Scaling up Private Participation in Road Asset Management in Low-Income Countries by Developing Third Generation Road Funds

Different studies and reports have analysed how to increase the private sector participation in the road sector, especially in developing countries and how to promote best practices, including the use of performance-based contracts (PBC) for road rehabilitation and maintenance. For instance, The World Bank has supported the creation of second generation road funds (SGRF) and road agencies (RA) to increase the financial and technical capacity and ensure the sustainability of investments. The key drivers behind the successful experiences are effective regulatory frameworks, increased levels of autonomy and greater capacity for planning, budgeting, financial management and auditing. The recent analysis carried out by the World Bank covering most of RFs in Africa point out that in some Countries RFs could generate resources based on users’ charges that could be dedicated to cover maintenance needs combined with rehabilitation investments under PBCs approach in a more efficient way. When revenue generation is stable and ringfenced, road funds can also potentially be used to leverage commercial financing for new investments, or to backstop government obligations under PPP schemes (e.g. Availability Payments, Construction Milestone Payments). This, in turn, can enable a greater participation of private entities, not only as contractors, but also as long-term investors and managers of both brownfield and greenfield road assets. This paper seeks to explore ways in which low income country governments can increase and optimize their scarce public resources to combine maintenance and rehabilitation under a life-cycle approach and increase private sector participation in road asset management by further leveraging road funds and by creating a PPP environment that responds to investor concerns in the specific context of low-income countries. The paper also proposes a concept of PPP to rehabilitate major corridor, leveraging Road Fund’s resources, and shows a recent application in the case of Liberia recently promoted by the World Bank Group.

• Record URL:
  https://pre-proceedings-abudhabi2019.piarc.org/ressources/files/2/AbuDhabi_26WRC_WBpaper_final.pdf
• Supplemental Notes:
  • Abstract reprinted with permission of the World Road Association – PIARC.
• Corporate Authors:

  World Road Association (PIARC)

  La Grande Arche, Paroi Nord, Niveau 5
  F-92055 La Defense Cedex,   France 
• Authors:
  • Antoniazzi, Federico
  • Pulido, Daniel
  • Labeau, Alain
  • Morel, Julien
• Conference:
  • 26th World Road Congress
  • Location: Abu Dhabi , United Arab Emirates
  • Date: 2019-10-6 to 2019-10-10
• Publication Date: 2019

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 15p
• Monograph Title: Proceedings of the 26th World Road Congress - Abu Dhabi - 2019: Connecting Cultures - Enabling Economies

Subject/Index Terms

• TRT Terms: Asset management; Best practices; Contracts; Developing countries; Financing; Investments; Life cycle costing; Performance evaluations; Public private partnerships; Rehabilitation
• Identifier Terms: World Bank
• Geographic Terms: Liberia
• Subject Areas: Administration and Management; Finance; Highways; Maintenance and Preservation;

Filing Info

• Accession Number: 01754142
• Record Type: Publication
• Files: TRIS
• Created Date: Oct 2 2020 10:02AM