Upload
claire
View
30
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Managing for Results in the Road Sector. 16 May 2011 Singapore Adrien Véron, EARD, ADB. Session Organization. Four Modules. Managing Road Sector Performance. Country Presentation Pakistan. Delivering to and with Road Users. Country Presentation Nepal. Performance Contracting. - PowerPoint PPT Presentation
Citation preview
Managing for Resultsin the Road Sector
16 May 2011 SingaporeAdrien Véron, EARD, ADB
Session Organization
Managing Road Sector Performance
Four Modules
Delivering to and with Road Users
Performance Contracting
Road Asset Management
Country Presentation Pakistan
Country Presentation Nepal
Group Discussion
Country Presentation Mongolia
Module 1: Managing Road Sector Performance
Key Learning Objectives
Understanding what results-based management can mean in the road sector
Being aware of the internal and external factors that affect performance
Learning about which performance indicators and when to use them
Getting to know about good practices in road sector performance management
Why Results-Based Management?
“A government that works better and costs less”
What is Results-Based Management?
“A government that does the right things right”
Birth Growth Upgrading Mature
Doing Managing Contracts
Accounting for Performance
Delivering Services
Government Government /IFIs
Government / Private
Government / Private / Users
Force-account Supervision, Contracting
Design, Maintenance
PPPs, Asset Management,
Focus
Funds
PrivateSector
Source: Adapted from OECD, 2003, Internal Performance Improvement of Road Administrations
Trends in Public Sector Management
Government Role
Management Models
Control
Separation political / execution levelsDecentralization Independence of agenciesContracting-out & privatizationTransparency & user participation
Defining performance and targetsAllocating budgets to performance targets and reportingPerformance agreements within agencies’ business plansDelegating authority to managersPerformance-based managers’ contracts
From control of inputs to outputsFrom pre-audit to post-audit Performance audits & evaluationFrom external control to internal audit
Planning / BudgetingFrom fixing problems to creating outcomesFrom one-year to multi-yearHigh-level program /output / sector budget allocations
SystemsIntegrated financial systemsInformation & management systems
Factors Influencing Road Sector Performance
Drilling Down Performance in a Road Maintenance Program
Source: Based on case study from Brazil
Clarity and Measurability of Objectives
• Incomplete• Unmeasured• Un-integrated• Unused
Efficiency in Planning and Funding
• Rigid budget structure• No budgeting for DD & supervision• Non-technical planning• Extra-budgetary practices• Unskilled civil servants• Poor program perception
Cost-Efficiency in Execution Mechanisms
• Cumbersome bidding processes• Slow payments / old contracts• Systematic 25% cost overrun• High monopoly bitumen price• Weak control of supervision • Corruption incentives
M&E Systems
• High rates of error• No management view• No dynamic / warning approach
Weak demand for results
Many veto playersPolitical investmentsPublic sector HRUnsolved issuesBudget rigidity
Paralyzing controlLeadership changesPolitical staff
Erratic demands for information
No capacity to measure indicators
Teething conflictsExcessive externalizationNascent planning
Ad hoc approach to projects
Overlapping responsibilities &multiple hierarchical lines
Separate systems
Ad hoc approach to information gathering
Factors Influencing Road Sector Performance
Drilling Down Performance in a Road Maintenance Program
Source: Based on case study from Brazil
Clarity and Measurability of Objectives
• Incomplete• Unmeasured• Un-integrated• Unused
Efficiency in Planning and Funding
• Rigid budget structure• No budgeting for DD & supervision• Non-technical planning• Extra-budgetary practices• Unskilled civil servants• Poor program perception
Cost-Efficiency in Execution Mechanisms
• Cumbersome bidding processes• Slow payments / old contracts• Systematic 25% cost increases• High monopoly bitumen price• Weak control of supervision • Corruption incentives
M&E Systems
• High rates of error• No management view• No dynamic / warning approach
Transport Council
Strong demand for results Priority program definitionPPPs
Performance audits Regular
performance reviews
Creation of institute
Long-term planningNew staff hiringProgram clean-up
Performance-based contracts
Unification of program structure
Single-point entry systemUser feedback and transparency
A Performance Framework for the Road Sector
Source: Adapted from OECD, 2003, Performance Indicators for the road sector
Assets HRSystems
Road Agency
Transport Sector
Processes - Manage organization - Gather information - Plan activities - Allocate resources - Procure & deliver products & services - Evaluate efficiency
INPUTSCapitalMaterialsLabor
GOVERNMENT GUIDANCE Objectives & goals Priorities Policies & regulations Resources
Outputs
Desired - Road system - Maintained assets - User services - Information
Undesired - Road works safety - Land occupation - Environmental degradation
Outcomes
Users - Accessibility - Road quality - User satisfaction - Congestion - Accidents
Community - Urban quality - Air pollution - Landscapes
Impacts
Employment
Market Shifts
Equity
Environment
Use of
Resources
Activity
Patterns
Land Use
Price Changes
Road User and Community Feedback
Performance Indicators: When?
