road maintenance & management in pakistan

May 2013

Presentation on

ROAD MAINTENANCE & MANAGEMENT IN PAKISTAN

Government of PakistanMinistry of Communications

Road Maintenance Policies and Practices adopted by National Highway Authority, Pakistan

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Background:• In 1986 a detailed study was carried out under the IBRDprogram to verify the idea of Maintenance by Contract. Afterthis study the transition of maintenance from Provincial C&Wdepartment to NHB took place. A Maintenance ManagementSystem called “Maintenance Intervention Level (MIL)” wasintroduced in 1986 to

• Identify Needs• Establish Priorities• Use Contracting Procedures & Contract Documentation • Provide Standard Specifications

• The Maintenance Intervention Level (MIL System) remainedin operation upto 1994-95 (completing Two Cycles). After wardsfrom 1995-2000 maintenance was carried out on adhoc basismainly through emergencies.

Maintenance Management System 1986-1995

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Salient Features of NHA Annual Maintenance Program:• Yearly Maintenance Plan is based on following

• Annual Pavement Condition Survey• Annual Pavement Structural Condition Survey (DCP, Benkleman Beam,

FWD)• Pavement Roughness Survey• Traffic Count• Annual Rainfall Survey The MIL System was a priority identification system using different

Intervention level to identify road maintenance requirements, whereasunder the Maintenance Management System introduced since 1995-96,Pavement Remaining service life is considered to define its Maintenancerequirement.

The detailed Annual Maintenance program is formulated after obtainingEngineer’s estimates from NHA Maintenance Field Units. The Estimatesare then reviewed by using the data available and Annual MaintenanceBudget is prepared.

The Annual Maintenance Plan is again reviewed after BudgetaryAllocation is made. The MMS prioritizes the road sections based on theircondition and economic criteria.

Maintenance Management System 1986-1995

NEED FOR OFF-BUDGET-FINANCING

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1. In 1997, an international seminar was held by National HighwayAuthority with the assistance of World Bank and Ministry ofFinance to explore different avenues pertaining to maintenance ofNational Highway Network.

2. The concept of Off-Budget-Financing for maintenance of NHANetwork was presented and unanimously adopted.

3. April 1997- Country Workshop recommended creation andstructure of Road Fund and Management Board.

4. In light of above, a Road User Charges/Road Fund Study wascarried out in 1998 by Wilbur Smith Associates.

5. The study made the following recommendations regarding roaduser tariffs commensurate to service provided to the road users:

a) Tolling of National Highwaysb) Transit feesc) Fuel leviesd) Commercial use of Right of Way (ROW)e) Establishment of Road Fund.

BACKGROUND OF ASSET MANAGEMENT

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6. July 1999-GOP approved policy on establishment of Road Fund.7. Jan 2000 – CE/Cabinet Committee decision

“Road Fund be constituted with details to be finalized byMinistry of Finance and Communications”

8. Draft Legislation (Road Fund Administration Ordinance 2000)prepared by NHA and commented by World Bank, to be re-submitted to MOC.

9. June 2000 – Interim Road Fund Management Board notified byMOF. Modalities of road Fund were to be finalized.

10.Provinces objected to the creation of Road Fund and it wasdecided by MOF/MOC that NHA may be allowed to have a similarversion of Road Maintenance Fund at NHA level where all therevenue thus generated by NHA will be dedicatedly utilized tocater for the needs of maintenance.

11.Keeping an eye on the challenges of 21st century NHA proposedto establish Road Asset Management Division (RAMD) in order topromote the requirements that have arisen on account ofcommercialization of roads and off-budget financing and creationof RAMD was approved in the 92nd Executive Board Meeting inMarch 2000.

BACKGROUND OF ASSET MANAGEMENT

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Maintenance6%

Construction94%

Maintenance Vs ConstructionGOP Allocation on Federal Highways (1991-1996)

(Rs. in Billion)

* This does not includes the allocation that the GOP has invested in Term of Foreign Loan and considering the Pakistani Rs. depreciation over the last decade. This investment is much higher than actual. Which is of course a poor investment as compared to the opportunity cost of the benefits (of 34 billion Rs. from the network).

NHA’s PSDP of Rs. 16 BillionFor F.Y. 98-99 is 15% of Pakistan’s total PSDP and0.5% of GDP.

