64472 September 2011 · Number 3 January 2011·Number 77 recommendations of the full strategy note (see By Jean-Charles Crochet footnote link). Background. Yemen should be credited for achieving an ambitious road building program Main Sector Challenges over the last 25 years, and establishing a large primary road network given its level of GDP The current balance of expenditures among and population size. With the condition of 60 various types of roads and categories of percent of the paved network rated good or expenditures is not economically optimal. The very good, Yemen’s road network appears annual allocation of funds for road better than in most comparator countries. This maintenance is insufficient and far below what positive feature allows the country to satisfy most other countries similar to Yemen spend on economically its relatively high demand for such maintenance. By deferring maintenance road transport evidenced by its substantial over many years a back log of works develops vehicle fleet and traffic volumes on the arterial that will eventually be much more costly to network. Yet, the country’s inhabitable deserts, address the longer it is postponed. Also, mountainous terrain, and population location expenditures are probably too high on urban patterns still give rise to high transport costs roads but could usefully be increased for and leave many small communities isolated on secondary and rural roads. In addition, certain mountain ridges or in remote valleys. The poor types of “high payback� expenditures, such as access to markets, employment, and services in climbing lanes on high traffic roads are not many areas pose a serious challenge to included in road budgets while some low economic and social development. returns projects are contemplated. Finally, too many projects are being implemented at the The full Road Sector Strategy Note1 takes stock same time, compared to the availability of of recent developments in the sector and funds for roads and to staff limitations. There focuses on performance. It takes into account are more than 750 projects being executed by studies prepared for the Government and the MPWH, more than half of which are urban rich dialogue between Government officials road projects. and Bank missions over the past few years. Based on this, key issues are identified and Although MPWH is fully in charge of the recommendations are made on a sector wide, sector, with impressive institutional progress in short to medium term, Agenda for Reform which, the past few years, there is still a high if implemented, would further strengthen the fragmentation of roles and responsibilities in performance of the road sector, thereby the sector and some units key for the sector increasing its contribution to the national such as those in charge of planning, laboratory, economy and the alleviation of poverty. This and research, are outside the responsibility of short note summarizes the findings and the Road Sector. The role of the Road Maintenance Fund (RMF) is also too broad while the capabilities of the Rural Access Program Central Management Office 1 This Note is a summary of a Road Sector Strategy Note (RAPCMO) could be used more extensively. for Yemen dated August 2010. The report was prepared by Mr. Jean-Charles Crochet (Senior Transport Economist and TaskTeam Leader), Mr. Terje Wolden (Senior Highway Although there has been progress in the past Engineer), and Ms. Lamis Aljounaidi (Infrastructure few years, road planning, programming and Economist), following missions in Yemen in 2008 and 2009. budgeting is still weak and budget processes contractors with adequate capacity. Public road undeveloped. There are multiple, often construction corporations have played a fragmented, plans and programs but not yet a dominant role in the sector for a long time and single well accepted strategy document for the their future may need to be clarified. sector, although MPWH is keen to produce one. Weaknesses in contracts and contract A medium term expenditure framework is not management, as highlighted above, as well as yet in place. Until recently, there was no road issues with the price and availability of key planning unit in the Road Sector Department. materials such as bitumen, have constrained The sector data base, although greatly development of the industry. improved, still needs development. Finally the lack of a functional road classification makes The local road consulting industry is at an planning and monitoring difficult. early stage of development. Its growth has been hampered by reliance on in-house services by Weaknesses in road design have negatively Government for design and supervision. The affected in the past the economy of projects as lack of a steady and substantial stream of work, well as project implementation and quality and, perhaps, insufficient opportunities for assurance. This is compounded by insufficient partnership between foreign and local firms, capacity in MPWH for design review and have also prevented faster development. guidance to consultants and contractors on desirable design changes and by inadequate Despite recent efforts, monitoring and monitoring and evaluation of the projects’ evaluation of road sector performance is still technical aspects. There has also been a weak. The availability and reliability of data reluctance to vary the technical standards of needs improvement. Consultation mechanisms roads depending on the type and location of the also need to be developed with all sector road, its function and traffic volume. Road stakeholders. standards on urban road projects are often excessive. Better methods and construction There is a serious shortage of capacity and practices are also slow to be adopted. skills in all institutions and firms involved in the sector (including MPWH as well as Despite great progress recently regarding contractors and consultants), and there are procurement, contracts, and supervision, some staffing imbalances among Government units. key weaknesses remain. First, there is the legacy of past contracts with inadequate With almost 3,000 persons killed every year in contract forms and technical requirements. traffic accidents, road safety is exceptionally Inadequate follow-up of contractors in the past poor in Yemen. There is, however, a sound