Released: July 2017

Introduction
In June 2017, a Concept Note 2 outlined the Public Works Department’s (PWD’s) intended transition to a more performance-focused organisation – a network manager – that relies largely on outsourcing to meet targets for the serviceability of the whole network. The Note found that maintenance by force account (FA) was significantly more expensive than by contractor, reinforcing the justification for PWD’s continuing shift towards an outsourced model. The transition to a network manager will require a further shift from delivering individual projects to delivering a network that meets broader priorities like those in the Rural Roads Access Policy (RRAP), with performance risk transferred to those best able to manage it. The Note recommended a redeployment of FA resources to concentrate only on areas where private-sector capability does not yet exist or competition is limited; the trial introduction of a new agreement making contractors, rather than PWD, responsible for involving and managing community labour (community participation is a strong feature of the RRAP) and incorporating performance incentives; the preparation and procurement of a pilot, multi-year, performance-based maintenance contract (PBMC) to test and demonstrate the model’s suitability for PWD as network manager; and the development and operation of a road network asset management system (RAMS), including associated survey procedures, with committed, long-term donor support guaranteeing the quality and functionality of the system until PWD is able to manage this itself.

Transitioning PWD to a More Effective Road Network Manager | Implementation Plan