Abstract:
The provision of road infrastructure is becoming the main agenda for the transport
authorities and the road users. In case of inadequate public funds and the scarce
financing opportunities with economies under transition, private provision offers a better
means to achieve sustainability goals in road infrastructure. Private provision of roads is
typically made through a so-called build-operate-transfer (BOT) contract. Under a BOT
contract, a private firm would build a road, charge tolls to road users for a period, and
then transfer the road to the government at the end of concession period.
The aim of the research was to assess implementation and performance of BOT road
franchising in Ethiopia, and Addis Ababa-Adama toll road constructed under public
agency was used for dissertation. Due to the fact that BOT concept is relatively a new
approach to infrastructure development in our country and there is limited previous study
on the scheme, the research provides general knowledge and experience on BOT road for
future use to solve the problem of limitation of public funds.
The research was conducted by gathering data on factors that affect implementation and
performance of BOT from stakeholder’s view and identifying road user’s perception
toward road tolling by interviews. The first stage in the assessment was identifying the
main factors that affect implementation and performance of BOT road and insight about
BOT road infrastructure project was gained. From road user’s interview analysis, tolling
of road was almost acceptable at current toll price and road users have positive view
toward road tolling principle for better road condition. For selected case study of Addis
Ababa – Adama toll road, cost benefit analysis was undertaken and profitability and
viability of road tolling was checked by comparing the financial benefits with the
corresponding costs during the project’s life span. And also economic benefit of saving
from travel time, accident cost and vehicle operating cost was evaluated.
