k is held to a minimum, the political risk increases with the term of a loan in many cases. Future governments may choose to terminate concession agreements (or the TRC), or may set the user fees at a level that does not permit the operator (either the TRC or the concessionaire) to adequately service the debt. Private lenders are therefore sensitive to a nation's political situation when considering funds for highway projects, and may refrain from lending to nations that are considered to be particularly sensitive in the political arena.
The World Bank can assist governments in establishing TRCs when detailed analysis indicates that such a corporation could produce a viable highway system. In this situation, the World Bank may serve to bring together a consortium of public and private resources.
TRCs are typically financially autonomous from the government and are established in order to design, build, finance and operate the highway system. In some cases, the equity of the TRC is held by the government and gove
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