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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 />

Figure 1.4: Evolution <strong>of</strong> highway agencies as highway networks develop<br />

Organisation<br />

emphasis<br />

Fund<strong>in</strong>g<br />

Private sector<br />

<strong>in</strong>volvement<br />

Birth<br />

Large PWDs Outsourc<strong>in</strong>g<br />

Government<br />

Low<br />

Table 1.2: Phases <strong>of</strong> development <strong>of</strong> highway agencies<br />

Phase Description <strong>of</strong> development phases<br />

Political , economic and social drivers<br />

Stage <strong>of</strong> road network development<br />

Growth Upgrad<strong>in</strong>g Maturity<br />

Government and<br />

aid agencies<br />

Some consult<strong>in</strong>g<br />

contracts<br />

1 A traditional construction and ma<strong>in</strong>tenance organization.<br />

18<br />

· Accountability for<br />

performance<br />

· User issues<br />

· Government<br />

· Aid agencies<br />

· Private sector<br />

· Design , build,<br />

operation &<br />

ma<strong>in</strong>tenance,<br />

fund<strong>in</strong>g<br />

Community/user<br />

issues<br />

Government and<br />

private<br />

Signifcant PPPs for<br />

all comb<strong>in</strong>ations<br />

DBFOM<br />

2 Separation <strong>of</strong> client and producer functions. The client organization is responsible for governmental<br />

functions: adm<strong>in</strong>istration, management and plann<strong>in</strong>g, contract<strong>in</strong>g, and associated <strong>in</strong>formation<br />

collection and dissem<strong>in</strong>ation relat<strong>in</strong>g to roads. The producer organization is responsible for<br />

execution: design, construction, ma<strong>in</strong>tenance and operation <strong>of</strong> <strong>the</strong> road network us<strong>in</strong>g <strong>in</strong>-<br />

house resources. The separation is formalized by creat<strong>in</strong>g <strong>in</strong>ternal divisions with<strong>in</strong> <strong>the</strong> organization.<br />

3 Separation <strong>of</strong> client and producer organizations; <strong>in</strong>troduction <strong>of</strong> a road board. The producer organization<br />

reports to a m<strong>in</strong>istry <strong>of</strong> transport (or similar) or <strong>the</strong> central management <strong>of</strong> <strong>the</strong> road adm<strong>in</strong>istration.<br />

4 Corporatization or privatization <strong>of</strong> <strong>the</strong> producer organization and establishment <strong>of</strong> an autonomous (client)<br />

road adm<strong>in</strong>istration and a road fund. A separate delivery company is established to provide<br />

ma<strong>in</strong>tenance or construction by road management agencies. This company usually has to compete with <strong>the</strong><br />

private sector for any construction or ma<strong>in</strong>tenance work, <strong>in</strong> public tender procedures.<br />

5 Corporatization <strong>of</strong> <strong>the</strong> (client) road adm<strong>in</strong>istration. This is quite common <strong>in</strong> o<strong>the</strong>r <strong>in</strong>frastructure<br />

adm<strong>in</strong>istrations, such as railroads, ports and airports.

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