Cutting the cost of road maintenance and improving road conditions are the main reasons why several Latin American countries have started to look for new ways of contracting out road maintenance. With technical assistance from the International Road Federation and German Aid, Colombia, Brazil, Guatemala, Peru and Uruguay have initiated so called Performance Specified Road Maintenance Contracts on a pilot basis. In addition, Argentina and Chile have let several such contracts recently. In this scheme the Road Authority serves as the owner, but out-sources both the management and production of the maintenance work to a single contractor. Most of these contracts have been operating for more than a year and cover routine maintenance and, in some cases, periodic maintenance and road rehabilitation as well. Extension of the road network, road surfaces and conditions, and the time period vary in each pilot project and will provide a wide basis for evaluation and improvements. This article provides an overview of the different pilot projects, giving special attention to the performance specifications and control procedures, how these contracts have been implemented, and what lessons can be learned so far.
Dr. Gunter J. ZIETLOW and Alberto BULL
Financial and Institutional Reform of Road Conservation in Latin America and the Caribbean
Finances & Economics
Latin America and Caribbean (LAC)