NHA / WORLD BANK STUDY - 1998

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♦ FinancialInadequate Maintenance Funding

- Need Rs. 6.0 – 7.0 Billion/Yr- Receives Rs. 600 - 700 Mill/Yr (~ 10% of Required Level)

♦ ManagerialPoor Maintenance Management

- ad-hoc expenditures, absence of asset management system- inadequate institutional arrangements

♦ Others- Lack of Axle Load Control- lack of regulatory Framework.

CAUSES OF POOR NETWORK


Mission Statement - RAMD

Maintain the National Highway Network to optimal levels at all times &

Preservation of National Highways by using the “Fee-for-Service” Concept and generating appropriate funds for

Highway Maintenance.

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In order to pursue off-budget financing, NHA tookfollowing initiative after creation of RAMD:

Tolling of National Highway / Motorway Network

Leasing of NHA ROW

NOC for Commercial Outlets on Private Land.

NOC for Utility Lines.

Promotional Displays.

Bus Bays on BOT Basis.

Getting ROW Mutated in favour of NHA.

INITIATIVE TAKEN BY NHA FOR OFF-BUDGET FINANCING

Traditional Sources• Toll Receipt• Police Fines• Weigh Stations Fees• Right of Ways (ROW) Receipts

– Rent from Hotels, Petrol/CNG Stations– Hoarding and Advertisements– Any other receipts from ROW

Linked Sources• Interest Income• Sale proceeds from NHA Assets• Tender Documents fees• Rates, fees and Taxes• Miscellaneous Receipts

SOURCES OF REVENUE

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Operation & Management Unit (OMU)

Toll Plazas.Operational and Management Contract.Fixation of Toll Rates. Revenue Detail.

Commercialization of Right of Way.NOC for Commercial Outlets on Private Land.NOC for Utility Lines.Leasing of NHA Land.

Promotional Displays. Bus Bays on BOT Basis.Mutation of ROW in Favour of NHA.Weigh Station/ETTM.

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CREATION OF RAMD

Keeping an eye on the challenges bythe 21st century NHA proposed acorporate structure be promoted tocope with the requirements that havearisen on account of commercializationof roads and off budget financing. NHAproposed to establish Road AssetManagement Directorate (RAMD) whichwas approved in the 92nd ExecutiveBoard Meeting in March 2000.

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MISSION STATEMENT

Maintain the National Highway Network to optimal levels at all times

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IMPLEMENTATION STRATEGY

Preservation of National Highways by using the “Fee-for-Service” Concept and generating appropriate funds for Highway Maintenance.

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Approach adopted by NHA for Maintenance Management, its

Financing, Contracting and Engineering Aspects

Purpose: To optimise the overallperformance of the network overtime.

Goal: To improve the developmentand performance of the road sectorand its use of resources, within thecontext of national objectives, inorder to minimise transport costs.

What is Road Management

The effects of road Maintenance can be assessed in terms of the various impacts:

Level of service (road condition)

Socio economic impacts

Road user costs

Accident levels and costs

Road administration costs

THE IMPACTS OF ROAD MAINTENANCE

TREATMENTS, TRIGGERS AND RESETS

ASSETCONDITION

EXCELLENT

POOR TIME

Minimum Acceptable Standard(TRIGGER)

Decay in Condition(DETERIORATION)

Treatment Applied

ConditionImprovement(RESET)

Deterioration Management

ASSET CONDITION

EXCELLENT

POOR

TIME

ORIGINAL DECAYOPTIMALCONDITIONBAND

OPTIMAL RENEWALSTRATEGY

MaintenanceTreatments

Requirement - Optimization based on user defined parameter Using Area Under Curve (AUC)

Com

posi

te In

dex

TimeAnalysis Period

Strategy

Do-nothing

Benefit

Requirement - Optimization to Minimize Total Transportation Cost (TTC)

MAINTENANCE LEVEL

COST

S

Total Transport Costs

Road User Costs

Maintenance CostsConstruction Costs

Optimum Maintenance

Pavement performance depends on: Traffic volumes and loading Road pavement strength Maintenance standards

PAVEMENT PERFORMANCE

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Main components include:Forecasting of Revenue Generation/Investment Statement

Road and Bridge Distress Survey

Roughness Measurement Survey

Strength Evaluation Survey

Traffic Survey

Historical Data

Performance Standards

Feedback from Stakeholders

Treatment Rules

NETWORK ANALYSIS PROCESS

Data, being the vital thing for the study, was collected. This data comprises of the following.

