Get Commercial management and financing of roads, Volumes 23-409 PDF

By Ian Graeme Heggie, Piers Vickers

In constructing and transition economies, 60 to eighty percentage of all passenger and freight shipping strikes through road—the major type of entry for many rural groups. but many of the eleven million kilometers of roads in those economies are badly maintained and poorly controlled. This paper discusses some of the most powerful how you can advertise sound rules for dealing with and financing highway networks—commercialization. It discusses the rising principal notion of bringing roads into undefined, placing them on a fee-for-service foundation, and dealing with them like a company.

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It gave impetus to a number of initiatives designed to understand the underlying causes of poor road management. It also encouraged road agencies to address these institutional issues through a clearly articulated reform program. The Road Maintenance Initiative (RMI), a major component of the Sub-Saharan Africa Transport Policy Program, was one of these initiatives, as was the Page 8 PROVIAL (''for roads") program in Latin America. These programs did a great deal to improve the understanding of why roads were poorly managed and underfinanced.

2 Furthermore, in many countries a significant proportion of the central government's disbursed and outstanding debt is loans made for roads. The road sector also absorbs a great deal of grant finance, mainly for procuring construction and maintenance equipment. Even a relatively small national road agency often owns $25 to $50 million of plant and equipment. 1). Road maintenance and construction is also significant in terms of employment, although privatization and devolution have led to sharp reductions in the number of workers employed in the road sector.

But these reforms lacked a comprehensive vision focused on technical rather than institutional solutions, and were generally implemented in piecemeal fashion. Some attempts were made to rationalize and decentralize road management, but little effort was made to deal with weaknesses in the organizational structures of road agencies, low pay scales, shortages of qualified staff, lack of staff motivation, and lack of managerial accountability. Instead, most reforms concentrated on reducing work done using in-house staff and equipment, introducing maintenance management systems, and restructuring government plant and equipment pools.

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