Expert Group Meeting on Road Maintenance and

Management, United Nations ESCAP/The World Bank in Vietnam

Improving Road Asset Management

in Asia and the Pacific

30 May 2013

Asian Development Bank

Daisuke Mizusawa, Infrastructure Specialist
 Key Topics
Overview of Asian Development Bank (ADB)
Road Maintenance and Management in ADB
Ongoing Preparatory Work for Knowledge
Product, iRAP

2
 ADBs Profile
Establishment in 1966
67 member countries, 48 regional and 19 non-
regional
HQ located in Manila, Philippines; has 19 Resident
Missions in Asia
Representative offices in Frankfurt for Europe, Tokyo
for Japan, and Washington, DC for North America
2 subregional missions in the Pacific

3
 Challenges
Poverty central challenge
Widening disparities
Demographic changes
Severe strains on the environment
Regional cooperation and integration needed
Asias financial systems
Emphasis on innovation, technology development
and higher education
Weak governance
Infrastructure deficit
4
 ADBs Strategy
Vision An Asia and Pacific Free of Poverty
Strategic Agendas Inclusive growth
Environmentally sustainable growth
Regional integration
Drivers of Change Private sector development and sector operations
Good governance and capacity development
Gender equity
Knowledge solutions
Partnerships
Core Specializations Infrastructure
Environment , including Climate Change
Regional Cooperation and Integration
Financial Sector Development
Education
5
 Key Products and Services
Lending operations (public and private sectors)
Technical assistance operations
Regional cooperation programs (e.g., Greater
Mekong Subregion, Central Asia Regional Economic
Cooperation)
Bilateral and multilateral cooperation

6
MDB joint statement + voluntary
commitment

7
 Background to the commitment
Transport enables economic and social activity
- access to opportunities, services
Huge investment needs ( $2.5 trillion between
2010 and 2020)

8
Congestion
Air pollution
Severance
Climate change
 Road safety
Copyright Ko Sakamoto
 Background to the commitment
Sustainable Transport =
accessible, affordable, efficient, financially
sustainable, environment friendly, safe

MDBs have been changing to focus on ST

15
 ADBs Sustainable Transport Initiative
Priority areas:

1. Urban transport
2. Transport and climate change
3. Logistics and cross-border
transport
4. Road safety and social
sustainability

Sound Infrastructure is Required!

16
 ADBs Financial Operation
25,000

20,000

15,000
$ million

10,000

5,000

0
2008 2009 2010 2011 2012

Sovereign Nonsovereign
(ADB Annual Report 2012)
17
2012 ADB Assistance by Sector
710, 3%
1300, 6%
1360, 6% 310, 1% Agriculture and Natural
Resources
Education

Energy

4910, 22% Finance

5020, 23%
Health, Nutrition, and Social
Protection
Industry and Trade

1640, 7% 3590, 16% Law, Economic

Management, and Public Policy
Transport and Communications
2660, 12%
Water Supply, Sanitation, and
Waste Management
810, 4%
Muti-Sector
(ADB Annual Report 2012)
18
 ADBs Support to Road Subsector
Funding and Technical Support
Survey
Infrastructure Management Planning
Project Preparation
Civil Works (capital investment and maintenance)
Procurement
Private Sector Development
Capacity Development
Social Safeguards
Knowledge Sharing
Biannual transport forum
Workshops
Training
Publication

19
 Road Maintenance and Management
in ADB
Infrastructure projects towards maintenance and
management
Performance-Based Routine Maintenance:
Bangladesh, China, Sri Lanka
Labor-Based Maintenance: Cambodia, Lao
PDR, Mongolia, Pakistan, Papua New Guinea, Solomon
Islands, Sri Lanka, Tajikistan, Timor-Leste
Asset Management System: Bhutan, Cambodia, Papua
New Guinea, Solomon Islands
Transport Fund: Solomon Islands
Safety Improvements
Climate Change Adaptation and Mitigation

20
 Benefits of Maintenance and Management in
Road Subsector

Policy
Demand Congestion
Pollution

Traffic;
Deteriorated
Infrastructure

Yr. Yr.

Urban Planning,
ITS,
Agency/User
Yr. Supply Maintenance,
Costs
Management

Maintenance,
Management

Yr. Yr.

