African Road Funds: What Works and Why?

Toolkits SSATP Working Paper February 28, 1995 Road Asset Management…
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Anne Balcerac de Richecour, Ian G. Heggie

SSATP, The World Bank
SSATP Working Paper No. 14
African Road Funds: What Works and Why?

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.

Road Funds Developing countries Road safety measures road rehabilitation Budget Revenues Road tariffs Accounting systems Audit engagements Disbursements Road Maintenance Salaries expenditures financing mechanisms Exemptions Urban road construction rural roads Financial accountability Auditing functionAccounting bridge commercialization core road network debt debt service district roads driving driving license evasion excise taxes feeder roads Financial Accounting financial management Financial management systems Financing of Roads framework fuel fuel levies fuel levy fuel tax fuel taxes government spending heavy truck heavy vehicles Highway Highways Inflation inland waterways light truck main roads Management network operation and maintenance periodic maintenance police private sector provisions public sector public utilities range reference REVENUE COLLECTION river RMI road agencies Road Authorities Road Boards Road Financing Road Fund Road Funds Road Maintenance Road Maintenance Initiative ROAD NETWORK road networks road pavement road rehabilitation road safety Road Safety Board road sector reform road use Road User Road User Charges Road Users routes routine maintenance rural roads sales taxes tax revenues Tolls Transport Truck trucks urban roads vehicle inspection vehicle license fees Vehicles warehouse
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