General proceedings - Association mondiale de la Route

Session Chair Mr. Anthony Pearce, Director General of International Road Federation
Session 5: Road Investment Planning and its Management
Title: Road Investment for Sustainability of Network and Domestic Contractors
Author & Presenter: Mr. Adam Andreski, Manager Infrastructure Development, I.T.
Transport, UK.
The presenter highlighted that many countries have recently created Roads Funds and Roads
Agencies to improve road management. However, investment strategies have often not been
optimal for the sustainability of the network and development of domestic contractors. He
discussed the current investment strategies in Suriname, Tanzania and Malawi. He addressed
two issues, namely: Strategic model for road investment and Ways of developing local
contractors. Strategies to develop local contractors include:
• Package contracts attractively both vertically and horizontally
• Use simpler forms of contract and specifications
• Apply the Development Team Model (The Model that was pioneered in South Africa, has
four basic functional components namely; construction management; materials
management; materials supply and the works. The works are contracted out to a small
scale contractor, materials management and supply is contracted out on a fee-basis to a
materials manager, and construction management is contracted out on a fee-basis to a
construction manager. The materials manager and construction manager may be either
consulting firms or established contractors
• “Greenhouse contracts”
• Greenhouse contracts are those set up for newly established contractors where
much of the risk is removed. “Greenhouse contracts” allows “high risk tendering”
and management of contracts. This might include reduced or no bonding, large
advances with easy repayment terms, fast track payments, short listing of
contractors thus reducing competition, price controlled or internet tendering.
These types of contracts throw a lot of the risk on the client even the individuals
managing such tenders.
• Implement technical competitive tendering
• Apply labour or low cost equipment-based contracting
Highlights on the Presentation:
• Giving priority to road maintenance at local level will enhance development of both
national total road asset and the local construction industry
• Key data input for investment model are: Road Asset Value; Backlog Value; Deferred
maintenance cost factor; Maintenance requirement as a % of asset value and Annual
increase in budget
• Basic Statistics for Suriname are: The Country has GDP of $1.1b; Population of 440,000;
GDP per capita is $2,500; and has 4,750km of road network.
• The main problems faced in Suriname include: Maintenance Expenditure ~15% of
requirements; Local contracting industry undeveloped; and Roads damaged by
overloaded trucks, particularly loggers
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