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A Review of Highway Agencies in the South Asia Region

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A <strong>Review</strong> <strong>of</strong> <strong>Highway</strong> <strong>Agencies</strong> <strong>in</strong> <strong>the</strong> <strong>South</strong> <strong>Asia</strong> <strong>Region</strong><br />

can be identified and dealt with. When develop<strong>in</strong>g, ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g and operat<strong>in</strong>g transport<br />

<strong>in</strong>frastructure, both central and local governments are required to comply with <strong>the</strong> Act.<br />

An environmental plan, outl<strong>in</strong><strong>in</strong>g <strong>the</strong> strategic environmental vision <strong>of</strong> NZTA, describes<br />

specifications and standards for contractors undertak<strong>in</strong>g road works.<br />

Private Sector Participation and Procurement<br />

External L<strong>in</strong>kages<br />

Part <strong>of</strong> <strong>the</strong> work is outsourced to private sector suppliers on a competitive basis to ensure<br />

that <strong>the</strong> <strong>in</strong>vestments achieve <strong>the</strong> best value for money. Those consultants and contractors<br />

are mostly used <strong>in</strong> ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>the</strong> network. In New Zealand too, PPPs are used for <strong>the</strong><br />

fund<strong>in</strong>g <strong>of</strong> new projects 39 .<br />

NZTA ma<strong>in</strong>ta<strong>in</strong>s close work<strong>in</strong>g relationships with:<br />

Transport operators and <strong>the</strong> general public, who use <strong>the</strong> network;<br />

Transport committees, regional councils and territorial local authorities, which are<br />

responsible for implement<strong>in</strong>g transport projects and o<strong>the</strong>r activities funded through NLTP;<br />

Suppliers, <strong>in</strong>clud<strong>in</strong>g contractors and consultants;<br />

NZ Police which provides a range <strong>of</strong> road polic<strong>in</strong>g services; and<br />

The M<strong>in</strong>istry <strong>of</strong> Transport which is responsible for develop<strong>in</strong>g <strong>the</strong> strategic transport<br />

policy and monitor<strong>in</strong>g performance <strong>of</strong> state entities <strong>in</strong> <strong>the</strong> sector.<br />

Procurement and Tender<strong>in</strong>g<br />

To obta<strong>in</strong> best value for money, all state highway improvement, ma<strong>in</strong>tenance and operations<br />

works are outsourced. Around 200 contracts are tendered on a competitive basis yearly. NZTA<br />

uses a range <strong>of</strong> delivery models, which are based on <strong>in</strong>ternational best practice.<br />

With<strong>in</strong> <strong>the</strong> Network Management Areas, <strong>the</strong> follow<strong>in</strong>g four contract types to procure<br />

ma<strong>in</strong>tenance and operations are used:<br />

Performance-specified contracts, which are awarded for 10 years to s<strong>in</strong>gle suppliers who<br />

are responsible for provid<strong>in</strong>g all services. Most resurfac<strong>in</strong>g work is done through<br />

performance-specified contracts;<br />

Hybrid contracts which are awarded for five years and <strong>in</strong>volve consultants and<br />

contractors work<strong>in</strong>g <strong>in</strong> a partner<strong>in</strong>g arrangement to deliver services;<br />

Traditional contracts which are awarded for vary<strong>in</strong>g terms and <strong>in</strong>volve consultants<br />

manag<strong>in</strong>g suppliers who deliver physical works on <strong>the</strong> highway network, similar to<br />

traditional road eng<strong>in</strong>eer<strong>in</strong>g construction contracts. Most pavement streng<strong>the</strong>n<strong>in</strong>g<br />

works and bridge repairs are managed through this type <strong>of</strong> contract; and<br />

Alliances, arrangements <strong>in</strong> which groups <strong>of</strong> organizations comb<strong>in</strong>e <strong>in</strong> partnership and<br />

work toge<strong>the</strong>r.<br />

Audit and Control<br />

Audits<br />

Both central and local governments have a responsibility to contribute to economic, social<br />

and environmental outcomes. Monitor<strong>in</strong>g enables action to improve <strong>the</strong>se outcomes. The<br />

monitor<strong>in</strong>g activities <strong>of</strong> NZTA <strong>in</strong>volve:<br />

The performance <strong>of</strong> <strong>the</strong> land transport system;<br />

Audit<strong>in</strong>g organizations that receive public funds for develop<strong>in</strong>g, operat<strong>in</strong>g and<br />

ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g land transport <strong>in</strong>frastructure and services;<br />

Check<strong>in</strong>g that appropriate procurement procedures are used for projects <strong>in</strong>volv<strong>in</strong>g public<br />

funds;<br />

Check<strong>in</strong>g that good practices are be<strong>in</strong>g used when activities are implemented;<br />

Monitor<strong>in</strong>g <strong>the</strong> costs associated with publicly funded activities; and<br />

Carry<strong>in</strong>g out post implementation reviews to check that <strong>the</strong> forecast results are be<strong>in</strong>g<br />

delivered.<br />

39 NZTA (2010). http://www.nzta.govt.nz/network/operat<strong>in</strong>g/efficiently/toll-roads.html.<br />

131

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