Transport Logistics

iv) Need to re-distribute costs adequately and minimise state aid

Distribution of costs and benefits should be equitable, and based on BPP and the Polluter Pays

Principle. This is necessary for more efficient use of both new and existing infrastructure. New

schemes should be devised in this respect.

Public acceptance of new schemes should always be taken into account, including the generation

of externalities. The consensus-making process needs to be carefully managed, and the expected

distribution of costs (both direct and indirect) and benefits attributable to various groups needs to be

understood and open to the public. The distribution of revenues should be determined carefully in

order to reach a consensus in the decision-making process.

In general, users’ fees are not sufficient to cover the total direct cost of infrastructure provision in

present schemes. At a minimum, governments should base users’ fees on the costs necessary to

maintain and rehabilitate the existing network.

In cases where funding gaps remain, these should not be written off as part of the public sector’s

annual budget. Subsidies and guarantees should be kept to an absolute minimum because the use of

subsidies and loan guarantees as political tools transfers costs and risks to the taxpayers. In some cases

where the project currently has high direct costs, but contributes to other policy objectives, this may be

justified as an exception. Even in these cases, the financing should be treated as a high-risk equity

stake, and managed accordingly.