Implementing Second Generation Road Funds -- Lessons Learned

Tools SSATP Technical Note November 30, 2000 Road Asset Management
http://www.ssatp.org/sites/ssatp/files/publications/SSATP-TechnicalNotes/ATTN31…
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Ajay Kumar

SSATP, The World Bank
Africa Transport Technical Note No. 31
Implementing Second Generation Road Funds -- Lessons Learned

The note is based on a review of experience with the operation of second-generation Road Funds in Benin, Ethiopia, Ghana, Kenya, and Zambia. Findings of this review are based on an assessment of the structure, and process of setting up, and implementing the Road Funds, as well as an assessment of the objective achievements to date. While all countries have not moved at the same pace, they have progressed to various stages to introduce institutional, and financial reforms, in the spirit of the Road Management Initiative. Lessons suggest that common among the reviewed countries, were incremental user charges being collected for road maintenance, managed by autonomous Roads Boards, clearly separating financing, from executing functions. Though funding for maintenance shows consistent increases, the amounts are still short of total requirements. It is important to note that Roads Funds Boards arrangements represent progress on management, accountability, transparency, and increased awareness on the need to address long neglected road maintenance needs, and this is expected to result in efficiency gains in the long run. In addition, revenue-raising through Road Funds, should match absorptive capacity, rather than identified maintenance expenditure needs.

Road Maintenance Road transportation systems Road User Charges Roads economic aspects Funds institutional reform Financial regulation Monitoring & evaluation Autonomy of executing agencies Management developmentaccount accountability accounts audited accounts auditing audits bills budgeting bureaucracy capital cities car ownership constituency cost sharing discretionary powers districts Expenditure financial reforms framework fuel government agencies Government departments institutional arrangements institutional capacity Legislative framework local contractors main roads Ministry of Finance national level National Roads political interference quality of work rehabilitation reporting Resource allocation resource allocations RMI Road Authority road conditions Road Fund Road Funds road improvement road improvements Road Maintenance Road Maintenance Initiative road management ROAD NETWORK road systems Road User Road User Charges Road Users roads sharing tractors transparency Transport urban roads
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