Private Sector and Infrastructure aZ 4 1 210 July 2002 Findings reports on ongoing operational, economic, and sector work carried out by the World Bank and its member governments in the Africa Region. It is published periodically by the II .~ I.. |Knowledge and Learning Center on behalf of the Region. The views expressed in Findings are those of the author/s and should not be attributed to the World Bank Group. ~'' -http:/lwww.worldbank.orglafr/findings Reforming Road Management r.. in Sub-Saharan Africa Overcoming Obstacles to Implementation The Road Management Initiative (RMI) has, over the past 10 years, worked with interested African countries to identify the underlying causes of poor road man- agement policies, and to develop an agenda of reforms that willfacilitate sustain- able management of the public road networks. The RMI works at the country level through broad based Steering Committees with a nominated RMI Coordinator as its secretariat, in close cooperation with World Bank and donor-supported pro- grams in the road sector Policy reforms in SSA The solution that emerged from the RMI program is commercializa- lfl ~ A frican countries expanded tion: bring roads into the market /Atheir networks considerably in place, charge for their use on a fee- the 1960s and 1970s. By the for-services basis, and manage end of the 1980s, there were nearly them like any business enterprise. two million km of roads in SSA. The findings indicated that com- These are among the region's larg- mercializing management of roads est assets with a replacement cost is feasible if complementary re- of at least $170 billion that require forms are undertaken in four ar- some US$2-3 billion annually for eas referred to as the four basic routine and periodic maintenance building blocks for sustainable re- to keep them in stable long-term forms: conditions. But in spite of their . create ownership by involving the importance, most roads in SSA road users in funding and man- have been poorly managed and agement of roads to generate sup- badly maintained with the result port for adequate road funding that nearly a third of the $170 bil- and control of agencies' monopoly lion investment has been lost power; through a lack of maintenance. (1) . secure an adequate and stable In late 1980s, the United Nations flow of funding based on dedi- Economic Commission for Africa cated user charges; and the World Bank set the ball . secure clear specification of all rolling to address the poor state of responsibilities, and their appro- transport services in Sub-Saharan priate assignment with matching 0 Africa (SSA) through a Sub-Sa- authority; and, haran Africa Transport Policy Pro- . strengthen management of roads gram (SSATP). One of its compo- by introducing sound business nents was the Road Maintenance practices to obtain value for Initiative (RMI), which was money. launched to address the problems in the roads sub-sector. Most anglophone countries in The reluctance to involve users for protecting road assets, on su- SSA have now accepted the RMI in the management of roads and ing third parties involved in dam- message on commercialization and implementation of reforms is even age of assets, or on possible liabili- have or are in the process of imple- more pronounced if a road fund ties in connection with accidents menting at least part of the four managed by the public sector has due to defective designs and main- building blocks. But the pace of already been established. The in- tenance policies. Functions other reforms and their impact on the toxicating size of road fund pro- than road maintenance and devel- ground has been much slower than ceeds is a powerful incentive for opment-such as traffic regulation, expected (2,3). This paper explores public sector decision-makers to axle load control, traffic safety, and what obstacles have contributed to delay implementation of any re- enforcement of traffic regulations- the slow pace of reforms in SSA, forms that would result in involve- may be handled by other minis- and provides some suggestions on ment of private sector stakehold- tries, often with an equal lack of how to overcome these and on how ers in managing these resources. clarity as to the responsibilities in- the RMI may contribute to imple- volved. menting this strategy. Responsibility Clear responsibilities with match- ing authority is essential for effec- Obstacles to implementation Governments have traditionally ex- tive management. But so is sepa- ercised the power of owner, as well rate assignment of conflicting in- as manager and provider of ser- terests, and a granting of author- Ownership vices, underfuzzy terms of respon- ity and access to resources com- sibilities. Specification of these will mensurate with agreed responsi- Gosernments do not normanly like increase accountability. Any delega- bilities and performance targets. to share responsiblity in manage- tion to autonomous agencies will ment of resources and prefer to mean a loss ofpower in directing de- Adequate and stable flow of funds manage roads like a social service. velopments on a day-to-day basis. Stakeholder representation in the While most SSA countries have Governments may agree to establish management of roads is done legal statues defining public roads road funds based on user charges through Road Boards. These may and adopted streets, these statues over and above fiscal taxes to fi- be established under existing leg- do not clearly identify who should nance road maintenance. But they islation (if there is a provision for be responsible