Transport Papers

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    Road Asset Governance Filter : Case Study of Kazakhstan and Armenia
    (World Bank, Washington, DC, 2011-02) Queiroz, Cesar ; Lopez Martinez, Alejandro ; Ishihara, Satoshi ; Hommann, Kirsten
    Building upon the transport governance filter developed by the Europe and Central Asia (ECA) transport team, which identified several thematic principles and actionable indicators on the governance of the transport sector at large, this paper seeks to assess the overall governance performance of the road sector as well as the concrete issues that road administrations should address in order to improve sector governance. A pilot survey was conducted in Armenia and Kazakhstan, in which road sector stakeholders were asked to evaluate more than seventy questions structured along four governance dimensions: (i) transparency, disclosure and accountability of the road agency; (ii) transparent and accessible procurement processes; (iii) financial management system; and (iv) administrative procedures and anticorruption effort. This report starts with an overview of the existing approaches to governance and corruption with a particular focus on the road sector. It then outlines the methodological framework developed under the study to assess the governance challenges facing the road sector, and report the governance challenges in Armenia and Kazakhstan using the methodology developed. The report will conclude with an assessment of the strengths and weaknesses of the methodological approach used and concrete suggestions to strengthen governance in the road sector of Armenia and Kazakhstan.
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    Monitoring Road Works Contracts and Unit Costs for Enhanced Governance in Europe and Central Asia
    (World Bank, Washington, DC, 2011-01) Alexeeva, Victoria ; Queiroz, Cesar ; Ishihara, Satoshi
    The present study generates a specialized dataset of road sector contracts for Bank-financed projects in 14 countries of Europe and Central Asia. The data sample covers 200 completed or ongoing road works contracts signed between 2000 and 2010. Trends for each country are captured through the following indicators: (i) difference between contract values and their engineers' estimates; (ii) cost overruns; (iii) time overruns; (iv) bidding indicators for contracts with and without prequalification: number of firms that applied for prequalification, number of prequalified firms, number of firms that bought bidding documents, number of bidders, number of disqualified bidders; (v) time elapsed between bid opening and contract signing dates; (vi) cost per kilometer of similar works; (vii) road works unit costs; and (viii) ratios between supervision contract values and the related road works contract values. An inventory of risks is developed for each road works contract using a checklist of possible entry points of corrupt activities or red flags. The frequency of observations is measured for the selected types of red flags from a sample of 200 road works contracts surveyed. The contracts with complaints received by the Bank's Integrity Vice Presidency (INT) are examined separately to check if they exhibit a pattern of indicators consistent with the presence of allegations of corruption or fraud. The study looks further into the determinants of road rehabilitation and reconstruction costs. It concludes with selected recommendations to sustain the platform fostering governance and integrity in the procurement and implementation of road sector contracts under Bank-funded operations.
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    A Review of Institutional Arrangements for Road Asset Management : Lessons for the Developing World
    (World Bank, Washington, DC, 2010-04) Queiroz, Cesar ; Kerali, Henry
    The type of institutional arrangement for managing roads adopted by a country depends on the objectives and performance that it sets for its road networks. This paper reviews such arrangements for selected countries; China, Brazil, Slovenia, New Zealand, United Kingdom, and the Slovak Republic. These countries have adopted different approaches in several dimensions, such as decentralization, sources of financing, management structure, and modal responsibility. This paper reviews main factors affecting the efficiency of road agencies and describes the steps taken in creating a new institution, or transforming an existing one, and assesses the effort required to achieve such results. In all countries reviewed, the ministry responsible for the transport sector remains the authority responsible for the overall transport policy and for putting in place checks and balances for good governance and management of fiscal risk. The main aspects of institutional reforms that can contribute to increase the efficiency of road and transport agencies include: improved institutional structures, separation of the client and supplier functions, separation of client and supplier organizations, privatization of the supplier organizations, establishment of an executive agency or a commercialized (client) organization, user participation through oversight boards, improving management information systems, and seeking additional sources of financing.