CAREC-UZB-Road Sector Management System - Final Report_Eng_issued

Republican Road Fund under the Ministry of Finance

Republic of Uzbekistan

CAREC Regional Road Project

Road Sector Planning and Management System

Final Report Version 1

August 2010

In association with

Egis Bceom International Document quality information

Road Sector Planning and Management System Final Report

Version 1

Document quality information

General information

Author(s) Spernol, Butler, Worthington, Zachara, Joubert, Sims

Project name Road Sector Planning and Management System

Document name Final Report

Date August 2010

Reference Final Report_Eng_final changes with RF comments-for issue.doc

Addressee(s)

Sent to:

Name Organisation Sent on (date):

J. Shukurov Republican Road Fund 25/08/2010

Copy to:

Name Organisation Sent on (date):

R. Nadryshin ADB Tashkent 25/08/2010

S. Khan / O. Norojono ADB Manila 25/08/2010

History of modifications

Version Date Written by Approved and signed by:

Egis Bceom International Table of Contents


Version 1

Table of Contents

Executive Summary ................................. .................................................. 10

Chapter 1 - Introduction .......................... .................................................. 11

Chapter 2 - Project Management .................... .......................................... 12

1. Organisation of the Project ....................... ..........................................12 1.1. Staffing ......................................................................................................... 12 1.2. Provisional sums .......................................................................................... 13 1.3. Work Plan – Outstanding activities .............................................................. 13

2. Contract Management Issues ........................ .....................................13 2.1. HDM Training in UK ..................................................................................... 14 2.2. Roughometer repair ..................................................................................... 14

Chapter 3 - Assess Road Fund financing system ..... .............................. 15

1. Analysis of asset management systems .............. .............................15 1.1. The Road Fund accounting standards and practices .................................. 15 1.2. Road infrastructure as a financial asset ....................................................... 15 1.3. Budgets and forecasts ................................................................................. 17 1.4. Physical controls .......................................................................................... 18

2. Analysis of possible road user charges or tolls ... ............................18

3. Road maintenance strategy and proposals for funding plan ...........22

4. Analysis of the possibility for Public-Private Part nerships (PPP) ...24 4.1. Introduction .................................................................................................. 24 4.2. Creation of a new legislative framework for PPPs in Uzbekistan - Initial

steps ............................................................................................................. 24 4.3. Creation of a PPP Taskforce ....................................................................... 26

Chapter 4 - Assess institutional framework ........ .................................... 29

1. Introduction ...................................... ...................................................29

2. Issues and Options ................................ .............................................29 2.1. General Approach, Rationale and Methodology .......................................... 29 2.2. The Generally Accepted Phasing of Reforms in the Road Sector for

Modernisation Programmes- privatisation of the client and producer functions and organisations ......................................................................... 31

2.3. Infrastructure Development and Maintenance – Considering it as a Business with Assets ................................................................................... 32

2.4. Preliminary issue: Road Ownership ............................................................. 33 2.5. Issue 1: The need for a Road Asset Management System ........................ 34 2.6. The Institutional Structures for Managing a Modern Road Assets System . 34 2.7. Issue 2: The Need for a Road Agency? ....................................................... 35 2.8. Issue 3: As an Adjunct to the need for a Road Agency - The Need for a

Ministry of Transport? .................................................................................. 36 2.9. Issue 4: Overall responsibility of transport policy ......................................... 37 2.10. Issue 5: The Role of the Road Fund in the Future Road Sector

Management Structure ................................................................................ 38 2.11. Issue 6: Strengthening the Road Fund’s Capacity to Plan Road

Sector Programmes ..................................................................................... 38 2.12. Issue 7: Strengthening of the Road Fund’s role and functions .......... 39



Version 1

2.13. Issue 8: A Planning and Database Management Capability for the Road Fund ................................................................................................... 40

3. Institutional Development strategy ................ ....................................42 3.1. Strengthening the Road Funds role in Road Sector Administration ............ 42 3.2. Introducing Road Asset Management and Performance Auditing Systems 43 3.3. Creating an Uzbekistan Road Authority ....................................................... 44 3.4. Adoption and Operation of a Road Asset Management Plan and System .. 44 3.5. Creating a Transport Resource Group......................................................... 45 3.6. Establish a Committee for Transport (or Transport Secretary) in the

Cabinet of Ministers. .................................................................................... 46

4. Ways to move forward without important institutiona l changes .....46 4.1. Immediacy of Reform – Early Change Actions ............................................ 46 4.2. Required changes ........................................................................................ 47

5. Example of a First Step towards Commercializing and Outsourcing Maintenance ........................... ........................................49 5.1. Appointing Supervision Consultants for Annual Maintenance and Repair

Works ........................................................................................................... 49 5.2. The Objectives for Privatising Maintenance Management .......................... 50

Chapter 5 - Introduce computerized road planning & management using HDM-4 ....................................... ................................... 51

1. Purchase of HDM and Roughometer.................... ..............................51

2. Calibration ....................................... ....................................................51 2.1. Road User Effects Calibration ...................................................................... 51 2.2. Road Deterioration ....................................................................................... 52 2.3. Roughness ................................................................................................... 53 2.4. HDM-4 configuration .................................................................................... 54

