M E IOIb J,2*Economic - Economic Commission 11," Development Institute for Africa 4 19of The World Bank SuD-sm~u ArmcA TRAmsmårnaca The Rad Meintenince niitive BMUGding CaPZCity f0r PONiCY Reform VUnnME 3. GUÅdEänes på oic ci n =n1n EDI SEMINAR SERIES01 EDI SEMINAR SERIES SUB-SAHARAN AFRICA TRANSPORT PROGRAM The Road Maintenance Initiative Building Capacity for Policy Reform Volume 3. Guidelines for Policy Action Planning Carl Duisberg Gesellschaft The World Bank Washington, D.C. 01992 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing August 1992 The Economic Development Institute (EDI) was established by the World Bank in 1955 to train officials concerned with development planning, policymaking, investment analysis, and project implementation in member developing countries. At present the substance of the EDI's work emphasizes macroeconomic and sectoral economic policy analysis. Through a variety of courses, seminars, and workshops, most of which are given overseas in cooperation with local institutions, the EDI seeks to sharpen analytical skills used in policy analysis and to broaden understanding of the experience of individual countries with economic development. Although the EDI's publications are designed to support its training activities, many are of interest to a much broader audience. EDI materials, including any findings, interpretations, and conclusions, are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. 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The backlist of publications by the World Bank is shown in the annual Index of Publications, which is available from Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, Banque mondiale, 66, avenue d'I6na, 75116 Paris, France. Library of Congress Cataloging-in-Publication Data The Road Maintenance Initiative : building capacity for policy reform. p. cm.--(EDI seminar series) At head of title: Sub-Saharan Africa Transport Program. Contents: v. 1. Report on the policy seminars / Steve Carapetis, Hernin Levy, Terje Wolden- v. 2. Readings and case studies- v. 3. Guidelines for policy action planning / Carl Duisberg Gesellschaft. ISBN 0-8213-1859-4 (v. 1).-ISBN 0-8213-1860-8 (v. 2).-ISBN 0-8213-1861-6 (v. 3) 1. Roads-Maintenance and repair-Government policy-Africa, Sub- Saharan-Congresses. 2. Roads-Maintenance and repair-Economic aspects- Africa, Sub-Saharan--Congresses. I. Sub-Saharan Africa Transport Program (International Bank for Reconstruction and Development) II. Series. HE367.A452R63 1991 388.1'068-dc2O 91-21666 CIP EDI Catalog No. 720/020 Contents Foreword v Preface vii How will we apply Policy Action Planning in this seminar? I 1. Methods for Policy Action Planning 3 1.1 What is PAP 3 1.2 What are the Components of a PAP? 4 1.3 How to Establish the Policy Action Plan? 6 2. Option Charts for Road Maintenance Policy 14 2.1 Some Basic Considerations 14 2.2 Structure and Elements 15 2.3 Check Item Directory: Overview 17 2.4 Check Item Directory 20 2.5 Option Charts in Tabular Form 55 3. Transition to Phase H 56 4. Worksheets 4 Annex: Tables of Contents of Volumes I and II 67 Contents of Volume 1 69 Contents of Volume 2 70 iii Foreword The constraints that inefficiencies in the transport sector impose on economic development in Sub- Saharan Africa have long been recognized and have been recently underscored in the Long-Term Perspective Study of Sub-Saharan Africa prepared by the World Bank. Despite the great experience of donors in financing transport projects, the effectiveness and sustainability of past programs designed to increase the performance and efficiency of transport services have been disappointing. In this context the World Bank, in close association with the UN Economic Commission for Africa (ECA) and several primary donors, has developed the Sub-Saharan Africa Transport Program (SSATP). The main objective of the program is to improve transport efficiency through major policy reforms. It also provides the ECA with substantive inputs for the preparation of the Second UN Transport and Communications Decade for Africa, which will serve as a framework for mobilizing energies and resources to improve the performance of the transport sector and pursue its development. The program is an excellent example of the cooperation that can be achieved by African countries and international agencies in addressing difficult policy issues through a regional approach. This book is one of three volumes that report on a series of six subregional policy seminars organized by the World Bank and the ECA under the Sub-Saharan Africa Transport Program to address the problems and issues of road deterioration and maintenance. These policy seminars provided a forum in which policymakers from different countries, leading experts in development, and World Bank staff were able to share ideas and experience concerning development policies that relate to road transport and maintenance. These reports are now being published for widespread distribution as a guide to defining future activities, programs, and initiatives for reforming road maintenance policies in Africa. Recognizing that policy reform is a complex, dynamic, and long-term task, all who participated in the seminars see the effort and these reports as the beginning of a long process. Amnon Golan Ismail Serageldin Director Director Economic Development Institute Technical Department The World Bank Africa Region The World Bank V Preface The present process of economic reform in Sub-Saharan Africa has far-reaching implications for the transport sector. Against a background of a deteriorating transport system and the high cost of providing new road infrastructure, issues of transport policy become especially prominent. These issues are inherently difficult to deal with because transport is almost always an intermediate output. As a first step toward addressing these issues and helping governments improve their own capacities to address transport problems, the Sub-Saharan Africa Transport Program (SSATP) was initiated in 1987. The Road Maintenance Initiative (RMI) is one of the key components of the SSATP. It has been envisaged as a project with a five-year duration (1987-92), in two phases. Phase I consisted of six subregional policy seminars. Representatives from forty-two Sub-Saharan African countries attended one of the seminars held between May 1989 and February 1990 in Harare, Accra, and Addis Ababa (for anglophone countries) and Dakar, Libreville, and Antananarivo (for francophone countries). Country delegations to these seminars normally included ministers of public works, heads of highway departments, and senior officials from ministries of planning and finance. The objectives of Phase I were to develop awareness of the consequences of neglect of the road network, to recognize the policy nature of the problem, to identify key areas for policy improvement and endorse related policy options, and to engage delegations in the preparation of policy reform plans for their own countries through Policy Action Planning exercises. Phase II will include facilitation support for national activities directed toward improving national capacity to deal more effectively with important policy issues and reforms. Activities will consist of country-level development of Policy Action Plans for highway maintenance and will be designed to create a broad national commitment for policy changes and institutional reforms. Implementation of the Policy Action Plans with monitoring and evaluation would follow Phase II. The Phase I policy reform seminars were organized by the SSATP Unit in the Infrastructure Division of the World Bank's Africa Technical Department and by the Infrastructure and Urban Development Division of the Economic Development Institute of the World Bank in close collaboration with the ECA. The SSATP has been made possible by the support, financial and otherwise, of a number of international donors. The RMI and the policy seminars, specifically, benefitted from donor assistance from the governments of France, Germany, Norway, Sweden, Switzerland, and the United Kingdom. The Carl Duisberg Gesellschaft, the International Labour Office, SETRA, and the Transport and Road Research Laboratory provided help and guidance. The RMI seminars were conducted in two parts, beginning with an introduction to and discussion of, the regional issues in road maintenance. Three broad areas were considered: planning, budgeting and financing; operational efficiency; and institutional reform and the development of human resources. Following two days of presentations and discussions, individual country teams explored and applied the Policy Action Planning method, which was presented in workshop exercises designed to demonstrate a systematic procedure for prioritizing problems and developing policy reform action plans to resolve them. vii viii The documentation for the Phase I seminars are being published in the following three reports: * Volume 1: Building Capacity for Policy Reform * Volume 2: Readings and Case Studies * Volume 3: Guidelines for Policy Action Planning The production and editing of these reports are a joint collaborative effort of the Infrastructure Division of the Africa Technical Department and the Infrastructure and Urban Development Division of the Economic Development Institute of the World Bank. SSATP Road Maintenance Initiative Road Maintenance Policy Seminar Guidelines for Policy Action Planning PAP ALTERNATIVES COMPLEMENTARIES Start I I I.I I~I DECISION COOPERATION D Carl Duisberg Gesellschaft e. V., 1990 ix CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 1 How will we apply Policy Action Planning in this seminar? This Seminar is designed to - introduce the "Policy Action Planning" method, and - invite Country Teams to develop outline versions of policy action plans to address effec- tively road deterioration problems in their countries. What is the sense of doing this in a short seminar when everyone knows that formulating government policies and determining their contents is usually a complex, amorphous and time-consuming political process, involving many participants with varying interests that need to be balanced and compromised ? The answer is that the Seminar provides a forum for free thought where, in an atmosphere detached from everyday pressures, some fundamental thinking can be done as to what policy reforms would really be desirable for addressing the crucial road maintenance issues in the individual countries. Of advantage is that in the Seminar such thinking is less restricted by quantitative detail, or curbed by controversies and compro- mises, allowing thoughts to run free to what can be considered "ideal," which then can be shaped into what. appears to be "feasible." Accordingly, the basic idea is that the Country Teams outline a framework for a Policy Action Plan that can be worked out in detail later. In this sense the the Policy Action Plan would take the shape of a Strategic Framework indicating the basic policy direction, identifying areas for decision and action and outlining the means for those actions. The focus on Policy Action Planning is intended to - trigger an initiative for policy reforms. The framework of the "Policy Action Plan" outlined in the seminar is therefore expected - to provide the leads for the Follow-Up in Phase II of the Road Maintenance Initiative where it is hoped that a government commitment would help action programs along the road towards implementation. 2 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initlative In the process of framing the Policy Action Plan during the Seminar there is ample freedom to use imagination coupled with professional experience and inside knowledge on institutional and technical aspects of road maintenance in the individual countries. This paper offers structured guidelines to increase the efficiency of these efforts. It comprises the following sections: 1. Method for Policy Action Planning providing the definition, the components and the steps of PAP as a systematic method of planning, illustrated by examples. (page 3-13) 2. Option Charts providing the core of PAP applied to Road Maintenance. They serve as check items to outline a national Policy Action Plan. The Option Charts are presented both as a "Check Item Direc- tory" and in comprehensive tabular form. (page 14-55) 3. Transition to Phase II suggested to prepare the activities necessary to gain national commitment to enter Phase II (page 56-58) 4. Work Sheets suggested for use in the Policy Action Planning exercise by the Country Teams (page 59-66) Let's Start CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 3 1. Methods for Policy Action Planning 1.1 What is PAP? Policy Action Planning (PAP) is a systematic process of preparing a DEFINITION statement of the measures to adopted and pursued by a government according to its stated objectives. ALTERNATIVES COMPLEMENTARIES This process is characterized by the search for and the assessment of alternate solutions for the issues identified. It leads to a joint decision about what to do in the future and how to succeed by complementary measures and with the cooperation of all parties involved. DECISION COOPERATION Referring specifically to road maintenance, PAP determines the way in which a government uses the national resources and administrative means available with the aim of carrying out its program for road maintenance, and improving road maintenance performance by the responsible agencies. 