Overview of Road Maintenance in Western Balkans 6

Transcription

1 SEETO Regional Participants Overview Albania, of Road Bosnia Maintenance and Herzegovina, Western Balkans 6 the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo* Overview of Road Maintenance in Western Balkans 6 July

2 Document properties Document Type: Report Originator: South East Europe Transport Observatory (SEETO) Security (Distribution Level): Public Status: Final version Number of Pages: 43 Status and version Date Done by Action Draft /04/2016 Nerejda Hoxha Document creation Draft /04/2016 Nerejda Hoxha Document creation Artan Guxho, World Bank Ioannis Dimitropoulos, World 01/06/2016 Reviewed by Bank Document revision Robert Mutyaba, World Bank Draft Final version 02/06/2016 Nerejda Hoxha Document finalisation 2Final version 07/07/2016 Nerejda Hoxha Document finalisation

3 Overview of Road Maintenance in Western Balkans 6 July SEETO Regional Participants Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo*

4 Contents 1. Introduction Scope of the Report Background Approach to data collection Road maintenance institutional and legal framework Albania Bosnia and Hercegovina the former Yugoslav Republic of Macedonia Montenegro Kosovo* Serbia Main findings Road Core and Comprehensive Network conditions Albania Bosnia and Hercegovina the former Yugoslav Republic of Macedonia Montenegro Kosovo* Serbia Main findings Road maintenance budget Albania Bosnia and Hercegovina the former Yugoslav Republic of Macedonia Montenegro Kosovo* Serbia Main findings Conclusions and recommendations

5 Overview of Road Maintenance in Western Balkans 6 1. Introduction 1.1 Scope of the Report Road maintenance in the region remains an important issue for all the participants. Despite the efforts made by each Regional Participant, a common regional approach to the maintenance of the regional network is still missing. Regional corridors and routes run through more than one Regional Participant so the condition they are in affects the overall performance of the road network, hampering their purpose to serve as the main arteries for distribution of goods and movement of people and contribute in this way to boost of the region s economic development. In order to address the lack of regional approach with regard to road maintenance issues, the report aims to provide an overview of the current situation regarding the status of road maintenance from the legal framework perspective, network conditions and the level of expenditure. This report should serve as a basis for the Consultant, in the framework of the EC Assistance in the implementation of the soft measures agreed at Vienna Summit, to prepare Road Core Network Maintenance Plan, but not limited to, and to any party interested in the road maintenance in the region Background The Regional Transport Network in the South East Europe was defined by the Memorandum of Understanding (MoU), signed on 11th June In 2011, in order to ensure maximum compatibility of the SEETO regional transport network with the TEN-T Comprehensive Network within the TEN-T revision process, the Regional Participants agreed to use the term SEETO Comprehensive Network for the SEETO regional transport network. The inclusion of the SEETO Comprehensive Network maps in the TEN-T Guidelines in 2013 as indicative extension of the TEN-T into the neighbouring countries, together with the definition of the Core Network in the West-

6 ern Balkans in 2015, was the final step that further fortified the SEETO (both Comprehensive and Core) Network as a precursor of the TEN-T Network in the South East Europe, and provides it with a perspective to become fully a part of the wider TEN-T network through Regional Participants accession process. The SEETO Comprehensive and Core Network is a multimodal network which includes road, The WB6 initiative provided further support to transport development as the economic generator of the region. The Western Balkans Conference held on 28 August 2014 in Berlin provided a political framework for the more intensive development of transport infrastructure in the region. Furthermore, substantial progress was achieved during 2015, notably the agreement by the six Western Balkan Prime Ministers in Brussels in April on the regional core transport network, and the further agreement (in Riga in June) on the core network corridors (Mediterranean, Orient/ East-Med and Rhine/Danube corridors were exrail and inland waterway links in the six SEETO Regional Participants, together with a number of designated seaport, river port and airport nodes and terminals. The newly established Core Network is a subset of Comprehensive Network. The Core Road network is comprised of 71% of Comprehensive Road Network corridors and routes (new planned alignment for Adriatic-Ionian Highway included). Comprehensive Network: Total Length: Corridors: Routes: 4,924 km 2,195 km 2,729 km Core Network: Total Length: Corridors: Routes: 3,519 km 1,967 km 1,552 km tended to WB) and a list of infrastructure projects and soft measures to be implemented by Establishment of the Core Network and modification of the Comprehensive Network in the Western Balkans provide a structure for more concentrated development of infrastructure in the region with the aim of enhancing connectivity and mobility and joining WB with the EU TEN-T network. The Western Balkans summit in August 2015 in Vienna provided the list of soft measures, including specific timelines for each measure, and progress with regard to their implementation to be 6

7 reviewed at the next Summit in France in Amongst soft measures on the regional level to be completed within a short period is the preparation of the Maintenance Plan for for Road and Rail Core Networks in the WB6. The latest update of REBIS (The Regional Balkans Infrastructure Study) presented in September 2015 shows that about 60 percent of the Comprehensive Road Network is in no need of any immediate intervention (only continued maintenance is required), while 23 percent requires rehabilitation. About 16 percent of the network may require some intervention for upgrading or widening at present. The World Bank and the EU through IPA programme have been active in the region with projects focused on the introduction of performance-based contracts, specifically in the road transport sector. Performance-based contractors are present in Albania, Serbia and the former Yugoslav Republic of Macedonia. There is no specific EU Directive on road maintenance, but there is a direct link between road conditions and road safety in the Directive 2008/96/ EC, which represents a common framework for road infrastructure safety management even though it is focused on road safety. According to the study EU Road Surfaces: Economic and Safety Impact of the Lack of Regular Road Maintenance (2014) this Directive represents a valid step forward in the creation of a harmonized framework for road safety monitoring in the EU, but it only applies to the TEN-T corridors and is subject to different interpretations and dissimilar implementation across the EU. The EU had engaged research projects one of which, Pilot4safety, developed a manual, complemented by a collection of best practices that could be a starting point to develop a comprehensive tool that standardizes the operational prescriptions to be implemented by road operators and national authorities in order to guarantee a balanced level of road maintenance across Europe. Within the framework of legal approximation all regional participants are in the process of adopting the Directive 2008/96/EC while facing difficulties with regard to the institutional structures and financial implication for its implementation. Despite some positive developments, there is no consistent methodology among the Western Balkan countries to define maintenance costs based on Asset Management Systems. As a result, evaluation of existing maintenance systems in the region and unified best practice proposals for improvement could have a positive impact on maintenance efficiency. 1.3 Approach to data collection SEETO Secretariat, building on the channels of information already established during the yearly data collection process, in January 2016 sent the road maintenance questionnaire to all relevant counterparts. The questionnaire was divided into three sections, covering institutional framework, road network conditions (IRI values used to define the conditions rating) and road maintenance budget allocated and disbursed. The questionnaires were returned in February 2016 from Albania, Kosovo* and Serbia, in early April 2016 from Montenegro and the former Yugoslav Republic of Macedonia and in May 2016 from Bosnia and Herzegovina. Additional sources of information used were reports of EC, World Bank etc. SEETO Secretariat would like to emphasise that the reliability and quality of the data provided lies with the source of information and it could not be deemed responsible for result of the analysis based on the data provided. 7 * This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.

