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This presentation was delivered by Pheng Sovicheano (Undersecretary of State, Ministry of Public Works and Transport, Cambodia) during the parallel session (C1) on "Performance-Based Roads Contracts: Dos and Don'ts" at the ADB Transport Forum on 16 September 2014.
This presentation was delivered by Pheng Sovicheano (Undersecretary of State, Ministry of Public Works and Transport, Cambodia) during the parallel session (C1) on "Performance-Based Roads Contracts: Dos and Don'ts" at the ADB Transport Forum on 16 September 2014.
This presentation was delivered by Pheng Sovicheano (Undersecretary of State, Ministry of Public Works and Transport, Cambodia) during the parallel session (C1) on "Performance-Based Roads Contracts: Dos and Don'ts" at the ADB Transport Forum on 16 September 2014.
Road Maintenance Overview Performance Based Road Contracts
By PHENG Sovicheano Under-Secretary of State
16 September 2014 CONTENTS Background
Main drivers of testing PBRCs in Cambodia
Capacity building of domestic contractors
Main benefits obtained after the first pilot
Role of ADB in first pilot project and recommendations for the future 2 BACKGROUND ADB Loan 2406-CAM (SF) / IDA Cr. 4442: Road Asset Management Project (RAMP) 2008 approved Established Road Maintenance Management System (RMMS), and Provided Capacity Building of MPWT Staff and the Local Construction Industry
ADB Loan 2373-CAM (SF): Southern Coastal Corridor Project (SCCP) 2008 approved Pilot Program of Periodical and Routine Maintenance PBRC 3 MAIN DRIVERS OF TESTING PBRCs Improve institutional and technical capacity Establish a Road Maintenance Management System (RMMS) Outsource force account Efficiency goals for the private sector
4 Improve Institutional and Technical Capacity - as Road Maintenance Reform Establishing a dedicated unit, Road Asset Management Office (RAMO) within the Ministry to plan, budget, and implement road asset management Trainings for road condition survey, analysis, assessment and prioritization of roads Budget planning and submission Implementation with supervision and quality control 5 Establishment of RMMS RMMS includes: Knowledge of Asset (international roughness index, condition asset, asset cost) Level of Road Services (example, next slide) Predicting Traffic Demands (Automatic Traffic Counting System [ATCS]) Road Performance Monitoring Maintenance Management Finance/Cash Flow Asset Management Planning Chain of Commands
6 Level of Road Service MPWT to set level of road service based upon 5 parameters:
Based upon above parameters MPWT to develop maintenance standard/specifications/method statement 7 Parameters Satisfactory Critical Unacceptable Rutting (mm) Cracking Riding quality (mm/km) Deflection Skid Resistance Outsource Force Account Gradual shift from conventional approach of provincial engineers judgment and political influence to an application of Location Referencing Condition Survey (LRCS) and HDM-4 in preparation of Annual and Three Year Rolling Budget Planning Programs Gradual shift from force account to outsourcing, targeting 30% planned to be outsourced in 2014, with 10% annual increase Gradual shift from Input to Output PBRC Challenges for many local contractors: Lack of familiarity with externally funded contracts, and PBRCs Lack of experience in preparing bids for PBRCs
Provide capacity building to force account units to be ready to outsource maintenance works through PBRCs and also do works by themselves through PBRCs (target year 2016): Prepare technical documents to carry out PBRCs Review Financial Regulatory Framework Provide training to Provincial Departments of Public Works and Transport staff
8 Efficiency Goals for the Private Sector Trainings planned for future as capacity building:
Quality Assurance/Quality Control trainings Project Administration and Management Procurement of civil works and consultant services Social Safeguard compliance Benefit Monitoring and Evaluation Good Governance Framework Accounting and disbursement
Efficiency goals: efficient, safe, environment friendly project implementation with satisfactory quality and minimized impacts, transparency and accountability 9 MAIN BENEFITS OBTAINED AFTER THE FIRST PILOT PBRC Manuals for Road Maintenance and Supervision have been prepared
RAMO has facilities and skills to produce Annual Road Maintenance Plan (ARMP)
Several very good local contractors/ consultants emerged 10 DOS AND DONTS Dos Out-sourcing with application of PBRC Gradual out-sourcing PBRC in line with growing capacity of local construction industry Provision of PBRC trainings to MPWT, PDPWTs, MEF, and Contractors Assessment methodology to be simple
11 Donts Take a short term approach Establish the level of road service above available budget Transfer risk to the contractor excessively RECOMMENDATIONS FOR THE FUTURE IDA and MPWT are in Detailed Design Process to prepare four PBRC packages of 157 km in total amount of $ 64.0 million
ADB and MPWT are preparing PPTA: Second RAMP, to design a project with the application of PBRC