Investor Presentaiton
Roads & Transport: Several factors limit roads' support to GDP growth
Roads and transport
Insufficient road construction
Lack of coordination between Ministries of Works and Finance on timelines inhibits timely
payments, hindering effective budgeting and delaying projects
Inadequate communication reduces potential for combined efforts (e.g. Ministry of Works and
RAAM¹ sharing construction assets), and could damage existing infrastructure (e.g., sewer pipes
cut in road construction)
Inefficient investment,
cost spirals, and additional
expenditures for non-road
infrastructure
个
Insufficient maintenance planning and funding
•
Poor financing mechanism for maintenance - lack of a constant source of funding results in one-
off approvals and delays
Lack of coordination between Ministries of Works and Finance slows payment of mobilization fees,
delaying repairs
Revenue generation well below potential
•
•
Insufficient number of vehicle inspections, impounds, and recoveries due to lack of resources
Lack of coordination between Ministry of Transport and Board of Internal Revenue inhibits data
collection on registered vehicles and reduces effective fee collection
Large number of revenue generating government-owned assets (e.g., fuel dumps, quarrying
machine, drilling machine) abandoned and now in disrepair
1. Rural Access and Agricultural Marketing
Source: Stakeholder interviews
Roads fall into disrepair
and disincentivize long-
distance supply chains and
commerce
Less revenue for road
construction and
maintenance
142
Copyright © 2019 by Boston Consulting Group. All rights reserved.View entire presentation