set- is still affecting quality of works and up for traffic safety enforcement but no national implementation progress on locally funded road safety strategy and no national unit clearly projects. There is also too much reliance on in charge and capable of carrying out the variation orders, which lack transparency and monitoring/evaluation of traffic safety make program management and monitoring activities. difficult. Lack of predictable price adjustments, advance payments, and other weaknesses in Current policies and lack of enforcement of axle past local forms of contract as well as slow load limits for trucks causes excessive wear payments have also increased costs and and tear with a high long term cost for the road inhibited the development of contractors. network. Finally, for many years, there have been difficulties in bringing contracts to closure as The road sector has been highly subsidized in well as terminating non performing contracts. Yemen for many years. Because of the very low The Yemeni road construction and maintenance price of gasoline and diesel and insufficient industry is young and fragile. It includes many specific taxation of road use, as of the end of small contractors each with limited capacity 2009 road users were not paying for the and capabilities and only very few large private marginal cost of road infrastructure use, as they should, and their operations were subsidized. September 2011 · Number 3 · 2 start of premature projects, such as the There is a clear link between roads proposed new Amran – Aden motorway, infrastructure and enhancement of women's should be postponed. lives. Wherever a good road is available, basic • The road budget should be rationalized by goods (drinkable water, food) are more cancelling non-performing projects and available and cheaper, which gives time to concentrating funding for MPWH’s locally women for commercial activities. The existence funded projects on economic and well of a road also makes it easier for women to performing contracts. access markets where they can find basic • An integrated road sector strategy should materials and inputs as well as shops to sell be prepared taking full account of financial their products to. Moreover, when a girls’ constraints. This work would include in school served by a safe road exists, daughters particular: (i) updating the National are encouraged to attend school. Highway Master Plan, and (ii) preparing a national strategy for secondary and rural The report recognizes that strong political roads based on realistic estimates of commitment and good leadership is critical in available funding under a medium term addressing such issues and gives the Ministry expenditure framework. of Public Works and Highways credit for recent • The existing feasibility studies of large changes in policies and improvements in sector projects should be updated. performance. • Multimodal urban transport master plans should be prepared for the larger cities as a An Agenda for Reform basis, among other goals, for the justification of new urban road construction The report finds that there is much that can be projects by MPWH done in the short to medium term to improve the performance of the road sector in Yemen. Develop the institutional framework and Below, the main recommendations have been capability for road sector management: summarized under three main directions for Government action: • The sector’s overall organization should evolve gradually from the current one to Improve the quality of public expenditure one more in line with international best programs for the road sector: practices. For the time being, however, the sector should remain organized around the • Overall sector funding should remain four main existing units (the Road Sector substantial, at least above 1% to 1.5% of Department, RMF, RAPCMO, and the GNP. Foreign Funded Project Management Unit). • Funding for routine and periodic Each of them would be developed and maintenance should be increased improved as recommended below. The substantially and, in particular, periodic clarity of each unit’s mission and maintenance should be promoted accountability, the adequacy of resources, vigorously. The RMF budget should and the need to optimize the use of heavily increase from YR 4 billion to at least YR 10 constrained manpower should be the main billion over the next three years and reach institutional objectives. In this context, the about YR 15 billion over the medium term. Government should proceed cautiously • Funding for road rehabilitation and low with decentralization. Whenever feasible, cost/high returns upgrading should be however, project implementation should be increased as already recommended in the managed by units that are located in the National Highway Master Plan. field and cover several governorates, in • The funding for urban main roads through order to facilitate supervision as well as MPWH should be reduced substantially. consultations and coordination with local • The focus should be on projects with high authorities. economic and social rates of return and the September 2011 · Number 3 · 3 • The organization principles and the rights organized, staffed and resourced and duties of all stakeholders in the road accordingly. sector should be clarified by a new road • RAPCMO’s organizational structure should law and its implementing regulations, both be revised and staff needs reassessed to to be drafted urgently. This law should take account of its much larger workload include a classification of all roads and, for and implementation challenges. The need each category of roads, designate for de-concentration of RAPCMO should ownership, management responsibilities, be assessed in this respect. A sustainable financing arrangements and responsibilities system should be established to provide for maintenance management and uninterrupted adequate funding for financing. RAPCMO’s operations independent of • The Road Sector Department (RS) should donors. assume full responsibility under the • A strategy for strengthening Yemen’s road Minister’s oversight for road sector policy construction and maintenance industry and planning and for defining expenditure should be put in place as a matter of priorities including annual budgets for the priority, based on the assessment