8 2. Road maintenance institutional and legal framework 2.1. Albania The main institution dealing with the governance of the transport sector in Albania is the Ministry of Transport and Infrastructure (MoTI). It is in charge of developing policies and strategies and it monitors the implementation of the development programmes for all modes of transport. The body responsible for construction and maintenance of the national road network in Albania is the Albanian Road Authority (ARA) as a successor of the General Road Directorate transformed into a road authority by Law No , dated 15/10/2009. ARA is an autonomous agency, which has the authority and obligation to effectively and efficiently administer, maintain and expand the national road network. Ministry of Transport and Infrastructure, with EU assistance, has prepared the Draft Transport Sector Strategy, which is under further review by all stakeholders and will be finalised by July It will provide, inter alia, long-term strategic vision of the Government on road sector development and maintenance of road assets. In March 2015, with the help of a World Bank grant, the Albanian Road Authority prepared and adopted the Road Maintenance Strategy, which served as the fundamental document for the Government financing program of road maintenance and safety of the national road network. The strategy covered the entire network and concluded that expenditures for periodic maintenance will fully eliminate the periodic maintenance backlog during the period. The recent Road Maintenance Strategy is the main policy document used by ARA to plan and budget its annual maintenance programme. Albanian Road Authority is now contracting out 8

9 100% the maintenance of the national road network, based on 3-5 year maintenance contracts. Furthermore, performance-based contracts were firstly introduced in the form of pilot project, which resulted in better performed maintenance works. Albanian Government is co-financing together with the World Bank the project called Results-based Road Maintenance and Safety Project (RRMSP) for the years This project s value is around 130 Mil USD (without VAT) and will cover the maintenance of the primary and secondary-primary roads (1335 km) of Albanian national network. It will include the safety systems improvements by operationalizing road safety in ARA and MTI, by strengthening organisational and policy-orientated actions, and by direct investments in safety enhancement works. In parallel, the Government is using a hybrid performance-based maintenance contracting in a more budget constraint scenario - in the rest of the national road network, using domestic resources. Lack of an appropriate Road Asset Management System (RAMS) was acknowledged by Albania Road Authority (ARA) and as such it was included in the World Bank project aiming to establish the adequate Road Asset Management System in ARA, as part of the institutional reform. It will enhance ARA s capacity to collect and analyse road data, to conduct road condition surveys in order to collect input data for RAMS, and to provide training to ARA staff on how to use the system to plan and budget multi-year maintenance and investment expenditures. 2.2 Bosnia and Herzegovina The transport sector is administered at the state level by the Ministry of Communications and Transport (MoCT), and at the entity level, by separate Ministries of Transport and Communications (MoTC). Public companies are established in each entity and are responsible for the management of the road assets and operations. Bosnia and Herzegovina has no national transport strategy. Each entity produced a number of different strategies, which have had their limitations. In order to overcome the issues, the National Transport Strategy was finalised at the end of June, approved at the entity level and is now waiting the approval on the national level. Programming and implementation of long-term, medium-term and annual plans for regular and emergency maintenance in the Republic of Bosnia and Herzegovina are responsibility of public companies at the entity level, respectively: Public Company Motorways of the Federation of Bosnia and Herzegovina (for motorways and high speed roads) Public Company Roads of Federation of Bosnia and Herzegovina (for main roads); Public Company Motorways of Republika Srpska (for motorways) Public Company Roads of Republika Srpska (for main and regional roads); Sub-department for roads and parks within the Government of Brčko District Based on the Law on Roads, each entity for the roads under its administration publishes public tender for selection of a contractor for the maintenance. Framework agreements for 4-year period are signed for maintenance works as well as individual contracts for every year, and the financing is provided by entities and central government. Neither of the entities has reported use of Road Asset Management System in the process of plan- 9

