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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 />

improved safety for <strong>the</strong> people;<br />

Adequately meet <strong>the</strong> demand for transport <strong>of</strong> passengers and freight while consider<strong>in</strong>g<br />

<strong>the</strong> current and expected demand; and<br />

Improve <strong>the</strong> quality <strong>of</strong> roads by us<strong>in</strong>g cost-effective and <strong>in</strong>novative techniques <strong>of</strong> design,<br />

construction, ma<strong>in</strong>tenance and rehabilitation.<br />

A review f<strong>in</strong>anced by <strong>the</strong> World Bank 10 f<strong>in</strong>ds that:<br />

Specific application <strong>of</strong> <strong>the</strong>se policies <strong>in</strong> project formulation or <strong>in</strong> <strong>in</strong>vestment plann<strong>in</strong>g<br />

cannot be observed at present. The budgetary process also does not <strong>in</strong>clude<br />

assessment <strong>of</strong> objectives or outcomes <strong>of</strong> proposed projects <strong>in</strong> order to determ<strong>in</strong>e <strong>the</strong><br />

degree <strong>of</strong> subscription <strong>of</strong> a project for which fund<strong>in</strong>g is sought, to <strong>the</strong>se policies.<br />

A comparison between achievement and objectives is not possible. The success <strong>of</strong> <strong>the</strong> policy<br />

and support<strong>in</strong>g plans cannot be assessed, s<strong>in</strong>ce this performance is also not published. Only<br />

one <strong>of</strong> <strong>the</strong> two prov<strong>in</strong>cial highway agencies has a road policy <strong>in</strong> place; and <strong>in</strong> this case too it<br />

is not possible to compare achievement and objectives.<br />

2.3 Regulatory and Institutional Framework<br />

<strong>South</strong> <strong>Asia</strong> <strong>in</strong> General<br />

Typical elements <strong>of</strong> <strong>the</strong> regulatory and <strong>in</strong>stitutional framework govern<strong>in</strong>g highway agencies<br />

are acts and rules for <strong>the</strong> regulation <strong>of</strong> road pric<strong>in</strong>g (toll<strong>in</strong>g, <strong>in</strong> 70 percent <strong>of</strong> cases), private<br />

sector participation (30 percent <strong>of</strong> cases), and <strong>the</strong> establishment <strong>of</strong> road funds, agencies,<br />

boards or authorities. Regulation on road safety has also started to emerge as a significant<br />

element, though <strong>in</strong> a limited manner. However, it should be kept <strong>in</strong> m<strong>in</strong>d that <strong>the</strong> presence<br />

<strong>of</strong> an act or rule does not <strong>in</strong>dicate its quality, or <strong>the</strong> level <strong>of</strong> its implementation.<br />

In <strong>South</strong> <strong>Asia</strong>, most highway agencies operate <strong>in</strong> relatively close association with <strong>the</strong><br />

parent m<strong>in</strong>istry; 92 percent <strong>of</strong> <strong>the</strong> agencies <strong>in</strong>dicated <strong>the</strong>ir department was a government<br />

department directly accountable to <strong>the</strong> m<strong>in</strong>ister. Only 8 percent <strong>in</strong>dicated that <strong>the</strong>ir<br />

organization was a public entity with a higher degree <strong>of</strong> autonomy. Only a few highway<br />

agencies actually operate with some degree <strong>of</strong> <strong>in</strong>dependence from <strong>the</strong> parent m<strong>in</strong>istry.<br />

The parent m<strong>in</strong>istry provides guidance for <strong>the</strong>ir activities through a policy outl<strong>in</strong>e. In about<br />

50 percent <strong>of</strong> <strong>the</strong> cases studied <strong>in</strong> India, <strong>in</strong>dependent RDCs have been established <strong>in</strong> <strong>the</strong><br />

states. Independent national authorities and agencies have also been established <strong>in</strong> India<br />

and Pakistan, which are essentially entrusted with <strong>the</strong> implementation <strong>of</strong> large highway<br />

programs.<br />

Issues such as budget allocation and appo<strong>in</strong>tment <strong>of</strong> senior <strong>of</strong>ficials are controlled by <strong>the</strong><br />

oversight m<strong>in</strong>istry, despite some <strong>in</strong>ternal delegation <strong>of</strong> responsibilities and powers. This is<br />

clearly shown <strong>in</strong> Figure 2.5, where <strong>the</strong> legislature and <strong>the</strong> governor are authorized to decide<br />

on <strong>the</strong> position <strong>of</strong> <strong>the</strong> executive management. The decision to upgrade a road from one<br />

category to <strong>the</strong> next is, <strong>in</strong> all but one case, made by consider<strong>in</strong>g <strong>the</strong> traffic density <strong>of</strong> that<br />

road. In case <strong>of</strong> <strong>the</strong> one exception, <strong>the</strong> reason for upgrad<strong>in</strong>g a road to a higher category is<br />

‘government discretion.’<br />

Although <strong>the</strong> mandate <strong>of</strong> all organizations is usually def<strong>in</strong>ed, <strong>the</strong>re is ample room for fur<strong>the</strong>r<br />

clarification. Respondents <strong>in</strong>dicated significant overlap <strong>in</strong> responsibilities between highway<br />

agencies <strong>in</strong> one state; this however is not <strong>the</strong> case for national agencies. Table 2.3 shows <strong>the</strong><br />

overlap <strong>in</strong> responsibilities <strong>of</strong> organizations responsible for a given road network. However,<br />

implementation, <strong>in</strong> some cases, is <strong>the</strong> responsibility <strong>of</strong> RDCs and daily management <strong>of</strong><br />

certa<strong>in</strong> <strong>in</strong>dividual road sections that <strong>of</strong> <strong>the</strong> private concessionaire, where applicable.<br />

10 Capacity and Functional <strong>Review</strong> <strong>of</strong> <strong>Highway</strong> <strong>Agencies</strong> <strong>in</strong> Sri Lanka, Pradeepa Jayaratne (2009).<br />

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