3. Training .......................................... ......................................................54

4. Network Analysis .................................. ..............................................54 4.1. Long term optimum first approach ............................................................... 54 4.2. Budget Analysis ........................................................................................... 55 4.3. Conclusion ................................................................................................... 59

5. Programme Analysis ................................ ...........................................59

6. Project Analysis .................................. ................................................61 6.1. Project 1, A-380, 916 – 1204 ....................................................................... 62 6.2. Project 2, M-39, 1330 – 1451 ....................................................................... 62 6.3. Project 3, A-380, 228 – 315 ......................................................................... 62 6.4. Project 4, A-373, 116 - 195 .......................................................................... 63 6.5. Conclusions .................................................................................................. 64

Chapter 6 - Data base ............................. ................................................... 65

1. Importance of a Data Base ......................... .........................................65

2. System Overview ................................... ..............................................66

3. Specifications .................................... ..................................................68

4. User Manual ....................................... ..................................................69

5. Future Steps ...................................... ..................................................69



Version 1

Chapter 7 - Pilot data collection ................. .............................................. 70

1. Pilot sections .................................... ...................................................70 1.1. Approved programme .................................................................................. 70

2. Traffic counts, O/D and traffic data collection ... ................................71 2.1. Traffic counts ................................................................................................ 71 2.2. Origin Destination Surveys .......................................................................... 74 2.3. Traffic data collection ................................................................................... 76

3. Visual Condition Survey ........................... ..........................................78 3.1. Introduction .................................................................................................. 78 3.2. Pilot Network Road Visual Condition Analysis ............................................. 79

4. Roughness survey .................................. ............................................85 4.1. General ........................................................................................................ 85 4.2. Roughness Data Analysis ............................................................................ 85

5. Deflection Survey ................................. ...............................................87

6. Axle Loads ........................................ ...................................................88 6.1. Importance of Axle Loading ......................................................................... 88 6.2. Survey results .............................................................................................. 89

Chapter 8 - Training .............................. ..................................................... 91

1. Training Seminars and Workshops in Tashkent ....... ........................91 1.1. Technical seminars ...................................................................................... 91 1.2. Institutional workshop................................................................................... 92 1.3. Working meeting with private sector delegates ........................................... 93

2. HDM-training ...................................... ..................................................93 2.1. In house HDM-4 seminar ............................................................................. 93 2.2. HDM-Training course in TRL ....................................................................... 95 2.3. Final database and HDM-4 training ............................................................. 96

3. Study Tour to France and Germany .................. .................................99 3.1. Introduction .................................................................................................. 99

Chapter 9 - Long-term programme for implementation of databases countrywide ....................................... .................................. 101

1. Introduction ...................................... ................................................. 101

2. National Survey Programme ......................... .................................... 101 2.1. General ...................................................................................................... 101 2.2. Initial Data Collection Survey ..................................................................... 102 2.3. Subsequent Annual Surveys ...................................................................... 105

3. Routine Maintenance Management System ............. ....................... 106 3.1. PMS and RMMS System ........................................................................... 107 3.2. Other Computerised Systems .................................................................... 109 3.3. Intelligent Transport Systems (ITS) ........................................................... 110 3.4. Other Systems ........................................................................................... 110

4. Proposed timeframe for implementation ............. ............................ 111

Chapter 10 - Conclusions .......................... .............................................. 112

1. Consultants main findings ......................... ....................................... 112



Version 1

2. Improving the technical standards of the road secto r .................... 113 2.1. Attitudes and Expectations ........................................................................ 113 2.2. Road Maintenance and Repairs ................................................................ 113 2.3. Maintenance Adequacy Perceptions ......................................................... 113 2.4. Possibility for introduction of New Technologies/Methods......................... 114

3. Road sector in the future ......................... ......................................... 115

Appendix A

Flow chart for introduction of supervision contrac ts

Example TOR for supervision consultants

Appendix B

Comments from Road Fund on Draft Final Report and A nswers ........ 126

Additional Volumes

Appendix A – General and Financial matters

Appendix A1 – Work Plan and Staffing plan

Appendix A2 – Reports & Working Papers Issued

Appendix A3 – Financial Working Paper

Appendix A4 – PPP general practice

Appendix A5 - Sample Structure of a PPP Law

Appendix A6 – Financial Model for testing potential of PPP projects

Appendix A7 – Study Tour to Europe

Appendix B1 – Institutional Development Strategy

Appendix B2 – Road Sector Institutions – Issues and Options

Appendix C – Maintenance Strategy and Funding Plan (including annexes on HDM-Calibration)

Appendix D – Maintenance management

Appendix E – Condition Survey Data

Appendix F – Maintenance treatments

Appendix G – Traffic Report

Appendix H1 – RMS Data Base User Manual

Appendix H2 – RMS Data Base Technical Specifications

Appendix I – Programme and Project Analysis



Version 1

Tables and Figures

Table 1 : The Consultant Team - TOR ........................................................................................ 12

Table 2 : The Consultant Team – Progress at submittal of Final Report .................................... 12

Table 3 : Past and projected road fund receipts (Bill. UZS) ........................................................ 19

Table 4 : Benchmark International Fuel Excise Duties ............................................................... 20

Table 5 : Hypothetical potential revenue from a fuel excise tax credit to the Road Fund .......... 22