10 ning and monitoring of the implementation of road maintenance plans. The Road Modernization Program (FBH RMP), developed by Federation of Bosnia and Herzegovina, is focusing on road improvements as it will involve network improvements (road, bridge and tunnel repairs), road safety interventions and measures to improve the overall main road management. It is envisaged as a four-year 173 million programme to be financed by EBRD ( 65 million), EIB ( 50 million), and the World Bank ( 58 million). As part of the RMP, FBH seeks to strengthen the financial sustainability of the sector by improving the quality of public expenditure for carrying out construction, rehabilitation and maintenance of road infrastructure. Currently, the FBH Government is considering alternatives for road financing system that would provide additional resources to PC Roads FBH. The Transport Sector Modernization Project, supported by the World Bank, will not only include investments to improve road characteristics, but also to provide for capacity and knowledge building activities and to ensure sustainable road asset management, by introducing tools and practices for improvement of the investment planning in the enterprise, with the goal to increase spending efficiency and also decrease risks of unplanned repairs. Republika Srpska is also preparing a road modernization program and some of the planned activities are rehabilitation of about 500km of main and regional roads, including bridges and tunnels, and repairs of roads damaged by the May 2014 floods. 2.3 The former Yugoslav Republic of Macedonia Ministry of Transport and Communications (MOTC) is in charge of road sector strategic guidance and policy, while Public Enterprise of State Roads (PESR) prepares the road development and financing plans according to these policies. The road management is entrusted to a managerially and financially independent Public Enterprise of State Roads (PESR), which is a successor of the Agency for State Roads. PESR is mandated to plan, construct, reconstruct, and rehabilitate the national and regional roads and collect tolls. National Transport Strategy ( ) sets out (1) the completion of motorway corridors, and (2) the efficient connection of the road network to the corridors as its short term priorities. According to the Law on Public Roads, the objectives and tasks of public road maintenance are defined in the Strategy for Development and Maintenance of State Roads in the Republic of Macedonia for a period of minimum ten years. Implementation of the Strategy for Development and Maintenance of State Roads is the responsibility of the Ministry of Transport and Communication, while as of 2013 the execution of works related to management, construction, reconstruction, maintenance and protection of state roads is the responsibility of the Public Enterprise for State Roads. Public Enterprise for State Roads (PESR), pursuant to the adopted Strategy for Development and Maintenance of State Roads in the Republic of Macedonia, has prepared and adopted the Five-year Programme for Construction, Reconstruction, Rehabilitation, Maintenance and Protection of the State Roads for 10

11 the period , which defines the dynamics and scope of the implementation for a period of five years, as well as the necessary financial resources and sources of funding. The Program refers to the maintenance and protection of state roads in a total length of km (including planned roads, total of km). The Public Enterprise for State Roads develops for each year an annual Draft Programme for Maintenance and Protection of State Roads, to be financed from its own funds. The annual Programme covers routine, investment and winter maintenance of state roads in the country. The aforementioned Programs are adopted by the Government of the former Yugoslav Republic of Macedonia upon a proposal of the PESR. The state roads maintenance in the former Yugoslav Republic of Macedonia is performed by the Public Enterprise Makedonijapat that operates as PESR s direct contractor, under an annual contract signed with the Public Enterprise for State Roads. The focus of the ongoing World Bank-funded projects National and Regional Road Rehabilitation Project, NRRrP and Road Upgrading and Development Project, RUDP is the implementation of the National Transport Strategy, as regards proper and efficient road maintenance, comprehensive road asset management, including collection of detailed data on network condition. The World Bank s support regarding RAMS includes: Financing equipment and the network data collection to be undertaken by PESR for surveying road condition and collecting traffic data for three years; Technical assistance for the preparation of a five-year Strategic Programme (including programme for periodic maintenance and rehabilitation works) based on the network data from RAMS; Review of maintenance practices and standards currently applied by PESR in the effort to identify opportunities to improve quality of maintenance in the current system. 2.4 Montenegro The Directorate for State Roads and the Directorate for Road Transport share responsibilities for managing the road sector. The former deals with infrastructure it is responsible for preparing policies, laws, and regulations related to state roads, and through the Transport Directorate (TD) carries out the monitoring of road conditions. The other body, Directorate for Road Transport, handles transport issues on state roads. Its main tasks include managing policies in road transport, monitoring and analyzing road traffic; enforcing laws and regulations that pertain to road transport; and supervising motor vehicles. Transport Directorate (TD) has the responsibility of maintaining, rehabilitating, and constructing state roads. The Strategy for Development and Maintenance of Public Roads ( ) represents a strategic document of the Republic of Montenegro establishing the objectives and basic tasks of development and maintenance of public roads for the period of 10 years, the related dynamics and scope of realisation, the framework of necessary financial resources and the sources of financing. The strategy recognises the importance of strengthening the appraisal process and of using economic analysis tools to prioritize investments in maintenance and rehabilitation in the country s road infrastructure. Ministry of Transport in cooperation with EBRD prepared Performance based maintenance con- 11

12 tracts strategy, containing within the Component 1 the following tasks: 1. Review and assessment of the current framework 2. PBM contracting strategy for Montenegro 3. Bidding documents 4. Capacity building strategy and training In accordance with the loan agreement with the EBRD, the obligation of the Ministry of Transport and Maritime Affairs in the forthcoming tender for the maintenance of roads is to determine the section which will be a pilot PBC (performance based maintenance contracts) project. Road maintenance is carried out by the private contractors selected competitively for a contract period of 4 years. Pilot project on PBMC is to start soon. 2.6 Serbia The Ministry of Transport (MoT) is responsible for policy, while the Public Enterprise for State Road Management (Public Enterprise Roads of Serbia or PERS) is responsible for construction, maintenance, operation and management of national roads. Road sector institutions in Serbia have undergone major institutional reforms in the past few years. The Serbia Roads Directorate (SRD) was transformed into PERS in 2008, and the Ministry of Capital Investments into Ministry of Transport. PE Roads of Serbia is responsible for the preparation of annual programme of road maintenance. In addition, the Government established the Corridor X Company, a subsidiary of PERS, for construction of Corridor X, which was subsequently transformed into Corridors of Serbia (CoS) to manage road construction projects of strategic national importance. The strategic document of the Republic of Serbia concerning road maintenance is The Strategy for development of railway, road, water, air and intermodal transport in the Republic of Serbia from 2008 to 2015 (The Official Gazette of RS no. 4/08). This strategy is currently being updated and expected to be finalised by the end of 2016 and to be approved by the Government until the end of the first quarter of Transport Rehabilitation Project (completed in 2012), financed from the World Bank s USD105 million loan, under Transport Rehabilitation Project, aimed at rehabilitating over 200 km of national roads, included the introduction of two hybrid Performance-Based Maintenance Contracts (PBMC) for 1,100 km of the National Road Network in the Macva and Kolubara regions, which resulted in significant savings in comparison to unit price approach and demonstrated the potential of this contracting approach. However, the general practice is that maintenance is not contracted out on competitive basis - it is carried out by privatized regional maintenance companies, under contracts renewed annually and based on unit rates set by PESR. There are elements of the Road Asset Management System included in the Information Booklet of PE Roads of Serbia in Chapter XI of information assets and resources of the Company. In addition, the World Bank also supported establishment of the state road asset database, and introduction of systematic maintenance planning and programming based on sound economic efficiency criteria (using the Highway Development and Management Model HDM4). Condition surveys for the entire national road network were conducted in 2008 and were used in the preparation of subsequent IFI-funded National Road 12

