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Road Funds

Relying solely on government budgets for financing road maintenance nearly always leads to roads being under-funded. As a consequence, road assets are eroded, vehicle operating costs increase and the country builds up a large backlog of rehabilitation work. To overcome this problem, a new generation of Road Funds were developed in the mid-1990s, based on the fee-for-service concept, meaning that road users pay explicitly for roads (mainly through fuel levies), the funds are managed through an independent Road Fund Administration and the arrangements are designed to ensure that funds are not abstracted from other sectors.

Read more in the gTKP Finance & Economics Topic Information Sheet on Road Funds.

Key Documents:

Key presentations:

  • Heggie, I., Managing a modern Road Fund, 15 Years of Lessons Learned, presented during Module 1 Road Finance and Road Fund Management, Senior Road Executive Course, International Road Federation/University of Birmingham, 2009.
  • Ugandan Road Fund Task Force Secretariat, Principles of a Road Fund, 2007. This is an extensive presentation about the preparations of setting up a Road Fund in Uganda, addressing institutional aspects, pros and cons, when to implement, lternatives etc.