Annex 6 to OIC/COMCEC/36-20/REP
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Policy Recommendation II : Assigning an autonomous operator
(entity/institution/body) for the effective collection of charges and
allocation of funds arising from transport infrastructure pricing services.
Rationale:
Transport infrastructure pricing is a multidimensional issue involving public, private,
and civil society. Within this respect, several institutions and organizations have varying
roles in the formation of transport infrastructure pricing and charging policy, regulation,
planning, implementation, monitoring, and evaluation. The coordination among the relevant
institutions and stakeholders is of crucial importance. However, considering the complexity
of management of the pricing of transport infrastructure, effective coordination among
the public and private stakeholders is an important challenge to be addressed. The roles
and responsibilities of the relevant stakeholders may not always be explicit. In this respect,
for improved governance, the roles of regulators and operators can be separated, and
autonomous commercialized institutions may provide the services demanded by
stakeholders and users with greater efficiency. Therefore, the assignment of autonomous
entities that would provide an effective collection of charges and the allocation of funds
arising from transport infrastructure pricing services is of particular importance.
Policy Recommendation III: Utilizing transport infrastructure pricing tools (tolls,
levies, vehicle tax, fuel tax, mileage tax, etc.) to effectively manage transport
demand as well as to raise funds for transport infrastructure development.
Rationale:
An efficient and effective transport system is vital for the socio-economic
functioning of any society. Transport networks, including road, rail, and air networks,
have expanded consistently especially in developing countries in line with the growing
demand. As the demand for transport infrastructure has increased considerably over the
years, governments have initiated some mechanisms to diversify funding sources and to
address this growing demand. The principle of cost recovery from transport users, known
as transport infrastructure pricing, is one of the widely used mechanisms to source public
finance to increase infrastructure capacity and recovery of costs, to effectively manage the
demands for transportation services, to charge transport sector externalities including
greenhouse gas emissions. Tolls, levies, vehicle tax, fuel tax, mileage tax, and vignettes are
some of the widely used tools in transport infrastructure pricing systems. While developing
countries use these tools mainly to provide new infrastructure and improve transport
infrastructure performance, developed countries primarily make use of these tools for
managing traffic demand.