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The World Bank Among the many functions of the Worl

Among the many functions of the World Bank is that of aiding countries obtain capital for highway projects which are financially desirable. While there are no set guidelines within the Bank for the exact type of roadway which the Bank with which the Bank will assist, there are several types of projects with which the Bank has been associated. One of the most common of these involves the country setting up a Toll Road Corporation (TRC), which is a public company that constructs, operates, maintains and receives revenue from the highway system. World Bank loans can be used to provide some of the construction costs, and the involvement of the World Bank can help the TRC raise additional funds privately. Participation by the World Bank can help other fears of lenders (such as those associated with a nation's political stability) and thus aid countries in attracting the long-term financing that is necessary for highway projects. This research examines two common toll road systems, the TRC and concessions, and considers the role of the World Bank to procuring funds for high priority highway projects.

In addition to the toll road corporation option, countries may decide to have private enterprise compete for the highway project. The winning organization would build, finance, operate, maintain and receive the proceeds from the tolls on a specific highway. The World Bank is involved with this type of project by providing guarantees to the successful bidder, thus helping the company obtain the necessary financing.

TRCs are particularly appropriate for building national highway systems rather than single highway corridors. TRCs work best in situations where there are low numbers of cars overall (less than 30,000 per day, AADT), but a number that justifies the construction of a four-lane highway in the first place. The ideal number is generally held to be between 15,000 and 20,000 per day, AADT. Revenues from existing highways are ...

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The World Bank Among the many functions of the Worl. (1969, December 31). In LotsofEssays.com. Retrieved 10:09, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1708553.html