1. Trends of Road Asset Management on World Bank Financed Projects Christopher R. Bennett Sr. Transport Specialist The World Bank

2. Some Context: World Bank Transport Lending

3. Transport Lending

4. Lending trends by Subsector

5. Asset Management

6. Infrastructure Needs Maintenance Drainage system Vegetation controlSurface maintenanceRoad clearing

7. 7 Total Asset Management

8. Evolution of Asset Management  1970s  Equipment Management  Maintenance Management  1980s  Pavement Management  Private Contractors  1990s  Road Funds  Bridge Management  Agency Reform  2000s  Integrated Asset Management Systems  Governance  Performance Based Contracting

9. The ‘Solutions’ to Asset Management Fraud and Corruption Third Party Technical Audits Independent Monitoring FundingCommercializing Plant Commercializing Road Agencies Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection

10. Funding Fraud and Corruption Third Party Technical Audits Independent Monitoring FundingCommercializing Plant Commercializing Road Agencies Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection

11. 2004 China Maintenance Funding

12. How to Fund

13. Expressway Development CountryDecentralizationSource of FinanceManagement BrazilMediumBudget, TollsPublic, Private (PPP) ChinaHighBudget, TollsPublic FinlandHighBudget, VignettesPublic, Private (PPP) FranceMediumBudget, TollsPublic, Private (PPP) LatviaLowBudgetPublic NZHighBudget, TollsPublic, Private (PPP) RussiaMediumBudgetPublic SlovakiaLowBudget, VignettesPublic SloveniaLowBudget, Tolls, VignettesPublic UkraineLowBudgetPublic USAHighBudget, Tolls, EarmarkingPublic, Private (PPP)

14. Asset Management Systems Fraud and Corruption Third Party Technical Audits Independent Monitoring FundingCommercializing Plant Commercializing Road Agencies Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection

15. 15 Adopt Appropriate Approach

16. Appropriate Data Collection

17. Designed for this Not this … Appropriate Technology

18. Cost/Performance Matrix (2005)

19. FWDMultifunction Vehicles Data Collection Surveys Road Management Systems Generic Specifications

20. 20  Road Management System Satisfaction AgencyOverall Satisfaction Argentina (Santa Fe)7.5 Bangladesh6 Botswana7.4 Burkina Faso8.5 Cameroon6 Chile7 China (Fujian)(not used) China (Henan)(not used) China (Hubei)(not used) Costa Rica5 India (NHAI)(under development) India (Kerala)(under development) India (Rajasthan)(not used) Indonesia6 Mozambique5.5 New Zealand (TNZ)8 New Zealand (PDC)8 Papua New Guinea5 Tanzania6.7 Uruguay8 USA (VTrans)9.9

21. Successful Systems Successful projects properly address all three factors

22. Governance Fraud and Corruption Third Party Technical Audits Independent Monitoring FundingCommercializing Plant Commercializing Road Agencies Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection

23. Fraud and Corruption Source: Curbing Fraud, Corruption and Collusion in the Roads Sector. The World Bank, 2012

24. Third Party Technical Audits Source: Curbing Fraud, Corruption and Collusion in the Roads Sector. The World Bank, 2012

25. NORTHERN LUZON Concerned Citizens of Abra for Good Government Northern Luzon Coalition for Good Governance – Ilagan Chapter, SADC - Bontoc-Lagawe, SAC- Alaminos, SAC-San Fernando, La Union, SAC-Kalinga, Kalinga Apayao Religious Sector Association (KARSA), People’s Alliance for Justice, Democracy and Good Governance (PAJDGG), Norte Sentro, Episcopal Diocese of Santiago SOUTHERN LUZON Coalition for Bicol Development Ugnayan ng mga Magsasaka sa Quezon CENTRAL LUZON Movement for the Advancement of Student Power Ten Outstanding Boy Scouts of the Philippines Association Philippines: RoadWatch

26. Community Reporting

27. Road Agency Reform Fraud and Corruption Third Party Technical Audits Independent Monitoring FundingCommercializing Plant Commercializing Road Agencies Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection

28. Phase 1 Public Works Dept. Identify Client and Deliverer Phase 2Phase 3 Separate Client & Deliverer Establish Road Authority Corporatise Deliverer Phase 4 Phase 5 Corporatise Client Privatise Client Phase 6 Decreasing Government Involvement Road Agency Reform

29. Improving Institutional Performance Source: Review of Performance Based Contracting in the Road Sector. OPUS International Consultants, 2012

30. Annual Reports

31. Contracting Modalities Fraud and Corruption Third Party Technical Audits Independent Monitoring FundingCommercializing Plant Commercializing Road Agencies Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection

32. TypeAsset Owner Specifies State of Development Risk SharingReliance on Asset Database InputLabour Materials AncientNoneNone-Low OutputSchedule of Rates MatureSomeMedium OutcomePerformance Standard YoungSignificantHigh 32 Input to Outcomes

33. Micro Enterprise YearVery GoodGoodRegularBad A19960%60%40%0% 199825%60%15%0% B199623%13%64%0% 199837%46%17%0% Microenterprises in Uruguay

34. Technology OptionPercentage of total Cost MaterialsWagesEquipment Labour Intensive6025 – 400 – 5 Intermediate6025 – 3010 – 15 Equipment Intensive605 – 1030 - 35 Job Creation Potential - India

35. Risk Allocations Traditional Outsourcing High RISK TO PUBLIC SECTOR Low RISK TO PRIVATE SECTOR High Performance-based Contracts Decreasing Public Risks, Increasing Private Risks BOO Availability Payments Toll Road BOT Shadow Tolls

36. 36 Wide Variations

37. 37 Cost Implications

38. Challenges for Outcome Contracts

39. World Bank OPRC Review

40. Review of Projects Source: Review of Performance Based Contracting in the Road Sector. OPUS International Consultants, 2012

41. The ‘Solution’ to Asset Management Fraud and Corruption Third Party Technical Audits Independent Monitoring Funding Commercializing Road Agencies Commercialization of Plant Community Driven Contracting Performance Based Contracting Maintenance by Contract Maintenance Concessions Public Private Partnerships Road Management Systems Systematic Data Collection ?

42. 42 Best Practice Years Level of Excellence Innocence Competence Initiative Excellence BASIC ADVANCED 5 810 0 Aware 2 Asset Management Adoption

43. Questions