road infrastructure financing in Slovak republic jana masárová Faculty of social and economic relations, Alexander Dubcek University of Trencin Štefan BoŠjak Key words Road infrastructure, financial resources, EU funds, Public-Private Partnership. 1. The charakteristics of the road infrastructure The road infrastructure is the significant factor which affects the economic level of country and region. Road network constitutes the highways, limited-access roads, 1^st, 2^nd, 3^rd class roads, local communications and objective communications and all equipment, buildings, objects and works, which occur on it. 2. State of road infrastructure in SR The structure of road network in SR in 2006 is displayed in the chart No. 1. Chart 1: Structure of road network in Slovak Republic (%) The chart 1 shows, that the local communications represent almost 3/5 of the total length of road communications in the SR. The 3 ^rd class roads symbol nearly 1/4 of the road network. Roads of 1^st and 2^nd classes constitute 7 %, resp. 8.5 % from the total road network. Highways and expressways together create only 1 % of the total length of land communications. The most length of highways is in the region of Bratislava. In the region of Banska Bystrica and Nitra is no highway. The most density of the road network in km/km^2 is in the region of Trnava. The length of the local communications is 25942 km. 3. The road infrastructure financing The volume of expenses to the road in the years 1999-2005 introduce the Table No. 2. Year 2000 2001 2002 2003 2004 2005 2006 Investment 9 680,0 8 718,3 10 209,7 8 723,9 9 610,6 13 894,8 14 439,0 Maintenance 2 838,0 2 938,0 2 943,3 2 987,3 3 447,0 3 869,0 4 352,6 Total 12 518,0 11 656,3 13 153,0 11 711,2 12 194,1 17 763,8 18 791,6 Table 2: Total expenditure to the road infrastructure in SR, current prices (mil. Sk) The volume of resources to the road infrastructure accrues in 2006 in comparison with the year 2000 at upwards of 50 %. Proportion of capital expenditures on total expenses is ¾. The way infrastructure is funding especially from the state budget, charges of using road network, loans, from EU funds resources. The toll payment and the public-private partnership make ready. Looking for new resources and their effective exploitation are necessary. As administration of the separate element (level) of road infrastructure is decentralized in SR, is necessary to study the finance options of road infrastructure separate on every level. 3.1 Financing of highways and expressways construction National Motorway Company manages the highways, expressways and a part of the 1^st class roads – total 571,606 km. National Motorway Company is financing from several sources. Beyond resources from the state budget it turns the sources from the EU funds, loans and from the highways sticker sale. The income from the toll system will be the next source of the Company. Besides it the construction of highways in co-operation with private sector (public-private partnership) is planned. 3.2 The construction and reconstruction of 1^st class roads 1^st class roads are in ownership and keep of the state, bunk the operation of management guards The Directorate of Motorways - total 3071,233 km. The finances from the state budget and from EU funds are exploiting on construction and reconstruction of 1^st class roads. 3.3 The construction and reconstruction of 2^nd and 3^rd class roads The 2^nd and 3^rd class roads are at ownership and administration of autonomous regions (high regional unit), on territory of Bratislava and Košice they are at ownership and administration of town. The sources of financing 2^nd and 3^rd class roads are mainly the resources from the budget of autonomous region, receipts from motor vehicle taxation, loans (EIB and commercial banks), public-private partnership and resources from EU funds. 3.4 The construction and reconstruction of local communications The administration and financing of local communications guard towns and communities. Communities and towns exploit on financing of construction and repairs of local communications resources from its budget on basis approval receipts and expenses. The municipalities can get subsidy from the Ministry of Construction and Regional development of SR. Besides they can exploit the bank loans and finances from EU funds. Conclusion Quality and branched road infrastructure is thinking as one of bearing pillar for economic growth achieving, raise of competitiveness and prosperity of community and regions. The main problem in this area aparts from missing highways and expressways in some regions of SR is mainly the long-time and wanting technical and qualitative status of the 1^st class roads, regional and local communications. Nowadays the construction, reconstruction and maintenance of roads and local communications is financing especially from the resources of the state budget, budget of autonomous regions, towns and communities, from payments of the road network, loans and sources from European Union funds. The toll system and the Public-Private Partnership are preparing. It is necessary to look for further sources as well as designate the effective model of exploiting the available sources. Stability and sufficient financing is namely the main assumption of next effective development of road network. Contact-email: Jana Masárová, Ing. Department of Micro/Macro-Economics Faculty of Social and Economic Relations Alexander Dubcek University of Trencin Študentská 2, 911 50 Trenčín Tel.: 032 7400 496 E-mail: masarova@tnuni.sk