MODEL HIGHWAY INITIATIVE Workshop International Experience of Financing the Development of Roads: Financial Mechanisms

HIERARCHY OF NEEDS: for successful Investment in Infrastructure People with Expertise to Execute (i.e. similar deal experience, sector knowledge) Private Sector Buy-in (i.e. market /project size & identifiable pipeline and bankability / government’s long term commitment) Political Will (i.e. political will & buy in / financial discipline / clarity within domestic laws & procurement process / coordination between government departments & agencies / good public consultation / reliance and use of experienced international advisors)

LESSONS LEARNED: The CEE Experience  HU: M1/15 Too much risk transfer. Then became CEE leader for PPP. Now, post elections?  CZ: D47 Lack of transparency. Still few examples.  HR: No international advisors.  RO: Government too impatient. Did not listen to advise. Had to restart PPP program.  PL: Problems with Tolling + Road Fund + Government. Now most being done on Government Budget again.  SK: Ambitious PPP programme. Push by President. Post Financial Crisis and national election all projects being reviewed. Take-Aways:  Need clear idea of what want to achieve – program, project pipeline  Transparent process & procurement  Utilizing international best practices and qualified advisors 3

MODEL HIGHWAY INITIATIVE Workshop Thank you!