4 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 1.2 What are the Components of a PAP? In line with our determination of PAP, a Policy Action Plan incorporates the following basic components: Efficient Road Maintenance System Main Policy Direction Objective and Option(s) Key Measures Supporting Measures Responsibilities Time and Resources CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 5 Policy Direction Key Supporting Respon- Time Pojctietn Measures Measures sibilitles and Objectives and Rsuc Resource Option(s) The Main Policy Direction is an explicit formulation of a funda- mental policy reform based on: - an analysis of issues, needs and national conditions, - an assessment of priorities and objectives, - identification, appraisal and selection of options. The Key Measures are formulated as a direct out- growth of the "Main Thrust." They specify the selected option(s) and are designed for the purpose of putting the fundamental policy direction into practice. The Key Measures are the BACKBONE of the Policy Action Plan. Supporting or Complementing Measures are designed to support the Key Measures with a view to securing operational success of the policy reform and/or creating favorable conditions, and/or neutraliz- ing adverse side effects. The Policy Action Plan requires an outline of the Executing Agencies and Institu- tions participating in policy implementation along with a brief description of their roles and responsibilities, together with a statement on the authority and capacity which must be assigned to them for successful policy implementation. To render the Policy Action Plan feasible, it is important to determine the sequence and the time required for all necessary Key Measures and Supporting Measures. It is also necessary to identify the resources required. 6 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 1.3 How to Establish the Policy Action Plan? Main Policy Directon The point of departure for designing policy action plans is the ANALYSIS of the current status of road maintenance in the individual countries which, ideally, identifies their crucial problems and indicates priorities for inducing change. The first step in Policy Action Planning would therefore require us to Step 1 SET PRIORITIES to where change should be effected. What are the Key Issues ? For this seminar a basis for this decision could be the Country Review and Analysis Questionnaire that has been filled by the "Country Teams" and the discussion on Topics "A," "B" and "C" in this seminar. Example Suppose that in the Country Review and Analysis Paper or the Issues Tracking Sheet of Step 1: (1) Planning Deficiencies in the Road Agency, (2) Poor and Outdated Road Maintenance Equipment, (3) Inadequate Management and Engineering Capacities, and (4) Chronic Scarcity of Funds for Road Maintenance have been identified as the most important road deterioration issues in a given country. Suppose further that the Country Team would consider the chronic shortage of funds as the overriding issue; it would then decide that the allocation of funds to road maintenance should have top priority in the PAP process. CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 7 Based on the above priority decision as to where change is needed most, it is now possible to: Step 2 DECIDE what Policy Objective(s) are needed to address the priority issue. The objectives may focus on improvements in subject areas such as (1) TECHNICAL AND OPERATIONAL PLANNING ) (reference: subject "A) (2) FINANCE (3) EQUIPMENT ) (reference: subject "B"') (4) LOCAL RESOURCES AND CAPABILITIES (5) INSTITUTION ) (reference: subject "C") (6) MANPOWER or other areas that the Country Teams may deem relevant, and from which a selection shall be made according to needs and priorities in order to give the Policy Action Plan a clear direction. When the Policy Objective is chosen, the next step will be to: IDENTIFY AND APPRAISE Policy Options relevant and Step 3 applicable to achieve the selected Policy Objective with regard to the Overall Objective. The Basis for Step 2 and Step 3 could be the Option Charts (Section 2 of this paper) which provide a variety of potential objective policy option choices for Road Maintenance for the above six subject areas, specifying objectives and the corresponding policy options as a menu of check items to which the Country Teams can resort when discussing goal formulation and option alternatives. For the purpose of a clearer identification and more valuable assessment of the Policy Options it may often be necessary to formulate the required Key Measures (see Step 4) and to consider the Supporting Measures required to increase the Options' effectiveness (see Step 5). 8 CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative The choice of Policy Options may be based on the following: - conditions for success - possible consequences and effects - criteria, given under overall assessment of the option given in the Option Charts - support of Policy Objective by complementary option(s) with regard to the Overall Objective: Efficient National Road Maintenance System. Example Following the above example, the Country Team, regarding the funding of Step 2 shortage as the most important area for change, would want to place the main and Step 3 direction for policy reform on increasing financial resources for road maintenance and state this as the key objective. The Team would then reflect on what options are available to attain that objective. The Country Team members would discuss alternative possibilities and presumably find that budget allocations for road maintenance should be stepped up by raising additional government revenue from an increase in road user taxes. The Policy Objective (Increase Financial Resources for Road Maintenance) and the Policy Option the Country Team has selected (Raise Additional Revenues Through Road User Taxes) together would constitute the Main Direction of the Policy Action Plan. The definition of the Objective/Policy Option edifice would determine the fundamental layout of the national Policy Action Plan. CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 9 Key Measures While the previous steps have determined the overall policy direction and the basic strategic concept, this step introduces the main element of action. The formulation of Key Measures derives from the policy option(s) representing the Main Direction of the Policy Action Plan. The next step is to: Step 4 IDENTIFY AND SPECIFY the Key Measures necessary to implement the selected Policy Options The Basis for this Step could also be the Option Charts offering a selection of Key Measures related to the various Policy Options. As these Key Measures will be the backbone of the Policy Action Plan, they should be central to goal achievement and geared towards implementation. Example Having chosen the option of increasing road user taxes, it is now a matter of of Step 4 specifying how this should be realized (key measures): increase of tuel taxes, and/or taxes on spares, tires, etc., and ways and means of channelling the additional revenues to road maintenance. The formulation of key measures will be subject to internal discussion of pros and cons in the Country Teams. 10 CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initative I ~ ~ Spprtmng 1 Mo I sures As a further step in relating means to objectives it is essential to indicate where Supporting Measures are needed to overcome resistance to change and to bring policy reforms to full effect. To do this it is necessary to: IDENTIFY conditions of success and inhibiting factors for the Sep 5 selected Policy Option. INDICATE Supporting Measures (governmental actions) required to meet these conditions/factors. The Basis for Step 5 could again be the Option Charts. To identify the Supporting Measures (Step 6) inside knowledge of the individual country is necessary. The supporting measures would aim at creating, facilitating or empowering conditions either within the main agencies destined to implement the Key Measures, or in their environments where constraints to successful policy implementation could be expected. Example Higher taxes on road users may not bring the desired effects because of, say, poor for Step 5 tax collection, tax evasion, or because the additional revenues will not necessarily be allocated to the road maintenance budget by the Treasury. It may also be the case that the Road Agency cannot spend them properly due to inadequate requirement planning or poor management. Supporting measures should be designed to overcome these obstacles. During team discussion on the supporting measures it may turn out that the obstacles are too stubborn for successful pursuance of the policy option chosen. This would provide feedback for revising the decision on the policy option. APPRAISE the PAP-outline (amount of options and Measures) Step 6 with regard to the set Policy Objective and Overall Objective: Is the PAP-outline persuasive and feasible? Criteria for appraisal of PAP-outline: - sufficient to achieve Policy Objective and Overall Objective - necessary, no redundancy - compatible and consistent CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Inidative 11 Responsi- blifties I This is the step in which we define "Who Does What" in policy implementation with regard to detailing content of the outlined Policy Action Plan, decision-making, policy execution, coordination, monitoring and control. For this purpose it is appropriate to: Step 7 INDICATE agencies and institutions whose participation is nec- essary to execute the Road Maintenance Policy Action Plan. Generally the following agencies and institutions may be participating bodies: * Parliamentary Institutions * Legislative Body * Governmental Agencies, Ministries * Executing Agencies * Political Parties * Multilateral and Bilateral Agencies * Advisory Councils, etc. For the implementation of a Policy Action Plan the participating bodies have to carry out specific responsibilities, therefore we must: DESCRIBE AND ASSESS the tasks and functions of the partici- Step 8 pating bodies and the authority and the capacity they will need to execute the Policy Action Plan. Example Introducing reforms in (road user) taxation involves centrally the Ministry of for Step 7 Finance/Treasury and may require changes in legislation and approval by and Parliament. Furthermore, cooperation and consultation with the Department Step 8 of Transport, Public Works and the planning board as well as public and private interest groups (transport sector lobby) are presumably involved, too. An Inter-Departmental Committee (Transport, Finance, Public Works Road Agency) may assume a coordinating mandate, handling the process of introducing reform. 12 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative Time and Resources After having determined measures and responsibilities, time scheduling adds a new dimension to the framing of the Policy Action Plan. This step of the PAP deals with fitting the measures identified so far into a time frame that has some realistic background. To establish a time schedule we must ESTIMATE the time required for initiating and achieving general > 9 national commitment and for detailing the PAP-outline (Phase 11) Step 9 to achieve national commitment for planning implementation of Measures. DETERMINE sequence and time allowance for planning and imple- / 1mentation of the Key and Supporting Measures. Step 11> ESTIMATE the point in time when measures will take effect. The amount of time needed to prepare the implement Policy Action Plans depends on the administrative and legislative structure of Government and on the manner in which the political process develops the consensus necessary to make the policy reforms politically feasible. We suggest providing a rough estimate of the time needed for (i) the progress towards reaching agreement on the need for reform (Commitment), (ii) preparatory studies, (iii) consultations with parties to be affected by the policy actions, (iv) detailing of reform contents (v) going through legislation and making the necessary administrative arrangements up to a roughly estimated point in time when the measures may become effective. CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 13 All kinds of resources may be required for planning and implementing Key and Supporting Measures. A Policy Action Plan is only complete and convincing if institutional bodies have been identified to provide the necessary resources. Step 12 ESTIMATE the resources needed to plan and implement the Key and Supporting Measures. tep >13 LOOK FOR institutions to provide these resources. 