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INNOVATIVE FINANCING AND CONTRACTING FOR ROAD NETWORKS Asian Development Bank (ADB) supports USD 750 million programme to improve roads in Papua New Guinea's Highlands region - As part of an integrated infrastructure development, markets, warehousing, tourism, educational projects and the like, built along or near the project road, can be dovetailed with the toll road to promote activity centres and increase traffic volumes, to enhance the project viability. - Sponsored advertising at toll plazas, telecom service providers' advertisements at help-line kiosks, income from film shoots, corporate sponsorship for toll tickets, etc. - all can supplement the toll revenue. - The toll rate can be made more publicly acceptable through suitable modifications in the toll structure - such as variations by time of the day or day of the week, tolling by area, etc. - Land values along the toll roads increase due to better accessibility, through construction of new roads or expansion of existing roads. Development fees can be levied on these lands and the fees used to partially support the toll road project. Conclusion: There is no single toll financing mechanism. Projects differ and country situations vary. Depending on the project and country characteristics, a suitable toll financing model has to be developed. Necessity is the mother of invention. Hasan Masood Head, Project Administration Unit, Pacific Operations Division, ADB Papua New Guinea (PNG) comprises the eastern half of the island of New Guinea, together with five island provinces and some 600 associated islands. Only a small proportion of the total land area of 460,000 square kilometres is inhabited, by a population of over 6 million. Roads provide the main means of access for most of the mainland population. For the island provinces without land connections, domestic aviation and coastal shipping play important roles. The five provinces of the mountainous Highlands region are home to over a third of the population and are the country's primary source of national income and export earnings. The region contributes over 80% of the exports - from minerals, oil and gas production, and agricultural commodities, including coffee. Amid rugged terrain that includes mountain ranges, valleys and fast-flowing rivers, the road network provides a lifeline for exports as well as for supplies, to the resource enclaves and the general population. The Highlands Highway links the Highlands provinces with the main port at Lae. High rainfall, seismic activities, fragile geological conditions and a highly dispersed population make the road network difficult to develop and sustain. The Asian Development Bank (ADB) and other development partners are supporting the Government of PNG in improving and managing the road network in the Highlands. But lack of regular maintenance causes rapid deterioration of the road infrastructure, resulting in longer journey times, higher vehicle operating costs, and isolation of rural communities. This leads to significant loss of the income from mineral and agricultural exports and contributes to worsening social conditions, exacerbating unrest and lack of security. 03 15 IRF BULLETIN SPECIAL EDITION : PUBLIC-PRIVATE ASIA & OCEANIA PARTNERSHIP
INNOVATIVE FINANCING AND CONTRACTING FOR ROAD NETWORKS The reasons for the failure to maintain roads are both financial and institutional. The Department of Works (DOW) that is responsible for roads receives far less funds than its estimates for routine and periodic maintenance. The result is that emergency repairs take up a large proportion of the funds, undermining the DOW's ability to institute a planned maintenance program. The Government's 10-year National Transport Development Plan (2001-2010) places the responsibility for maintaining national roads on the National Roads Authority (NRA), created in 2004. A road fund, financed through user charges, provides sustainable resources for road maintenance. An autonomous Board with predominantly private-sector and road user representatives oversees the functions of NRA and use of the road fund. Taking a holistic view of the maintenance issue, the ADB approved financing of USD 400 million on 16 December 2008 for the USD 750 million investment programme to improve roads in the Highlands region. ADB financing will be provided in four or more tranches over 10 years through its Multi-tranche Financing Facility. The Government will provide USD 200 million and other development partners will provide co-financing of USD 150 million. Relying on the existing policy and institutional framework, the investment programme identifies the core road system of 2,500 km in the Highlands, finances the rehabilitation and upgrading of 1,400 km, and assists the NRA in gradually taking over maintenance responsibility for all core roads. It also strengthens the capacity of the DOW and NRA to develop and manage road assets. Through ten-year performance-based contracts, it is envisaged that all 2,500 km of the Highlands core road network will be regularly maintained by the end of the investment programme in 2018. These contracts will have provision to engage local communities for some maintenance activities, providing a sustainable livelihood and creating a sense of participation and ownership which will help mitigate security concerns. The investment programme will benefit the entire population of the Highlands region. For communities living around the road network, a grant-financed project is being prepared to increase their benefits from improved roads. In addition, a piggy-backed technical assistance will help the Government prepare a National Transport Development Plan for 2011-2020. IRF BULLETIN SPECIAL EDITION : ASIA & OCEANIA 16
Page 1 and 2: INTERNATIONAL ROAD FEDERATION FEDER
Page 3 and 4: EDITORIAL EDITORIAL There is no reg
Page 5 and 6: TRANS-NATIONAL HIGHWAYS AND NATIONA
Page 11 and 12: MATERIALS FOR ASIAN ROADS MATERIALS
Page 13 and 14: MATERIALS FOR ASIAN ROADS Design of
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Page 19 and 20: ROAD SAFETY others, GRSP's team is
Page 21 and 22: ROAD SAFETY Another section of G109
Page 23 and 24: ROAD SAFETY The three-year project
Page 25 and 26: ROAD SAFETY Truck conspicuity - con
Page 27 and 28: SUSTAINABLE ROADS Accidental Chemic
Page 29 and 30: SUSTAINABLE ROADS with conventional
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