Table 6 : Simulated user-pays road fund receipts ...................................................................... 23

Table 7 : Analysis of the Uzbek and Russian Law on concessions ............................................ 25

Table 8 : Major Activities and Time frame for the PPP Taskforce .............................................. 28

Table 9 : Annual forecasted periodic maintenance expenditures, 2011-2030 ............................ 57

Table 10 : Increase in Road User costs due to budget constraints ............................................ 58

Table 11 : Economic Analysis results for project A-380, km 916- 1204 ..................................... 62

Table 12 : Economic Indicators for project A-380, km 228 - 315 ................................................ 63

Table 13 : Economic Indicators for Project on A-373, km 116 - 195 .......................................... 63

Table 14: Approved list of Trial Sections .................................................................................... 70

Table 15: Detailed Traffic Survey Locations ............................................................................... 71

Table 16: Results of Manual Classified Traffic Count Surveys ................................................... 73

Table 17: Estimates of Annual Average Daily Traffic 2009 ........................................................ 73

Table 18: Number of Interviews and Sample Size for Each OD Site ......................................... 75

Table 19: International Traffic Movements for Each OD Site ..................................................... 75

Table 20: Proportion of International Traffic Movements by Vehicle .......................................... 76

Table 21 : Typical proportions of vehicles on republican roads .................................................. 77

Table 22 : Summary of Crack Intensity for Surveyed Roads ...................................................... 80

Table 23: Summary of Pothole Intensity (number of Potholes/km) for Surveyed Roads ........... 81

Table 24 : Summary of Analysis for Crack and Pothole Development ....................................... 83

Table 25 : Average Roughness Indexes on the Surveyed Roads .............................................. 85

Table 26 : Summary of Roughness Distribution on the Surveyed Roads .................................. 86

Table 27 – Recommended Standard Axle Loads for Different Axle Configurations ................... 88

Table 28 – Summary of Final Loading Inputs to HDM-4 for the Fleet in Uzbekistan.................. 89

Table 29 – Final Adjusted Results of the Axle Load Surveys ..................................................... 90

Table 30 : HDM-4 training course for Road Fund, summarised programme .............................. 95

Table 31 : HDM-4 training course in TRL, summarised programme .......................................... 96

Table 32: HDM-4 Model - Training session, 19 – 23 JULY 2010 - Attendance ...................... 97

Table 33 : Participants in the Study Tour .................................................................................... 99



Version 1

Table 34 : Programme of the study tour ................................................................................... 100

Table 35 : Tasks and needs for RMMS / PMS.......................................................................... 108

Table 36 : Implementation of Surveys and Databases ............................................................. 111

Figure 1 : Proportional contributions of revenue sources 19

Figure 2 : Road user taxes in the EU 21

Figure 3 : Proposed Organisation Scheme for the PPP Taskforce 27

Figure 4: Five-stage strategy for restructuring promoted by EBRD 30

Figure 5: Roughness reduction after thick overlays 53

Figure 6 : Annual budget needs to upgrade and maintain the network in optimal condition 56

Figure 7 : Evolution of Road Roughness under the “Delay” option 58

Figure 8 : Roughness evolution under 70 Mill. USD Annual budget 60

Figure 9 : Roughness evolution under 122.5 Mill. USD Annual budget 61

Figure 10 : Data base structure 67

Figure 11 : Typical Road Database user interface 68

Figure 12 : Crack Progression - Average Figures 83

Figure 13 : Crack Progression - Average + 1 Standard Deviation 84

Figure 14 : Crack Progression - Average + 1 Standard Deviation 84

Figure 15 : Distribution of the roughness values over the whole pilot sections 86

Figure 16 : Distribution of the deflection values over the asphalt concrete pilot sections 87

Egis Bceom International Acronyms


Version 1

ACRONYMS AND ABBREVIATIONS

AADT Average Annual Daily Traffic

BI Bump Integrator

CP Capital Repair

DB Data base

DBST Double Surface Treatment

DMI Distance Measuring Device

FWD Falling Weight Deflectometer

GDP Gross domestic Product

GOST State Standards of the Former Soviet Union

GPS Global Positioning System

HDM Highway Development & Management

IRI International Roughness Index

IT Information Technology

MTR Mid term repair

PIU Project Implementation Unit

PMS Pavement Management System

RF Republican Road Fund

RMS Road Management System

RMR Routine Maintenance and Repair

RPU Road Planning Unit

TOR Terms of Reference

VOC Vehicle Operating Costs

Egis Bceom International

Road Sector Planning and Management System Final Report – August 2010

Version 1

Executive Summary

The Government of Uzbekistan has received a loan (2403-UZB) from the Asian Development Bank for the development of the Regional Road Network, the provision of technical assistance, training and studies in view of continuing the improvement of the road network and its management.

The government decided to allocate part of the loan to the present consulting services for the “Road Sector Planning and Management System”. This Report is the Final Report of the assignment, being submitted 1 month after completion of the consultancy services, taking into account the beneficiary’s comments and detailing the main findings.

According to the terms of reference, the consultants investigated a large series of questions and issues, and this can only be seen as a starting point for the development of Road Asset Management in Uzbekistan.