14 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 2. Option Charts for Road Maintenance Policy 2.1 Some Basic Considerations Policy Action Planning involves - identifying key issues, constraints and functional deficiencies - setting clear objectives - devising strategies for dealing with the objectives by reviewing policy options, and, finally, - determining measures to be pursued by government institutions and agencies which are to be given the necessary authority and capacities for implementation. While the road deterioration problem includes common features in all the countries in the SSA region the problem mix and empirical perceptions differ widely from one country to the other. Given the variety of issues and diversity of problem-mix, no "pre-fabricated" policies are available to cope with the road deterioration problem. Instead, policy actions have to be derived from the empirical perceptions of issues and needs in a given country and tailored to the conditions and circumstances prevailing in that country. Consequently, the point of departure for designing policy action plans is a current status analysis that describes the problem structure of a given country, determines priorities and defines objectives. Operating on this basis, options have to be discussed and measures selected and combined in a package of policy actions along with directives on authorities responsible for implementation of a time schedule. One issue that runs through all stages of delineating policy measures is the importance of recognizing interdependencies or "system effects" in designing policy actions. Measures that are considered important to solving one problem may create another problem in some other area. In this way the success of policy actions pursued to enhance efficiency in public sector operations is often limited and far from satisfactory, unless appropriate complementary actions are put in place to compensate for impeding effects. The Option Charts for Policy Action Planning in the area of road maintenance provide a general framework of elements relevant to formulating policy actions. Such a framework for devising policy plans is designed as a menu-like directory of check items that are suggested for consideration. The lists of items do not claim to be exhaustive, as the Country Teams may find further points of relevance for their Policy Action Plans of road maintenance. CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Inilatie 15 2.2 Structure and Elements The Option Chart Directory consists of six POLICY OBJECTIVES which are formulated as desirable achievements in the key area where improvement or progress is needed: (1) TECHNICAL AND OPERATIONAL PLANNING ) (reference: TOPIC uA') (2) FINANCE (3) EQUIPMENT ) (reference: TOPIC "B") (4) LOCAL RESOURCES AND CAPABILITIES (5) INSTITUTION (reference: TOPIC "C") (6) MANPOWER To each of the objectives is attributed a number of POLICY OPTIONS instrumental to meeting the objectives, explaining their basic rationale. Strictly speaking, the options are not necessarily alternatives but complemen- tary policy directions which may be chosen as the primary thrust of policy action in accordance with the specific country priorities. Under each policy option, a suggested series of KEY MEASURES is listed as major elements of reform action that may have to be pursued under that particular policy option. Policy actions may combine measures drawn from several selected options, with differing degrees of intensity, however, depending on the problem structure and needs in a given country. The "Conditions for Success" and "Possible Effects and Consequences" are highlighted in the DISCUSSION OF OPTION; this may help to assess the effectiveness of a policy option and indicate where Supporting Measures are needed to overcome resistance to change and to bring policy reforms to full effect. Prior to implementing policy action plans, more detailed appraisal would be required to estimate the benefits and costs of the policy reforms and to examine their further implications with regard to political and administrative feasibility. The "Criteria for Appraisal" are indicated to direct attention to these critical points. Finally, a brief OVERALL APPRAISAL OF THE OPTION is provided, indicating the general usefulness and significance of the policy option, as well as potential hazards which may emerge. The format of the structure is shown on the following page. 16 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative X = 1. Technical and Operational Planning 2. Finance Objective X 3. Equipment 4. Local Resources and Capabilities 5. Institution 6. Manpower I Main Policy Option Policy Option Policy Option Policy Option Policy Option Key KeyKeKy Measures Measures Measures Measures Discussion Discussion Discussion Discussion of Option of Option of Option of Option Conditions Conditions Conditions Conditions of success of success of success of success Possible Possible Possible Possible effects and effects and effects and effects and consequences consequences consequences consequences Overall Overall Overall Overall Appraisal Appraisal Appraisal Appraisal Criteria Criteria Criteria Criteria Conclusion Conclusion Conclusion Conclusion COG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 17 2.3 Check Item Directory: Overview An OVERVIEW of the OBJECTIVE/OPTIONS edifice is presented in the following tables. The Total Directory is presented thereafter in six subsections, one for each policy objective. The first page of each subsection shows the Policy Objective and the associated Policy Options. The subsequent pages show - for each option separately - the check items regarding Key Measures, Discussion of Option and Appraisal. Overview Topic "A" - Planning, Financing and Management POLICY OBJECTIVE MAIN POLICY OPTIONS POLICY OPTIONS 1. TECHNICAL AND 1.1 Applying Network-Based OPERATIONAL Planning PLANNING: Road Maintenance Plan- 1.2 Improving Planning ning is Improved and Efficiency by Strengthen- Operational Programs Are ing the Agency's Legal Made More Effective, and Organizational Structure 1.3 Improving Work Program- ming and Resources Assignment 2. FINANCE: 2.1 Mobilizing Existing 2.1.1 Increased Efficiency of Financial Resources for Resource Potential Fund Use Road Maintenance are Increased and Made 2.1.2 Budget Reallocations (e.g., Available to the Road from new construction) Agency 2.2 Earmarking Revenue for Road Maintenance 2.3 Acquiring Additional 2.3.1 Introduce/Increase Road Resources User Charges 2.3.2 Levy/Increase Non-User Taxes 2.3.3 Seek Additional External Financing 2.3.4 Resort to Additional Domestic Borrowing 18 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance initiaive Overview Topic "B" - Management of Operation POLICY OBJECTIVE MAIN POLICY OPTIONS POLICY OPTIONS 3. EQUIPMENT: 3.1 Increased Availability of 3.1.1 Reduce Age of Equipment Availability and Utiliza- Equipment Fleets Fleet tion of Equipment is Improved 3.1.2 Introduce Purchase Policy to Standardize Fleet and Increase Equipment Quality 3.1.3 Introduce Regular Mainte- nance for Maintenance Equipment 3.1.4 Shorten Down-Time of Maintenance Equipment 3.2 Increased Utilization of 3.2.1 Cut Size and Type of Fleet Equipment Fleets to What Can Be Managed Properly 3.2.2 Improve Assignment Planning and Logistics 3.2.3 Enhance Training of Equipment Staff 4.1 Increased Involvement of 4.1.1 Making Better Use of 4. LOCAL RESOURCES the Private Sector Local Contractors AND CAPABILITIES: The Road Maintenance 4.1.2 Making Better Use of Capacity is Increased Local Consultants through Locally Available Resources 4.2 Increased Involvement of 4.2.1 Direct Hiring of Individu- Other Local Resources als or Groups 4.2.2 Agreements with Commu- nities, Councils, etc. (Self- Help, Organized through Local Administration CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Iniiatve 19 Overview Topic "C" - Human Resource Development and Institutional Reform POLICY OBJECTIVE POLICY OPTIONS 5. INSTITUTION: 5.1 Adjust the Institutional Arrangement and Create Adequate The Technical and Organi- Organizational Structures zational Capacity of the Roads Administration is 5.2 Improve Management Competence and Manpower Improved Performance 5.3 Create Workable Management Systems and Procedures 5.4 Create Adequate Financial Provisions for Road Maintenance 6. MANPOWER: 6.1 Training: Staff and Manager Perfor- Step Up Training Efforts and Enhance Effectiveness of mance in Road Mainte- Training nance is Improved 6.2 Incentives: Enhance Motivation by Appropriate Incentive Schemes 6.3 Personnel Management: Strengthen the Personnel Management Function within the Road Agency 6.4 Recruitment: Make Better Use of Local Manpower Resources through Improved Recruitment 20 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 2.4 Check Item Directory Contents of this subsection concerning Topic "A," Objective 1: Topic "A" - Planning, Financing and Management POLICY OBJECTIVE POLICY OPTIONS 1. TECHNICAL AND 1.1 Applying Network-Based Planning OPERATIONAL PLANNING: 1.2 Improving Planning Efficiency by Strengthening the Agency's Road Maintenance Plan- Legal and Organizational Structure ning is Improved and Operational Programs are 1.3 Improving Work Programming and Resources Assignment Made More Effective CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 21 POLICY OPTION 1.1: APPLYING NETWORK-BASED PLANNING RATIONALE: - Availability of updated cost-benefit analysis for various maintenance standards I traffic conditions. Under budget constraints, the entire road network should - Availability of computer models (HDM or similar) as a be used as the basis for selecting road sections to be tool for optimizing network-based decision-making. maintained and other sections to be neglected. POSSIBLE EFFECTS AND CONSEQUENCES: KEY MEASURES: - Maintenance for roads carrying high traffic volumes - Develop strategy for network-based planning may generate even more traffic on such roads while * selection criteria other roads with lower traffic may become even * maintenance standards. impassable. - Prepare/update road inventory database on - The decision to maintain one road and to neglect * road type (terrain, materials, geometry) another one may be quite unpopular with those who * road age are not served. * climate -Applying network-based planning and the need for a * traffic. comprehensive data base will require tremendous ef- - Perform regular inspections of roadnet. forts by the Agency. Technical assistance may be - Ascertain true maintenance and road user costs. required. - Coordinate regional, development requirements with agencies involved. OVERALL APPRAISAL OF OPTION 1.1: - Create/improve public awareness of the need for main- tenance and network-based planning. - Under budget constraints, network-based planning of maintenance is indispensable. DISCUSSION OF OPTION 1.1: - It gives the opportunity to implement regional develop- ment policies and therefore requires the cooperation CONDITIONS FOR SUCCESS: with other Ministries/Agencies. - Network-based planning and its short-term conse- - Thorough knowledge of quences may not be understood and accepted by all * network characteristics citizens. Public relations work is required. * length of earth/gravel/paved roads - Option should be pursued with diligence. Most impor- * road age distribution and state of deterioration tant is a proper policy decision on the criteria which - Thorough knowledge of apply to the selection of sections from the entire net. * traffic volume and composition * axle loads * vehicle speeds * accidents - Thorough knowledge of true maintenance and road use costs * road maintenance costs per km depending upon road type and age, pavement type, rainfall * vehicle operating costs for various types of vehicles and roads 22 CDG: Guidelines for Policy Action Planning SSA TP Road MaIntenance Initiative POLICY OPTION 1.2 Improving Planning Efficiency by Strengthening the Agency's Legal and Organizational Structure RATIONALE: DISCUSSION OF OPTION 1.2: The Road Agency and its subdivisions need a clear and CONDITIONS FOR SUCCESS: realistic legal mandate and corresponding sound organi- zation structure to perform the essential functions. - Degree of decentralization is feasible - Agency's management staff has job descriptions KEY MEASURES: - Agency's staff has clear instructions on responsibil- ity and authority - Determine degree of decentralization. - Lines of direction and information are established - Streamline Agency's administrative hierarchy and or- - An independent body to monitor the work and to ganization. perform post-completion auditing has been - Define functions and tasks, authorities and responsi- established bilities of - Staff in Central Agency and subdivisions is moti- * state vated and ready to take responsibility on the level * province of given authority * district * council POSSIBLE EFFECTS AND CONSEQUENCES: * community * others. - Changes in management may be necessary - Separate the Agency's - Restructuring within Agency may result in a slow- * planning down of productive work * executive - External technical assistance may be required * supervisory divisions, but establish effective coor- dination among them. OVERALL APPRAISAL OF OPTION 1.2: - Establish the required management information systems. - Option useful in attaining policy objective - Improve management competence in general. - Option fundamental where organizational constraints cause major maintenance backlogs CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initfiave 23 POLICY OPTION 1.3 Improving Work Programming and Resources Assignment RATIONALE: - Maintenance costs are analyzed for the various The better the work is programmed and resources are elements of the roads utilized, the more roads can be maintained with funds * pavement available. * verge * drainage, etc. KEY MEASURES: - Maintenance costs are analyzed in terms of * personnel - Base planning on road inventories. * equipment - Perform regular road inspections and road condition * materials measurements. * overheads. - Determine work priorities for selected roads on the - Maintenance costs are analyzed in terms of basis of true requirements. * routine activities - Base resources assignment scheduling on resource * periodic activities inventories. * emergency activities. - Establish/improve the work and cost recording sys- - Internal monitoring of work is done by an indepen- tems and use data as feedback to future physical dent body. planning. POSSIBLE EFFECTS AND CONSEQUENCES: DISCUSSION OF OPTION 1.3: - Road inspectors may have to. be trained for in- CONDITIONS FOR SUCCESS: spection tasks - Reporting systems may have to be improved. - Comprehensive and correct road inventories are - EDP will be required, including skilled personnel. available. - Communications within Road Agency may have to - Regular inspections are done as a basis for all be improved. routine and periodic maintenance work. - Materials management may have to be improved. - Equipment and transportation to measure road con- - Financial investments for the above tasks will be ditions are available. required. - Sufficient qualified staff is available to perform the - Technical assistance may be required. inspections. - Criteria for work priorities are set. OVERALL APPRAISAL OF OPTION 1.3 - Inventories onresources are available. - Work reports are available. - Option is the key to cutting excessive, non-productive - Recording of all costs as feedback to new financial spending. planning is done. - Pursuing option involves a lot of detail work and time, but is a perfect opportunity to improve the skill of the staff. - Option is fundamental to attaining policy objective. 24 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Inklative Overview Contents of this subsection concerning Topic "A," Objective 2: Topic "A" - Planning, Financing and Management POLICY OBJECTIVE MAIN POLICY OPTIONS POLICY OPTIONS 2. FINANCE: 2.1 Mobilizing Existing 2.1.1 Increased Efficiency of Financial Resources for Resource Potential Fund Use Road Maintenance are Increased and Made 2.1.2 Budget Reallocations (e.g., Available for the Road from new construction) Agency 2.2 Earmarking revenue for road maintenance 2.3 Acquiring Additional 2.3.1 Introduce/Increase Road Resources User Charges 2.3.2 Levy/Increase Non-User Taxes 2.3.3 Seek Additional External Financing 2.3.4 Resort to Additional Domestic Borrowing CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 25 MAIN POLICY OPTION 2.1: Mobilizing Existing Resource Potential POLICY OPTION 2.1.1: Increased Efficiency of Fund Use RATIONALE: - Shortages of Qualified Staff More Urgently Felt, Recruitment Problems Existing Budgetary Allocation would probably be ad- - Organizational Restructuring Required equate if it was spent efficiently - Foreign Technical Assistance Required - Adjustments in Budget Allocation KEY MEASURES: OVERALL APPRAISAL OF OPTION 2.1.1: - Establish more rational, priority-based physical plan- ning procedures. CRITERIA FOR APPRAISAL - Establish more effective fund appropriation procedures and expenditure regulations. - Technical and Organizational Capacity of the Roads - Establish more effective financial control systems. Administration - Strengthen and upgrade competence of financial man- - Urgency of Actions, Short, Long-Term Requirements agement and controlling. - Domestic Management Resource Potential - Assign clear responsibilities and authorities for bud- geting, expenditure and control. CONCLUSION: - Strengthen internal and external auditing and follow- up procedures. Fundamental to any policy of financial resource man- agement, indispensable for combination with other op- DISCUSSION OF OPTION 2.1.1: tions; however, success is dependent on STRUC- TURAL changes (attitudes, management, organiza- CONDITIONS FOR SUCCESS: tion, systems), not likely to be achieved in the short run; instead long-term continuity of effort must be sus- - Improved Management Efficiency tained. - Full Internal Accountability - Allocation of Funds Linked to Physical Plans - More Effective Controlling Procedures, Performance Auditing are Established - Contracting Based on Competitive Bidding - Fiscal Integrity and Absence of Arbitrary Fund Use, Effective Fiscal Control - Increased Labor Productivity, More Productive Use of Equipment and Materials POSSIBLE EFFECTS AND CONSEQUENCES: - Personnel Changes in Management - Full Evidence of Fund Misuse - Reductions in Labor Force - Reductions in Plant and Equipment 26 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance IntIave OPTION 2.1.2: Budgetary Reallocations (e.g., from new constructions) RATIONALE: OVERALL APPRAISAL OF OPTION 2.1.1: Capital expenditure for new construction is not justified CRITERIA FOR APPRAISAL: in the existing roads are in serious disrepair. - Actual budget allocations in capital and recurrent KEY MEASURES: budget for road infrastructure expenditure - Scope of reallocations from capital to recurrent - Revise the program of road construction, redefine budget priorities. - Define the top-priority maintenance needs, financial CONCLUSION: priorities. - Renegotiate financing arrangements. Opportunity to find a more appropriate balance be- - Reclassify budgetary titles and shift allocations to re- tween capital formation and maintenance of physical current road maintenance title. national assets; must be supported by a firm national - Determine the time span for budget allocations. consensus on resource allocation, and probably in- volves a reorientation of donor aid. If applied as one- DISCUSSION OF OPTION 2.1.2: time measure, helps cure symptoms only. CONDITIONS FOR SUCCESS: - Top level decisions and new national consensus - Greater financial autonomy of roads organization. - More effective financial control. - Allocation of funds linked to physical plans with clear economic priorities POSSIBLE EFFtiTS AND CONSEQUENCES: - Resistance from other government entities - Cuts in roads construction expenditures - Renegotiation with foreign donors on road projects - Reorientation of programs funded by external aid agencies - Reclassification of budgets and reorganization of budget structure CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 27 OPTION 2.2: EARMARKING REVENUE FOR ROAD MAINTENANCE RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: Earmarked taxes or charges may safeguard the roads - Reduced flexibility of government spending administration from dependency on the Treasury or Min- - Remaining tax base inadequate for stable revenues istry of Finance. - Revenue-oriented expenditure rather than need- oriented expenditure KEY MEASURES: - Temptation to use funds for purposes other than road maintenance - Determine the amount of funding to be regularly ear- - Foreign technical assistance required marked for road maintenance. - Identify and decide on the sources of finance to be OVERALL APPRAISAL OF OPTION 2.2: earmarked for road maintenance. - Establish a road fund for the purpose of financing road CRITERIA FOR APPRAISAL: maintenance programs and securing regular inflow. - Determine the authority and organization or road fund - Source of funds for earmarking control, management and supervision. - Tax leeway adequate - Install sound management and fund use procedures, - Financial autonomy of the roads organization including auditing. - Management efficiency - Road fund usage procedures DISCUSSION OF OPTION 2.2: CONCLUSION: CONDITIONS FOR SUCCESS: Useful under conditions of insufficient, erratic recur- - Improved management efficiency rent budget allocations, not in tune with financial re- - Stable revenue inflow quirements for maintenance operations; this option - Fiscal integrity and absence of arbitrary fund usage needs to be complemented by measures relating to - Greater financial autonomy of roads organization increasing the efficiency of fund utilization (Option 1.1). - Strengthened technical and organizational capacity - Fund use linked to physical plans - Economic criteria applied in determining priorities, not relying on technical criteria only 28 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative MAIN POLICY OPTION 2.3: Acquiring Additional Resources POLICY OPTION 2.3.1: Introduce/Increase Road User Charges RATIONALE: Road users should be charged at (marginal) costs they impose on the road system, whereby the charges should - Difficulties in Translating Additional Levies on Road directly reflect the costs attributable to the vehicles on Users into Better Roads which they are levied. OVERALL APPRAISAL OF OPTION 2.3.1: KEY MEASURES: CRITERIA FOR APPRAISAL: - Select Road User Tax for Increase Revenue Generation * Fuel Tax - Remaining Tax Leeway * Taxes on Spares, Tires - Tax Rates and Efficiency * Distance Taxes - Pricing, Benefit Taxation, Yield Estimates * Tolls - Tax Collection Organization and Cost * Non-Variable Charges. - Effects on Demand and Prices, Side Effects - Determine (Incremental) Tax Rate. - Determine Collection System. CONCLUSION: - Determine Procedures for Allocating Increased Revenues. Advisable where potential for road user taxation is underutilized and economic distortions do not occur. DISCUSSION OF OPTION 2.3.1: Caution is advised since road user charges are al- ready an important source of general government rev- CONDITIONS FOR SUCCESS: enue in many countries in the region. - Road User Charges Applied as (Marginal) Cost Pricing System - Adequate Leeway for Additional Taxation - Additional Tax Collection Efficiently Administered (Low Cost) - New Tax Difficult to Evade - Not Encouraging Uneconomic Shifts in Demand - Neutral in Regard to Inflation - Tax Yield Rises with Inflation - Road Administration Receives Back Revenue POSSIBLE EFFECTS AND CONSEQUENCES: - Uneconomic Shifts in Demand - Increase in Transport Costs - Overburdening Tax or Road Fund Administration - Yields Overestimated CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 29 POLICY OPTION 2.3.2: Levy/Increase Non-User Taxes RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: Taxes on indirect beneficiaries of road services can con- - Uneconomical shifts in Demand tribute to full cost recovery. - Price Increases - Overburdening Tax or Road Fund Adminisrtation KEY MEASURES: - Yields Overestimated - Difficulties in Translating Additional Levies on Road - Determine targe group to be earmarked for taxation. Beneficiaries into Better Roads - Determine type of tax and rates. - Determine collection system and procedures. OVERALL APPRAISAL OF OPTION 2.3.2: - Determine allocation process for the additional revenues. CRITERIA FOR APPRAISAL: - Establish legislation and law enactment. - Introduce new admnistration procedures and establish - Tax Base, Yield Estimates the implementation process. - Tax Rates, Efficiency Pricing, Benefit Tax - Tax Collection Organization DISCUSSION OF OPTION 2.3.2: - Effects on Prices, Demand - Side Effects CONDITIONS FOR SUCCESS: CONCLUSION: - Indirect Beneficiaries Provide Adequate Tax Base - Used as Complementary Measure to Reduce Where dependence on road user charges is already Dependance on Use-Linked Taxes high, non-user taxes may be used as a COMPLEMEN- - Additional Tax Collection Efficiently Administered TARY source of road maintenance finance. Charging - New Tax Difficult to Evade secondary road beneficiaries should be based on - Not Encouraging Uneconomic Shifts in Demand prinicples of benefit taxation. - Neutral in Regard to Inflation - Tax Yield Rises with Inflation - Roads Administration Receives Back Revenue to Sustain Desirable Levels of Road Maintenance 