One of the things I was most impressed by while in Europe is the quality of the roads in Slovenia. I rented a car for a day from Llubljana and drove to the coastal regions of Slovenia – over (or more accurately, through) two mountain ranges, on a Motorway the whole way to the coast. One has to be amazed at how Slovenia managed to build such a comprehensive motorway system, most of it after independence from Yugoslavia.
Slovenia has only half the population of New Zealand and has managed to build in the past 10 years one and a half as many Motorways than New Zealand has done in the past 50 years. So on my return to New Zealand, I did some research on what the Slovenes have done. And I think the Slovenian model is one we should copy here.
Firstly, Slovenia is geographically similar to New Zealand – check out this
map showing the topography of Slovenia. Slovenia has a population of just over 2 million people and an area of just over 20 thousand square kilometers. New Zealand has 250 thousand square kilometers, over 12 times the size. But Slovenia has 475km of Motorways, compared with New Zealand’s 170km. When it achieved independence from Yugoslavia, it had just under 200km of motorways – in the past decade, it has built and opened 277km of motorway.
Slovenia decided what it's completed Motorway Network should look like - links from the capital to major cities, links from major cities to other cities, plus links to the neighbouring countries of Austria, Italy, Hungary and Croatia. It then prioritised Motorways based on need, then began building them in that order.
Slovenia hasn’t relied on EU funds to build infrastructure (Since joining the EU, Slovenia has always been a net contributor), nor has it borrowed heavily. What it has done is a mixture of Public Investments, Indirect Private Investment and other income, such as rental of adjoining land to Service Stations, Restaurants and Motels.
Up to now, the mix has been 55% from budget appropriatations (I.e. Capital provided by Government from Petrol taxes - Petrol in Slovenia is more expensive than New Zealand, about 15 cents a litre more), 35% from borrowing and the remainder from income from existing tolls. But this model has been replaced by new mix - 43% from budget appropriations, 46% from borrowing (Government Issued Bonds), 10% from Government Borrowing, and the remaining 1% from other income (rental of adjoining lands). The Bonds and borrowing are repaid from Tolls collected on the motorways.
This system obviously works - the Slovenian Motorways are top quality. As you drive along you travel over viaducts up to 2km long and through tunnels several km long. My drive from Llubljana to Koper cost me SIT1050, about NZ$8.50 and the 130km drive took about one and a half hours - and I was one of the slower drivers, sticking close to the speed limit of 120km/h.