13 Network Rehabilitation Programme (NRNRP) and Road Rehabilitation and Safety Project (RRSP): Road Rehabilitation and Safety Project financed by the World Bank, European Investment Bank and European Bank for Reconstruction and Development and Serbian Government (237.8 ml Euro) Project of Introduction and Development of Performance-Based Road Maintenance on Serbian National Road Network financed by IPA National programmes (18.7 ml Euro). 2.5 Kosovo* The transport sector is administered by the Ministry of Infrastructure with its departments, respectively Department of Road Transport - responsible for road policy making, Department of Road Infrastructure, with Road Directorate included - responsible for planning and monitoring of road construction,, and Department of Road Management - responsible for the maintenance of road network. Sectorial and Multimodal Strategy includes five-year Action Plan setting out the main principles of road maintenance and the respective needs for the maintenance of national highways. The road maintenance activities are outsourced from private contractors on a basis of 3-year, unit price type contract. Supervision of the implementation of maintenance contracts is carried out by the Department for Road Management. The Department for Road Management has not established an effective RAMS, but having recognized its necessity, the Ministry of Infrastructure has prepared the respective ToRs for the consultancy support to establish the road database and respective road and bridge management systems. There are no ongoing projects for road maintenance that are financed by IFI s or other institutions. 2.7 Main findings Within the framework of reforms in the road sector, the responsibility for execution and monitoring of maintenance works is vested in independent executing agencies like in Albania, the former Yugoslav Republic of Macedonia, Serbia, Bosnia and Herzegovina through establishing public companies/road authorities but there is also a model that embedded the responsibilities for road maintenance within the structure of the ministries in charge of transport affairs, like in the case of Kosovo* and Montenegro. Road Maintenance approach varies from one regional participant to the other in terms of planning and executing road maintenance policies. Concerning the policy document, two models are present in the region, respectively: 1. Regional Participants with Road Maintenance strategy as a separate document; 2. Regional Participants with road maintenance strategy included within the sectorial strategy In almost all the participants, maintenance is incorporated in the main transport policy document due to its importance in the performance of road networks.t. This also applies to those participants with a separate policy document on road maintenance that focuses on the maintenance of roads only and include detailed work programme for defined period of time, different budget scenario, etc. Below is a summary of the current status of the road maintenance policy documents. 13

14 Regional Participants Road Maintenance Strategy, separate document Road Maintenance Strategy part of Transport Sector Strategy Albania ongoing Bosnia and HerZegovina - Montenegro ongoing THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA Kosovo* - Serbia - The preferred type of road maintenance contract in all regional participants has been the unit price type contract.. Performance-based contract has been introduced and serious efforts are made to expand its use widely in the region, mainly due to several World Bank supported projects. After the piloting phase, like in Albania, Serbia and the former Yugoslav Republic of Macedonia, there has been a shift in the road maintenance approach towards the performance-based contract as a standard type for road maintenance works. Regarding the execution of maintenance works, there is a combination of maintenance works outsourced from private contractors mainly through unit price contracts and maintenance works carried out by public companies based on unit price contract or service level agreements. The following table provides an overview of the contracting strategies applied in each of the regional participants. 14

15 Regional Participants Maintenance Works outsourced from private contractors Maintenance Works carried out by Road Authorities/ public companies PBMC Unit price PBMC Unit price Albania Bosnia and HerZegovina piloted 1 year contract 4 year contract Montenegro To be piloted 4 year contract THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA yearly contract Kosovo* 3 year contract Serbia piloted yearly contract Overall, all the regional participants have clearly established the policy documents on the road maintenance and the institutions responsible for the maintenance works. Most of the regional participants have opted for the approach to outsource the private contractors. Even though the models applied are slightly different, it appears that the main weakness already observed in most of them is the lack of proper Road Asset Management Systems. This is addressed through a series of the ongoing projects supported by donors, with the aim of establishing the Road Asset Management Systems. 15

16 3. Road Core and Comprehensive Network conditions 16

17 3.1. Albania The national road network under the jurisdiction of Albanian Road Authority is divided into two main categories: primary roads and secondary roads. Total length of the network, according to the latest World Bank project, is 4,288 km (1,167 km of primary roads, 1,901km of secondary roads and approx. 90 km of rural roads included in the national network). Indicative TEN-T extension of the Road Comprehensive Network to WB, in Albania covers a total of 730 km and Core Network has a total length of 542 km. Corridor VIII is the third busiest road corridor in the region with an AADT (2014) of 10,031 veh/day, the busiest sections in the Albanian territory being Tirana Durres and Rogozhina-Vlora. During the last decade there were a lot of investments in the road sector in Albania, focusing mainly on building and rehabilitation of SEETO Comprehensive Road Network. Almost 1,846 billion Euro were invested in the road sector from 2004 to As a result, condition of road network has improved. Below is a presentation of the current road condition of Comprehensive/Core Network. As shown in the chart, 92% of Road Comprehensive Network and 95% of Road Core Network are considered to be in good condition (as per SEETO Definition 1 ). The data on IRI provided by the Albanian Road Authority were taken from the latest World Bank study, Road Maintenance Strategy, 2015 with the road condition survey corresponding to Comprehensive Network: Corridor VIII Route 2b Route 2c Route km 131 km 125 km 115 km Core Network: Corridor VIII Route 2b Route 2c Route km 54 km 125 km 115 km Comprehensive Network Conditions ALBANIA Core Network Conditions ALBANIA Very good Good Medium Good Medium 17 1 very good, describes the road without problems, which completely complies with Standards - mainly new structures, (IRI [0-1.24], 2. Good, means that is a road without problems, IRI [ ], 3. Medium NWC, means that the road needs a New Wearing Course (NWC), IRI [ ], 4. Poor, means that the road needs a new Overlay and Wearing Course (OWC), IRI [ ], 5. Very Poor, describes a road which needs a Completely New Pavement (CNP), IRI [>8.94-]

