Private Financing of Roads Shifts Costs to Taxpayers, Warns Study
Private investors can finance road infrastructure projects, but taxpayers or users ultimately bear the cost. The study analyzed a Finnish shadow toll road project to see if private finance can benefit both the state and investors. By examining project cash flows and risks, researchers found that private finance can bring added value, but it requires careful consideration of project type and investor suitability. The study used real data and simulation analysis to evaluate the project model and provide policy recommendations.