Innovations in Road Management Road Financing

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Innovations in Road Management Road Financing

  1. 1. The World Bank International Road Federation Department for International Development The University of Birmingham University of Birmingham (UK) / Transit New Zealand Senior Road Executive Courses Innovations in Road Management Road Financing & Road Fund Management Road Asset Management Innovations in Procurement of Highway Maintenance for-service – either in the form of tolls, or a Background second generation road fund. The road sector is going though an Commercialisation furthermore requires unprecedented period of change. Countries reforms in four areas that have become known are restructuring the way they manage their as the four basic building blocks: road networks, improving management of their road assets, introducing private sector (i) creating ownership by involving road users financing and off-budget financing in the management of roads in order to win mechanisms, and changing the way they public support for more funding, to control procure road maintenance and control its potential monopoly power and to constrain quality. road spending to what is affordable; (ii) stabilising road financing by securing an These changes have been driven by three main adequate and stable flow of funds; factors. First, the road sector is increasingly (iii) clarifying responsibility by clearly recognised as “big business”. If main road establishing the role of difference levels of agencies were publicly listed companies, they government (including local communities), would rank among the Fortune Global 500 (i.e., and; the largest 500 largest companies in the world). (iv) strengthening management of roads by Second, the financial needs of the road sector providing effective systems and have typically been growing faster than procedures of management, as well as government tax revenues. The road sector has strengthening managerial accountability. simply outgrown the government’s budget. Course Format Third, the size of the road business, combined Four short professional development courses, with the growing financial needs of the road each lasting one week, have been designed to sector, mean that traditional ways of managing disseminate emerging “good” practice in the and financing the road sector have become following related fields: increasingly out of date. The main pressure nowadays is to move roads off-budget, (i) innovations in road management; commercialize them and manage them like a (ii) road financing and road fund management; business – bring roads into the market place, (iii) road asset management; put them on a fee-for-service basis and (iv) innovations in procurement of highway manage them like a business. maintenance. The key concept that has emerged is that of Each of the four courses involves 5 full days of commercialising road management and presentations, discus sions, group exercises and financing, i.e. to subject road management to site visits. They provide an opportunity to learn some form of surrogate market discipline, from the experiences of senior road executives and to finance roads by way of an explicit fee-
  2. 2. from around the world, staff from donor ?? Road maintenance concessions – case organisations and private institutions, and study, academics specialising in road management, ?? Participant presentations finance and procurement. The courses ?? Knowledge resources facilitate an international exchange of ideas and common experiences, and provide a forum Road Financing & Road Fund for the dissemination of best practices and Management recent research findings. 1. Adequate & Stable Financing ?? Road financing – the issues & public The courses are designed to enhance the technical, managerial and policy making skills expenditure perspective ?? Estimating road use costs of participants to help them to improve road ?? Group discussion – problems with road management and finance in their own countries. financing & estimating funding needs ?? Group exercise – estimating maintenance Content of Courses needs and road use costs The topics to be covered in the four courses 2. Managing Road Funds are briefly summarised below. ?? Off-budget financing – setting up a second generation road fund Innovations in Road Management ?? Managing a road fund – country case 1. Management Is sues study ?? International trends in public sector reform ?? Group discussion – road fund legislation (PSR) ?? Managing road fund revenues & ?? Restructuring road management as part of expenditures PSR 3. Role & Scope for Private Financing ?? Improved institutional structures – who is ?? Role of private sector finance for roads responsible for what? ?? Managing toll roads & setting tolls ?? Road reform – case study ?? A concessionaire’s approach to toll roads 2. Contracting Out & concessions ?? Contracting out the works function ?? Toll road concession – case study ?? Privatisation of road maintenance 4. Estimating Road User Charges Issues ?? Developing local contractors ?? Managing a road fund – 2-3 country case ?? Converting in-house staff into contractors studies 3. Commercialising Road Management ?? Calculating road tariffs ?? Setting up a roads board – involving road ?? Group exercise – calculating road tariffs users in management 5. Sharing Experience ?? Institutional development and management ?? Review of road fund performance – of change country case studies ?? Group discussion – institutional & ?? Participant presentations organisational frameworks ?? Knowledge resources ?? Commercialising road management – case study Road Asset Management 4. Low Volume Roads 1. Road Management Information ?? Managing local government roads ?? Managing road assets – overview ?? Managing low volume/private roads – case ?? Road management systems – components, study ?? New directions in managing rural roads – databases, institutional aspects, etc. examples from selected countries ?? Group discussion – management information requirements 5. Sharing Experiences ?? Road management information and performance indicators 2
  3. 3. 2. Measuring & Recording Road Conditions 3. Contractors ?? Pavement condition surveys – visual, ?? The use of private contractors automated, sustainability, structural, safety, ?? Small-scale contractors – labour-based, riding quality lengthmen and micro enterprises ?? Intervention criteria and treatment ?? Field visit to a major road construction site selection 4. Auditing & Benchmarking ?? Importance of routine & recurrent ?? Concessions maintenance – drainage, safety, vegetation, ?? Auditing and benchmarking signs, lighting, etc. ?? Tackling corruption ?? The traffic dimension – traffic flows, overloading, encroachment, temporary 5. Future Practices & Conclusions works ?? Alternative selection criteria to lowest 3. Preparing Road Programs tender ?? Future procurement practices in the UK ?? Preparation of work programs ?? Contracting out road maintenance – ?? Implications for consultants, contractors monitoring progress and reporting and road management ?? Field visit to a maintaining agent ?? Course review – action plan for implementation 4. Structures, Low Volume Roads & Pavement Technology Who Should Attend ?? Managing maintenance of bridges & other The four professional development courses are structures specifically designed for senior road executives ?? Managing maintenance of low volume (particularly those from countries facing road roads maintenance problems), senior staff from ?? Group discussion – budget allocation interna tional donor organisations, and from procedures consultants working in the road sector. The ?? Recent developments in pavement courses provide an opportunity to interact with senior road managers from other countries, technology donor organisations, staff from consulting firms 5. Strategic Planning, HDM, Selecting and staff from road agencies involved in Appropriate Systems restructuring road management, finance and ?? Strategic planning of road maintenance – procurement. Examples presented in the last calculating asset values have included emerging good practice from ?? Integrating the HDM within pavement Finland, Ghana, Latvia, Namibia, New Zealand, systems South Africa, Sweden, UK, USA, Zambia, and ?? Criteria for selecting appropriate road other countries. Detailed notes and other management systems material will be provided to course participants. The courses will also familiarise participants Innovations in Procurement of Highway with knowledge resources available through Maintenance the world wide web. 1. Best Value The overall number of participants attending ?? Introduction each course will be limited to 35 to provide an ?? Best value, value management adequate opportunity for interaction between ?? Risk management participants and course presenters. Participants can choose to attend one, two, 2. Current Procurement Procedures three, or all four courses. ?? World Bank procurement practices ?? Panel discussion – EU, EBRD, DfID Course Presenters procurement The course lecturers are drawn from the ?? Contractual frameworks for best value University of Birmingham, UK Highways ?? The new engineering contract Agency, Transit New Zealand, and leading 3
  4. 4. guest lecturers from around the world. They recognised as qualifying for the new include: International Road Federation (IRF) Certificate ?? Professor Ian Heggie, University of in Road Management. Preparation of the Birmingham, UK (former World Bank courses, and of basic teaching materials, has Roads Adviser) been supported by the UK Department for ?? Professor Henry Kerali, University of International Development. A Certificate in Birmingham, UK Road Management is awarded to candidates ?? Professor Keith Madelin, University of who have successfully completed four modular Birmingham, UK courses on different aspects of road ?? Dr. Jon Broome, University of managem ent from a recognised IRF member Birmingham, UK organisation. In addition, the candidate must ?? Martin Richards, OBE (former Managing have submitted a 4 to 6 