18 3.2. Bosnia and Hercegovina The overall BiH road network totals to approximately 24,600 kilometers. This comprises about 3,800 km of main roads, 4,700 km of regional roads and 16,100 km of local roads. Indicative TEN-T extension of the Road Comprehensive Network to WB, in Bosnia and Hercegovina covers a total of 870 km and Core Network has a total length of 635 km. Corridor Vc is the busiest road in Bosnia and Hercegovina, which in 2014 had the AADT of 9,120 veh/day. Since no IRI data were available, the data for the analysis of the road conditions have been taken from the SEETIS database. During the last decade there were a lot of investments in the road sector, focusing mainly on building and rehabilitation of SEETO Comprehensive Road Network. Almost 1,538 billion Euro was invested in the road sector from 2004 until Due to these investments almost half of the Comprehensive/Core Network, between 48-55%, is in good condition, 36% in medium condition, 8-10% in very good condition and 8% of the Comprehensive Network is in poor or very poor condition (rating as per SEETO Definition). Comprehensive Network: Corridor Vc Route 1 Route 2a Route 2b Route km 7 km 228 km 104 km 131 km Core Network: Corridor Vc Route 1 Route 2a 400 km 7 km 228 km Comprehensive Network Conditions BOSNIA AND HERZEGOVINA Core Network Conditions BOSNIA AND HERZEGOVINA Very good Good Medium Poor Very Poor Very good Good Medium 18

19 3.3 The former Yugoslav Republic of Macedonia Road network of the former Yugoslav Republic of Macedonia in the current total length of 14,182 km consists of 242 km of motorways, 911 km of national roads, 3,771 km of regional roads and 9,258 of local roads. Indicative TEN-T extension of the Road Comprehensive Network to WB, in the former Yugoslav Republic of Macedonia covers a total of 708 km and Core Network has a total length of 513 km. During the last decade there were a lot of investments in the road sector focusing mainly on building and rehabilitation of SEETO Comprehensive Road Network. Almost 830 million Euro were invested in the road sector from 2004 until Based on the IRI data provided (no information on the timing of the road survey condition), below is a presentation of the current road conditions for Comprehensive/Core Network. As a result of investments in the road sector, the conditions of road networks have improved to 75 % of the Comprehensive Network and 83% of the Core Network being rated as in good condition (per SEE- TO Definition, road in good condition is the one with IRI between ). There are no road sections reported to be in poor or very poor condition. Comprehensive Network: Corridor VIII Corridor X Corridor Xd Route 6a Route km 195 km 117 km 20 km 78 km Core Network: Corridor VIII Corridor X Route 6a 298 km 195 km 20 km Comprehensive Network Conditions THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA Core Network Conditions THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA Good Medium Good Medium 19

20 3.4 Montenegro The length of the road network in Montenegro is around 7,900 km, 70 percent of which is paved asphalt concrete. National and regional roads managed by the Transport Directorate constitute around 25 percent (1,900 km) of the total 7,900 km road network, whereas local roads managed by 21 municipal governments make up the remaining 75 percent (6,000 km). Indicative TEN-T extension of the Road Comprehensive Network to WB, in Montenegro covers a total of 641 km and Core Network has a total length of 301 km. During the last decade there were a lot of investments in the road sector focusing mainly on building and rehabilitation of SEETO Comprehensive Road Network. Almost billion Euro was invested in the road sector from 2004 until Montenegro had a national and regional road condition survey carried out in 2003, but since then several partial road condition surveys have taken place, the latest one in 2008, within the framework of the preparation of the Road Development and Maintenance Strategy. There were no IRI data available, so the data for the analysis of the road conditions in the Republic of Montenegro have been taken from the SEETIS database. The results show that almost half (53-55%) of the Comprehensive/Core Network is in medium condition, 23-28% in good condition and only 4% in very good conditions, while 13-18% of the network is rated as in poor condition (rating as per SEETO Definition). Comprehensive Network: Route 1 Route 2b Route 4 Route 6a Route 6b 121 km 160 km 180 km 79 km 101 km Core Network: Route 1 Route km 180 km Comprehensive Network Conditions MONTENEGRO Core Network Conditions MONTENEGRO Very good Good Medium Poor Very good Good Medium Poor 20

21 3.5 Serbia Road network under the administration of PERS is 16, km, divided into I and II category state roads (Category I A and B roads - 5,191 km and Category II A and B roads - 10,933 km). Indicative TEN-T extension of the Road Comprehensive Network to WB, in Serbia covers a total of 1,623 km and Core Network has a total length of 1,332 km. Serbia has the biggest road network in the region, the busiest being Corridor X that runs across the country from North to South. Corridor X counts for the highest AADT in the region with 13,691 veh/day during 2014, followed by Corridor Xb with 10,605 veh/day and Corridor Vc with 5,833 veh/day. During the last decade there were a lot of investments in the road sector, focusing mainly on building and rehabilitation of SEETO Comprehensive Road Network. Almost 3,060 billion Euro was invested in the road sector from 2004 until The IRI data provided correspond to the road condition survey of 2008, but in the meantime Serbia has launched a project to update the road database, including IRI values. Based on the data provided, below is the overview of the road conditions for core/comprehensive network. As a result of investments, the condition of road network has been improved, with 62% of the Comprehensive Network rated in good conditions, 35% rated medium and only 3% rated as very good; 68% of Core Network is rated as in good condition, 28% as medium and only 4% is rated as in very good condition (rating as per SEETO Definition). Comprehensive Network: Corridor X Corridor Xb Corridor Xc Route 3 Route 4 Route 5 Route 6b Route km 185 km 110 km 54 km 421 km 212 km 25 km 85 km Core Network: Corridor X Corridor Xb Corridor Xc Route 4 Route km 185 km 110 km 421 km 85 km Comprehensive Network Conditions SERBIA Core Network Conditions SERBIA Very good Good Medium Very good Good Medium 21

