Road Maintenance and Performance –Based Contracting

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Presentation transcript:

Road Maintenance and Performance –Based Contracting Asif Faiz, Former Highways Adviser World Bank Washington DC February 1, 2011

Bank's Highway Lending 1971 to 2011. Before 1974: New Construction and Post-Conflict Reconstruction; Some Rehabilitation 1975-1985: Major shift in the direction of lending– Rural Access; Maintenance ( Force Account) ; Highway Sector Loans . 1985- 1995; Focus on Preservation of Assets; Contract Maintenance; PMS-- hardly a highway project without a maintenance component; Sector conditionality embedded in Structural Adjustment Lending. 1995-2005: Performance-Based Contracts, PPPs, Toll Financing. 2005-2010: Asset Management ; Results-Based Lending, PBC variants, Outcome-Based Lending ( Brazil, Poland India ).

Sustainability Multiple Dimensions Pre-1970: Technical and Financial 1970s: Economic 1980s: Environmental 1990s: Social 2000s: Institutional ( Political Economy)

Making PBC Work A constituency of shared interests and values Checks and balances to ensure value for money Risk sharing not risk transfer End game --more than asset management -- provision of high quality and cost-effective service to road users and public at large

Pitfalls to Avoid One size fit all Blurring the line between means and ends Ideological bias/agenda cloaked in conditionality Externally- imposed change (for sake of change) with little internal (domestic) ownership/buy-in Paradigm shift ( centrally driven) incompatible with absorptive capacity ( locally constrained)