Relieving road congestion through motorway concessions in Moscow

Abstract

Russia has a well-developed and powerful transportation system. However, the entire transpon infrastructure was designed to meet the needs of a closed and centralized economy. It has become clear that the current road network does not fillfill Russia's social and economic needs. The growth of Russia's road network has fallen far behind motorization rates and the growing demand for road transportation. This gap is a result of the low level of investment in road infrastructure, especially during the last decade. The lack of an adequate stock of roads is particularly evident in Moscow, leading to extremely high traffic congestión, with adverse consequences in terms of wasted time, air pollution, noise, climatic effects, etc. Increased investment in road infrastructure is necessary to reduce Moscow's road congestión. To this end, in addition to increasing public investment, it would be helpful to involve the prívate sector by means of public-private partnerships (PPP). This paper analyses the issues surrounding road concessions and the challenges and difficulties of using a PPP model in Russia. First, the study analyses data on the evolution of the road network and of transport demand in Russia over the last decade. These data illustrate the difficulties of maintaining the road network and of responding to the growing transport demand. Then the paper reviews the challenges of PPP projects aimed at improving the road network, focusing on two recently granted motorway concessions near Moscow. Finally, prospects for further development of public-private partnerships to relieve road congestión in the Russian capital are explored.

Document type: Conference object