22 3.6 Kosovo* The national road network under the jurisdiction of the Ministry of Infrastructure is divided into three main categories: highways, national roads and regional roads. Total length of the network is 2,012 km (highway 78 km, national roads, 626 km and regional roads 1,217 km). Indicative TEN-T extension of the Road Comprehensive Network to WB, in Kosovo covers a total of 329 km and Core Network has a total length of 155. on building and rehabilitation of Route 6 and Route 7. Almost 1,480 billion Euro was invested in the road sector from 2004 until 2014, 91% of which was financed from the state budget. As a result of such investments, the condition of the road networks has improved to 52% of the Comprehensive Network and 66% of the Core Network being rated as in good condition (as per SEETO Definition). The rest of the network is reported to be rated as in medium condition. During the last five years there were a lot of investments in the road sector, focusing mainly Comprehensive Network: Route 6a Route 6b Route km 104 km 90 km Core Network: Route 6a Route 7 65 km 90 km Comprehensive Network Conditions KOSOVO Core Network Conditions KOSOVO Good Medium Good Medium 22

23 3.7 Main findings The trend of high investments in the road infrastructure in the Western Balkans has been continuously predominant, compared with the other modes of transport. There are 4.9 billion Euro investments disbursed and almost the same amount committed to road infrastructure projects, totalling to 9.84 billion Euros investments in road infrastructure. This amount makes up 81.4% of the total investments during the last decade in the indicative extension of TEN-T Comprehensive Network to the Western Balkans. Several studies show a strong correlation between the age of the road, referring to the moment it opened to traffic, and road conditions resulting from the strategy applied to preserve the asset. As it is clearly shown in the graph below, if there is no proper maintenance a road in very good condition will decline to poor condition within the timeframe of 10 years, while continuous maintenance will preserve it in good condition throughout its lifespan. Source: ERF The majority of the investments in the road infrastructure in the region took place during the last decade. Based on this fact, we could state that the road network is relatively new. If we would apply the aforementioned principle, a new road section after 5 years of use without maintenance will be downgraded from very good to good and will tend to downgrade further. If maintenance works are carried out regularly, it will preserve good condition through its entire lifespan. Based on the data provided by regional participants through the annual data collection process (SEETIS Database) for the preparation of SEETO Multi-Annual Plan (MAP), the current trend regarding road conditions within the period is as follows: 23

24 Road Conditions - Comprehensive Network very good good medium poor very poor 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Year Due to focus on improvement of the road infrastructure in the region, the share of roads in very good condition increased from 6% in 2010 to 17% in 2014, the percentage of roads in good condition decreased from 41% in 2010 to 34% in 2014, while the roads in poor and very poor condition have been reduced by 50%. Furthermore, the shift from roads in good to medium conditions has been noticed. This can be explained by the fact that the roads are up to 10 years old and the lack of appropriate maintenance once the road construction/rehabilitation has been completed is leading to the deterioration of road conditions from good to medium. assets and count for the highest share of goods and people transported. Road corridors and routes do not end within the border of the regional participant, thus it is important to provide an overview of the road conditions by corridors/routes. In terms of the busiest road corridors in the region, the picture is not much different from the overview of the entire Road Comprehensive/Core network. Below are data on the road conditions in each corridor and route for Comprehensive/Core Network. Improvements in the road infrastructure through massive investment programmes in the entire region are aiming to contribute to economic growth and regional cohesion through facilitation of movement of goods and people. For the regional participant road networks are one of the biggest 24

25 Comprehensive Road Network Conditions very good good medium poor very poor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Corridor VIII Corridor Vc Corridor IX Corridor Xb Corridor Xc Corridor Xd Route 1 Route 2a Route 2b Route 2c Route 3 Route 4 Route 5 Route 6a Route 6b Route 7 Route 8 Core Road Network Conditions very good good medium poor very poor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Corridor VIII Corridor Vc Corridor IX Corridor Xb Corridor Xc Corridor Xd Route 1 Route 2a Route 2b Route 2c Route 4 Route 6a Route 7 25

26 Overall, road sections in good and medium conditions prevail. All regional participants put most efforts to maintain in good condition the busiest road corridors/routes as they carry most of the traffic. Some of the main routes are still undergoing major investments such as Route 4 and Route 6. In order to be able to cope with the increasing demand in road transport the efforts need to be focused on improving the conditions of the road network in the region as follows: Preservation of the assets, that is, keeping the existing road sections in very good and good condition and improving the conditions of the road sections from medium to good; Rehabilitation/reconstruction works will be needed for road sections in poor and very poor condition. By applying the above approach, the current situation in the region is provided in the following table: Road maintenance approach Comprehensive Network Length in km Core Network Length in km Asset preservation Rehabilitation/reconstruction As mentioned at the beginning, these analyses are based on IRI values that were collected in different timeframes of surveys, some going back to even 5-8 years ago. In order to have an accurate base- line for the Regional Maintenance Action Plan for the Core Network, an IRI survey on the entire network would be needed. 26

