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Road Maintenance and Performance –Based Contracting

Road Maintenance and Performance –Based Contracting . Asif Faiz , Former Highways Adviser World Bank Washington DC February 1, 2011. Bank's Highway Lending 1971 to 2011. Before 1974: New Construction and Post-Conflict Reconstruction; Some Rehabilitation

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Road Maintenance and Performance –Based Contracting

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  1. Road Maintenance and Performance –Based Contracting AsifFaiz, Former Highways Adviser World Bank Washington DC February 1, 2011

  2. Bank's Highway Lending 1971 to 2011. • Before 1974: New Construction and Post-Conflict Reconstruction; Some Rehabilitation • 1975-1985: Major shift in the direction of lending– Rural Access; Maintenance ( Force Account) ; Highway Sector Loans . • 1985- 1995; Focus on Preservation of Assets; Contract Maintenance; PMS-- hardly a highway project without a maintenance component; Sector conditionality embedded in Structural Adjustment Lending. • 1995-2005: Performance-Based Contracts, PPPs, Toll Financing. • 2005-2010: Asset Management ; Results-Based Lending, PBC variants, Outcome-Based Lending ( Brazil, Poland India ).

  3. Sustainability Multiple Dimensions • Pre-1970: Technical and Financial • 1970s: Economic • 1980s: Environmental • 1990s: Social • 2000s: Institutional ( Political Economy)

  4. Making PBC Work • A constituency of shared interests and values • Checks and balances to ensure value for money • Risk sharing not risk transfer • End game --more than asset management -- provision of high quality and cost-effective service to road users and public at large

  5. Pitfalls to Avoid • One size fit all • Blurring the line between means and ends • Ideological bias/agenda cloaked in conditionality • Externally- imposed change (for sake of change) with little internal (domestic) ownership/buy-in • Paradigm shift ( centrally driven) incompatible with absorptive capacity ( locally constrained)

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