5. Global PPP Financing or Delivery of Road Projects by Region
When focusing on highway-related infrastructure projects, including roads, bridges, and tunnels, the PWF database contains 656 projects worldwide, representing $325 billion since 1985, of which half have been completed by October 2004, as listed in Exhibit 7 below. On a regional basis, the most projects since 1985 are in Europe, with 205 projects representing $139 billion in costs. The second largest region in terms of projects is North America (including the United States, Canada, and Mexico) with 174 projects and $71 billion in costs. The second largest region in terms of costs is Asia, amounting to $84 billion for 137 projects.
Exhibit 7 - Worldwide Road Projects Planned or Completed since 1985 by Region*
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| Total Planned & Funded Since 1985 | Total Funded & Completed by 10/04 | % Funded & Completed by 10/04 | |||||||
| Region |
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| |||||||
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| # | % | $Billion | % | # | % | $Billion | % | % of # | % of $ |
| Africa | 14 | 2% | $4.8 | 1% | 7 | 2% | $3.7 | 2% | 50% | 76% |
| Asia | 137 | 21% | $83.9 | 26% | 72 | 20% | $44.5 | 28% | 53% | 53% |
| Europe | 205 | 31% | $139.1 | 43% | 91 | 25% | $58.1 | 37% | 44% | 42% |
| Latin America | 126 | 19% | $26.2 | 8% | 83 | 23% | $18.9 | 12% | 66% | 72% |
| North America | 174 | 27% | $70.8 | 22% | 106 | 30% | $32.2 | 20% | 61% | 46% |
| Total | 656 | 100% | $324.7 | 100% | 359 | 100% | $157.3 | 100% | 55% | 48% |
* Based on total PWF database, including projects with partial information
In terms of average project cost, Europe has the largest highway projects at $679 million. Asia is second with average highway project cost of $612 million. North America is third with average highway project cost of $407 million. The significant difference in the average cost of the PPP projects in Europe and in North America is due to a number of factors, including:
• Larger European projects that reflect national interests versus smaller U.S.
projects that reflect state interests.
• Propensity of projects in the U.S. to be smaller in size to accommodate local
contractor capabilities and interests.
• Higher proportion of smaller Design-Build and Management Contracts in the U.S.
• Large number of smaller Concession contracts in Mexico.
Europe has the largest PPP program for highway infrastructure and the highest percentage of planned projects yet to be completed. This reflects the continuing interest in Europe in financing and building highway infrastructure to knit the continent together, both economically and physically, in the aftermath of the fall of the Iron Curtain and the rise of the European Union and the Euro.
Exhibits 8 and 9 on the following pages illustrate the predominant role that European nations play in sponsoring highway infrastructure projects funded through PPPs. This is in part a reflection of the absence of dedicated funding sources for highway transportation among European nations, greater traditional reliance on passenger rail service for intercity/international travel across Europe, and a rapid transition in the 1990s from largely public infrastructure systems to a more private financed, developed, and operated highway infrastructure system. The use of PPPs and private financing based largely on toll revenues has enabled many European countries to accelerate their development of transportation accessibility as the continent has become more interdependent from the perspectives of economic development and personal mobility.
Overall, about half of the highway improvements planned for PPP development have been completed by October 2004.
Exhibit 8 - Worldwide Road Projects Planned & Funded since 1985 by Region
| (Projects)
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| ($ Billions)
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* Based on total PWF database, including projects with partial information
Exhibit 9 - Worldwide Road Projects Funded & Completed By October 2004 by Region
| (Projects) |
| ($ Billions)
|
* Based on total PWF database, including projects with partial information