During the 1980s the state had a monopoly on practically all commercial transport, including goods and passenger transport by road and river. Some enterprises were national and supervised by the Ministry of Transport (now part of MPWT), many others were local and came under the respective provincial governments. When private transport companies were permitted through a Government decree in 1991, the Enterprises lost out very fast and most have since been dissolved. This pnvatisation by default has generally been very successful, particularly for river transport. The investors responded quickly, a new fleet was built within a few years, and the competition is fierce between a large number of small owners /operators. The private investments in road transport have been somewhat less impressive so far, but then the current condition of the road network does not exactly encourage the use of new vehicles. The tariffs charged appear to be reasonable, however, indicating sufficient capacity for the present demand at least regarding goods transport. There is also a large number of small, owner-operated vehicles for passenger transport, although usually overloaded and not of very adequate types. The state Passenger Transport Company still operates regular buses but has a very marginal role.

The development of private contractors with the competence and equipment for infrastructure construction - has barely started.. on the other hand. Some foreign firms have established local offices, and/or joint ventures with local companies but are still waiting for a break. A firm commitment by MPWT to support private entrepreneurs, and preferably also a long term programme with foreign funding, is likely to be needed before there will be any further developments in this sector. Once such a programme is announced and tenders invited, however, the investments could come very quickly as evidenced by the experience from other sectors.