Prospects of alternative funding sourcing for maintenance of road networks in developing countries

Abstract

Traditional sources to finance transport infrastructure is becoming an investment challenge; thus the need for alternative funding arrangements. From 2014 to 2017, of the planned expenditure of US$1.76 billion, an amount of US$876 million was secured representing 49.8% of the required funding for investment in Ghana's road sector. Of the secured funds, US$ 418.6 million (47.7%) came from donor funding as the government could not provide its share of commitment to the planned expenditure. The Sunyani Municipality in Ghana with a condition mix of 41% good, 36% fair and 23% poor, was employed as the case for assessing the possibility of using revenue accruals from on-street parking and related-charges to attract private partnership arrangements to fund road maintenance activities. Potential annual revenue accruals (US$500,634.82) from on-street parking were assessed alongside costs (US$405, 244.44) associated with the scheduled maintenance options. The project was revealed to be beneficial by the results of the first year analysis as prospects of seeking private investment to fund road maintenance activities appear good. However, further studies would be required to determine the viability of this funding option given the different road condition mix dynamics and road user charge regimes that may exist in the various municipalities in Ghana.