page essay on a topic Director, MVA Consultants) related to one of the four modules studied. The ?? Senior Staff from Transit New Zealand essays are evaluated by the organisation ?? Senior Staff from the UK Highways delivering that module. Agency ?? Guest Lecturers from road agencies, donor Sponsorship organisations and practitioners in selected Participants are responsible for meeting the countries costs of participation in the courses. Those seeking financial support for course fees Course Evaluation and/or travel expenses should either apply to A European Union staff evaluation of the road their employer, or request their government to management and financing courses in 2000, support them under the training component of noted: an ongoing donor loan, credit or grant. The “We were introduced to the IT aspects of Road main donors supporting these courses include management, including use of HDM-4….this is the World Bank, Inter-American Development a most practical tool to manage a country’s road Bank, European Union and UK Department maintenance program” for International Development (DfID). The “We actually worked through an example to University of Birmingham cannot help determine the required level of tariffs (road fees, candidates to find financial support. A fuel levy, etc.) for a given network of roads …. certificate of attendance will be awarded to We also had a number of group activities, one participants completing each one-week course. of which was to critique proposed legislation for setting up a road fund. These exercises were Accommodation and Lecture very useful …” Facilities “Presentations were made from countries The courses will be hosted at the University of which already have a Road Fund in place ….. Birmingham Conference Park and at the these were valuable in that they enabled us to School of Civil Engineering. The Conference understand the complexities involved in setting Park offers full board en-suite accommodation up a Road Fund …” to the standard of a good quality hotel. It is “Both weeks were very useful in terms of the located within the University campus and is information obtained and the opportunity to surrounded by mature gardens adjacent to the network with representatives from other University botanical gardens. Participants will countries which are involved in establishing a have access to University facilities including Road Fund or already have them in place.” the Library, computers, the sports complex and other leisure facilities. The course fees are Course Recognition fully inclusive of use of the above. The courses have been developed in collaboration with the World Bank and are 4
  5. 5. The World Bank Department for International Development International Road Federation The University of Birmingham Transit New Zealand SENIOR ROAD EXECUTIVES PROGRAMME Innovations in Road Management (27-31 May 2002) Road Financing & Road Fund Management (3-7 June 2002) Road Asset Management (10-14 June 2002) Innovations in Procurement of Highway Maintenance (17-21 June 2002) Booking Form (Closing Date for Applications: 30 April 2002) Title:.......... First Name: ......................................... Family Name: ...................................... Present Position: ........................................................................................................................... Organisation: ................................................................................................................................. Address: ................................................................................................................................... ................................................................................................................................... Telephone: ........................................................... Fax: ........................................................... E-mail: .......................................................................................................................................... Innovations in Road Management (27-31 May 2002) UK£ 1,850 Road Financing & Road Fund Management (3-7 June 2002) UK£ 1,850 Road Asset Management (10-14 June 2002) UK£ 1,850 Innovations in Procurement of Highway Maintenance (17-21 June UK£ 1,850 2002) Less 10% discount for 2 or more courses TOTAL UK(£) Course fee includes full board accommodation, lectures, reception, and course materials. Participants are responsible for arranging their own finance. Please check boxes below. Source of Funding Donor Employer Self Status of Funding Approved Being Processed Other (explain) Method of Payment: Invoice Credit Card Cheque Please return the form to: Senior Road Executive Courses, Civil Engineering School of Engineering, The University of Birmingham, Edgbaston, Birmingham B15 2TT, United Kingdom 5
  6. 6. Telephone: + 44 - 121 - 414 6717/5049 Fax: + 44 - 121 - 414 3675/5160 E-Mail (1): s.charles@bham.ac.uk E-Mail (2): kerali@bham.ac.uk 6

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