International Experience and Best Practices - Clean Air Initiative

Managing Resources
Policymakers should set inspection fees at levels that will support costs of the
recommended design of I/M programs set forth here, i.e., privately operated testonly
centers with strong oversight and quality assurance components. Although
the resulting fees may appear high, they are likely to be affordable to the citizens
that own vehicles. Subsidies of initial capital costs for land or fixed facilities could be
considered but inspection fees absolutely must cover ongoing operating costs.
Policymakers should ensure that all the actors in an I/M program have the
capacity to carry out their roles, paying special attention to the vehicle service
sector. Policymakers often neglect the critical task of building capacity to provide the
“M”–the maintenance and repairs for vehicles that fail I/M tests. Donors and vehicle
manufacturers are often willing to provide training and policymakers should seek their
involvement in capacity-building in the vehicle service sector.
6.2. Best Practices
Additional “ordinary” best practices fall in the same four categories noted above. All can
improve I/M program effectiveness.
Institutional design
Policymakers should consider the following practices in engaging private
contractors to assist in implementing I/M programs:
• In order to bring their expertise and capital, encourage international I/M firms to
partner with local firms in the bidding process.
• Make awards to a single firm (rather than multiple firms) operating within a
jurisdiction (i.e., state or metropolitan region). Encourage competition by making
awards in more than one jurisdiction, and by ensuring that an incumbent firm
does not have an unfair advantage when re-bidding a concession.
• Contract lengths should be seven years or longer.
• Provide for appropriate inflation-indexing or wage-indexing of inspection fees.
• Consider government ownership of land and buildings for test-only I/M centers,
either at the outset or at the end of the first concession.
• Provide appropriate risk management contract provisions to account for the
possibility of the actual number of inspections being far different from the forecast
number.
National policymakers should establish an I/M policy framework; state and
local governments should tailor some program details within this framework to
address specific conditions within regions or cities. The I/M framework should
be part of a larger policy framework that addresses vehicle emissions in an integrated
manner. I/M program elements should account for new vehicle emission standards,
equipment warranties, and fuel standards, all of which are typically set at the national
level. Coordination improves I/M effectiveness.
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