for these roads and are reluctant to relinquish control of that) or by new legislation. While the implicit services to be provided. the cashflows and of opportunities establishment through existing leg- It is generally assumed that gov- to "borrow"fundsforotherpurposes islation may be much easier than ernment at any level is responsible when needs arises. by new legislation, such Boards for all. While government depart- Since independence, govern- will, without firm political support, ment most often manage main ments in SSA have faced increas- not have the muscle required to roads, it is more difficult to define ing financial difficulties as demand facilitate implementation of sus- those responsible for roads at the for resources in all sectors grew tainable reforms. local government level because faster than revenues because of Establishing Road Boards by new there rarely is any department of greater expectations of better ser- legislation shows the political will roads within the local authority. vices. Road maintenance, being a to make changes and provides the Management of local roads may fall low profile activity, could always be Boards with the legal backing under the finance committee. While postponed or deferred. In the late needed in the reform process. While departments responsible for the 1980s, most SSA countries' annual this may create conflict with exist- main road network in most cases budget allocations for road main- ing laws-giving those opposed to will have a more or less compre- tenance hardly exceeded 20 percent changes an opportunity to further hensive inventory of the network of required funds. Even these delay the reforms-new legislation under their management, this is- highly insufficient budget alloca- is the most appropriate method of rarely the case for local authorities. tions were at times cut without establishing the Road Boards since Road departments rarely have warning or not released on time due it provides the long-term solution. clear guidelines on responsibilities to other higher profile priorities. This insufficient and uncertain A number of countries in oftenareonlyone-fifthofthosepaid funding for maintenance was one anglophone Africa have or are in to professional staff in the private of the main causes of the large- the process of establishing Road sector. Inflation has eroded salaries scale deterioration of roads in SSA. Funds through new legislation fol- to such an extent that graduate en- Prodded by development part- lowing the RMI concept, with man- gineers are today earning a tenth ners, a number of SSA countries agement Boards dominated by rep- of what they were earning ten years established road funds that were resentatives of private sector stake- ago. (1) mainly dedicated to road mainte- holders (Kenya, Ghana, Lesotho, Efforts to improve management nance and funded by road user Malawi, Tanzania, Zambia, and systems in SSA have not been very charges. But such funds estab- Zimbabwe). But as governments successful. Highway Management lished up to the early 1990s were are still reluctant to delegate con- and Maintenance Systems have no more than bank accounts man- trol of the cash flow from dedicated been introduced that only worked aged by road agencies outside the user levies and fees, the proceeds while the consultants were in place. government's general budgetary are at times delayed and even "bor- Technology transfers that should framework and control. These rowed" to be used for other pur- enable local expertise to take over funds were vigorously opposed by poses. Requests for the adjustment management of the systems are not the IMF as they were inconsistent of fee rates to meet needs and com- adequately carried out, and insuf- with macroeconomic control, dis- pensate for inflation are often only ficient resources are allocated for torting the allocation of resources considered after donor pressure. regular update of data and systems. available for public spending, and Systems management is also an incompatible with the requirements Sound business practices area that is not attractive to young of efficient cash and financial man- professionals. They would rather be agement. (4) The ministries of fi- Whle road works are increascngly managing road projects or regional . . ~~contracted out to the private con- nance were only too willing to have r offices, which may provide better these funds scrapped and channel struction mdustrny on a competlve moonlighting opportunities to com- their revenues into the consolidated tants, SSA governments are reluc pensate for the low salaries. fund. t In the absence of an up-to-date, However, a Road Fund estab- to autonomous agencies operating in-depth inventory of their net- hshedver, a radeFund tab according to sound business prac- works, governments have not been RMI's four basic building blocks able to plan and deploy resources should be a genuine purchasing Government departments (minis- effectively; lack of comprehensive agency and thus meet the require- tries) are mostly cumbersome and databases make it difficult for man- ments for IMF approval and be an largely ineffective managers, with agement to develop long-term re- efficient means of delivering fund- little or no commercial approach to volving maintenance/rehabilitation ing for road maintenance, perhaps the tasks at hand. Their reporting plans. There are no clear records linesar or dsgeane- road capital expenditures as well. are poorly designed and en- to review work plans and results An appropriate objective-setting cumbered by bureaucracy. The to