Indicators as a key management tool
Performance
Indicators
ObjectivesAnd Goals
Road ProgramDevelopment
Road ProgramDeliveryRoad Program
Performance
Impacts
Observed &analyzed
ReflectedEvaluated
Monitored
Source: Adapted from OECD, 2003, Performance Indicators for the road sector
SMART indicators: Specific Measurable Attributable Realistic
Targeted
Government Road Agency Road Users
HCM levels of ServiceAverage road user costsTransport cost / GDPAccessibility index
O&M costs by veh.kmTravel time and reliabilityQuality of traffic information to users
Level of satisfaction on traffic time and info.Hours of congestion delayUser charges / veh.km
Accessibility
Fatalities per populationAccidents by veh.km% of accidents involvingdrunken driver
% of traffic speedingSafety program assessments% of roads not meeting design standards
Unprotected road user riskTime from alert to treatment
Safety
Air quality standardsCumulative land taken %
Environmental programEmissions per capita for CO2, NOx, VOC, PM
% of pop exposed to noise levels > 65db% of pop exposed to air quality below standards
Environment
Regional distribution of roadsLaws for access by reduced mobility people
Balance of user charges / expenses by regionMarket research & customer feedback
Travel costs /user groupAccident risks /user groupSatisfaction with feedback capacity
Equity
Source: Adapted from OECD, 2003, Performance Indicators for the road sector
SMART indicators: Specific Measurable Attributable Realistic
Targeted
Government Road Agency Road Users
Program Performance
Program Preparation and Delivery
Value of assetsEx-post value of CBATrends per programRoad expenditures / GDP
Pavement roughnessBearing capacity% of defected bridgesCongested roads – kmTruck overloading incidence
Surface conditionRest areas / 100 km% of main roads lightedFrequency of emergency and winter road closuresUser information system
Clarity of objectivesStability of leadershipDegree of completion of long-term programsSufficiency of maintenance funding
Forecast costs vs. actualCost of O&M per lane.kmOverhead percentStaff / lane.kmDelay from preparation to implementation of projects% of contracts with overruns and delays
User delay associated with maintenance and worksRoad works safety and nuisancesTransparency & competition
Source: Adapted from OECD, 2003, Performance Indicators for the road sector
Good Practice (1)
New Zealand
Annual business plans and strategic plans
Baseline expenditure reviews to assess output prices
Annual performance and value-for-money auditing by auditor general
Multiyear fiscal planning
Statement of Intent and Performance Reports approved by Parliament
5-year performance based contracts for chief executives
See: http://www.nzta.govt.nz/planning/index.html
Good Practice (2)
Japan
Performance plans and achievement reports
Data disaggregated at prefecture level
Customer surveys
Outcome-based budgets
Analysis of effectiveness
Internal motivation on outcomes through publicity and peer comparisons
Source: Adapted from T. Hishio, Y.Tsukada, T.Oba and M.Ohno, 2005, Outcome-oriented Performance Management of Road Administration in Japan. MLIT See also: http://www.mlit.go.jp/road/road_e/index_e.html
Module 2: Delivering for and with Road Users
Key Learning Objectives
Understanding the different forms of user participation
Learning about specific participation mechanisms: Perception Surveys, Transformation Forums, Road Boards
Understanding the concepts of levels-of-service
Acknowledging Stakeholders
Who?
Road users
Communities affected
Downstream businesses
Road industry
Motorists’ associationsPublic transport users associationsTaxi AssociationsTruck operators associations
Local governmentsNGOs for special interests, inc:
- Pedestrians- Environment, etc.