Regarding the road financing, the Consultants reviewed the financial system of the Road Fund and the current road sector revenues. The Road Fund is operating according to international best practice, whilst reform of the revenues seemed desirable, to introduce possible road user charges it is not required. The possibilities of introducing PPP in Uzbekistan will be limited in the close future, as it would need considerable adaptation of the present legislation. Also, the simplified financial model attempted to show that only a limited number of schemes would be eligible for private investments. The maintenance strategy and funding plan showed that the revenues of the Road Fund should be sufficient to allow maintenance of all roads to a good quality level, if the resources are not used for development of the network. The financial scenarios modelled include a sufficient routine maintenance funding, and assumed that periodic maintenance will be funded, at least to the lowest budget scenario, whilst the 5-year development plan is being implemented.

On the institutional aspect, the main finding was that a Road Agency or Authority is urgently needed in Uzbekistan, to rationalise institutions and clarify responsibilities. The best candidate for a future Agency was found in Uzavtoyul, whilst the Road Fund should concentrate on its core functions and take a larger role at the policy level. To be a better road network manager, Uzavtoyul (or its successor as the “Uzbekistan Road Authority”) should be strengthened, but also dispose of its contracting activities, and rationalise its regional managers (to maintain 13 oblast) and local districts (reduce the rayon level enterprises to about 50-60). The introduction of competition in the road sector is already on its way, and little needs to be done to pace its way. The introduction of a planning unit is a more controversial subject, as it is difficult to find its place without the broad picture of reform. There is an absence of a structured road asset management system, something that would be beneficial regardless of any movements in the institutional framework. The Consultants completed the Strategy by highlighting the 5 major issues that should be addressed, even if a large sector reform is not introduced.

The Consultants however implemented HDM-4, and trained staff from the road fund and other road institutions, developed a pilot data base and collected data on a pilot network of over 4000 km to demonstrate the use of the database and HDM-4 analysis. Currently, there is no champion for this work and data that has been deposited at the Road Fund, but also with the Research laboratory of Uzavtoyul.

The training provided during the assignment and in particular the study tours were an important element to demonstrate road asset management in western countries, along with modern technologies and examples of institutional setup.



Version 1

Chapter 1 - Introduction

The Government of Uzbekistan has received a loan (2403-UZB) from the Asian Development Bank for the development of the Regional Road Network, the provision of technical assistance, training and studies in view of continuing the improvement of the road network and its management.

The government decided to allocate part of the loan to the present consulting services for the “Road Sector Planning and Management System”. The Consultant EGIS-BCEOM International (France) has been awarded the contract in May 2009 and started the technical assistance on 28th September 2009 for a total duration of 10 month.

This Report is the Final Report, being submitted 1 month after completion of the consultancy services and detailing the main findings.

Section 2 of this report summarises the project organisation, the work progress and the main contract management issues.

The following sections describe the progress in completing the tasks and the deliverables produced by the project, by the various large subjects to be covered by the TOR.

The topics have been broken down to follow the objectives of the TOR and the consultant’s methodology into the following aspects:

- Financial assessment and issues

- Institutional Development

- Implementation of HDM

- Implementation of Data base

- Pilot trials

- Training

- Future dissemination and countrywide implementation

The last section contains a summary of the conclusions and recommendations based on the final outcomes of the project during the assignment.

The report is completed by a series of technical appendices, issued as separate volumes and detailing more specifically the consultants work and results.



Version 1

Chapter 2 - Project Management

1. Organisation of the Project

1.1. Staffing

According to the terms of reference the project is a time-based contract, with international and local experts for the same activities. The provisional staffing was as follows:

Table 1 : The Consultant Team - TOR

International National

Position Total Input

(Month) Position

Total Input (Month)

Team Leader / Transport Planning Specialist

9 Team Leader / Transport Planning Specialist

10

Specialist on Transport Economics 4 Specialist on Transport Economics 8

Road Maintenance Specialist 5 Road Maintenance Specialist 8

Road Institutions Specialist 5 Road Institutions Specialist 6

HDM-4 Specialist 4 Finance Specialist 6

Financial Specialist 4 Database Specialist 8

Total 31 Total 48

At the time of writing of the report the following resources had been implemented:

Table 2 : The Consultant Team – Progress at submitt al of Final Report

International National

Position Total Input

(Month) Position

Total Input (Month)

Team Leader / Transport Planning Specialist (A. SPERNOL) 9.00

Team Leader / Transport Planning Specialist (Kashan NISHANBAEV) 9.86

Specialist on Transport Economics (John WORTHINGTON) 4.03

Specialist on Transport Economics (Shukhrat MIRKHAMIDOV) 7.99

Road Maintenance Specialist (Marian ZACHARA) 5.00

Road Maintenance Specialist (Amongaldi RAKHIMOV) 7.81

Road Institutions Specialist (Robert BUTLER) 4.57

Road Institutions Specialist (Sobir RAKHMANOV) 6.00

HDM-4 Specialist (Pierre JOUBERT) 4.00

Database Specialist (Ilkhom ISMATOV) 7.82

Financial Specialist (Mike SIMS) 2.33

Finance Specialist (Tokhirjon OTAKHONOV) 4.63

Total 28.96 Total 44.10



Version 1

The implementation of the resources was generally according to schedule, with the exception of the financial specialists (both international and local). The main reasons were that on one side, the Road Fund’s financial systems are well in place and mostly up to international best practice, and on the other hand that due to limited data availability, the scope of analysis was more limited than initially planned.