30 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative POLICY OPTION 2.3.3: Seek Additional External Financing RATIONALE: The sheer size of the maintenance backlog implies POSSIBLE EFFECTS AND CONSEQUENCES: demands for external finance, at least of the foreign exchange components. - Foreign Technical Assistance Required - Effects on Inflation KEY MEASURES: - Overburdening Administrative, Technical and Mana- gerial Capacity of the Road Administration - Determine the scope of financing required. - Rise of Foreign Public Debt - Screen alternative sources of foreign soft loan funding - Increased Debt Service or grant financing. - Additional Needs for Local Costs Counterpart - Conclude financing agreements and secure disburse- Finance ment arrangements. - Secure debt servicing. OVERALL APPRAISAL OF OPTION 2.3.3: - Prepare the administration and executing agency for sound fund management. CRITERIA FOR APRAISAL: DISCUSSION OF OPTION 2.3.3: - Selection of Assets/Works to be Financed - Foreign Exchange/Local Cost Financing CONDITIONS FOR SUCCESS: - Credit Rating of Public Entitities and Roads Organization - Appropriation of Funds Linked to Physical Plans - Terms and Conditions with Clear Priorities - Improved Management Efficiency CONCLUSION: - Enhanced Planning, implementation and Control Capacity Where there is a backlog in road maintenance, exter- - Adequate Terms and Conditions of Foreign Finance nal financing can be a viable option where benefits of - Realistic Covenants by Foreign Donor Agencies maintenance work exceed costs of foreign financing and terms and conditions match financial capacities of public entities and the Road Agency. CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 31 POLICY OPTION 2.3.4: Engage in Additional Domestic Borrowing RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: In the absence of tax revenue allocations, domestic bor- - Foreign Technical Assistance Required rowing may be required to cover emergency needs of - Effects on Inflation road rehabilitation/overhaul. - Overburdening Administrative, Technical and Mana- gerial Capacity of the Road Administration KEY MEASURES: - Rise in Public Debt with Banking Sector - Increased Debt Service - Determine the scope of borrowing required. - Screen alternative sources of domestic creditt. OVERALL APPRAISAL OF OPTION 2.3.4: - Conclude financing agreements and secure disburse- ment arrangements. CRITERIA FOR APPRAISAL: - Secure debt servicing. - Prepare the administration and executing agency for - Selection of Assets/Works to be Financed sound fund management. - Credit Rating, Loan Appraisal - Debt Service DISCUSSION OF OPTION 2.3.4: - Repayment, Terms and Conditions - Loan Supervision CONDITIONS FOR SUCCESS: CONCLUSION: - Appropriation of Funds Linked to Physical Plans with Clear Priorities While maintenance should be financed from regular, - Improved Management Efficiency recurrent income, borrowing may be an emergency - Enhanced Planning, Implementation and Control measure in isolated cases when no other option is Capacity available. Increased debt service in the Road Admin- - Adequate Terms and Conditions of Loans istration for the benefit of short-term fund availability is - Lending in Line with Borrowing Capacity likely to undermine liquidity for recurrent maintenance expenditure in subsequent years. 32 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative Check Item Directory Contents of this subsection concerning Topic "B," Objective 3: Topic "B" - Management of Operation POLICY OBJECTIVE MAIN POLICY OPTIONS POLICY OPTIONS 3. EQUIPMENT: 3.1 Increased Availability of 3.1.1 Reduce Age of Equipment Availability and Utiliza- Equipment Fleets Fleet tion of Equipment is Improved 3.1.2 Introduce Purchase Policy to Standardize Fleet and Increase Equipment Quality 3.1.3 Introduce Regular Mainte- nance for Maintenance Equipment 3.1.4 Shorten Down-Time of Maintenance Equipment 3.2 Increased Utilization of 3.2.1 Cut Size and Type of Fleet Equipment Fleets to What can be Managed Properly 3.2.2 Improve Assignment Planning and Logistics 3.3.3 Enhance Training of Equipment Staff CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 33 MAIN POLICY OPTION 3.1: Increased Availability of Equipment Fleet POLICY OPTION 3.1.1: Reduce Age of Equipment Fleet RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: The availability of the equipment will be higher with - Increased capital expenditure until program is imple- reduced fleet age. mented. - The capacity of the Agency's mechanical and ad- KEY MEASURES: ministrative department partly absorbed by the re- form action. - Preparejupdate equipment inventories including age - To sell old units requires that they be in operational of every unit condition or be sold as scrap at lower rates than - Preparejupdate availability and status records for all their real value. units - Prepare/update cost records for all units OVERALL APPRAISAL OF OPTION 3.1.1: - Establish write-off policy - Option useful in attaining policy objectives. But should DISCUSSION OF OPTION 3.1.1: be pursued with carel - Requires long-term planning and good records. Note CONDITIONS FOR SUCCESS: that new equipment can also be out of order. - Accurate analysis of equipment status, availability and costs - "Charge back" or rental system at true hire rates established to refund replacement - Qualified workshop and administrative staff to fol- low up write-off and replacement procedures - Sale and scrapping programs 34 CDG: Guidelines for PolIcy Action Planning SSA TP Road Maintenance Initlatve POLICY OPTION 3.1.2: Introduce Purchase Policy to Standardize Fleet and increase Equipment Quality RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: The availability level will increase if the equipment is of - Problems with donors and their lobbyists good quality and operators are accustomed to the model - Problems with suppliers of equipment not in the chosen. The standardization of the fleet will generally standard line facilitate its operation, maintenance and repair. - Monopoly of suppliers in standard line, lack of - competition KEY MEASURES: - Standardization may result in loss of flexibility re- garding innovation - Formulate policy on standardization and quality re- quirements OVERALL APPRAISAL OF OPTION 3.1.2: - Determine by long-term observations which makes and models of equipment are best suited for road - Option fundamental in obtaining policy objective maintenance in the country - Option requires close cooperation with donors to avoid - Detailed specifications and purchase regulations excessive proliferation of different makes and models of equipment which would multiply spares require- ments. Quality of equipment is essential. Cheap DISCUSSION OF OPTION 3.1.2: equipment can be very expensive in the long run. CONDITIONS FOR SUCCESS: - Agency and other authorities involved determined to achieve a high quality, standardized equipment fleet - Country's and donors' procurement policy must match - Agency's staff in charge is qualified to prepare adequate specifications to review bids and to select suitable units for purchase CDOG: Guldelines for Policy Acton Planning SSATP Road Maintenance InlIave 35 POLICY OPTION 3.1.3: Introduce Regular Maintenance for Maintenance Equipment RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: Regular preventive maintenance will increase the avail- - Road Maintenance crews may have other priorities ability of the equipment. and refuse to release units to workshops at sched- uled dates KEY MEASURES: - Additional training and funds may be required - Introduce a policy related to a regular preventive main- OVERALL APPRAISAL OF OPTION 3.1.3: tenance for Maintenance Equipment and instruct de- partments as required. Option fundamental in attaining policy objective - Develop and implement maintenance programs and easy to implement. More a matter of initiative - Monitor performance of equipment maintenance than additional resource mobilization. Within just a - Adapt workshop facilities and tools to maintenance few years records will prove positive results. requirements - Maintenance-related training of staff DISCUSSION OF OPTION 3.1.3: CONDITIONS FOR SUCCESS: - Discipline of road-maintenance and workshop crews to observe schedules for the maintenance of the equipment - Availability of facilities and tools for equipment maintenance - Staff trained and motivated to undertake preventive maintenance - Manufacturers' maintenance manuals are avallable 36 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative POLICY OPTION 3.1.4: Shorten Down-Time of Maintenance Equipment RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: Downtime for repair is the main factor determining the rate of equipment availability. - Organizational restructuring of Agency's mechani- cal department may be required. KEY MEASURES: - More qualified staff to be provided (technical and administrative). - Introduce an efficient communication system between - Data collection and record systems to be reviewed/ maintenance crews and workshops to report break- improved. downs and arrange repair measures without delay. - Foreign technical assistance may be required. - Ensure an adequate stock of the parts and material required for equipment repair. OVERALL APPRAISAL OF OPTION 3.1.4: - Introduce inventory control and reordering systems for parts. - Option essential in attaining policy objective. Experi- - Introduce shift work for repair of key units. ence shows that besides the availability of parts, moti- - Involve private sector in the repair of key units to cover vation of workshop personnel is the key to shorten undercapacities of the Agency's own workshops, if repair time. any. - The feasibility of shift work or the involvement of the private sector for repair of expensive and key units can DISCUSSIONS OF OPTION 3.1.4: easily be calculated on the basis of true hire rates. CONDITIONS FOR SUCCESS: - Local and Forex Funds available to procure parts - Procurement procedures for parts set - Mechanics trained and motivated (salaries and incentives) - Manufacturers' repair manuals available to work- shop staff - Procedures set to involve private sector - Funds for private sector work available - Private sector is entitled to Forex for the procure- ment of parts CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiadve 37 MAIN POLICY OPTION 3.2: Increased Utilization of Equipment Fleets POLICY OPTION 3.2.1: Cut Size and Type of Fleet to What Can Be Managed Properly RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: It is pointless to maintain an equipment fleet which by size and composition cannot be managed properly. The - Agency may hold "core fleet" only and hire additional consequent underutilization is uneconomic for the owner. units from private sector as needed. - Separate funds for equipment rental may be required. KEY MEASURES: - Additional administrative tasks to follow up rental - agreements - Determine minimum limits of annual utilization rates - Private sector may not always be able to meet Agency's required for economically justified ownership requirements. - Calculate actual utilization rates of the equipment on the basis of equipment inventories and utilization OVERALL APPRAISAL OF OPTION 3.2.1: records - Analyze reasons for underutilization, if any - Option applies to countries where this is a private - Improve fleet size and composition through correspond- sector to rely on to satisfy peaks in demand or special ing purchase/write-off programs requirements. In countries where the private sector is weak, the Ocore" fleet would be large. Regardless the DISCUSSION OF OPTION 3.2.1: size of the fleet, its composition must match with the type of work to be done. CONDITIONS FOR SUCCESS: - Option is useful to attain policy objective. - Comprehensive analysis of utilization and true costs available - Private sector hire rates for equipment are known - Private sector is a reliable standby resource 38 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initlative POLICY OPTION 3.22: Improve Assignment Planning and Logistics RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: The selection of a particular unit for a specific job is as - Funds may be needed to strengthen logistical important to productivity as its handling and the logisti- support. cal support. - Supervisory staff may have to be increased. - More authority may have to be delegated to man- KEY MEASURES: agers in charge to shorten the decision-making process. - Ensure the feasibility of work programs. - Ensure the suitability of equipment chosen to fulfil a OVERALL APPRAISAL OF OPTION 3.2.2: particular task. - Provide the required logistical support. Option useful to attain policy objective. Experience shows - Monitor the performance of operations. that poor logistical support in particular is often the real - Organize shift work as may be required for key units. hindrance to