Roads facilitate the provision of basic needs to the poor such as health and education. A common feature of poor people is that they suffer from inadequate access to some human capital facilities that are essential to escape from poverty. Among infrastructures, roads are considered first interest to reduce poverty due to the widely accepted consensus that transport infrastructure has significant, positive and substantial impact on economic growth and poverty as it enhances the connectivity of isolated and remote areas.
Roads create access to output market and leads to a rise in income. Construction of rural roads creates access to market for the poor families to access the markets to sell their goods or produce from their agricultural practices (farming), which leads to rise in income.
The construction of the rural roads will also create employment as skilled, semi-skilled and unskilled (local laborers) will be employed for the project and even after the completion of the projects.
An undeveloped road network is likely to be associated with sub-optimal economic performance and quality of life thus the need constant search or quest by governments to develop their road networks to meet their economic, political and social needs.
Due to the huge cost involved in the construction of New road, governments often find it unattractive and unwilling to commit fiscal spending to roads.
This is also one of our areas of specialty as it is an area where project financing and BOT (Build-Operate-Transfer) which is among our business model are becoming more and more common. In most cases, the roads are concessionaire to the investor allowing the concessionaire collect toll from the public for the duration of the agreement with the government.