improve performance and pro- and performance-measuring chief executive of the core function ductivity. Commercial accounting framework which is audited exter- (director of roads) is way down the principles are rarely used; govern- nally could ensure transparency hierarchy, occupying a line man- ment agencies simply receive rev- and accountability. The user ager position and reporting tech- enue and use it, hardly account- charg coud fom a ink etwe niclmatters to the chief executive charge could form a link between i ing for its expenditure. Financial the level and quality of service and of the institution (principal or per- audits are only carried out as part price to be paid. The IMF accepted manent secretary) through admin- of the large annual government that Road Funds, with the right istrative channels that have no audits, which usually are only com- technla akon sort of administrative and financial nical background. pleted two to three years after the arrangements, could enjoy the free- The unclear lines of responsibil- activities have been performed, and dom to focus on service delivery ity do not provide the road manag- are thus not very useful or correc- resulting in greater efficiency and ers with much incentive, and nei- tive. These audits basically check effectiveness. ther do civil service salaries, which to ensure that budget allocations have not been exceeded and that petitive tendering. But little such plans and, as a multi-donor funds have been handled accord- progress has been made towards supported initiative, help to coor- ing to government guidelines. clarifying the web of responsibili- dinate donor support to the reform The problem of inefficient public ties within the sector, transferring activities. This role will, however, plant pools has not been solved. road management to autonomous require a strengthening of RMI's Equipment serviceability and avail- agencies with an authority match- capacity and resources commensu- ability records cannot be relied on ing their responsibilities, and facili- rate with the desired extent and to produce reasonable work plans; tating management according to level of activities, and perhaps a management works by rule of sound business practices. review of its current organization thumb and through experience. The obstacles to implementation to ensure its effectiveness in rela- Most governments in SSA have of the entire package of required tion to the character and focus of undertaken some civil service re- reforms are not only due to govern- the mission. forms to reduce public sector em- ments unwillingness to share man- ployment and increase efficiency. agement of resources and works However, the reforms have not im- with the private sector stakehold- References proved the capacity of road man- ers. Of importance also is govern- agement agencies because the re- ment uncertainty about: 1. Heggie, Ian G. Management and trenchment initiatives have left the * how the RMI concept may work Financing of Roads, An Agenda for agencies without critical technical in practice in Africa since no best Reform. World Bank Technical Paper staff. Years of donor funded tech- practice examples are available Number 275, Africa Technical Series. nical assistance and capacity build- from countries at similar levels The World Bank, Washington D.C., ing have neither left a noticeable of development. (New Zealand 1995. impact as trained staff most often may be in a different league); 2. Sylte Ole Kr. Review of the Road Sector transfer to the private sector, which * how government may exercise its in Sub-Sahara African (SSA) Countries provides far better terms and con- overall governance responsibili- Oslo, April 1999 ditions for practicing their skills. ties by the ministry responsible 3. Sylte, Ole Kr. Appraisal of RMI Con- for roads; and cepts Implementation in SSACountries. Overcoming the obstacles-the way * how to fund and manage the in- Oslo, April 1999. stitutional reform process, in- 4. Potter Barry H. Dedicated Road Funds. Sustainable rejorms cannot be achieved cluding adequate capacity build- A Preliminary View on a World Bank without a consistent enabling policy and ing at all levels as a solution to Initiative. IMF Paper on Policy Analysis institutional framework, and a public sector redundancy prob- and Assessment, International comprehensive program for lems. Monetary Fund, Fiscal Affairs Depart- transformation, capacity building, and ment, Washington D.C , June 1997 mitigation /f socio-economtc imnpact. The most successful RMI-in- There Is thus need for implemen- spired reform moves so far have tation plans thatoare more compre- been he etablshmet ofRoad hensive than those available at this beendate, with strategies and budgets ------------------------------------------ --------- Funds with broad-based manage- dat cler adress and ts ment boards. These boards have that clearly address the indicated This Findings was originallypub- genere mobstacles and other relevant issues. lished as SSATP (Sub-Saharan generated more funds for mainte- The RMI- which has greatly con- Africa Transport Policy Program) nance and enabled private sector .b Technical Note No. 32 in March stakeholders to influence and trued to the reform achieve- 2001, and was written by Francis monitor the use of these funds, and ments so far-could also be a use- N. Nyangaga, a Senior Superintend- have increasingly contracted out ful instrument to facilitate the ing Engineer with the Ministry of works and services through com- drafting and implementation of Roads and Public Works in Nairobi.