of the sector. Procedures and technical and industry planned under the Second Rural operational manuals should be prepared Access Project. As shown by the experience for design, procurement, and supervision of other countries, most progress in the reflecting international best practices. The industry will come from the establishment Quality Control Unit’s role should be of rules, procedures, and practices for defined more precisely. A road planning selection and supervision of contractors unit as well as other small units to deal and for contract management, which are with road standards, technology and fair, steady, predictable, and well research, and the road construction and understood by all parties. Current consulting industries should be established problems regarding the price and within the RS. An assessment of work load availability of key materials such as and staff needs and organizational bitumen and cement should be addressed. structure with job descriptions is needed. The creation of a Yemeni association of The management information system road contractors should be promoted and should be well developed. effective communication channels should • The mission of the RMF should be clarified: also be put in place between the it should focus on preventive routine and Government and the construction industry. periodic maintenance and not be involved The contractor classification system should in road upgrading/rehabilitation. be used to weed out poorly performing and Performance based maintenance contracts non professional contractors. Finally, the should be generalized when current pilots commercialization of Government have made progress and a good approach corporations should be considered (setting has been identified. Hybrid “term them up as business units independent of maintenance� contracts should also be the Government) as a first step before considered. Knowledge of the road privatization. network conditions and assessment of • A strategy should also be put in place for maintenance needs should be improved. strengthening Yemen’s consulting The use of consultants for design and profession in the field of road studies and supervision should be maximized, and road engineering. This would include manuals for routine and periodic outsourcing Government work to local maintenance should be established. An consultants whenever feasible, ensuring assessment of work load and staff needs is that there is in the long term a regular and desirable. predictable demand for consultants’ • The FFPMU should clearly be in charge of services in the road sector, using all aspects of foreign funded projects from partnerships between foreign specialists design to contract management and be and local consultants to develop the September 2011 · Number 3 · 4 industry (with training and mentoring MPWH; purchase of mobile equipment for obligations to benefit Yemeni consultants), random controls of axle loads; and ensuring fair treatment of consultants, and expansion of the number of permanent axle including local consultants in Government load stations on the key road corridors. training programs. • Public costs generated by road use should • The Information Technology Directorate of be paid by the users. The main way to MPWH should be the leading unit for achieve this objective is through steady sector monitoring. It should be increases in the price of gasoline and diesel, strengthened and provided with adequate which eventually should cover not only the staff, resources and equipment to carry out full cost of providing fuel at the pump but its functions fully. Measures should also be also the cost of providing the road taken to systematically produce and infrastructure as well as the cost of disseminate information on the sector and externalities generated by road use. its performance, and consult stakeholders. • The positive impact which roads have on This includes in particular road user women’s economic activities and on girls’ satisfaction surveys. access to education is a major argument for • An assessment of skills needed and a expanding rapidly the all weather rural human resources development strategy roads network. Since women, as well as should be prepared as soon as possible for children, mainly use the roads for walking, the entire sector. The strategy would often in groups, rural roads’ design should include, in particular, a medium term take into account the special needs of training plan, the improvement of existing pedestrians. To enhance mobility for both engineering programs in Yemeni men and women, the Government should universities, and a continuous education also ensure that public transport services program for high level government staff, are available that link villages to the major and a plan for improving in a sustainable services centers and markets, with reliable way the salary level and other benefits for schedules and adequate information Government staff in the sector provided to the population. Correct present inefficiencies in the use of the Contact MNA K&L: road network: Director, MNACS: Laura Tuck • A road safety management capacity Regional Knowledge and Learning Team: assessment should be carried out as a first Omer Karasapan Roby Fields, Rory O’Sullivan Tel # : (202) 473 8177 step in addressing the poor traffic safety situation. On this basis, a comprehensive MNA Knowledge Notes: national road safety strategy should be http://mnaknotes prepared including in particular the The MNA Knowledge Notes are intended to designation and strengthening of a central summarize lessons learned from MNA and other coordination and management road safety Bank Knowledge and Learning activities. The Notes unit to spearhead and monitor the do not necessarily reflect the views of the World implementation of the strategy. There is Bank, its board or its member countries. also a need to start using traffic safety inspection/audits on existing road corridors as a way of identifying key safety improvement measures. • Enforcing the current axle load limits is overdue. Several actions would have to be taken in concert to introduce effective axle load controls: implementation of an awareness campaign in cooperation with traffic police, the truckers’ association, and September 2011 · Number 3 · 5 September 2011 · Number 3 · 6