THE ROLE OF CONCESSIONS IN TRANSPORT INFRASTRUCTURE DEVELOPMENT

Abstract

In an economic and financial crisis the concession as a business model enables the development and modernization of public state-owned entities. Transport infrastructure in Bulgaria, which is public state-owned, has its important economic and social role. Its status and prospects for development underlie the demand for transport services. The transport infrastructure modernization can be financed depending on the country’s economic development. The limitations imposed on central financing, aiming at transport infrastructure improvement, bring forward the concession as an alternative opportunity for improving transport service quality. The present article examines the role of concessions in transport infrastructure development, determining the economic and social benefits stemming from infrastructure projects’ concessions. Concession is regarded as a successful business formula, combining low risk levels, quality and stringent control over the object of concession.