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

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

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

4. 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

5. 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)