1.2. Provisional sums

The contract included for 6 items of reimbursable sums:

� Purchase of HDM-4 licenses: the licenses were purchase in 2009 and handed over to the client. � Purchase of Roughometer: the equipment was purchased, customs cleared and used for the pilot

trials. The equipment, currently under warranty is awaiting shipment to Australia for revision (see below).

� HDM Training in UK: the training was organised, but only 2 members of staff attended it to date due to Visa refusal for 2 participants (see below).

� Study tour: the study tour was organised in May/June and 8 participants of the Road Fund travelled to France and Germany.

� Pilot trials: The pilot trials were completed in April, and almost all resources allocated were used. � Procurement of equipment: after discussions with the PIU and Road Fund, the decision was taken not

to use the provisional sum for purchase of equipment.

1.3. Work Plan – Outstanding activities

The planned and realised work plan has been attached as part of Appendix A to the last monthly report.

The progress at the time of writing the report is shown on the related diagrams and charts.

Globally, the project objectives have been filled, the implementation was on time and all activities have been completed. � During the last project period, the few outstanding activities have been finalised: The institutional

aspects have been updated and the institutional development strategy completed, taking into account additional discussions and meetings that took place in July.

� The programme and project analysis has been completed. � The training related to the database and the use of the data with HDM took place in the 3rd week of

July, when the database systems had been completely developed and tested, and user manuals were available.

2. Contract Management Issues An appendix to the contract was signed and registered in 2009, covering the replacement of the HDM expert in the proposal (Akli Ourad) by the currently appointed expert Pierre Joubert. The consultants submitted 2 other requests for adjustments of time and budgets, but they were refused by the PIU due to the lengthily administrative process to put them into practice.

During May 2010, two specific issue regarding contract management appeared.



Version 1

2.1. HDM Training in UK

The planned HDM-4 training course in UK was carried out from 17th to 21rst of April, but only 2 of the 4 delegated participants could obtain UK Visa. There was no obvious reason for the 2 other participants not to obtain this visa, but the refusal stopped them from attending the training course.

Accordingly, the consultants cancelled the bookings; however the fee was already paid for the whole group to TRL.

The decision was that the 2 participants would re-apply for a visa and attend the next training course to be organised by TRL.

During July, the contract management issue linked to the planned HDM-4 training course in UK was decided.

Whilst the 2 participants that had no entry clearance to UK have now obtained a visa to attend the next training course to be organised by TRL, it appeared that to be reimbursed of this training, the contract should be prolonged, which the PIU was not willing to accept.

However, only half of the tuition fee was accepted for payment by PIU and ADB.

Also, TRL informed the Consultants that the planned training session for autumn had been cancelled and was postponed till 2011.

Therefore the trip to UK was finally cancelled.

2.2. Roughometer repair

The Roughometer was installed on a vehicle appointed by the consultants (Daewoo Nexia) and the accelerometer fixed to the right rear axle.

During the survey, unfortunately, some data was lost on the last sections, as the Roughometer accelerometer did not give correct responses. This could be due to the bad road conditions and accelerated wear of the equipment, or connectivity issues.

Following the defects, the Consultants contacted ARRB regarding the origin of defect, and ARRB suggested sending the equipment for repair, as part of the warranty. However, being Road Fund property, the Road Fund needed to sign the appropriate documents for a “temporary export” of the defect parts. This procedure is required to allow future re-import without additional delays in customs clearance.

At the time of writing of the final report, the Roughometer had been successfully repairs by ARRB and has been shipped back to Tashkent, where it was (again) waiting for customs clearance.



Version 1

Chapter 3 - Assess Road Fund financing system

1. Analysis of asset management systems

1.1. The Road Fund accounting standards and practices

The RF uses National Standard Accounting rules of which 22 are applicable in their case (NCBY 1 to 22). The financial accounting year is 1st January to 31st December. The annual accounts comprise a balance sheet, income statement, and annexes. Although the revenues and expenditures of the RF are considerable, their balance sheet carries a relatively small amount of assets (computers, office equipment, etc). These are depreciated conventionally, according to the accounting standards. Assets are inventoried annually.

The RF is subject to the state budget. It does not engage in any for-profit commercial activities. For its revenues, RF rates of taxation are promulgated annually by Presidential Resolution (№ PP-1245 “On forecast of the basic macroeconomic indicators and parameters of the State Budget of the Republic of Uzbekistan for the year 2010” dated from 22.12.2009 for the current year 2010). This document also includes a summary forecast of the total revenues and expenditures of the Fund. These are adjusted during the course of the year in accordance with actual tax receipts and expenditures.

Revenue collection is carried out on behalf of the RF by the Tax Committee (taxes), the Customs Committee (transit fees) and the Ministry of the Internal Affairs (vehicle registration fees) on a monthly basis.

Accounting reports are submitted to the RF Board of Directors and to the MOF monthly and annually. The annual report is audited.

1.2. Road infrastructure as a financial asset

The national road infrastructure is entered on the financial balance sheet of Uzavtoyul. In principle Uzavtoyul is subject to the same accounting standards as the RF. In practice the valuation of such an enormous and geographically dispersed asset is difficult to standardise.

