Fiscal Challenges and Road Maintenance Funding

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April 6, 2018

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#1AUSTRALIA Australian Government Department of Foreign Affairs and Trade OFFICE OF DEVELOPMENT EFFECTIVENESS ROAD MANAGEMENT IN PAPUA NEW GUINEA: AN EVALUATION OF A DECADE OF AUSTRALIAN SUPPORT 2007-2017 Presenter: David Slattery, Director ODE Evaluation team: David Slattery (team leader); John Lee, Independent Consultant; and Matthew Dornan, Deputy Director Development Policy Centre, Australian National University.#22 PLAN FOR PRESENTATION 1. About TSSP 2. About the evaluation 3. Context 4. Findings#33 ABOUT TSSP . Long-term effort. Spending close to three quarters of a billion dollars Focus on all transport, including maritime and air, but majority of funding on land transport Land transport focus = national roads Key partners = Departments of Transport and Works ZZZ Road Management in PNG: ODE Evaluation#4ABOUT THE EVALUATION Scope Resources Method Road Management in PNG: ODE Evaluation 4#5CONTEXT TOYOTA JAC TIN ZGU 175#66 PNG Government expenditure and revenue, real (2015) Kina, millions 18000 16000 14000 12000 10000 8000 6000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenue Expenditure 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021#7LOOP Your News Now LOOP MUSIK NEWS ‣ SPORT ▸ ENTERTAINMENT ▸ LIFE COMMUNITY ▶BU K700m in backlog for road maintenance BY: Cedric Patjole 15:31, April 6, 2018 1121 READS 7 fin PG+ Around round K700 million in outstanding invoices are owed by the National Government to contractors involved in road maintenance projects around the country. Works Minster Michael Nali revealed this in Parliament today.#8EAV 220#9Empty#1020% 0% 90 2016 40% 100% 80% 60% Predicted condition of priority sealed roads with continuation of current funding levels 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Ride Quality Index Very Poor Poor Mediocre Good#11LOOP Your News Now LOOP MUSIK ▸ NEWS ▸ SPORT ▸ ENTERTAINMENT ▸ LIFE ▸ COMMUNITY ▶BUSI Ghastly road conditions, PMV operators lose revenue BY: Carolyn Ure 12:33, May 8, 2018 635 READS#1212 . · ● OVERALL FINDINGS Focus on maintenance Focus on national priority roads Direct benefits through physical works Influence on sector policies Brings capacity to the sector#1313 CHALLENGES Influencing budget outcome - Sustaining capacity building outcomes Providing predictable funding#1414 SELECTED AREAS FOR IMPROVEMENT 1 Policy dialogue - Information on land transport spending - Information on road conditions and trends

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