Implementation And Performance Assessment Of Buildoperate-Transfer Scheme Road Franchising. A Case Study Of Addis Ababa- Adama Toll Road.

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.