The value of works carried out on a section of road is added to its asset value. Hence funds pass from the RF to a contractor (which may be a wholly owned entity of Uzavtoyul) and the contract amount at year end is added to the Uzavtoyul road infrastructure balance sheet. A compensating notice passes from Uzavtoyul back to the RF.

Uzavtoyul holds and maintains a comprehensive balance sheet for Uzbekistan’s public road network assets. The value of works carried out on a section of road is therefore added to that section’s asset value in the balance sheet. At the conclusion of works or at an important milestone within a project a notification passes from the RF to Uzavtoyul comprising the confirmation documents for the amount expended and including a breakdown of costs of the work carried out. Hence funds pass from the RF to a contractor (which may be a wholly owned entity of Uzavtoyul) and the contract amount at year end is added to the road infrastructure balance sheet held or managed by Uzavtoyul. Routine maintenance is accounted for as an operational expense and not added to the balance sheet value.

The initial valuation carried on the balance sheet is based on that of 2002, up until which time a normative depreciation and amortization (D&A) procedure was applied. Since 2002 the D&A has been suspended, following a lack of consensus between the Ministry of Finance and Uzavtoyul concerning the procedure.



Version 1

Inevitably, there are ambiguities concerning a normative approach to such a valuation. Several unpredictable variables would impact on the values held in balance, including climate variations from year to year and decade to decade, traffic intensity and composition, the level and effectiveness of routine maintenance, inflation adjustments relative to the carrying cost and the cost of the particular resources consumed by each intervention on the road. There is no recognized international methodology for such a valuation. For these reasons, the “value” of the road is more usefully defined by technical examination and expertise, and in the format required for economic optimum allocation of funds for maintenance and improvement.

One may then ask to what ends the valuation will be applied? Internationally, studies on which road maintenance and construction investment decisions are made sometimes project a useful asset life of, for example, 40 years for a road and 80 years for major bridges, excluding real estate costs. A residual value is then derived for the end of the study period on a straight-line depreciation basis (for example, for a study period covering 20 years of operation, 50% of a road construction cost may be assumed to remain and 75% of that of the major bridges). However, this residual value is approximate, is not normative, and is not always utilised1.

A further utilisation of asset value can apply when custodianship of a road passes into a concession or falls under a maintenance performance contract and is later returned to the state. However, the technical description of the asset when it changes custodianship (for example, superficial and structural characteristics, determined by tests) would decide the financial value, or the addition or the subtraction from such, not vice-versa.

Internationally, a key valuation for road asset management decisions by section or by network is their Net Present Value (NPV), which is a discounted valuation including future maintenance and sometimes user operating costs. The HDM4 methodology which can include NPV assessment is to be explained as part of the present technical assistance. It can be tuned to target and to reveal actions necessary to achieve a fairly constant road asset value2, in utility terms, indefinitely. For accounting purposes, the present balance sheet valuation used in Uzbekistan may have a retrospective usefulness, in archiving the expenditure records for financial control purposes. In terms of dynamic road asset management, a forward looking methodology using technical inspection and analysis is preferable. The results could if wished be translated into accounting valuation scenarios or alternative action plans, illustrating the value lost over time on a road section or network under different management options.

Uzavtoyul3 is autonomously financed and not supported directly by the state budget, although a significant part of its revenues are provided by the RF. Holding the road infrastructure on the balance sheet of Uzavtoyul is incongruous with its autonomous budgetary status, and with its diversity of activities. The latter include a wide range of road infrastructure management functions on behalf of the state, and the ownership and direction of multiple works contracting subsidiaries. As it is financially autonomous, its activities must also be commercial. Many of Uzavtoyul’s functions could be, and elsewhere in the world are, performed by the private sector on a commercial basis.

1 After discounting at 12% over a period of 20 years the present value of an asset is only about 1/10 of the future value. Hence whatever predictive powers are used to derive them, and their consequent numerical precision, residual values are not heavily weighted in an investment project or budgeting program analysis, relative to the comparatively easily calculated and immediately payable construction cost.

2 Or for example an improved and stabilised situation....The menu of targets to choose from is wide.

3 Uzavtoyul is a State Joint Stock Company. 100% of its shares are held by the state, and are not subject to sale or to alienation to third parties in whole or in part.



Version 1

The preservation of a very long term asset such as a national road network is a public service duty. Commercial motivations are shorter term, and lead to different decisions concerning asset preservation. A commercial contracting organisation is concerned with higher revenues, for example through a more intense annual renewal rate of the asset and new construction. Public interest encompasses the preservation of the asset at minimum annual cost, which is a different objective. To have a clearer division of objectives, public and commercial, it would appear preferable for the road infrastructure assets to be held on the balance sheet of a state budget entity with a purely public service objective, and absence of commercial motivations.

However, the fact that the road balance sheet is held and maintained by Uzavtoyul does not seem to signify ownership4 of the asset. According to the law On Roads, ownership of public roads is vested in the state, though by which branch of the state remains unspecified. The incongruity of Uzavtoyul holding the roads balance sheet could be solved in several ways. One would be to split that particular Uzavtoyul role from its contracting companies, or vice-versa. This issue along with the broader institutional questions for national road sector management are dealt with in Section 3 et seq. of this report.