27 4. Road maintenance budget 27

28 4.1. Albania The budget allocated for road maintenance has been fluctuating over past years, with two drops in 2012 and The budget planned for 2016 is 8.8 million Euro, showing an increase of 15% compared to The budget allocated for the maintenance of the SEETO Comprehensive/Core Network in the region amounts to 20-30% of the total maintenance budget. The only source of financing the road maintenance is through state budget as there are no toll roads in Albania yet or any other source of financing for road maintenance. The maintenance budget in Albania is not divided as per Routine, Periodic and Emergency Works. It is a single budget, allocated within the budget of Albanian Road Authority, the responsible body for carrying out all the tender procedures to assign performance-based contractors. The annual disbursed budget corresponds to the respective allocated budget and quoting Albanian Road Authority this is due to the fact that the budget is planned based on the real maintenance needs. The budget is allocated for the entire national road network and based on the data provided for yearly maintenance contracts with private contractors, road maintenance unit rate in Albania is in the vicinity of 4,600 Euro/km. According to the maintenance strategy it was identified that periodic maintenance expenditures and funds needed to fully eliminate the periodic maintenance backlog during the period amount to EUR 230 million, about 54 percent is allocated to the primary roads. Under this scenario the average network roughness will decrease from the current 5.5 IRI to 2.2 IRI in 2019, yielding a NPV of EUR 4,453 million. Maintenance Budget (in EURO) ALBANIA 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,817,216 7,332,866 8,777,460 7,093,903 5,776,118 4,670,

29 4.2. Bosnia and HerZegovina The total budget allocated for the maintenance of the road network, including rehabilitation works, has varied during the period During there was a budget decrease of approx. 50% in comparison to 2011 budget and it should be noticed that in 2016 there is a decrease of approx. 20% compared with the previous year. Maintenance budget is structured into different budget lines including rehabilitation, routine and periodic maintenance, structure maintenance and emergency works. The data show evidence of the changes in the budget lines, the major share being shifted from the rehabilitation and routine maintenance towards routine and periodic maintenance. This can be explained also by the completion of many projects on the main corridors and routes of the road network and the continuation of the maintenance works to preserve road assets in their best condition through routine and periodic maintenance. It is interesting to notice the difference between the planned budget for the maintenance and its disbursement on the yearly basis. The trend is that budget disbursement, with the exception of 2011, ranges between 60% and 80% of the planned budget. The source of funding the road maintenance comes from the Government taxes and tolls collected by the public companies in charge of carrying out maintenance works. According to World Bank data, Federation of Bosnia and Herzegovina financing gap for road maintenance is around Euro 9.5 million, or 24 percent equivalent of the network financing requirement to maintain the network. Maintenance Budget (in EURO) BOSNIA AND HERZEGOVINA 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 58,586,743 60,558,265 43,492,991 39,552,510 50,457,650 40,427,453 10,000,

30 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 Maintenance Budget LINES (in EURO) BOSNIA AND HERZEGOVINA Rehabilitation Routine maintenance Periodic Maintenance Emergency works Structure Maintenance Budget (in EURO) Planned/Disbursed planned disbursed 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,

31 4.3. The former Yugoslav Republic of Macedonia The budget allocated for the road maintenance has been more or less stable. It does shows a slight decline of approx. 15% in the maintenance budget from 2011 to 2015, but on the other hand there is a slight increase from 2015 to 2016 allocated budget. As per the projections of PESR s Annual Program, the first two sources of revenues for PESR will continue to be: (i) no less than 20 percent of the excise tax on oil derivatives to be transferred from the State Budget at least on a quarterly basis, and (ii) motorway tolls. However, World Bank has reported that PESR acknowledges that there is a gap, especially with regard to periodic maintenance, which varies between 15 and 20% of vis-a-vis actual spending. The maintenance budget is not divided as per Routine, Periodic and Emergency Works. It is a single budget allocated to the Public Enterprise of State Roads, the body authorised to sign yearly contracts with the other public enterprise Makedonijapat, which is based on the approved Annual Programme. The yearly disbursed budget corresponds to the respective allocated budget. The budget is allocated for the entire national road network (approx. 4,000 km) and based on the data provided for the contract with Makedonijapat, road maintenance unit rate in the former Yugoslav Republic of Macedonia is approx. of 3,800 Euro/km. Maintenance Budget (in EURO) THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, ,772,358 14,341,463 13,560,976 13,260,163 12,910,570 12,910,

32 4.4. Montenegro Based on the data provided by the World Bank on the maintenance expenditure for the period , it is clearly shown that between 2009 and 2013 annual expenditures for road rehabilitation, periodic maintenance and regular maintenance, were about one third higher than the average for the period. This is in line with the 2008 National Road Development and Maintenance Strategy that envisioned a substantial increase in maintenance expenditure for the period up to Also, expenditures for regular maintenance were more or less stable between 2006 and 2013 in large part due to the contracting out of regular maintenance activities using a multi-year contract. Annual fluctuations can be explained by yearly variations in the winter weather and subsequent maintenance requirements. However, overall preservation needs of Montenegro s road network total to around 40 million Euro per year, to address backlog (Euro 20 million), periodic maintenance (Euro 9.5 million) and routine maintenance (Euro 9.4 million). The data were provided for the maintenance budget allocated for the Comprehensive Network. The maintenance expenditures for the SEETO Comprehensive Network follow the same trend as the national and regional road network maintenance budget with a steady increase from 2013 to The decrease in the maintenance budget for the SEETO Comprehensive Network in 2015 can be explained by the construction programme of the Montenegro Government in the main sections of this network. Budget allocated for the maintenance of SEETO Comprehensive Network counts for approx % of the total allocated maintenance budget for the entire national network. The sources of financing are mainly the central Government budget, Sozina tunnel tolls and road tax. Average maintenance cost per km in Montenegro are approximately 5,000 Euro/km. Maintenance Budget LINES (in EURO) MONTENEGRO Rehabilitation Routine maintenance Periodic Maintenance 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,

