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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 />

times more expensive compared to proper and timely ma<strong>in</strong>tenance <strong>of</strong> that road. Also, road<br />

performance depends on what, when, and how ma<strong>in</strong>tenance is performed.<br />

To manage road assets <strong>in</strong> a susta<strong>in</strong>able manner, all four agencies have adopted an<br />

elaborate asset management system. It is driven by policy goals and objectives, and<br />

relies on systematic assessments <strong>of</strong> asset performance and costs, when mak<strong>in</strong>g decisions<br />

on future actions. As a result, asset management impacts virtually every aspect <strong>of</strong> <strong>the</strong><br />

agencies’ bus<strong>in</strong>ess, <strong>in</strong>clud<strong>in</strong>g plann<strong>in</strong>g, eng<strong>in</strong>eer<strong>in</strong>g, f<strong>in</strong>ance, programm<strong>in</strong>g, construction,<br />

ma<strong>in</strong>tenance and <strong>in</strong>formation systems.<br />

Risk Management<br />

The concept <strong>of</strong> risk is rapidly becom<strong>in</strong>g central <strong>in</strong> <strong>the</strong> work <strong>of</strong> <strong>the</strong> four agencies. It is applied<br />

<strong>in</strong> all stages <strong>of</strong> <strong>the</strong> project cycle.<br />

The NSW’s Total Asset Management Manual describes risk management as a systematic<br />

process to identify risks that may impact <strong>the</strong> organization’s objectives, analyze <strong>the</strong>ir<br />

consequences, and develop ongo<strong>in</strong>g measures to treat <strong>the</strong>m. For example, <strong>the</strong> concept <strong>of</strong><br />

risk management <strong>in</strong>forms NSW RTA’s decisions <strong>in</strong> virtually every area <strong>of</strong> <strong>the</strong> organization.<br />

SANRAL has completed <strong>the</strong> process <strong>of</strong> enterprise-wide risk assessment. Management and<br />

employees are given <strong>the</strong> opportunity to voice <strong>the</strong>ir concerns regard<strong>in</strong>g <strong>the</strong> strategic and<br />

operational risks faced by SANRAL. It has developed a risk register that is <strong>the</strong> product <strong>of</strong> a<br />

cont<strong>in</strong>uous assessment <strong>of</strong> current risks and identification <strong>of</strong> new risks. All employees are<br />

encouraged to be alert to risk exposures <strong>in</strong> <strong>the</strong>ir area. The risks are analyzed by a special<br />

unit that analyzes each risk and <strong>in</strong>itiates appropriate mitigat<strong>in</strong>g action and treatment.<br />

All risks are documented and communicated to <strong>the</strong> Board and employees. The <strong>in</strong>ternal<br />

audit coverage plan is risk-based, and risk management is a stand<strong>in</strong>g item on all Board and<br />

committee meet<strong>in</strong>gs.<br />

3.8 Human Resource Management and Knowledge –<br />

Knowledge-driven Organizations<br />

<strong>Agencies</strong> are becom<strong>in</strong>g more pr<strong>of</strong>essional <strong>in</strong> <strong>the</strong>ir approach to management as well as <strong>the</strong><br />

adoption <strong>of</strong> an <strong>in</strong>creas<strong>in</strong>gly <strong>in</strong>tegrated approach toward mobility management <strong>in</strong>stead <strong>of</strong><br />

road management. This has had a number <strong>of</strong> consequences for agencies’ corporate resource<br />

(staff) management. One example is <strong>the</strong> diverse composition <strong>of</strong> staff, <strong>in</strong>clud<strong>in</strong>g eng<strong>in</strong>eers as<br />

well as economists, bus<strong>in</strong>ess adm<strong>in</strong>istrators, and so on.<br />

All <strong>the</strong> agencies are <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> develop<strong>in</strong>g leadership programs to guide fur<strong>the</strong>r adoption<br />

<strong>of</strong> more <strong>in</strong>tegrated and performance driven work processes. They also recognize <strong>the</strong> need to<br />

fur<strong>the</strong>r develop <strong>the</strong> skills and capabilities <strong>of</strong> staff at all levels. Tra<strong>in</strong><strong>in</strong>g needs are assessed on<br />

a regular basis, <strong>in</strong>clud<strong>in</strong>g periodic reviews by external experts <strong>in</strong> some agencies.<br />

Notably, road agencies are all recognized and appreciated as ‘good employers’ <strong>in</strong> national<br />

‘employer/human resource management’ type benchmarks.<br />

To fur<strong>the</strong>r develop knowledge, all agencies fund and cooperate <strong>in</strong> research on subjects<br />

such as pavement strengths/durability, pavement management and road safety measures.<br />

Research partners are ma<strong>in</strong>ly universities and specialized public and private research<br />

<strong>in</strong>stitutes.<br />

3. 9 Road Sector Fund<strong>in</strong>g - Increas<strong>in</strong>g Use <strong>of</strong> Off-budget F<strong>in</strong>anc<strong>in</strong>g<br />

Table 3.3 summarizes <strong>the</strong> sources <strong>of</strong> f<strong>in</strong>ance for <strong>the</strong> agencies. F<strong>in</strong>anc<strong>in</strong>g o<strong>the</strong>r than from<br />

budget allocations is used <strong>in</strong> all four countries <strong>in</strong> this study. In particular, NSW <strong>in</strong> Australia<br />

and <strong>South</strong> Africa use <strong>of</strong>f-budget sources to f<strong>in</strong>ance (part <strong>of</strong>) <strong>the</strong> network tasks. Both are<br />

us<strong>in</strong>g toll and toll concession to f<strong>in</strong>ance, design, construct, operate and ma<strong>in</strong>ta<strong>in</strong> <strong>the</strong><br />

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