General proceedings - Association mondiale de la Route

Highlights of the presentation:
• A dollar saved on maintenance increases vehicle-operating costs by up to US $ 10 over
the life of the road.
• The cost of rehabilitation/ reconstruction can be up to 20 times more expensive than the
cost of sustained maintenance over the life of the road.
• Fuel levy at US 10 cents per litre is considered optimal level. Increasing it further affects
inflation and retards economic growth.
• It is advised not to use Overloading fees/fines for planning purposes.
• Tanzania wants to introduce an Annual Access Fee to be charged to all vehicles using the
roads. The fee is to be structured to reflect the relative damage done by a vehicle.
• An infrastructure levy of 1% of CIF on all imports is proposed.
Title: Road Asset Valuation & Management - Case Study Finland
Author & Presenter: Jani Saarinen (pictured), Executive Director, Rakli- The Finnish
Association of Building Owners and Construction Clients, Finland
The presentation was based on Road Asset
Management, which the presenter stated, was about
managing roads like a business. The term ‘asset
management’ is increasingly being used to
characterise a ‘business-like approach’ to road
network management at a time where Road
administrations are moving from purely governmentcontrolled
organisations with their own executive
departments to agency status. Mr. Jani Saarinen
explained that each road asset has both an economic, and a capital value, calculated from
either the cost of repairing the asset to its as built condition or the cost of replacing the asset.
Valuation of the road asset, based on good engineering, technical tools, and modern
accounting, has made road management more efficient and transparent. Asset value is a
significant factor in determining priorities for the future investment The presenter provided
an example of how Road Asset Management was implemented in Finland.
Highlights of the presentation:
• The key difference between traditional management systems and asset management
system is that the latter requires implementing of an accounting and valuation of assets in
monetary terms.
• Asset management includes the following elements: Inventory of assets; Road
management systems; Valuation of the assets; Accounting; and Information.
• Valuation of assets is done to enable reporting in monetary terms to reflect the physical
conditions of the road network, and to assist asset managers inform asset owners of the
effects of financing strategies.
• The depreciation to be written off yearly should be planned beforehand and confirmed
according to local accounting standards and requirements. Ideally, the amount of
depreciation should correspond with the actual wearing and consumption of an asset.
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