Private firms could soon be allowed to finance major road projects and, in return, collect tolls from motorists as part of the Government’s plan to take the financial strain off the taxpayer and speed up sluggish roadbuilding projects.
Labour's new Highways (Financing) Bill plans to establish a Regulated Asset Base (RAB) funding model for major road projects. Under such an arrangement, private firms and individuals will be granted the opportunity to invest in projects as ‘licence holders’.
The key draw for financiers is that the Government will allow them to charge tolls in order for drivers to use a piece of infrastructure which they hold the licence for, whether it be a road, bridge or tunnel.
Read Article