1. Transport Forum 2005 Performance-based Management and Maintenance of Roads (PMMR) PMMR Implementation potential in Africa Presentation by: Graham Williams BCEOM – French Engineering Consultants Washington D.C., March 8, 2005

2. The Project Financed through GPOBA Trust Fund; BCEOM appointed in June 2004; Over-arching objective: –Extend PMMR experience in Sub-Saharan Africa to demonstrate potential efficiency gains for road network conservation.

3. Prepare pilot contracts in 4 countries Cape Verde, Chad, Madagascar, Tanzania About 12 packages covering approx. 2,800km of roads; Carry out technical surveys; Brief stakeholders; Review capacity and funding constraints; Define appropriate service levels; Estimate costs; Prepare prequalification and bidding documents (based on Bank sample PMMR document); Assist agencies during procurement process. The Assignment

4. ‘Ideal’ ingredients for PMMR Lessons so far……… –Relatively ‘mature’ contracting environment with local contractors experienced in road maintenance; –Agencies with good contract management experience, committed to the PMMR concept; –Good knowledge of the network, maintenance needs and costs; –Well trafficked, economically important roads; –Predictable maintenance needs and limited emergency works;

5. ‘Ideal’ ingredients for PMMR…… –Roads close to maintainable condition, not too much rehabilitation; –Assured funding to achieve at least ‘fair’ service levels; –Contract duration long enough to span maintenance cycles and justify use of dedicated resources; –Assistance to Govt. during procurement and start-up; –Frequent monitoring and evaluation during contract.

6. Typical Situation Inadequate funding for maintenance; Long procurement cycles; Quality of work often disappointing; Maintenance rarely carried out at the right time, so…. Investment lost as deterioration accelerates, leading to…. Higher maintenance and rehabilitation needs, so…. True cost of ‘steady-state’ maintenance not really known.

7. The Question… Can we afford to go from this:

8. The Question…. To this:

9. Is there a place for PMMR? Should be an economic choice, but Not enough evidence in SSA yet, Need to lever limited local resources to maximise benefits - that means, Selecting roads with most traffic where maintenance demand is highest – fair or better service level; Efficiencies need to be proven before PMMR can be mainstreamed into national road maintenance policies.

10. Service Levels Set simply in terms of: Accessibility Travel speed Ride Quality Durability Set using criteria that can be measured fairly easily; Ride quality and durability criteria varied to suit volume and type of traffic.

11. The countries

12. Expectations Agency –Better road conditions; –Reduced procurement workload for road management staff; –Assured maintenance funding for selected roads; –Lower maintenance costs - eventually; Road Users –Better, safer roads with more consistent conditions; –Assured access; –Quick clear up after emergencies. Private Sector –Guaranteed workload over long period; –Potential for increased margins; –Opportunities for business growth.

13. Resources for maintenance * Expected revenue – Road Fund not yet active Extended networks, low traffic. Generally, resources generally only sufficient for routine maintenance but not enough for periodic maintenance and renewal. Maintenance funding * Expected revenue – Road Fund not yet active UK spends about 0.2% of GDP on maintenance of core roads

14. Maintenance funding In Tanzania: Average annualised maintenance cost for PMMR gravel roads estimated at US$2,900 per km - Road Fund allocation in 2004, US$800 per km.

15. Tanzania Private Sector Capacity: Good contracting base for unpaved road maintenance; Growing consulting capacity. Agency Capacity: Well equipped with qualified personnel in the regions; Several years maintenance contracting experience; Committed to the PMMR concept; Road Fund in place since 1999. PMMR Road conditions: Light motorised traffic but lots of NMT; Backlog of periodic maintenance and spot rehabilitation. Unpaved Trunk and Regional roads 1,100 km in 3 regions.

16. Madagascar Unpaved National, Provincial/Communal roads 930km in 2 zones. Private Sector Capacity –Local capacity for rehab and maintenance improving; –Larger contractors busy with current rehabilitation programme; –Many small labour-based contractors. Agency capacity –Road sector re-organisation underway; –Road Fund re-launched in 2003; –Management stretched with rehabilitation and upgrading programmes; –Community based maintenance being promoted on low-volume roads. PMMR road conditions –Difficult soil and climatic conditions – high maintenance demand; –Large amount of reconstruction needed in the south. –High proportion of NMT.

17. Cape Verde Private Sector Capacity –Limited maintenance contracting experience - historically, artisans employed directly for doing road repairs and improvements; –Small contracting market - very few local firms equipped for roadworks. Agency Capacity –New road agency in place since 2004; –Road fund to be re-launched in 2005; –Limited contract management experience; –Limited knowledge of network and maintenance needs. PMMR Road Conditions –Mountainous terrain and flash floods – many slips/emergency works; –Busy roads being upgraded to asphalt concrete; –Maintenance needs of cobblestone pavement difficult to predict. Cobblestone roads, National and Municipal 330km on 3 islands

18. Chad Private Sector Capacity –Limited local road contracting capacity – international firms dominate; –Very limited consulting capability; Agency Capacity –Very limited management resources; –Road Fund in place since 2001; –Several years contracting experience including PMMR pilot project (440 km). PMMR Road Conditions –Proposed road currently under rehabilitation/construction; –Maintenance requirements should be modest. Paved International Corridor 450km (not yet surveyed)

19. Adapting PMMR Contracting –Vary packages to suit available capacity (e.g in Tanzania 5 packages 120 to 360km); –Encourage the local industry and joint ventures (contractors and consultants); –For prequalification, place emphasis on previous track record; Service Levels –Keep definition simple – not too many criteria; –Take local technical constraints into account; –Be careful about risk sharing for ride quality maintenance. Support mechanisms –Dedicated supervision; –Technical support during start-up.

20. Adapting PMMR… Quantity- based payments for rehabilitation and emergency works Performance related payment for maintenance through lump-sum fee per km. Rehabilitation also includes backlog periodic maintenance

21. Documentation to assist bidders Data sheets for each road in the contract network; Estimates for scope of initial rehabilitation works; Line diagrams; Road drive-through on DVD.

22. Line diagrams Bidders to define location and extent of initial rehabilitation works

23. ‘Road runner’ road simulation

24. Tanzania –Procurement process underway. Project launch expected mid-2005; –W Bank and Road Fund financing. Madagascar –Agency reforms a priority at the moment; –Funds committed on rehabilitation programme; –Launch of pilot projects unlikely in 2005. Cape Verde –To be launched under local funding mid-2005; Chad –Current pilot project being extended under W Bank and local financing (but with new contractor); –New project to be launched in 2006 under credit for Regional Transport Facilitation. Programme

25. Observations so far Agency commitment essential; Design (where possible) for the local construction market; Only transfer risks that are understood; Keep service levels realistic in view of funding constraints; Management support and ‘mentoring’ essential during implementation; Most countries need external funding support to get started.

26. I wish our road could always be like this…. Thank you.