Proactive road maintenance planning, paired with asset management systems and performance-based contracts, can help countries stretch infrastructure budgets and reduce vehicle operating costs. Transparent funding and diversified revenue lead to safer, longer-lasting road networks.
Inadequate road maintenance significantly hampers economic growth. Poorly maintained roads drive up transport costs, restrict access to markets and services, and stifle private sector and job growth.
In fact, deteriorated roads can increase vehicle operating expenses by approximately 15%, due to higher fuel consumption and frequent spare part replacements. Potholes and cracks also pose serious safety risks, especially for pedestrians and two-wheelers.
Despite these clear consequences, many countries struggle to implement effective road maintenance strategies. This issue is particularly acute in the world’s developing countries, where road maintenance is often underfunded by as much as 50% or more, with funding gaps ranging from $8 million to $1.9 billion. Studies show that many countries fall into a costly cycle of reactive, short-term road repairs that offer minimal long-term value. Meanwhile, widening funding gaps make it increasingly difficult to pursue optimal, sustainable solutions.
This reality stands in contrast to established economic wisdom. A World Bank report found that every additional dollar invested in road maintenance results in average savings of $1.50 in future road rehabilitation costs. These findings underscore that timely and adequate investment in road maintenance is the most cost-effective long-term strategy.
Countries can address these challenges by a four-step approach grounded in public financial management principles. First, assess the road maintenance costs; then identify and tap into additional financial sources; third, manage available money efficiently; and finally, improve transparency on road maintenance budgeting and planning.
Assess road maintenance cost. Proactive planning must be a priority. Governments can start by assessing the cost to maintain their entire road network in good condition. Reliable data and institutional measures like multi-year road maintenance forecasts can improve budgeting and help stretch every dollar further.
Smart management is as important as budgets. Road asset management systems provide data-driven solutions to help countries estimate and prioritize the resources required to maintain the entire road network in good condition. They use real-time data, predictive analytics, and condition models to monitor road quality and prioritize maintenance efforts. It is a high-tech dashboard for the nation’s roads that helps planners anticipate needs, allocate budgets efficiently, and avoid ad-hoc repairs that cost much more in the long run.
With modern tools like drones and geographic information mapping, road asset management systems can further enhance the ability to detect early deterioration and enable efficient, targeted fixes that extend infrastructure lifespan. However, success hinges on more than tech: the output from road asset management systems must be used to plan and budget road maintenance and be integrated into government decision-making and financial systems to deliver real impact.
Tap into additional revenue sources. Governments are often compelled to reduce road maintenance budgets to prioritize other competing demands on the public purse, driven by socio-economic goals or electoral promises. This leaves road maintenance underfunded, with a backlog of essential repairs and forces the public to cope with deteriorating roads.
Tolls, road taxes, and fees help governments to garner money directly from users for road maintenance. The revenue mobilization potential from these sources depends on factors like per capita income, political will, public support, and a robust private sector. User charges form part of the total revenue base of a government and positive action from governments is needed to direct such resources towards road maintenance.
Efficiently manage available money. Countries should build road maintenance systems that prioritize lasting quality over quantity. Governments can pay for results (e.g., riding quality of whole road segments for a defined period) to incentivize enduring quality and move away from the conventional approach of paying for inputs like pothole patching.
That’s the logic behind performance-based road maintenance- a smarter approach, which aligns contractor incentives with desired outcomes: safer, smoother, long-lasting roads. Contractors who exceed the targets like quality standards, wear-and-tear benchmarks, safety records get bonuses, while those who fall short and face reduced payments or penalties.
While this system requires staffing a well-maintained monitoring environment with clearly defined outcomes, the reported savings are typically between 15% and 30% compared with traditional cost-plus contracts.
However, better contract management alone isn’t enough. Successful performance-based road maintenance needs capable institutions: governments with the financial and technical know-how to define quality, monitor performance, and enforce accountability. Performance-based road maintenance helps governments stretch every dollar and keep their road networks running safer and longer. In a world of tight budgets and rising infrastructure needs, that’s a win for everyone.
Improve transparency. Publicly available road maintenance expenditure data promotes public dialogue on road maintenance funding. Yet, the Open Budget Survey 2023 reveals that many governments provide limited budget information, making it difficult to access detailed data on road maintenance funding.
A simple first step is to disclose the total cost of maintaining the road network and the existing funding gap. Surprisingly, this vital information is not always easily available in public.
A sustainable move would be for governments to include road maintenance funding analysis with their annual budget requests to the legislature, and to make this process public, transparent, and responsive to the concerns of citizens and road users. This would spotlight long-term needs and reveal chronic gaps, enabling informed legislative decisions and promoting accountability.
Investing in proactive and strategic road maintenance is essential for economic growth and social equity. To make better use of limited funds, reward quality, and promote road safety, countries must adopt smart tools like road asset management systems and performance-based road maintenance.
Transparent budgets and long-term plans are crucial to ensure that road maintenance funds are used effectively. Done right, these steps can develop new markets, encourage entrepreneurship, reduce poverty, and build the foundation for a more connected and prosperous society.
Source: blogs.adb.org
