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Comparison of Revenue use on our case studies
As with other existing Congestion Charging schemes, the use of revenues derived has been considered key to the acceptability of the scheme.TfL reported in 2007 that the scheme generated net revenues of approximately £123 million in 2006/07 which is being spent on improvements to transport across London, with an emphasis on improving bus services.
RomeThe city of Rome in 2007 had 15M€ of revenues from charges and 74.8 M€ from fees. The objective is to invest revenues from this “Area Charging” to improve and enhance Public Transport infrastructures.
StockholmRegarding the permanent congestion charging in Stockholm, the revenue will be used for investments in the road network. The size of the revenue from taxes paid is approximately 800 million SEK/ year (€80 million).
Toll revenue can only be used for infrastructure investments. The revenue can be used for public transport infrastructure investments if this alternative use, from an economic point of view, is better than direct road infrastructure investments.
By the end of 2007, the toll ring of Oslo package 1 has contributed 13,235.4 mill NOK (2007 value) (1,654 M€) to infrastructure investments in the Oslo region. In addition the toll ring has covered all operational costs and interest.
At the same time, the State has provided 7,248.5 mill NOK (2007 value) (€906 mill) in state funds to investments within in Oslo package 1. This makes the entire Oslo package 1 an investment package of 22,232 mill NOK (2,779 M€). In addition investments in the tolling system amounts to 286 mill NOK (35.8 M€).
The fare hike in the toll ring from Oslo package 2 will provide another 1,169 mill NOK (2007) in infrastructure investments by the end of 2007.In Oslo package 1, 20% of the investments were allocated to public transport infrastructure. All the extra revenue raised by Oslo package 2 has been earmarked for public transport infrastructure.
The bid for TIF funding in the Greater Bristol area is part of a wider aspiration to implement a large package of improvements to the region’s transport network, including:
When there are rewards instead of charges, there are no revenues.
DurhamThe revenues raised have been used to support a frequent bus service to and from the charging area i.e. the World Heritage Site.
EdinburghA ‘Preliminary Business Case’ linked charging revenues with estimated costs of collection and the implementation of a transport investment package. The objective was to identify the scale of investment that could be funded, and any further funding requirement. It also provided an indicative timetable for the implementation of the constituent projects. The capital and operating costs for the charging system itself were of crucial importance, especially given the relatively low congestion charge being proposed, and a detailed cost model was developed. The question of procurement strategy, and appropriate organisational and financial structures to deliver such a major project was also considered at this time. The scheme was intended to operate for 20 years. It could directly have funded around £35m-£40m (€42m-€48m) of transport investment each year after deduction of collection and financing costs, providing a total package of £760m (€912m) at 2002 prices.
BolognaThe revenues will be use to finance the building of news roads, for maintenance of the existing ones, and for improving public transport network. During the year 2007 108,000 € were earned from “pay–to–access” permits sold.
MilanBy local law, all net revenues has to be invested in providing urban sustainable mobility and public transport.
The revenue from the initial Bergen toll ring was only used for road infrastructure investments. The new Bergen Programme also funds PT infrastructure. The table below illustrate this.
* Traffic safety measures, walking and cycling measures, environmental measures and planning
No information available.
Dutch National CaseThe revenues will be used to finance new roads, and the maintenance of existing ones.
ManchesterPart of the funding conditions prior to the scheme being rejected by referendum in December 2008 was that money would be re-invested in public transport schemes and used to pay for operating costs.
Nord-JaerenThe revenue raised by the Nord Jæren package will be used for both road, rail and cycling/walking. In addition some revenue will also be used to improve the local environment and liveability of the area. The proposed revenue use is illustrated inthe table below.
The information in this chapter is reproduced from Meland et al (2004). The Trondheim Package amounts to approximately NOK 2,100 mill for the period 1989-2005 (NOK 100 is about 12.5€) (Table below). The package is financed with a combination of revenues raised from the Trondheim toll ring, and governmental funding.
According to the original plans for the Trondheim package, national funding (governmental) was to amount to 40% of the funding of the Trondheim Package, and the local funding (toll revenues) had to raise the last 60% over the total 15-year concession period. Loans were taken up in advance of the toll charging, to allow road construction to start before the toll ring was established. The loans amounted to approximately NOK 440 million (55€), and are covered by toll revenues.
Over the years, the ratio between national and local funding has shifted towards a larger proportion of national funding (see table above), and, by the end of the concession period, the ratio was probably close to 50/50, as additional national grants (“Storbymidler”) are included in the financing of the Trondheim package.
All revenues from the toll system are earmarked for transport investment: 82% are used for funding the road construction program in the Trondheim Package; 18% are used for investment in public transport and in several safety and environmental measures. Details of the total investments are given in the following table.
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