Transcript REFORMA FINANCIERA E INSTITUCIONAL DE LA …

International Road Federation (IRF)
German Agency for Technical Cooperation (GTZ)
Economic Commission for Latin America and the Caribbean(ECLAC)
Technical Assistance Program of the Federal Republic of Germany
Maintenance Contracts
for Rural Roads
Presented by
Dr. Gunter Zietlow
1
e-mail: [email protected]
http://www.zietlow.com
XXIst World Road Congress, Kuala Lumpur, 3 - 9 October 1999
International Road Federation (IRF)
German Agency for Technical Cooperation (GTZ)
Economic Commission for Latin America and the Caribbean(ECLAC)
Technical Assistance Program of the Federal Republic of Germany
Performance Specified Road
Maintenance Contracts
-The Road to the Future Presented by
Dr. Gunter Zietlow
2
e-mail: [email protected]
http://www.zietlow.com
XXIst World Road Congress, Kuala Lumpur, 3 - 9 October 1999
Overview of
Presentation
Introduction
Alternative
contractual
schemes
Case studies
Lessons learned
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Objective
To
improve road conditions
and/or reduce maintenance
cost.
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Precondition
Contracting out rural road
maintenance requires a secure
and stable flow of funds.
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Funding
 National
or regional road
(maintenance) fund
 Local funds
 Local
dedicated taxes
 Road access and/or user fees
 levied
on property
 levied on production
 vehicle registration fees
 fees levied on motor fuels
 Local
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road boards to control proper
use of funds
How often did I tell them:
we need a road fund
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Contractual schemes
 Unit
price contract
 Lump sum contract
 Performance specified contract
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Responsibilities
S ta g e s
P o lic y a n d
o v e ra ll
p la n n in g
D e ta ile d
p la n n in g a n d
s u p e rv is io n
M a in te n a n c e
w o rk s
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1
2
3
A d m in is tra tio n
A d m in is tra tio n
A d m in is tra tio n
(c o n tra c t
s u p e rv is io n )
(c o n tra c t
s u p e rv is io n )
E n g in e e r
(C o n tra c t)
C o n tra c to r
A d m in is tra tio n
C o n tra c to r
C o n tra c to r
( in te g ra l c o n tra c t,
p e rfo rm a n c e
s p e c ifie d c o n tra c t,
to ta l a s s e t
m anagem ent
c o n tra c t)
Performance Specified Road
Maintenance Contract
A service level agreement between the
road authority and a contractor
concerning a schedule of payments in
return for an agreed level of road
condition performance or
measurable parameters defining the
performance of drainage system,road side
assets, traffic assets, road surface and bridges
in terms of maintenance program outcomes.
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Performance Specified
Road Maintenance Contracts
- Example of Performance Indicators 
Visual appreciation
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
Roughness (IRI)
 Friction
 Deflection
 ......
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Potholes
Cracks
Rutting
Obstruction of drainage system
Others
Contracting out can reduce road
maintenance cost
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PERFORMANCE SPECIFICATIONS
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LOW
HIGH
50
80
UNITE PRICE CONTRACTS
100
100
FORCE ACCOUNT
0
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20
40
60
80
100
ROAD MAINTENANCE COST
120
%
Argentina
Province of Buenos Aires, General Arenales
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1089 km of earth roads
Lump sum 3 year contracts, one contractor
Contract price resulted in savings > 30%
Cost of maintenance: US$ 1000 per km
Financing: Road user fee (US$ 2.2 per acre)
Contractor collects the fee
BEFORE
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AFTER
Guatemala
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130 performance specified
road maintenance contracts
maintaining 4100 km of
roads (routine maintenance
only)
130 small scale enterprises
Sanctions for noncompliance
Financed through the
national road maintenance
fund
Colombia
Municipality of Popayán
300 km urban and 280 km rural roads
 15 small scale enterprises (cooperatives)
with a total of 151 persons
 6 contracts with administrators which will
guide and supervise the small scale
enterprises
 Contracts are based on performance
specifications
 US$ 1600 per km (US$ 900 per km for
routine maintenance, US$ 700 per km for
administration)

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Activities performed by
small-scale contractors
Minor pothole
patching
 Cleaning of
pavement and
right-of-way
 Cleaning of
drainage system
 Maintenance of
road signs
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Vegetation control
 Clearing of land
slides
 Removing of bill
boards
 Emergency
response
 Erosion control

Activities of the administrators
Physical inventory
 Evaluation of
pavements
 Traffic counts
 Advising on
maintenance
procedures
 Design of small
structures
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Emergency
response
 Environmental
protection
 Accident recording
 Road user
inquiries
 Proposing road
and bridge
improvements
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Uruguay
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10 contracts with former employees of the road
administration of ~ 180 km of national and rural
roads each
4 contracts between 250 and 350 km each
contracts cover a specific district with different
kind of road surfaces
Maintenance by
performance
specifications
Contract periods
are 4 - 5 years
Uruguay
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Contractor has a well developed auto
evaluation and control system.
There are extensive reporting procedures.
Road administration is using a sophisticated
evaluation scheme to control adherence to
performance standards.
Monthly payment is based on a monthly
evaluation taking 10% of the assets at
random.
Penalties are being applied if defects are not
rectified with a specific time period.
Lessons Learned (1)
A secure and stable flow of funds is a
precondition for contracting out road
maintenance.
 Contracting out will eventually result in
substantial savings and improvement of
road conditions.
 Contracting small scale enterprises
preferably cooperatives made up of
people living along the road show
excellent results.
 Good supervision is a key to success.

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Lessons Learned (2)
 Generally
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contractors and
supervisors need adequate training,
especially small scale contractors.
 Direct contract letting may be
acceptable in the beginning but only
competitive bidding will drive prices
down.
 Performance specified road
maintenance contracts should be
introduced gradually.
Lessons Learned (3)
Performance indicators should be
comprehensive and clearly defined and
measurable.
 Penalties for non-compliance should be
sufficiently high to encourage the
contractor to comply in the first place.
 Control of compliance with
performance standards should be
strict.
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VISION
Business
Opportunities
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No
potholes
Transport Cost
For further information,
please visit my website at
http://www.zietlow.com
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