Improving Institutions, Funding, and Financing

Abstract

Addressing urban transport issues and implementing policy measures recommended in previous chapters call for a provision of effective institutions including funding and financing mechanisms. As urban transport systems have some characteristics of public goods, role of public sector is significant particularly in investment and regulation. However, private sector's role in recent year has been expanded and redefined. The performance of both public and private sectors depends upon the institutional framework in place. Urban transport in developing megacities suffers from the lack of effective institutional arrangements. The expanding boundary of functional metropolitan area covering a multitude of administrative units makes the task of urban governance and coordination much challenging. Further as urban transport activities are more capital intensive, adequate provision of funding and financing is prerequisite for the success of any well-designed plans and policy. However, funding and financing gaps have remained as a major barrier in implementing necessary policy measures.