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Implications of the Financial Crisis on Road Maintenance Funds

Implications of the Financial Crisis on Road Maintenance Funds. Stephen Vincent SSATP Program Manager. Sub-Saharan Africa (SSA) and the global financial crisis. Detailed analysis will come later, but it appears that:

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Implications of the Financial Crisis on Road Maintenance Funds

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  1. Implications of the Financial Crisis on Road Maintenance Funds Stephen Vincent SSATP Program Manager 8th ARMFA Annual General Meeting

  2. Sub-Saharan Africa (SSA) and the global financial crisis Detailed analysis will come later, but it appears that: • Country financial policies are relatively sound, less action needed in SSA than in other parts of the world. • Recovery will take some time. • Reduced commercial activity, reduced growth, reduced revenue. 8th ARMFA Annual General Meeting

  3. Response/Effects/Results • Financial support for the construction of new infrastructure from external international sources has been increased. • If less revenue is raised this is likely to result in budget cuts where government is responsible for the maintenance of existing infrastructure. 8th ARMFA Annual General Meeting

  4. Effect on Road Maintenance Funds • Road user charges are linked to commercial activity, hence it is likely that income to Road Maintenance Funds will be reduced. • Road maintenance requirements are mainly the cumulative result of traffic in previous years.  The same maintenance requirement but with less income. 8th ARMFA Annual General Meeting

  5. Other factors that may affect Road Fund expenditure • Governance - calls for increased efficiency in all infrastructure spending (AICD* results show low efficiency). • Road Safety – a decade of action is due to be declared soon – perhaps road safety improvements should be made during road maintenance. • Climate Change adaptation – e.g. where rainfall will increase, culverts may need to be enlarged. * AICD = Africa Infrastructure Country Diagnostic study 8th ARMFA Annual General Meeting

  6. An opportunity for ARMFA ARMFA has the opportunity to take the lead in coordinating RMF response to the financial crisis: • Gather data – what is really happening? • Documenting and exchanging knowledge of good practice in responding to the financial crisis. • Identifying where additional action is needed and finding resources to assist. 8th ARMFA Annual General Meeting

  7. ARMFA Members setting the Agenda External Resources (including SSATP) SUPPORTING ARMFA LEADING ARMFA Members 8th ARMFA Annual General Meeting

  8. Conclusions Potential important role for ARMFA: • Gathering and exchanging experience of the effects of the financial crisis. • Identifying needs, and finding resources to assist. SSATP will provide support & advice where possible. 8th ARMFA Annual General Meeting

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