Extending the Functional Life of Road Assets with Performance-Based Contracts
By Matthew Jordan-Tank, Head of Infrastructure Policy and IPPF, European Bank for Reconstruction and Development (EBRD)
In most developing and merging market economies, roads require rehabilitation, or even reconstruction, many years prior to the expected date. Simply put: usable life is not equal to design life, and it is not uncommon to find that a road must be rehabilitated only halfway into its estimated original asset duration. While harsh climate conditions with large seasonal temperature changes may play a role, much of this 'premature' investment boils down to lack of systematic maintenance that is normally applied in countries with regular 'asset management' funding regimes. Applying performance-based maintenance contracting to the road sector can produce significant fiscal improvements, as well as user benefits in the form of better maintained and therefore safer roads.
EBRD recently published a paper providing a condensed yet substantive overview of the key international lessons learned in the area of performance-based contracts.
Read the full paperJoin Matthew and other industry experts in Amsterdam, March 5-11 for the IRF's Executive Seminar on Performance-Based Contracts.
More information at https://www.irf.global/event/pbc17-amsterdam/