1.3. Budgets and forecasts

The overall roads sector development strategy is expressed in multi-annual plans (typically five years) which are established at the highest government levels. This sets priorities for annual expenditures, which also are summarised in the annual Presidential Resolutions along with the revenue projections. The forecast end-of-year surplus is always zero.

Formulation of the following year’s works and financing plan, prepared by the Road Fund, commences in May, in collaboration with Uzavtoyul and subject also to requests from regional authorities. The proposal is submitted to the MOF (1st July) who, when it is approved, would submit it to the COM (15th September) for eventual Presidential approval and promulgation in December.

Forecasts of receipts are based on the previous year adjusted for growth of the economy, proposed changes in tax rates, and any other particular economic circumstances judged pertinent.

The RF maintains a rolling three year provisional forecast of receipts and expenditures including the current year which is the most detailed. The latter comprises forecasts for revenues and expenditures by month for each project planned or underway, and for each contract within that project. A number of expenditure commitments would typically be involved in each project including for example a works contractor, professional service providers, utility companies, land owners and others.

Forecasts and journals are updated monthly according to actual results (for expenditures, by the 5th day of each month for the preceding month).

Receipts are credited daily to RF accounts. In the case of the taxes on enterprises, these must be paid by 25th of each month. Payments for vehicle registrations and vehicle cross-border entries and transit are credited to the RF daily, following the collection of payments at registration centres and borders.

The accounts are regularly adjusted during the course of the year to take to correspond with actual receipts and expenditures. Variations from forecasts are recorded. Monthly reports to the MOF and COM include explanations for the variations.

Credits (loan draw down’s) for the present ADB “Regional Roads Development” project are credited to the RF account and disbursements are treated in the same way as others.

Budgets include provision for the RF administrative expenses, for contingencies such as emergency interventions (floods etc) as well as for contributions to particular events that might arise (national or local

4 See Eligibility of State Owned Enterprises for Participation in ADB-Financed Projects, TA-7053, 2008



Version 1

celebrations etc). Surplus funds are deposited in interest bearing accounts. They may be in local or foreign currencies. End-of-year surplus amounts are carried forward to the following year.

In the history of the Road Fund it has always finished the year with a surplus. In any month, there has never been a deficit of funds to cover short term commitments. The RF recognises that such a situation could occur. In that event, it would require support from the state budget. There is no mechanism in place nor planned for short term bank credit.

1.4. Physical controls

The RF has no permanent establishment outside of its head office. Data from work sites is furnished mostly by its field staff, the contracted professional service providers, and other entities that may be involved. At the completion of contracts control of physical outputs is carried out firstly by a technical works committee, and finally by a state committee.

2. Analysis of possible road user charges or tolls The project has prepared and issued a Working Paper detailing the generally accepted international principles of road user charging, and compared them with Uzbek practice. The text forms Appendix A3 of the Draft Final Report. The RF has responded5 that in the long term, by way of a phased transition, sources based on “user pays” principles will constitute their revenues.

Details of past and projected road fund receipts are shown in the following table.

5 14th December 2009, ref 28-04-3371



Version 1

Table 3 : Past and projected road fund receipts (Bi ll. UZS)

Item 2006

Actual 2007

Actual 2008

Actual 2009

Forecast 2010

Forecast

Procurement organisations, supply and sales agencies, enterprises and organizations providing intermediary services under commission (instructions) basis, Republican specialized wholesale organisations and their territorial (regional, interregional and inter-district) depots, being part of Association of wholesale enterprises (1%)

38.48 13.68 10.12 8.00 8.00

Enterprises of other industries (1,5%) 184.54 250.41 278.14 432.00 583.42

Road transport enterprises (2,5%) 2.93 3.83 4.57 5.00 5.00

Other sectors 10.82 34.04 42.80 35.00 40.00

Fees on purchase and(or) temporary import to the territory of the Republic of Uzbekistan to be paid owners (users) of these vehicles upon registration thereof with the Ministry of Interior authorities of the Republic of Uzbekistan (6, 20%)

15.73 24.77 42.13 28.00 78.00

Fees for entering the territory of the Republic of Uzbekistan by vehicle from foreign and adjacent countries (currency earnings in UZS equivalent)

14.18 19.43 16.15 11.70 12.00

Other revenues 3.53 8.99 13.77 1.50 1.50

Financial borrowing (ADB) 13.80

Carry forward balance 79.30 22.87 82.88 35.71 50.79

TOTAL: 349.50 378.04 490.56 556.91 792.50

Source: Road Fund

The current proportion of total revenues contributed by each separate source is shown in the following chart:

Figure 1 : Proportional contributions of revenue so urces



Version 1

It may be remarked that revenues from “Other enterprises”, or the economy at large, contribute the major part of RF revenues (74%). Road transport related activities contribute only 12% of total revenues6. Two pertinent conclusions may be drawn: � Under the present RF revenue collection system, the future evolution of RF revenues will be most

closely linked to the economy at large. � “User-paid” sources are relatively small and RF revenues will not directly reflect road usage,

consequent wear and tear, and the resultant maintenance costs

Experience elsewhere in the world (for example Europe) has found that road transport tends to grow rather faster than does economic activity in general. These consequences and future projections of Road fund revenues are developed further in the Appendix C, Chapter 5 – Financial forecasts and estimated expenditures.

