Transport Papers

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Road Asset Governance Filter : Case Study of Kazakhstan and Armenia

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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Road User Charges : Current Practice and Perspectives in Central and Eastern Europe

2008-11-01, Queiroz, Cesar, Rdzanowska, Barbara, Garbarczyk, Robert, Audige, Michel

This paper covers the most commonly used means to charge road users, including fuel taxes, vehicle taxes, vignettes and tolls. It presents a brief survey of road user charging systems in selected European countries and a more detailed overview of current status and perspectives of road user charges in Poland. Consideration is also given to private financing of roads through different forms of public-private partnerships (PPP), including a review of potential applications of the World Bank toolkit for PPP in highways as an instrument to help decision makers and practitioners to define the best PPP approach for a specific country.

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Monitoring Road Works Contracts and Unit Costs for Enhanced Governance in Europe and Central Asia

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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Monitoring Road Works Contracts and Unit Costs for Enhanced Governance in Sub-Saharan Africa

2008-09, Alexeeva, Victoria, Padam, Gouthami, Queiroz, Cesar

The study is based on a new specialized dataset generated for the road sector contracts of Bank-financed projects in Sub-Saharan Africa. It is organized as follows: Chapter two describes the data and a set of indicators constructed to perform comparative assessments of the procurement and implementation processes across 13 African countries. Chapter three points out the trends in selected key indicators and performs an inventory of risks for each road works contract using a checklist of possible entry points of corrupt activities or red flags. Through comparison of the road works contracts that had complaints received by the Bank's Department of Institutional Integrity (INT) and other contracts in the sample, it examines if the data exhibit a pattern of indicators consistent with the presence of allegations of corruption or fraud. Chapter four looks at selected issues such as high bid rates, low response to invitation to bid, and cost and time overruns as they were addressed by the project implementing agencies. Finally, chapter five provides selected recommendations to enhance accountability and control of corruption in the road projects financed by the World Bank.

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A Review of Institutional Arrangements for Road Asset Management : Lessons for the Developing World

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.

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Launching Public Private Partnerships for Highways in Transition Economies

2005-09, Queiroz, Cesar

In many countries the private sector has been involved in financing infrastructure through concessions under a public-private partnership (PPP) program. PPP schemes, however, are somewhat underutilized in transition economies, where the potential financing gaps are significant and growing, and there seems to be an enormous potential for more private sector involvement in the financing and operation of highway assets in these countries. Institutions such as the World Bank can contribute to enhance private financing of road infrastructure through greater use of their guarantee power, in addition to supporting, when required, the public sector contribution to the construction cost of a PPP project through loans. Partial risk guarantees are particularly relevant in the context of seeking more private involvement in the financing of road infrastructure. This paper reviews potential applications of partial risk guarantees, the required legal framework (for example, concession law) for attracting private capital for PPP schemes, possible steps for a country to launch a program of private participation in highways, the concept of greenfield and road maintenance concession programs, and the treatment of unsolicited proposals. It also summarizes potential applications of the World Bank Toolkit for PPP in Highways as an instrument to help decision-makers and practitioners to define the best PPP approach for a specific country.