Disagreement in Germany over new road funding plans

There is major disagreement in Germany over plans for a new approach to financing road development proposed by the government. The authorities in the states are objecting to the government proposal to open a road fund, which will be responsible for building and maintaining the major routes roads and which would be able to award contracts to private companies. The federal states currently have responsibility for the road-building work with, funding coming from central sources and they do not want to lose inf
February 24, 2016 Read time: 2 mins
Significant investment is required for Germany’s Autobahn network so as to upgrade existing routes and add much-needed capacity
There is major disagreement in Germany over plans for a new approach to financing road development proposed by the government. The authorities in the states are objecting to the government proposal to open a road fund, which will be responsible for building and maintaining the major routes roads and which would be able to award contracts to private companies. The federal states currently have responsibility for the road-building work with, funding coming from central sources and they do not want to lose influence. The German Finance Ministry says that road development is underfunded in the country. Some €10 billion is spent on road development/year at present in Germany. For the road programme to be achieved, the annual spending will have to rise to €14 billion by 2018. Germany’s Federal Government does not believe that the states will be able to implement the necessary road-building programmes within the timeframe however. The German Transport Ministry expects goods transport to increase by 40% over the next few years, which is why central planning is necessary.
Finance & Funding

Related Content

  • Kenya rehabilitates, widens, tolls Northern Corridor
    November 8, 2017
    A massive highway project in Kenya will boost transport for the country as well as its neighbours - Shem Oirere reports. Kenya has commenced the process of rehabilitating, expanding and tolling of 657km of East Africa’s Northern Corridor that is anchored on the Indian Ocean port of Mombasa and which links the gateway with landlocked countries of Uganda, Rwanda, Burundi and parts of eastern Democratic Republic of Congo (DRC).
    Read More
  • Major Canadian toll road extension project awarded
    May 25, 2012
    A joint venture formed by SNC Lavalin and Cintra Infrastructure will handle the contract to extend Highway 407 in Canada. This US$974.4 million (C$1 billion) deal was awarded by the authorities in Ontario to a joint-venture called the 407 East Development Group General Partnership and is a partnership between Spanish firm Cintra (a subsidiary of Ferrovial) and Canadian company SNC-Lavalin of Canada. The partnership will build, design and maintain Phase 1 of the new Highway 407 East. The construction work is
    Read More
  • PPRS event highlights transport investment shortfall
    April 30, 2015
    The PPRS event in Paris highlighted the need for additional investment in road transportation – David Arminas writes. Consider the global road network. An improved road from one rural African town to another can reduce the journey time from a one-day walk to a one-hour drive. This could save lives through access to a hospital; allow small businesses to work faster by getting in supplies more quickly; allow children to attend a better equipped school. Roads affect society by allowing healthier and bett
    Read More
  • International Safer Roads Conference focus on highway maintenance funding
    April 30, 2014
    UK road planners and engineers attending next month’s International Safer Roads Conference will find out how to avoid losing part of their highway maintenance funding from the British Government. In the Department of Transport document, ‘Gearing up for efficient highway delivery and funding’, Robert Goodwill, MP, the Parliamentary Under Secretary of State for Transport, warns that local authorities will be incentivised to take up asset management to make the most from allocated resources.
    Read More

Highlighted Content