Commercial management and financing of roads, Volumes 23-409 by Ian Graeme Heggie, Piers Vickers

By Ian Graeme Heggie, Piers Vickers

In constructing and transition economies, 60 to eighty percentage of all passenger and freight shipping strikes via road—the major type of entry for many rural groups. but lots of the eleven million kilometers of roads in those economies are badly maintained and poorly controlled. This paper discusses essentially the most potent how one can advertise sound guidelines for coping with and financing street networks—commercialization. It discusses the rising important proposal of bringing roads into undefined, placing them on a fee-for-service foundation, and handling them like a enterprise.

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To make the tables understandable to a wider audience, expenditures on maintenance and VOC savings have been expressed as equivalent annual discounted outlays divided by savings, rather than as total net present value. 8 when traffic volumes are 10,000 vpd. a. a. b. c. VOC savings divided by spending on increased maintenance. 05 billion reconstructing the roads. Thus the net loss would be at least $330 million. The same pattern holds for gravel roads. Maintaining a gravel road for 10 years costs between $10,000 and $20,000 per km, depending on climate and traffic volume.

Creating Ownership 53 The Concept of Ownership 53 Organizations Representing Road Users 54 Ways of Involving Road Users 55 Setting Up a Road Board 57 Key Recommendations and Conclusions 62 7. Ensuring an Adequate and Stable Flow of Funds 65 Setting Clear Market Signals 65 Pricing and Cost Recovery Policies 72 Key Recommendations and Conclusions 77 8. Managing the Revenues 80 Linking Revenues and Expenditures 80 Types of Road Funds 80 Characteristics of Existing Road Funds 83 Problems with Conventional Road Funds 86 Setting Up a Commercially Managed Road Fund 88 Key Recommendations and Conclusions 101 9.

Most vehicles, particularly loaded freight vehicles, are not designed to deal with the sharp, repeated shocks caused by potholes. Trucking companies are well aware of the extra costs that poor roads impose on road transport operations. 5 An unpublished study conducted in 1992 by the Federation of Zambian Road Hauliers estimated that the additional costs associated with potholes amounted to more than $14,000 per truck per year in spare parts alonean increase in VOCs of 17 percent. Furthermore, this figure did not include extra fuel, accidents, down-time for repair, and damage to freight inside the vehicle.

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