A Review of Highway Agencies in the South Asia Region

A Review of Highway Agencies in the South Asia Region
Agencies in South Asia could and should similarly use systems that address the needs of the
moment and near future.
The proposed indicator framework clearly alludes to the development and management of
at least three basic systems, namely:
A financial management system;
An integrated road information and asset management system; and
A project management system.
It is also advisable that these systems are fully integrated for seamless information transfer,
efficient information management, and overall sector management.
Financial Management System
A financial management system is required to maintain the accounts of the agency and
support the reporting of information related to financial performance. Such a system should
be capable of incorporating the value of assets, expenditures for capital and maintenance
projects as well as the expenditures associated with running the organization, for example,
salaries, and accounts payable/receivable. Such systems are widely available commercially.
Integrated Road Information System and Asset Management System
An integrated asset management system supports the agency in maintaining all relevant
information and data with respect to the state and value of its assets. It is, therefore,
indispensable for the indicators related to the network. Capabilities of an asset management
system extend beyond maintaining this information. Such a system also enables the
highway agency to develop annual capital improvement and maintenance plans, and
forecast budget requirements. It supports clarity in decision-making on which assets to
maintain at what point in time. The tools and software to monitor the network quality
should feed directly into this system. Asset management systems are widely available offthe-shelf,
but need to be customized to suit the needs of a particular highway agency.
Project Management System
The performance of the highway agency depends, to a considerable extent, on the effective
and efficient implementation of projects, whether executed by an external party or the
agency itself. To monitor these projects, the agency will need to set up an integrated system
linking progress monitoring, risk management and resource deployment/usage. This will
enable the agency to manage risks related to the projects under implementation, ensure
delivery on time and within cost, and provide quality assurance. For each project, large or
small, the agency will need to continuously update data on physical and financial progress as
well as agreements between the agency and its contractors. Such a system is widely available
commercially, but needs to be fine-tuned to the needs of a particular highway agency.
Risk Management
Risk management comprises risks related to assets but also the financial performance
of the agency and the projects implemented by or on behalf of the agency. As such, risk
management uses all three systems discussed above.
5.2 Phase 1: Preparing for Performance Monitoring
Initiating the process for setting up a performance monitoring system, the agency
should undertake an overall evaluation of the current status and accuracy of the available
information and data. This would help the agency to identify the gaps in the available data
and information as well as associated issues/problems. The evaluation results in an action
plan for the collection of essential data and information. Part of this action plan should lead
to the development of systems that enable the agency to gather information in a manner
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