Economy, Business And Markets

New Fund for Road Projects

New Fund for Road Projects New Fund for Road Projects

Hossein Abdoh Tabrizi, head of Financial and Economic Research Institute of Transport and Housing, has called for establishment of a fund to help finance construction of highways and freeways. ISNA cited him as saying on Saturday that the easiest way to help develop the road network is to establish a specialized fund, whose resources come from fuel taxes—a common strategy applied worldwide. Since 2005, 120 funds have been established and listed in Tehran Stock Exchange to provide financing for development projects. Abdoh Tabrizi said his institute provides feasibility reports for the Ministry of Roads and Urban Development, indicating whether or not a development project is economical. The institute has recently come up with the idea to levy tax on fuel intended for transportation, a move that could raise funds needed for road projects, he said, adding that although such projects are generally funded by the government, extra funds are needed if the road network is to be expanded.