How to advance the financing of transport infrastructure in the region the formation of a unified southern European fund: An expedient solution

• Main Author: Ognjanović Vuk
• Format: Article
• Language: English
• Published: Association of Serbian Banks 2018-01-01
• Series: Bankarstvo
• Subjects: transport infrastructure; financing; delay and inefficiency of investments; logistics; regional cooperation; the Fund - new regional financing mechanism
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2018/1451-43541803095O.pdf

Two reasons are usually given to explain delays and poor efficiency when constructing regional transport infrastructure. These are the lack of funds and the inadequate level of organisation among the participants in the construction and financing processes. All of this raises the cost of investments. Moreover, the fees for untimely withdrawals of approved loan funds are costly, as are the increased costs of road construction, due to the individual efforts of every country to solve the issues of providing funds for financing the construction of transport infrastructure on its territory. Obviously, it is time to consider new, innovative, advanced and organised joint actions. Namely, the primary and key activity could be the constitution of a new financial mechanism (the Fund), which would, on the principles of the PPP logistic platform, consolidate all local and international resources which are potentially available and directed towards the financing of transport infrastructure. With its business strategy, this mechanism would combine the means and resources of regional and international financial potential for the construction of roads, and thus greatly strengthen the responsibility for increasing the efficiency of investments and sustainable development in the region as a whole.