Pavement Condition Data

Traffic Data

Falling Weight Deflectometer Data

Roughness Data

Economic Data

Revenue Data From Toll Plazas

DATA COLLECTION

Picture No.127 At Km 1573+000 Route N-5 (South)(Peshawar to Hyderabad)

Picture No.1 At Km 1087+000 Route N-55 (South)(Peshawar to Hyderabad)

Picture No.16 At Km 14+000 Route N-75 North(Islamabad to Kohala)

Picture No.39At Km 38+000 Route N-80 (Tarnol to Kohat)Pictorial View of Pavement Condition Survey for AMP 2012-13

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Pictorial View of Pavement Condition Survey for AMP 2012-13

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Financial Executive SummaryANNUAL MAINTENANCE PLAN

F.Y. 2012-13

Rs. in million Sr. No. MAINTENANCE ACTIVITY Punjab

NorthPunjabSouth

Sindh North

Sindh South

Khyber Pakhtunkhwa Quetta Khuzdar Northern

AreasGilgit-

BaltistanMotorway

(M-1)Motorways(M-2 & M-3) Total

1 REHABILITATION 0.00 0.00 417.08 0.00 200.34 228.64 0.00 0.00 0.00 0.00 0.00 846.07

2 PERIODIC MAINTENANCE (STRUCTURAL OVERLAY) 373.50 250.00 0.00 275.25 0.00 0.00 0.00 75.20 0.00 0.00 1,136.40 2,110.34

3 PERIODIC MAINTENANCE (FUNCTIONAL OVERLAY) 1,527.88 826.77 233.01 429.39 606.97 444.01 372.79 229.50 154.80 350.35 68.25 5,243.72

4 ROUTINE MAINTENANCE 179.98 413.46 186.55 260.18 339.94 379.14 117.12 123.41 0.00 102.46 213.62 2,315.85

5 HIGHWAY SAFETY 65.00 65.00 45.00 45.00 40.00 65.00 30.00 20.00 15.00 35.00 75.00 500.00

TOTAL (sum of Sr. No. 1 to 5) 2,146.36 1,555.22 881.64 1,009.82 1,187.25 1,116.80 519.91 448.11 169.80 487.81 1,493.27 11,015.99

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i Corridor Management (Trauma centres) 200.00

ii Toll Plazas & Weigh Stations 450.00

iii Administrative expenses (services) 775.00

iv Logistic expenses / Survey Equipments 60.00

v Afforestation along national highways 80.00

vi Emergency maintenance allocation 3,500.00

vii Hill Slope Stability Program & Road Protection Works 50.00

viii Consultancy for Design Review & Supervision 200.00

ix Geometrics Improvement 400.00

x Bridge / Culvert Structural Maintenance 512.59

xi Promotion of sports and cultural activities 10.00

xii Functioning of HRTC 60.00

TOTAL ( sum of Sr. No. 6 ) 6,297.59

TOTAL (AMP 2012-13) - sum of 1-7 2,146.36 1,555.22 881.64 1,009.82 1,187.25 1,116.80 519.91 448.11 169.80 487.81 1,493.27 17,313.58

Financial Executive Summary of Annual Maintenance Plan - 2012-13

WAY FORWARD

Way forward for asset management is adaptation andimplementation of complete road asset management program.NHA has adopted this program of Resource and Road AssetManagement in its endeavors to improve the serviceability andvalue for money that it requires from its highway network.

This is the modern approach to road management much favored inthe countries where budgets for the care and repair of roads arealways in deficit.

Every road network has a Book Asset Value at the start of the year.This is made up of:

• The value of the existing pavements as constructed, and thendown valued according to (i) their present condition and (ii) thecost of putting them in the minimum acceptable condition.

• The stock value of the structures based upon their replacementvalue.

WAY FORWARD WITH ROAD ASSET MANAGEMENT SYSTEM

Based upon available resources and the priorities ofserviceability, an annual program of care, conservation andupgrading of the road network then takes place. This program ofworks is the investment being made in the road network.

An analysis at the end of the following year of the roadconditions and hence the prevailing asset values-reflects thedownward valuation of roads that have deteriorated further (dueto no intervention) and the upward valuation of those sectionsreceiving investments in the form of conservation orimprovement programs and gives an overall picture of profit orloss.

A Profit/Loss Statement combined with an annual BalanceSheet then gives the Road Owner his up to date Stock of Assets.

WAY FORWARD WITH ROAD ASSET MANAGEMENT SYSTEM

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