Industrial / mining associationsChamber of CommerceTourism industryAgricultural groups
Professional AssociationsIndustry AssociationScientific and academic groups
Involving Stakeholders
Increasing Level of Public Impact
GOAL
COMMITMENT
TOOLS
INFORM CONSULT INVOLVE COLLABORATE EMPOWER
Source: Adapted from International Association for Public Participation www.iap2.org
To inform users and assist them in understanding problems
To obtain public feedback on analysis and alternatives
To work with the public to ensure public issues are considered
To partner with the public in all analysis and decision-making steps
To place decision-making power in the hands of the public
We’ll keep you informed
We’ll keep you informed and listen to your feedback
We’ll ensure your concerns are reflected and tell you how
We’ll always seek your advice and recommendations
We’ll do what you decide
• Reports• Websites• Open houses
• Comment• Call centers• Surveys• Public meetings
• Workshops• Deliberative meetings
• User advisory groups• Participatory decision-making
• Road Boards• Delegated decisions
Good Practice (1) Perception Survey
Governance in Kazakhstan / Armenia
Road Agency Governance Index
Source: C.Queiroz, A.Martinez, S.Ishibara, K.Homman, 2011, Road Asset Governance Filter: Case Study of Kazakhstan and Armenia, World Bank, DC.
Small-scale / low cost
Four dimensions:
Transparency, disclosure and accountability Transparent procurement systems Financial management systems Administrative procedures and anticorruption
Internal & external stakeholders
KazakhstanArmenia
Good Practice (2) Participatory Decision-Making
Mongolia, National Road Sector Capacity Development Roadmap
Source: ADB, 2010, Technical Assistance for the Preparation of a National Road Sector Capacity Development Roadmap, Manila
Diagnostic
• Capacity assessment
Collaborative
Preparation
• Shared diagnostic• Propose objectives• Evaluate options• Concrete propositions
Evaluation Consultatio
n
• Preparation of roadmap• Consultations on draft
Finalization
• Formal drafting• Presentation to Cabinet
Implementation
• Set-up task forces• Conduct legal changes• Trainings• Monitoring & Evaluation
WHO?
Consultant, ADB
Stakeholder groups
Facilitator
Road Agency +
Stakeholders
Ministry
Road Agency
Stakeholders
Consultants
How
long?
6 months 4 months 3 months 2-4 months 5 Years?
Good Practice (3) Road Boards
Second Generation Road Fund Criteria
Source: ADB, 2003, Roads Funds and Road Maintenance, an Asian Perspective, Manila, and World Bank, 1995, African Road Funds, What Works and Why?, Washington, DC
Road Fund only relies on road user fees to pay for roads O&M
Road Fund to act as purchaser, not provider
Road Fund to be managed by an independent Board
Road Board to recommend level and adjustments to road fees
Road Board to be composed in majority of user and business representatives
Road Board to have a secretariat and be managed under sound commercial practices
User fees to be directly deposited in the Road Fund
Road Fund to be concentrating on road maintenance
Levels of Service (LoS)
Managing the Roads for the Users
Source: CSS (2004) Framework for Highway Asset Management, County Surveyors Society
“Levels of Service describe the quality of services provided by the asset for the benefit of the customers.” “Levels of service are the manner by which the highway authority engages with the customer.” “Levels of service are about reflecting the customer’s interests in terms that can be measured and evaluated.”
Budgets
Plans
Works
Levels of Service
Road users satisfaction
Budgets
Plans
Works
Levels of Service
Road users satisfaction
Levels of Service (LoS)
Use of Levels of Service
Document and measure services provided
Rationally evaluate service versus cost trade-offs
Determine if adequate focus is given to what matters to the customer
Plan operational activities to support strategic goal to meet LOS
Type of Levels of Service
Condition of assetObjective / structural
Perceived by the users
Service aspirations
Safety
Performance (congestion, availability)
Environmental impacts
User services
Others.
