Duration: September 2005-February 2006 Third road rehabilitation and maintenance project (rrmp-iii): consultancy services for road user charges study for sustainable road maintenance financing for the proposed road sector reform project (rsrp) ida-credit no. N-043-bd

Description:
Development work is financed from the Annual Development Program of the National Budget, the source of which is internal revenue and foreign aids by various developing partners. The revenue budget available for road maintenance is not at all sufficient for maintenance of the roads in the network. As such, a maintenance backlog has been accumulated and it is, therefore, now intended to exploit possible other sources to raise fund for the preservation of the main road network in Bangladesh. In order to attain that goal, the key policies have to be reformed and capacity has to be built-up in the organizations responsible for the network management and funding. Accordingly, the Consultants are required to provide services in reviewing and evaluating the existing system of charges attributable to road users and recommending for a Road Maintenance Fund. The main objective of the Consultant’s services is to design a commercially oriented road user charging system to finance road sector expenditures, while taking into account the technical capacity of concerned GOB ministries in carrying out road sector fiscal policy analysis, and the proposed establishment of a Road Maintenance Fund jointly administered by the representatives of Government, Road Users and Civil Society.

Services:

The major components of the consultancy activities were as follows:
– Review and evaluate the existing system of charges attributable to road users;
– Based on review as well as consultations with the Government Agencies, recommend a system of charges on road users that best meet the objectives of the proposed Project;
– Study, review, and clarify the objectives, and identify the trade-offs to be made, and establish the weights for each concerned Ministry as the peculiar traffic mix that prevails in Bangladesh;
– Undertake extensive socio-economic questionnaire surveys and arrange workshop amongst the road users, stakeholders, and representatives from chamber of commerce, donors and financial institutions;
– Recommend appropriate changes after examining the level and structure of these fees, and advise on whether any fees are redundant or unenforceable or they cover the costs of services provided or the structure could be improved, and whether the administration could be strengthened, and
– Examine and recommend for the number and structure of the RUCs that are acceptable, monitorable, and are easily enforceable.

Funding Agency: IDA