production. DISCUSSION OF OPTION 3.2.2: CONDITIONS FOR SUCCESS: - Management knows production potential of equip- ment if properly operated - Management competent to prepare realistic assign- ment schedules - Equipment inventories including indication of present locations of units available to management - Communication system between management and field crews established - Sufficient capacity available for equipment transport - Mobile fuel, service and repair units available - Coordination among the various bodies involved (management, crews, workshop, etc.) CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance initiative 39 POLICY OPTION 3.2.3: Training of Equipment Staff RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: Training and motivation of operators will improve the - Training requires planning. Operators may be on equipment-based work output. training when needed for productive work. - Trainable staff may be rare. KEY MEASURES: - Trained staff may seek employment with private sector. - Introduce policy according to which 1% to 2% of work- - Trainer, training facilities, funds for training required. ing time shall be spent for training. - Determine training needs. OVERALL APPRAISAL OF OPTION 3.2.3: - Organize training for operators in the field of: * operation Option indispensable in attaining policy objective. Train- * preventive maintenance ing itself will create motivation. The feeling of being a * basic mechanics. trained operator will result in better output of the equip- - Provide training facilities. ment and more careful handling of the equipment. - Introduce policy for incentives and career planning for good performance. DISCUSSION OF OPTION 3.2.3: CONDITIONS FOR SUCCESS: - Agency's awareness of a need for training - Trainable staff available - Operator awareness of the great responsibility when operating a heavy (and very expensive) unit 40 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative Check Item Directory Contents of this subsection concerning Topic "B," Objective 4: Topic "B" - Management of Operation POLICY OBJECTIVE MAIN POLICY OPTIONS POLICY OPTIONS 4. LOCAL RESOURCES 4.1 Increased Involvement in 4.1.1 Making Better Use of AND CAPABILITIES: the Private Sector Local Contractors The Road Maintenance Capacity is Increased 4.1.2 Making Better Use of through Locally Available Local Consultants Resources 4.2 Increased Involvement of 4.2.1 Direct Hiring of Other Local Resources Individuals or Groups 4.2.2 Agreements with Commu- nities, Councils, etc. (Self- Help, Organized through Local Administration) CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 41 MAIN POLICY OPTION 4.1: Increased Involvement of the Private Sector POLICY OPTION 4.1.1: Making Better Use of Local Contractors RATIONALE: POSSIBLE EFFECTS AND CONSEQUENCES: Private contractors having more performance flexibility (incentives, hire-fire, better control of labor force) and - Maintenance work more expensive than necessary less bureaucratic procedures could relieve the Govern- due to internal arrangements among contractors ment from direct management responsibilities and con- - Definition of work standards and amount unrealistic tribute to - Contractors to take the attractive jobs only and - Routine maintenance leave the difficult rest to Agency - Periodic maintenance - Underutilization of agency's own resources - Special work - Contractors may take over good permanent staff - Equipment repair plus maintenance from agency - Equipment rental - Late payments may demotivate private contractors - Material supply and be counterproductive to maintenance - Contracts awarded projectwise for a * road section OVERALL APPRAISAL OF OPTION 4.1.1: * network * specified work, measured against a BOQ CRITERIA FOR APPRAISAL: - Work ordered from nearby contractors on the basis of pre-negotiated unit rates for specified work items - Availability of skilled contractors - Is there a demand to involve the private sector? KEY MEASURES: - Urgency of actions - In what fields? - Determine work standards - Has the agency the technical and organizational - Detailed contract documents, i.e., BOQs, work specifi- capacity to involve the private sector? cations, etc. - Cost analysis and comparison between private sec- - Formulate bidding procedures tor and own labor for maintenance - Ensure proper contract administration - Is there a governmental policy on developing the - Ensure quality and quantity control on contractor's private market in general? work - Ensure timely payment to contractors CONCLUSION: DISCUSSION OF OPTION 4.1.1: - Option useful in attaining policy objective - The idea "pay for output, not for input" can provide CONDITIONS FOR SUCCESS: an important momentum towards more economy and efficiency in the field of maintenance - Skilled contractors available and ready to work for - Local contractors should be involved through com- Agency in the field of road maintenance petitive bidding only and on the basis of a compara- - Separate funds for contractor's work available tive advantage in the private sector - Trained technical staff available to supervise - Option requires that Agency has to be able to con- contractor's work trol contractors - Stable market prospects for contractors working in - The development of skilled local contractors could this field be advantageous to the national economy in - Cost analysis and comparison between private sec- general. tor and force account under continuous review 42 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiadve POLICY OPTION 4.1.2: Making Better Use of Local Consultants RATIONALE: this field Consultants can compensate for Agency's POSSIBLE EFFECTS AND CONSEQUENCES: undercapacities and provide special services for which they are better equipped and staffed. - Underutilization of Agency's own resources - Brain drain, risk that Agency's skilled professionals Consultants may contribute to may become pure administrators - planning/design - Internal arrangements among Consultants may re- - supervision suIt in unreasonably high rates for their services - project management. OVERALL APPRAISAL OF OPTION 4.1.2: KEY MEASURES: - Option useful in complementing the Agency's own - Detailed tender documents and contract documents, planning capacities in the field of which clearly describe the consultant tasks, authority * data collection and responsibility determine the relation between the * special planning work client and the consultant. * control/supervision - Ensure a proper control of Consultant's performance and the follow-up of the administrative matters. DISCUSSION OF OPTION 4.1.2: CONDITIONS FOR SUCCESS: - Base of trust established among Agency and con- sultants as their representatives - Skilled consultants available and ready to work for Agency in the field of road maintenance - Trained administrative staff available to manage contracts with private sector - Stable market prospects for consultants working in CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Intlative 43 MAIN POLICY OPTION 4.2: Increased Involvement of Other Local Resources POLICY OPTION 4.2.1: Direct Hiring of Individuals and Groups RATIONALE: reliable back-up services will cause frustrations of hired labor and be counterproductive to mainte- Individuals or groups could be hired to undertake labor- nance work intensive maintenance under the Agency's supervision with lower costs and less logistical effort involved. A OVERALL APPRAISAL OF OPTION 4.2.1: little wcompetition" among neighboring lengthmen can be very advantageous to the road. - Option to be considered as a complementary approach and to be pursued as such. Applies to lighter, less KEY MEASURES: capital-intensive routine maintenance work. - Option involves a great managerial challenge and quick - Determine administrative procedures within Agency to results cannot be expected. cope with this approach - Approach well suited to remote areas - Select regions (remote areas) suitable for this approach - Organize the recruitment of suitable labor - Organize training, supervision, logistics, payment pro- cedures, etc. DISCUSSION OF OPTION 4.2.1: CONDITIONS FOR SUCCESS: - Hired men/groups furnished with needed tools - Equipment support provided by Agency as required - Technical guidance provided by Agency - Work supervised and output monitored - Timely payments - Motivation, incentives for good work POSSIBLE EFFECTS AND CONSEQUENCES: - Need to lay off permanent staff, to gain funds for casual labor - Demotivation of Agency's permanent staff - Risk that a lack of organization, staff training and 44 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative POLICY OPTION 4.2.2: Agreements with Communities, Councils (Self-Help, Organized through Local Administrators) RATIONALE: Where the Road Agency fails to perform reasonable maintenance due to resource conditions and/or the re- POSSIBLE EFFECTS AND CONSEQUENCES: mote location, the agency may come to agreements with local authorities such as communities, village councils, - Risk that maintenance agency loses control and etc., to fulfill minimum maintenance requirements through interest for such regions, once the responsibility self-help groups (paid or voluntary). has been delegated to local authorities. - Self-help groups may, if they are not paid properly, KEY MEASURES: neglect work specifications and quality. - The planning of work and assignments becomes - Assess true maintenance conditions in remote areas more difficult, as the outside groups are not an and decide on delegation of authority and responsibil- integral part of the agency's organizational struc- ity for maintenance to local authorities. ture and may not follow strictly repair standards - Provide technical guidance, tools and equipment sup- and procedures, etc. port as required. - Introduce Incentives for and competition among groups OVERALL APPRAISAL OF OPTION 4.2.2: for better performance. - If work is not paid, consider possibilities with providing - Recommendable approach as long as agency main- the daily needs. tains control for planning and performance of mainte- nance work within the framework of the entire network. DISCUSSION OF OPTION 4.2.2: - Otherwise risk that no one feels responsible for the work. CONDITIONS FOR SUCCESS: - Option to be considered as a complementary approach to increase the national maintenance capacity. - Local authorities willing to cooperate - Local authorities have technical and administrative guidance/assistance from Road Agency - Expectations as to level of performance not too high COG: Guidelines for Policy Acdon Planning SSA TP Road Maintenance Initative 45 Check Item Directory Contents of this subsection concerning Topic "C," Objective 5: Topic "C" - Human Resource Development and Institutional Reform POLICY OBJECTIVE POLICY OPTIONS 5. INSTITUTION: 5.1 Adjust the Institutional Arrangement and Create Adequate The Technical and Organi- Organizational Structures zational Capacity of the Roads Administration is 5.2 Improve Management Competence and Manpower Improved Performance 5.3 Create Workable Management Systems and Procedures 5.4 Create Adequate Financial Provisions for Road Maintenance 46 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiaive POLICY OPTION 5.1: Adjust Institutional Arrangement and Create Adequate Organizational Structures RATIONALE: DISCUSSION OF OPTION 5.1: Within the structure of government institutions the Road CONDITIONS FOR SUCCESS: Agency needs a clear mandate under compatible objectives, decision-making authority and functional - A clear assessment of institutional shortcomings clarity of organizational structures to eliminate excessive and organizational deficiencies has been prepared. bureaucracy and overcome operational inefficiencies. - The need for reform is acknowledged and national consensus on required actions is achieved. KEY MEASURES: - New structures proposed for implementation are simple with clear lines of authority and accepted - Establish a clear mandate for the Road Agency. within the government institutional setup. - Enhance the standing of the Road Agency within the - Management supports the reorganization and is structure of Government institutions. committed to change. - Initiate progress towards greater autonomy of the Road - New post associated with reorganization can be Agency. filled by competent staff. - Improve structure of control: separation of planning - External Technical Assistance is accepted by and control from direct execution of work. Management. - Allocate planning and execution functions to private sector where private sector has a comparative OVERALL APPRAISAL OF OPTION 5.1: advantage. - Establish an appropriate degree of decentralization. This option should only be pursued if major shortcom- - Create organizational structures within the Road ings in the institutional arrangement and organizational Agency based on clear function tasks and clear lines structures are identified