Source: CSS (2004) Framework for Highway Asset Management, County Surveyors Society
Levels of Service (LoS)
Source: Hertfordshire’s Highway Asset Management Plan
Outcome
Safety of asset
Condition
Availability / Accessibility
Environmental impact
Customer service
Financial performance
Level of Service
Accident reduction
Safety related defects
Emergency management
Education, training and publicity
User perception
Performance measure
% of unauthorized objects on the network removed
% of potholes repaired within 24 hours
% of signs missing
No of accidents linked with snow and ice
% of accidents linked with asset condition
No of traffic signals not operating
Calculation method
% of hazardous objects removed within 2 hrs (contract response time) of notification, expressed in percentage
No of potholes repaired within 24 hours divided by the number reported faulty, for publicly reported faults, expressed as a percentage
Module 3: Contracting Maintenance for Performance
Key Learning Objectives
Being aware of the various ways to contract road maintenance
Understanding what is performance-based contracting and its benefits
Getting familiarity with performance specification issues
Getting familiarity with compliance monitoring issues
The Maintenance Contracting Menu
Hors-d’oeuvre• Low private sector involvement
Hors-d’oeuvre• Low private sector involvement
Entree• Performance contracts
Entree• Performance contracts
Desert• Full devolutionDesert• Full devolution
In-House MaintenanceIn-House Maintenance
RO
UTIN
ER
OU
TIN
E
EM
ER
GEN
CY
EM
ER
GEN
CY
PER
IOD
ICP
ER
IOD
IC
MA
NA
GEM
EN
TM
AN
AG
EM
EN
T
Salesman modelSalesman model
Partial competitionPartial competition
Rehabilitation and MaintenanceRehabilitation and Maintenance
Integrated / area modelIntegrated / area model
Brownfield concessionsBrownfield concessions
PPPsPPPs
Routine maintenanceRoutine maintenance
Framework modelFramework model
Bundling modelBundling model
Input based
Unit prices 1 year / seasonal
Unit prices 1 year / seasonal
Unit prices Indicative BOQs 3-5 years
Lump-sum / PBC 5-10 years
Lump-sum / PBC 1-3 years
Lump-sum / PBC Unit / Global prices 5-10 years
Lump-sum / PBC 5-10 years
Tolls / penalties 20-35 years
Tolls Lump-sum / PBC 20-35 years
Performance-Based Maintenance Contracts (PBCs)
What is a Performance-Based Maintenance Contract?
Source: Adapted from http://www-esd.worldbank.org/pbc_resource_guide/TrainingMaterial.htm
In PBCs, the contractor gets paid for delivering a service, not physical works
Service is considered delivered when expected performance indicators are reached:- Roads free of potholes
- Grass cut, etc.
Client specifies only performance targets, not methods and materials
If some performance indicators are not met, contractor does not get full payment for the related service (or gets penalties)
Lump sum payments are made periodically- some items based on unit prices- adjustment for change in factors (e.g. traffic, materials prices, inflation)
To meet performance targets, contractor is free to decide:- What to do- When to do- How to do- Where to do- To do himself or subcontract (with limits)
Contractor is responsible for Quality Assurance and data gathering
Procurement combines price and technical quality
Contracts last several years
Performance-Based Maintenance Contracts (PBCs)
What are the Benefits of Performance-Based Contracts?
Source: Adapted from World Bank, 2005, Performance-based Contracting for Preservation and Improvement of Road Assets, Washington, DC
Cost savings
Risk sharing
Incentives for innovation and good management Reduction in administrative expenses Possibility to reduce client staffing levels Greater flexibility to reward performance
Predictability of costs and financing
Reduction in variation orders Support for ensuring stable financingLife-cycle cost decisions
Focus on users / Levels of Service
Source: Finish Road Enterprise, 2002, Innovative Project Delivery Methods for Infrastructure, Helsinki
Cost Saving Potential
Compliance monitoring
Internal Q&A
Source: Adapted from http://www-esd.worldbank.org/pbc_resource_guide/TrainingMaterial.htm
Ensure performance standards are constantly met
Make available information to the Client:- summary sheets- daily logs of deficiencies and actions taken- inspection logs in accordance with QA plan
Implement a Quality Control Plan for constant monitoring
Inspections
Formal monthly inspections on selected number of roads- to verify summaries and inspection logs
Road user complaints
Informal inspections, at the client’s initiative, at any time and anywhere- Notification to contractor within ideally 24 hours of finding- Contractor to take remedial action within a certain time frame- In specified cases, result in penalties
Act upon deficiencies in a pro-active manner
It is Contractor’s responsibility to:
Setting-up Performance Standards: Group Exercise
Contract Type
Source: Adapted from http://www-esd.worldbank.org/pbc_resource_guide/TrainingMaterial.htm
National roads, 200km bituminous, 150km gravel
Contract for the rehabilitation and maintenance of the roads, 10 years
Traffic at 3,000 vehicles per day on the first stretch and 500 vehicles per day on the second
Road Agency Objectives
Minimize life-cycle and administrative costs
Satisfy users’ aspirations- accessibility
- comfort- speed- safety- information
Hilly terrain, with occasional snow-blocks and heavy rainfalls
Setting-up Performance Standards: Exercise Sheet
Performance Standard
Measurement Mechanism
Response time and corrective
action
Routine Maintenance
Periodic Maintenance
Source: Adapted from http://www-esd.worldbank.org/pbc_resource_guide/TrainingMaterial.htm
Module 4: Asset Management
Key Learning Objectives
Understanding Road Asset Management Planning and Life-Cycle Cost concepts
Understand the different components of a Road Asset Management System
Be aware of the various outputs produced by a standard HDM-IV based system
Be aware of data gathering tools, strategies and sustainability issues
Asset Management
How much are asset worth?