33 Maintenance Budget (SEETO Network) MONTENEGRO 7,000,000 6,000,000 5,000,000 6,438,455 4,000,000 3,000,000 2,000,000 4,579,906 3,843,675 4,451,372 4,876,796 1,000, Serbia Generally, the budget allocated for the road maintenance has been more or less stable in the last five years, with a drop in This decrease in the maintenance budget is linked with almost 40% decrease in the road length to be maintained by Public Enterprise Roads of Serbia (PERS). The jurisdiction on maintaining public roads has changed over time, with PERS being as well the manager to local municipalities roads. But, since this has been changed in the following year, it is reflected in the budget allocated for the maintenance, too. Maintenance Budget (in EURO) SERBIA 160,000, ,000, ,000, ,000,000 80,000,000 60,000, ,826, ,214, ,418, ,299, ,693, ,100,000 40,000,000 20,000,

34 Financing of construction and reconstruction, maintenance and protection of public roads is provided from: Fee for using state roads - toll Financial loans Budget of the Republic of Serbia Other sources pursuant to the Law According to World Bank Serbia s Transport Strategy and Master Plan envisage a billion investment in maintenance and rehabilitation between 2009 and 2027, and about 5,000 km (slightly over 50 percent of the entire State Road Network) have been identified as high priority; financial support from several IFIs is being provided to implement the rehabilitation works. Annual routine and periodic road maintenance allocations for the last five years ( ) average to Euro 135 million, while the estimated annual needs are at the range of Euro 280 million, without taking into account initial investments for rehabilitation and backlog maintenance of Euro 400 million. The maintenance budget is divided in three lines, routine, periodic and emergency maintenance, with almost 70 80% allocated to routine maintenance. The graph below provides a detailed overview of the budget allocated for each road maintenance budget line. Maintenance Budget LINES (in EURO) SERBIA Routine maintenance Periodic Maintenance Emergency works 140,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, With regard to the road maintenance budget disbursed during the year, Serbia presents a specific situation as the disbursed budget in most of the years was higher than the maintenance budget allocated, but this trend is diminishing year after year. 34

35 Maintenance Budget (in EURO) Planned/Disbursed planned disbursed 180,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, This can be explained by the fact that the business plan of the Public Enterprise Roads of Serbia was revised during a year leading to further reduction of the amount originally planned for the road maintenance activities. Furthermore, the maintenance budget disbursed (in mil. Euro) refers to maintenance works implemented but not paid for in that same year, that is, they were transferred as a financial obligation into the next year. The budget is allocated for the entire national road network (approx. 15,000km) and based on the data provided, road maintenance unit cost in Serbia is approx. 10,000 Euro/km. 35

36 4.6. Kosovo The total budget allocated for road maintenance has more than doubled from 2011 to the planned budget for 2016, from 8 million Euro in 2011 to 19.6 million Euro in 2016, due to inclusion of rehabilitation funds into the maintenance budget. In such case, it is interesting to understand the variation in the different maintenance budget lines. In the years 2011 and 2012, the budget was dedicated to routine maintenance only. From 2013 on, there is a new maintenance budget line, structure maintenance, mainly due to completion of works on Route 7 and its respective maintenance programme, but in 2016 more than half of the budget has been allocated for rehabilitation and only 4% of the total budget for the maintenance of the structures. There is no periodic maintenance budget line and the periodic maintenance budget has significantly declined in 2016 in favor of the rehabilitation funds. The graph below shows in details the trend of the different maintenance budget lines. The entire budget allocated for road maintenance was disbursed within the time period. Kosovo reported that the average price in Euro per km of maintained road (routine maintenance and major stratification of asphalt) is 3500 Euro/km and 1500 Euro/km for winter maintenance. Rehabilitation of roads includes: new pavement wearing course, rehabilitation of bridges, retaining walls, rehabilitation of embankments, canals, culverts, placement of signage, etc. Unit rate is 90, ,000 Euro/km. Maintenance Budget (in EURO) KOSOVO 25,000,000 20,000,000 15,000,000 19,624,876 10,000,000 12,780,000 13,300,000 15,540,000 5,000, ,000,000 8,000,

37 25,000,000 Maintenance Budget (in EURO) KOSOVO Rehabilitation Routine maintenance Stucture Maintenance 20,000,000 15,000,000 10,000,000 5,000, Main findings Overall, budget allocation for road maintenance in all regional participant was kept more or less stable, with occasional fluctuations, but generally there is an increasing awareness of the necessity to allocate the budget for the maintenance of the road network. The chart below shows a slight decrease in the maintenance budgets in 2013 and 2014, followed by an increase of almost 20% from 2014 to In the past years, the maintenance budget share in the total of investments in road infrastructure ranged between 30 and 40%. Maintenance Budget (SEETO Network) 300,000, ,000, ,000, ,000, ,361, ,384, ,285, ,809, ,605, ,000, ,000,

38 Bosnia and Herzegovina, Serbia and Kosovo have their maintenance budget structured into budget lines such as routine, periodic, urgent and rehabilitation. The other regional participants have reported that the budget allocated from the central government comes as a total and then it is the responsibility of the road authorities/public enterprises to distribute it according to the needs. It would be useful to structure it accordingly as it would enable better needs assessment and monitoring of the maintenance budget. With the exception of Serbia and Bosnia and Herzegovina, all other regional participants have reported that the allocated budget is the same as the disbursed budget for the maintenance. Regarding the maintenance cost per km, it varies from 3,000 4,000 /km, with the exception of Serbia where it is around 10,000 /km. There is no difference in the cost/km in the participants regardless of who carries out the maintenance works, private contractors or state owned public enterprises. In the Final Study of The Regional Balkans Infrastructure Study Update (REBIS) annual unit cost of regular maintenance is estimated at 10,000 /km and unit cost of rehabilitation at 300,000 /km. As we do not have data on the rehabilitation cost, this was not included in the analysis. Altogether, for those regional participants that do not have yet toll roads the main source of funding for the road maintenance remains the central government through their tax regime system, as in case of Albania, Kosovo* and Montenegro, while in the countries with road toll system already in place like Serbia, Bosnia and Herzegovina and the former Yugoslav Republic of Macedonia, the maintenance budget includes the income collected from toll roads. 38

39 Overview of Road Maintenance in Western Balkans 6 5. Conclusions and recommendations 39