in a systematic appraisal of the of authority and decision-making. institutional setup. Unwarranted changes in institutional arrangement and structures may lead to disruptions in the work flow or may confound established and function- ing lines of authority with the consequence of declining staff motivation. CDG: Guidelines for PolicyAction Planning SSA TP Road Maintenance Initiative 47 POLICY OPTION 5.2: Improve Management Competence and Manpower Performance RATIONALE: DISCUSSION OF OPTION 5.2: Conditions for manpower performance, for both mana- gerial and staff, need to be improved to check brain- CONDITIONS FOR SUCCESS: drain to the private sector and make better use of finan- cial resources, material and equipment. - Training is acknowledged as a means to improve staff competence and long-term continuity in train- KEY MEASURES: ing can be sustained. - Training is made available on various staff levels in - Introduce systematic manpower planning based on various forms making more efficient use of in-plant the determination of needs and establish a personnel and external training facilities. management division. - Training priorities are determined on a systematic - Reduce influence of non-conducive civil service em- basis no spreading efforts too thinly over too many ployee regulations as regards salaries, recruitment, activities. promotion and discipline. - Performance and competence oriented recruitment - Improve recruitment procedures for management and policies are effectively pursued. labor based on better recruitment policies. - Salary and incentive structure is improved so as to - Introduce performance evaluation schemes. keep a reasonable amount of qualified labor within - Enhance manpower and management training, in- the Road Agency. house and external, provide facilities, equipment, train- - Institutional rotation of government officers is ing aids and funds for training. checked by an appropriate leadership. - Introduce incentive schemes based on sound salary structures, promotion and career development OVERALL APPRAISAL OF OPTION 5.2: planning. - Improve procedures and provisions of social benefits This option is fundamental to attaining the above policy as element of salary and incentive scheme. objective. Elements of reform under this option should not be omitted in formulating policy action packages aim- ing at improving the technical and organizational capaci- ties of Road Administration. 48 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiadve POLICY OPTION 5.3: Create Workable Management Systems and Procedures RATIONALE: adapted to local conditions. Management systems for planning, programming, bud- DISCUSSION OF OPTION 5.3: geting and control need to be adjusted to the technical and organizational capacity of the Road Agency with CONDITIONS FOR SUCCESS: attention to structural constraints and personnel abilities, however, with a view to producing rational decisions of a - Management systems are not too complex and higher quality. sophisticated and can be fully understood by the people to use them. KEY MEASURES: - The output produced by the system is effectively used in the organization and given proper attention - Improve routine field observation and reporting. by management in daily work. - Improve systematic data collection of relevant - The organization of systems and procedures are information. straightforward and adapted to staff abilities, par- - Establish standards for physical planning, costing and ticularly with regard to the use of computers. work scheduling. - Local available external know-how sources for sys- - Establish guidelines for procurement. tem design, implementation and maintenance are - Introducelimprove material management and inven- involved and effectively employed, especially in the tory control system. case of computer application. - Introducelimprove equipment maintenance schedul- - A reasonable degree of reliability in data collection ing. and data handling and processing must be - Introduce systematic budget forecasting and financial sustained. requirement planning. - Introduce/improve systematic priority plans for road OVERALL APPRAISAL OF OPTION 5.3: maintenance work. - Improve financial and operational controlling. While sound and straightforward management systems - Establish workable management information systems are essential for improving management efficiencies, they must not be too complex with heavy computer reliance, excessive data collection and multiple report output. The crucial point is acceptance by management and staff so that they make use of the systems after implementation. CDG: Guidelines for Policy Action Planning SSATP Road Maintenance Initiative 49 POLICY OPTION 5.4: Create Adequate Financial Provisions for Road Maintenance RATIONALE: - Agreement is reached with Treasury and the Road Agency on better needs-oriented recurrent budget Budget allocations and financial provisions to Road Agen- allocations or on establishing a Road Fund. cies need to be related to financial requirements of road - After agreement on priorities, no interference from maintenance and rehabilitation, outside on maintenance work execution and financing KEY MEASURES: - No arbitrary fund use or diversion of funds to other purposes - Establish a system of sound physical and financial - Regular cash inflow to Road Fund requirements planning based on economic priorities. - Sound controlling procedures on fund use are - Create awareness of the problem of underfunding and established its effect on road deterioration. - Establish a system of regular fund provision to the OVERALL APPRAISAL OF OPTION 5.4: Road Agency in line with physical plan requirements. - Take a long-term view in planning financial Next to personnel and management, providing adequate requirements. finance for maintenance and rehabilitation, is the sec- - Examine the feasibility of establishing a Road Fund, ond important input complex which must be taken into and implement, if feasible. account in any institutional policy development. While - Economize spending by setting priorities and out-con- the mobilization of existing internal resources probably tracting to private sector based on competitive bidding has early limits, the acquisition of additional financial - Lobby for increased budget allocations for recurrent means for maintenance on a permanent basis would be maintenance expenditures. the key factor under this option. - Improve financial control procedures. - Examine possibilities for tapping unused allocations (special emergency funds, etc.). DISCUSSIONS OF OPTION 5.4: CONDITIONS FOR SUCCESS: - Sound physical planning, work forecasts and cost- ing are professionally executed and procedures firmly established 50 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiatve Check Item Directory Contents of this subsection concerning Topic "C," Objective 6: Topic "C" - Human Resource Development and Institutional Reform POLICY OBJECTIVE POLICY OPTIONS 6. MANPOWER: 6.1 Training: Staff and Manager Perfor- Step Up Training Efforts and Enhance Effectiveness of mance in Road Mainte- Training nance is Improved 6.2 Incentives: Enhance Motivation by Appropriate Incentive Schemes 6.3 Personnel Management: Strengthen the Personnel Management Function within the Road Agency 6.4 Recruitment: Make Better Use of Local Manpower Resources through improved recruitment CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance InWave 51 POLICY OPTION 6.1: Training: Step Up Training Efforts and Enhance Effectiveness of Training RATIONALE: - An efficient training unit is established - Training is carried out systematically on fixed pro- Where qualified and experienced manpower is not avail- grams for various job types able in the local labor market, the operative agencies - Long-term employment of qualified trainers is are largely required to obtain qualified manpower from secured their own resources through training. - Availability of fund for training is secured on a long- term basis KEY MEASURES: - Personnel can be retained in the organization after training - Establish a manpower development and training unit. - Motivation of trainees is kept alive - Determine the training needs per job classification. - Establish policies and procedures for staff training. OVERALL APPRAISAL OF OPTION 6.1: - Determine capacity of in-house training and utilization of external facilities. This option is fundamental to obtaining the above policy - Develop training curricula for job classifications. objective. Elements of reform under this option should - Establish a qualified trainer capacity and set up train- not be omitted in any policy action package and must be ing facilities. complemented by measures to retain a reasonable - Develop an action plan for implementing training pro- amount of personnel trained In the organization after grams based on an established priority of manpower training. needs. - Determine total financial resource requirements and secure resources. - Secure long-term continuity of efforts and fund availability. DISCUSSION OF OPTION 6.1: CONDITIONS FOR SUCCESS: - Training is truly recognized as a measure for im- proving staff competence and long-term continuity of efforts can be sustained 52 COG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative POLICY OPTION 6.2: Incentives: Enhance Motivation by Appropriate Incentive Schemes RATIONALE: - Incentives based on clear targets at specified performance levels for operations similar to the Given the limitations of the civil service salary structure items in the Bill of Quantities compared to the private sector, appropriate incentive - Clear performance measurement in terms of schemes can contribute to both gains in productivity and genuine output or pre-targeted work reducing brain-drain to the private sector. accomplishments KEY MEASURES: OVERALL APPRAISAL OF OPTION 6.2: - Review present salary and benefit structure with a In order to prevent incentive schemes from decaying view to integrating a performance-based incentive/ they must be cost-effective and easy to administer. While bonus scheme. cash incentives have only short-lasting effects, provi- - If required and possible, find a separate solution for sions for sound benefits linked to career development Road Agency divorced from civil service bureaucracy. and promotion systems can be more effective in the - Establish performance evaluation and output mea- long run. Incentive systems are indispensable for at- surement system. taining the above objective. The crucial point is to asso- - Set up work targets (i.e., time-based) at specified per- ciate bonus to genuine performance evaluation. formance levels. - Equip Personnel Administration to implement the scheme, establish procedures. - Link incentive scheme to salary/benefit structure and promotion and career development procedures. DISCUSSION OF OPTION 6.2: CONDITIONS FOR SUCCESS: - Scheme overheads can be supported and costly administration avoided - Incentives are based on actual performance with a clear relationship between calculated and actual productive performance - Scheme discourages nonproductive work - Scheme is associated with a sound salary structure matching job classifications - Scheme is an integral part of career planning and promotion procedures - Absence of political patronage CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Iniative 53 POLICY OPTION 6.3: Personnel Management: Strengthen Personnel, Management Function within the Road Agency RATIONALE: DISCUSSION OF OPTION 6.3: As Road Agencies employ large staffs of thousands of CONDITIONS FOR SUCCESS: people, an efficient Personnel Management Unit is re- quired to ensure effective utilization of such a large num- - A reasonable degree of autonomy of the Road ber of employees and safeguard manpower development. Agency dissociated from excessive civil service bureaucracy KEY MEASURES: - Sufficient funds to cover Road Agency operating costs - Provide the Agency with its own Personnel Adminis- - Availability of qualified personnel administrators tration, including - Road Agency personnel administration and recruit- * Recruitment Unit ment policies and procedures compatible with Gov- * Salary, Benefit, Performance Management Unit ernment civil service policies and regulations. * Manpower Development and Training Unit. - Establish a greater degree of autonomy for in-house OVERALL APPRAISAL OF OPTION 6.3: personnel management and recruitment from civil ser- vice bureaucracy. The Road Agency should have its own efficient Person- - Enhance efficiency of personnel administration by man- nel Management Division. Isolated measures to improve power requirements and development plans, neces- the performance of this division will have little effect un- sary organizational and staff provisions. der conditions of low technical and managerial capacity - Establish adequate personnel administration and re- within the entire organization and little autonomy from cruitment procedures. the ministerial bureaucracy. - Introducelimprove sound salary scales and benefit/ promotion/discipline control systems. 