Transportation

Efficient transport is a vital component of economic development, globally and nationally. Transport availability affects global development patterns and can be a boost or a barrier to economic growth within individual nations.

The World Bank estimates that about 1 billion people in developing countries lack access to basic roads. All-weather accessible roads in rural areas in particular are one of the most challenging problems for developing countries. In Africa, for example, two-thirds of rural populations do have reliable access to all-weather roads. A reliable road network is essential for economic development, as it allows countries to integrate into regional and global markets, can lower production and transaction costs, and stimulates capital investment in a region.

Based on these challenges for developing countries, sustainable solutions are needed, as well as a more effective dissemination of existing knowledge and good practices from other regions.  These countries also lack the efficient professional capacity to deliver improved service levels. Public-private partnerships can address these capacity gaps and help developing countries build and maintain their transportation networks.

In addition to its work to reform enabling environments, PPIAF can assist governments by providing technical assistance to implement traditional public-private partnerships or performance-based management contracts in the transportation sector. Performance-based contracts can emphasize the importance of maintenance by linking the payments for maintenance directly to the quality of the contractor’s performance. Without regular maintenance roads can rapidly deteriorate, limiting the benefits to the population.The experience shows that this type of contract is more efficient than standard method-based contract, based on payment of a lump sum for a specified amount of work, and gives long run savings to governments compared to more traditional public sector approaches.     


In 2007, PPIAF provided a $250,200 grant to help establish the institutional and regulatory framework for the transport sector in Senegal. PPIAF's support contributed to the construction of the Dakar-Diamniadio Toll Highway, the first toll road in Sub-Saharan Africa (excluding South Africa) to be built through a PPP.