Source: Adapted from http://www-esd.worldbank.org/pbc_resource_guide/TrainingMaterial.htm and New Zealand Infrastructure Asset Management Manual
UK Highways = IBM
Japan Road Public Corporation = General Motors
Central and Eastern Europe = $550 billion
Typical developing country: up to 50% of GDP
What is Road Asset management?
“The combination of management, financial, economic, engineering and other practices applied to road assets with the objective of providing the required level of service in the most cost- effective manner” Basic Asset Management “…relies primarily on the use of an asset register, maintenance management systems, job/res- source management, inventory control, condition assessment and defined levels of service in order to establish alternative options and long-term cash flow predictions”
Advanced Asset Management “…employs predictive modeling, risk management and optimized renewal decision making techniques to esstablish asset licycle options and related long-term cash-flow predictions”
Asset Management Planning
Source: Adapted from World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Organizational VisionCustomer expectations• Levels of Service• Cost of transport
Existing Assets
Non-Asset Solutions
• Capacity Building•Demand management
Government guidance• Financial• Environmental
Strategic Planning Process
Asset Management Process
New Assets
Surplus Assets
Maintain
Renew Upgrade Assets
Create Assets
Dispose Assets
Improved Performanc
e
Asset Management Benefits
What are the Benefits of Performance-Based Contracts?
Better understanding of service level options and requirements
Minimal (optimized) long-term costs for given LoS at the network level
Clear justification for budget requests
Source: Adapted from World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Better understanding and forecasting of asset-related options and costs
Managed risk of failure
Informed and objective (“scientific”) decision-making based on costs and benefits
Improved organization image
Asset valuation capacity
Life-Cycle Costs
Source: World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Maintenance Strategies
Source: Adapted from World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Asset Condition
EXCELLENT
POOR
Deterioration
TIME
Level of Service Preventive treatments
Asset Management Planning
Management Cascade
Source: Adapted from World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Strategic Planning
• Mid-term budget needs to meet LoS• Forecast pavement condition• User cost forecasts• Compared NPV of alternative strategies, standards
Programming
• Annual budgets• List of road sections with recommended treatment / cost• Rolling program
Preparation
• Project design or formulation• Procurement
Works
• Performance standards• Invoices• Progress reports• Cost analyses
Data Collection
Road Asset Management System
Road Asset Management Systems Components
Source: Adapted from World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Data Collection
Database Decision support tools
Management Information
•Inventory •GIS coordinates•Riding quality•Surface distress•Pavement strength•Traffic flow/load•Brides•Furniture
• Forecasting models• Optimization models
-> HDM-IV
• Standard reports• Custom reports
Road Management Systems Sample Outputs
Source: Adapted from World Bank, University of Birmingham, Senior Road Executives Program, http://www.worldbank.org/transport/training/birmingham-un/start.html
Long-term NeedsIntervention Strategies
Optimal Budget Allocations
Rolling Works Plan
Data Collection
What to collect? Factoring in data costs, skill needs and use
Source: Adapted from World Bank, 2006, Data Collection Technologies for Road Management, Washington
Collect only what you need
Collect at the lowest level of details you need
Collect when you need
IQL-5
IQL-4
IQL-3
IQL-2
IQL-1
IQL-5: High-level aggregate data- performance indicators
IQL-4: Data used for planning and management reportsIQL-3: Network-level survey data, simple data gathering methodsIQL-2: Data used for detailed designs and project-level decisions
IQL-1: Research level data, many attributes
Information Quality Level (IQL)
Data Collection: Cost/Performance trade-offs
Source: World Bank, 2006, Data Collection Technologies for Road Management, Washington
What have we learnt?
Managing Road Sector Performance
Four Modules
Delivering to and with Road Users
Performance Contracting
Road Asset Management
Country Presentation Pakistan
Country Presentation Nepal
Group Discussion
Country Presentation Mongolia
Thank [email protected]