Developing Appropriate Management and Procurement Approaches for Road Maintenance

This paper reviews experience of using the private sector for undertaking road maintenance in developing countries. It identifies the various organisational options for the client and supplier roles, key factors in establishing a competitive environment and building contract maintenance capacity, and the potential cost savings therefrom. It includes the following key messages: • The private sector can effectively contribute in a variety of roles, most notably as a contractor, but also in the role of road manager. • Stable funding and a conducive, enabling environment are prerequisites for privatisation and contract maintenance. • Competition, linked to clear specified standards and activity definitions, is more important than privatisation. • The size and scope of contracts will affect the extent of competition, and care and appropriate regulation is required to allow effective development of small-scale contractors. • Apportioning risk must take due account of the capability of the contracting industry to accept risk, and is best allocated to the party most suited to cope. • The management of change and increased competition require clear aims and objectives, and are best introduced in a phased manner. • The development of sound business practices and capabilities within client and supplier organisations is essential.