54 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance initiaUve POLICY OPTION 6.4: Recruitment: Make Better Use of Local Manpower Resources through Improved Recruitment RATIONALE: DISCUSSION OF OPTION 6.4: Antiquated or inflexible civil service regulations regard- CONDITIONS FOR SUCCESS: ing management and manpower recruitment inhibit ac- cess to labor markets and limit changes for better labor - A reasonable degree of autonomy of the Road resources utilization. Agency, dissociated from excessive civil service bureaucracy KEY MEASURES: - More flexible recruitment procedures can be made consistent with civil service policies - Revise recruitment policies for labor and management - Recruitment and appointment based on compe- with a view to competence and reduced influence of tence patronage, seniority, etc. - Direct responsibility of hired line management - Introduce more flexible elements to recruitment such - Sufficient funds to support new recruitment policies as tapping private sector markets outside the civil - Adequate support for new procedures from Gov- service. ernment so that personnel management and re- - Use management hire schemes, if feasible, or techni- cruitment policies can effectively be enforced cal assistance in line function with related manage- ment counterpart training. OVERALL APPRAISAL OF OPTION 6.4: - Consider foreign management employment under "twin- ning" arrangements with foreign Road Agencies, or In recruiting management and staff new approaches management and technical staff exchanges with for- would have to be pursued with more flexibility, eign cooperating organizations. unhampered by civil service restrictions. This applies to both, tapping domestic manpower resources and em- ploying foreign labor under technical cooperation schemes. CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 55 2.5 Options Charts in Tabular Form The Option Charts being handed over in the seminar have to be filled in after this page. 56 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 3. Transition to Phase II The outline Policy Action Plan implies a Policy Reform, which ususally is difficult to initiate and to perform. If this is not to be left to the whims of fortune, some activities may be necessary to succeed in the initiative. To reach at Phase II, joint efforts of politicians, authorities and other actors may be required to achieve the National Commitment for policy reforms and to formulate them in detail and implement them in Phases II and III. These efforts would consist of a number of preparatory and supporting actions. Preparatory Actions "Initiation Committee" Supporting Actions A Policy Action Plan is an Initiative to The follow-up program consists of reform Policy. Therefore it should strongly - preparatory actions formally necessary be supported and monitored by a group of for commitment, and influential politicians. To be successful - supporting actions to influence posi- they should form a closely cooperating tive policy decision. group. CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative 57 Preparatory Actions "Initiation Committee" Supporting Actions When establishing the Initiation Committee, the following items may be considered: - Who are to be the MEMBERS of the Initiation Committee to initiate and monitor the outlined Policy Action Plan? - Who will be the person in charge of PAP in the Initiation Committee? - How shall the members communicate and cooperate? Define their roles and responsibilities? - When and where will the "Initiation Committee" meet? 58 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance InitIadve Preparatory Actions aInftiaton Committee Supporting Actions Once a Policy Action Plan has been outlined and an Initiation Committee formed, thought should be given to what preparations are necessary to bring about national consensus and institutional cooperation. Accordingly, the Committee has to decide how to follow up to initiate the Policy Reform. - Which activities are necessary to achieve the general national commitment for Policy Action Planning in Phase I? - Which activities are necessary to overcome political obstacles and to get political support for going on? - Who takes care of these activities? Who is involved? When shall these activities be finalized? The corresponding worksheet is attached under section 4 of these guidelines ("Follow-Up Plan"). GDOG: Guidelines for Policy Action Planning SSA TP Road Maintenance InOalve 59 4. Worksheets The Worksheets to be used for the exercise in the Country Teams are presented hereafter in a scaled down form. 60 CG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative Counry: Dale: Page: ALTRNATIVES CCWPLMENTAAJES yAtion Panning Individual Issue Tracking Instruments SSATP Road MainWeanceIiativ DEC471ONCOPRTN TOPIC A TOPIC 1B' TOPIC lC* Planning, Financing and Management Manangement of Operations Human Resource Development and Institutional Reform Relevant issues: Relevant Issues: Relevant issues: Determine priorities and select issues to be discussed in the Country Teams Key Issues identified: Key issues Identified: Key Issues identified: 1. 1. 1. 2. 3. 2. 3. 3. 3. CDG: Guldelines for Policy Action Planning SSA TP Road Maintenance Initiave 61 comty. Dak: Page: ALTEFMVS MPEMTAES Group Issue Tracking Instrument SATP ROd ManeAc inlAitiv DECIION COPERTION TOPIC 'C" TOPIC A TOPIC *B' Human Resource Development and Planning, Financing and Management Manangement of Operations Institutional Reform Key Issues Identified Key Issues Identified Key Issues Identified 3. 3. 3. Criteria to set priorities and select issues: decide on priority for OR OR change! Key issue selected Key Issue selected Key issue selected by the Country Team (related to Topic 'A) by the Country Team (related to Topic *B by the Country Team (related to Topic CJ OR OR Policy Objective Priority Policy Objective Priority Policy Objective Priority corresponding to the Key Issue selected corresponding to the Key Issue selected corresponding to the Key Issue selected continue with Priority One Objctive corresponding Option Chad (No. 1or 2) corresponding Option Chart (No. 1 or 2) corresponding Option Chad (No. I or 2) Take and Take and Take and Options and Measures Sheet Options and Measures Sheet Options and Measures Sheet 62 CDG: Guidelines for Polloy Action Planning SSA TP Road Maintenance Iniative CouW Dat: Pag: AL7ERAWV CMPLW ARIES Policy Action Planning Options and Measures SSATP Road M&hai ne WDECISIOOOPRATION for Policy Objective: transfer PRIORITY ONE OBJECTIVE from group issue tracking Instrument 1. Policy Option 2. Policy Option (complementary to achieve the 3. Policy Option (complementary to achieve an above Policy Objective) efficient Road Maintenance System as Overall Objective) denliy idetify dentfy Key Measures: Key Measures: Key Measures: Supporting Measures: Supporting Measures: Supporting Measures: Criteria relating to the PAP-outline of options selected and measures identified: - sufficient to achieve Policy Objective and Overall Objective - necessary, no redundancies - compatible and consistent PAP-concept persuasive and feasible to achieve an efficient National Road Maintenance System ake Respo sibiisSheet CDG: Guidelines for Piy Acdon Plannng SSA TP Road Maintenance initiaUve 63 CountT Da: Page: TERNATIVES OMPENENTARIES P.l.c Action Panning Responsibilities < 1i SSATP RoadM ienWai DECISION COOPERATION for Main Policy Direction and measures identified Name (and brief description) of Functions and tasks to execute the national PAP Remarks/Observations Institutions involved (e.g9, capacity and authority required) Dft: Page: AmFMWES COMtARM n P..yA..P""g 4 Time Schedule for Main Policy Direction and measures identified 19 19 19 19 19 19 Initial Phase (Transition to Phase it of RMI) * general national commitment Planning Phase (Phase II of RMI) Detailing PAP: main policy direction lay measures supporting measures responsibilities time plus resources donor's commitment * national commitment Execution Phase (Phase III of AMI) projects: * resultsleffectiveness o measure Resources needed: b lo be provided by., 65 CDG: Guidelines for Policy Action Planning SSA TP Road Maintenance Initiative Countr. Dale: Page: ALTERNAIVE COMPLEMENTARIES P.,YActon Planning Follow-Up Plan SSATP Road Muinteanciti DECISION COOPERATION for Main Policy Direction and measures identified A: "Initiation Committee" Members of the Committee, supposed to initiate and control the outlined Policy Action Plan: Person in charge of the national Policy Action Planning (of the Initiation Committee) Kind of Cooperaton of the members: next meetings: date: place: B: Next steps to get a national commitment actions actors responsible actors participating deadline preparatory actions necessary to get a general national commitment: 1. 2. 4. 5.. supporting actions necessary to avoid political resistance and ind promoters 6. 7. 8. 9. 10. 12. 13. 14. 15. s CDG: Guidelnes for Pblicy Ac!on Planning SSATP Road Adintenwce Infiatve 67 Annex: Tables of Contents of Volumes I and II 4 CDG: Guidelines for Policy Acton Planning SSATP Road Maintenance Inittabve 69 Contents of Volume I Preface vii Overview of Seminars ix Chapter 1 - The Road Maintenance Initiative: A Process of Policy Reform 1 The Sub-Saharan Africa Transport Program 1 Road Maintenance Initiative: Background and Justification 2 Objectives 4 Road Maintenance Policy Seminars 5 Objectives of Phase I 5 Participants 7 Preparation 7 Content and Format 8 Policy Action Planning 8 Follow-Up 9 Chapter 2 - Road Deterioration in Sub-gaharan Africa: The Policy Agenda 10 The Economic Background 10 The State of Sub-Saharan Africa's Roads 11 World Bank Experience 17 Future Prospects 17 The Policy Agenda 18 Agenda for the Seminars 19 Planning, Financing, and Budgeting 19 Chapter 3 - Policy Reform: Issues and Options 21 Participants' Views on Preconditions for Policy Reform 22 Planning, Financing, and Budgeting 24 Operations and Management 30 Institutional Reform and Human Resources Development 35 Chapter 4 - Policy Action Planning 42 Policy Action Planning: The Process 42 Inside a Policy Action Planning Workshop 44 Reaction of the Participants 47 Areas for Further Work 48 Chapter 5 - The Follow-Up: National Road Maintenance Initiatives 51 Key Considerations 51 Program Implementation 52 Endnotes 54 Annex I - List of Participants 55 Annex 2 - Road Networks by Country 75 Annex 3 - Expenditures on Highways 77 Annex 4 - Contents Volume B and Volume II 79 70 CDG: Guidelines for Policy Acton Planning SSATP Road Maintenance Inibiave Contents of Volume II Preface vii Overview of Seminars ix Project Brief, Terje Wolden 1 A Policy Foundation for Better Roads 7 Road Deterioration in Sub-Saharan Africa, Melody Mason and Sydney Thriscut 13 Topic A - Planning, Financing and Management 38 Road Financing and Pricing in Developing Countries, Ian E. Smith 41 Planning, Programming, and Budgeting for Road Maintenance, AsifFaiz 50 Road Maintenance Management and Operational Planning, Robert C. Petts 66 Case Studies Ethiopia: Making Management- Systems Work 73 Ghana: The Road Network Stabilization Program 74 Kenya: Minor Roads Programme Maintenance System 78 Kenya: Goal Oriented Project Planning 82 Malawi: Maintenance and Rehabilitation Management System 85 Niger* A Practical Management System for Programming Periodic Maintenance 90 Nigeria: A Case for Increased Maintenance Spending on Federal Trunk Roads 94 Tanzania: Road Financing and Pricing 98 Topic B - Management of Operations 103 Equipment Management, Michael Leonard 107 Appropriate Use of Available Resources and Technology, Jan de Veen 115 Use of Local Contractors and Consultants, Richard H. Neale and Derek Miles 123 Case Studies The Gambia: Pilot Labor-Based Road Maintenance Project 131 Ghana: Feeder Roads Project 138 Kenya: The Development of the Rural Access Roads Program 143 Kenya: Rural Road Maintenance 146 Lesotho: Equipment Management 149 Madagascar* S.C.C.C. - Small Local Roadworks Consulting Firm 153 Madagascar. Ets. Razakamandimby - Small Local Roadworks Contractor 155 Nigeria: Use of Local Contractors and Consultants 158 Topic C - Human Resources Development and Institutional Reform 164 Institutional Development in Road Maintenance Organizations, Richard Robinson 168 Human Resources Development and Management, Colin Relf and Sydney Thriscut 178 Case Studies Assessment of Maintenance Capability 182 Sri Lanka: Training in the Construction Industry 189 U.K.: Evaluation of Incentives for Efficiency in Road Maintenance Organization 191 U.K.: Twinning Arrangements Between Staffordshire County in the United Kingdom and Accra City Council in Ghana 195 Annex 1 - Road Maintenance Policy Seminars - Agenda 199 Annex 2 - Contents Volume I and Volume III 204 - 졉