This paper reviews experience with the operation of selected African road funds. Although most African road funds suffer from systematic problems, this review identifies examples of best practice and provides guidance on how to design a road fund that works. The paper has mainly been written for a technical audience and is directed toward officials in developing countries, Bank Task Managers, and officials in other development agencies working to improve the operation of road funds. It is also written for consultants involved in setting up new road funds, or restructuring existing ones. The road funds reviewed in the paper here mainly set up with the objective of providing a stable flow of funds to support operation and maintenance of roads. Some of them were set up to also finance transport studies, road safety programs, road rehabilitation, and new investment. The road funds selected for review are special accounts, held either at a Central Bank or at a commercial bank, and derive most of their revenues from road user charges. The revenues paid into these special accounts are usually (but not always) collected under the government's tax setting powers and may consist of a fuel levy, road user charges and an earmarked portion of other taxes and service fees.
SSATP Working Paper No. 14
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