Impacts of Privatization on reducing the cost of highway maintenance

Countries in the developed world have encountered high maintenance cost for deteriorated transportation highways and replacing them despite budget deficits, and decreasing other expenses are no longer applicable. Since 1980s, the privatization policy has served as a strategy to finance state-owned companies from the state budget, raising their efficiency and empowering the private sector. Therefore, privatization in these sectors could be used as an effective way to finance the maintenance costs and management of highway construction, and in this article, the threats that may arise from lack of highways are outlined which could be mitigated by privatization, and the obstacles as well as the advantages and disadvantages of privatization and its various aspects are also investigated

Keywords:

Privatization , financing the highways , participation