21
 How maintenance and management contribute to your country?
Impacts Sustainable Infrastructure Management
Outcomes Assurance of maintenance funds
Articulation of future direction
Assurance of best expenditure of funds
Better accountability
Savings in agency and user costs
Improved asset performance
Improved capacity of agencies in charge
Satisfaction of using improved assets
Support from stakeholders
Outputs Maintenance funds
Strategic plan (indicators, prioritization, work program)
Database
Asset management system (work order, future asset condition, asset
valuation)
Improved asset management practices (survey, analysis, monitoring)
Asset management policy dialogue
Inputs Infrastructure project
22
Technical assistance
 Key Issues in Maintenance and
Management
Policy and Planning Process
Policy must answer:
How do we best have our budget and spend it?
How do we allocate the budget effectively?

Establishment of maintenance culture

Identification of future resource needs
Integration of infrastructure management system into budget
programming
Involvement of policy makers in discussion of infrastructure
management

23
 Key Issues in Maintenance and
Management
Institutional Capacity
A wide variation in the capacity to manage the economy, the
infrastructure and the provision of normal government services
The budget process, the source of funding
Weak management and inefficient work practice
Staff complement and training
Technical ability
Involvement of stakeholders in setting priorities and assessing outcomes
Ineffective hit-and-run technical assistance
Effectiveness of earlier and longer partners support

Establishment of dedicated function (e.g., Board, unit) and specification of

roles
Continued capacity development
Private sector development
Collaboration with research institutes
Harmonization among development partners
Strengthening of Ownership of government

24
 Key Issues in Maintenance and
Management (contd)
Financial Sustainability and Budgeting
Insufficient funding
Complete with rival needs (e.g., health care, education)
Tend to follow precedent, preserving past budget shares resistance
to change
No user costs considered in maintenance funding decision
Little or no users voice in decisions on funding

Innovative financing mechanism (e.g., road maintenance fund)

Introduction of user charges, toll, overloading charges, etc.
Public involvement process (e.g., customer satisfaction)

25
 Key Issues in Maintenance and
Management (contd)
Public Goods
Traditional Economy:
Roads, railways, water, electricity, local telephone to be provided free of
charge.
Growth Economy:
Growing infrastructure needs and the accompanying investment
requirements should be financed by user groups and not the General
Public.

fee-for-service basis

26
 Key Issues in Maintenance and
Management (contd)
Emerging Issues
Climate change impacts
Safety
New procurement modality
Country instability

Revitalization of road management initiative

27
 Previous ADB Knowledge Products
2003 Road Funds and Road Maintenance: An Asian Perspective
2009 Training Tool for HIV Prevention and Safe Migration in Road Construction
Setting and Affected Communities
2010 Guidance Note: Road Transport Subsector Risk Assessment
2010 Evaluation of Labor-Based Road Work Methods
2011 Guidelines for Climate Proofing Investment in the Transport Sector: Road
Infrastructure Projects
2011 Community-Based Routine Maintenance of Roads by Womens Groups
(guide for communication bureaus, manual for maintenance groups)
2012 Financing Road Construction and Maintenance after the Fuel Tax Reform
2012 Performance-Based Routine Maintenance of Rural Roads by
Maintenance Groups (guide for Communications Bureaus, manual for
maintenance groups)
2013 Infrastructure Maintenance in the Pacific: Challenging the Build-Neglect-
Rebuild Paradigm (by Pacific Region Infrastructure Facility)
2013 Encouraging Private Sector Development in the Road Sector in Pacific
Island Countries (by Pacific Region Infrastructure Facility)
28
 Ongoing Preparatory Works
for Knowledge Product
Improving Road Asset Management in Asia and the
Pacific (iRAM)
Recommend appropriate models of future ADB
intervention to road asset management
Formulate the position of ADB Transport Community of
Practice on specific topics
institutional setup
capacity requirements
business process
Integrate the position into future project design to
enhance the sustainability of road infrastructure

29
Tasks for iRAM Knowledge Product
Stocktaking (Jun-Dec 2013)
Identify key issues facing iRAM
Determine criteria for good practice
Select specific aspects of iRAM to be focused
Literature Review and Compilation (Jun 2013-Jun 2014)
Review past ADB assistance and knowledge products, and
international good practice and publications
Case Study and Data Analysis (Jan-Mar 2014)
Identify solutions and formulate opinions identified in stocktaking
Knowledge Production and Dissemination (Apr-Dec 2014)
Finalize knowledge product through internal review and peer review
by international experts
Disseminate the product through workshops and conferences
(e.g., ADB Transport Forum)
30
 Request for iRAM
Information of issues and practice in your
country and region through survey and
interview
Peer review of iRAM knowledge product

31
 Thank you
any comments?
For Contact:
Daisuke Mizusawa
Infrastructure Specialist
dmizusawa@adb.org