private Financing of Transport Infrastructure: An Assessment of the UK Experience," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(3), pages 355-387, September.
- André de Palma & Nathalie Picard & Laetitia Andrieu, 2007.
"Risk in Transport investments,"
THEMA Working Papers
2007-22, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
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