The consultant has requested details of vehicle registrations and of fuel consumption, pricing and taxation. If this information had been available then it would be have been possible to indicate the scale of changes to the present rates of taxation and their allocation by vehicle that would be needed to implement “user pays” principles.

For reference purposes, some international benchmark rates of taxation of road vehicle fuels are provided in the following table.

Table 4 : Benchmark International Fuel Excise Dutie s

Country Gasoline (US$/litre)

Diesel (US$/litre)

Russia 0.07 to 0.09

(low/high octane) 0.47

Germany 0.94 0.68

Holland 0.99 0.99

UK 0.82 0.82

US (average Federal + state) 0.12 0.13

Macedonia 0.56 0.37

EU minimums (2003/96/EC periodically amended)

0.52 0.43

Source: Eurostats

Value Added Tax (VAT) is also applied in most of these countries but is not included in the amounts. Typically this would impose an additional 15% to 20% on to the total price of the refined fuel plus excise tax. VAT is a broad based tax on most goods and services consumed. As such, it is generally considered inappropriate in terms of fiscal policy to allocate a part or all of VAT to a specific sector such as a Road Fund. Excise taxes are a different matter and are frequently dedicated in part for expenditures in the road sector.

In many parts of the world, by way of funding collected by governments from road users in the form of road user taxes (principally fuel taxes), governments are receiving from the road sector much more than they are giving back. Typically, they siphon off about 2/3 of road user taxes to the general budget and re-

6 Road transport enterprises 1%, Registration fees, 10%, Transit/entry fees 10%



Version 1

invest only a 1/3 in better roads. However, the scale and ease in mobilizing fuel taxes, current environmental concerns and green-house gas limitations and political pressures on the use of public funds make any reduction in road fuel taxation very unlikely.

Vehicle registration fees vary quite widely throughout the world. Some jurisdictions impose annual “user charges” in addition to annual registration fees7. Probably, and those the best researched and that have found a consensus among its 27 member countries, are those of the EU. Typically, fuel tax revenue is the most significant form of road user charge, amounting to about 87 percent of the total road user charges for the countries surveyed8.

On average, annual fuel tax collection is about 142 percent of a country's total expenditures on roads. The balance of taxation, fuel levy and other sources is illustrated in the following figure.

Figure 2 : Road user taxes in the EU

Source9:

Notably, the lowest road user taxation levels of the EU are those of the three former Soviet Union countries that are now EU members.

7 Such a user charge is sometimes collected as payment for a “vignette”, which may be annual or for a period as little as a day. They may apply to part (e.g. motorways) or all of a national road network (see Appendix A3 for further details...

8 Road User Charges: Current Practice and Perspectives in Central and Eastern Europe, WB, Queiroz November 2008

9 Comparison of EU truck taxation - (DIW Berlin, Germany) COST project, 2006. The example is of a light commercial vehicle (<3 tonnes).



Version 1

3. Road maintenance strategy and proposals for funding plan The Road maintenance strategy is dealt with fully in Appendix C Road Maintenance Management and Operation. The Annex also deals with funding projections. This section of the main report covers funding sources.

In the absence of vehicle registration and national fuel consumption data the Consultant has researched outputs from previous projects in Uzbekistan. Road vehicle registration data from one of these10 has been extrapolated using GDP growth statistics (IMF) and an elasticity of car ownership growth to GDP of 111. This calibrates to some extent with data published in Resolution 30, 200712.

This is a very approximate approach, but in the absence of firm data does allow an order of magnitude simulation such as shown in the following table:

Table 5 : Hypothetical potential revenue from a fue l excise tax credit to the Road Fund

Vehicle type Car/utility Bus

Truck All Vehicles Public Own use Total

Vehicle Fleet (thousand) 1 268 48 119 167 162 1 597

Utilisation (km/year) 10 000 60 000 25 000 30 000

Fuel Consumption (litres/100km) 8 30 20 25

Fuel Charge (UZS/litre) 149 142 148 142

Expected Revenue (UZS million) 151 199 122 455 87 788 172 203 533 645

petrol diesel

Charge (UZS/litre) 150 140

Assuming fuel charges and fuel consumed in the foll owing ratios:

Petrol Diesel Average

charge (UZS)

Car 90 10 149

Public bus 20 80 142

Own-use bus 80 20 148

Truck 20 80 142

Implicit national fuel consumption, road vehicles, in m3:

Petrol 913 283 172 472 474 527 242 539 1 802 822

Diesel 101 476 689 890 118 632 970 158 1 880 155

Source: Prepared by Consultant

10 ADB Uzbekistan Road Rehabilitation Project, July 2007. An adjustment to the number of trucks reported as registered at that time has also been made, as it appeared improbably high.

11 Vehicle Ownership and Income Growth Worldwide, Dargay, Gately, and Sommer, January 2007

12 On Measures For Development Of A Network Of Gas-Filling Compressor And Autogas Stations And Phased Transfer Of Vehicles To The Liquid And Compressed Gas Fuel



Version 1

Under the displayed simulation, which the consultant emphasises is no more than a hypothesis, a credit to the road fund of 150 UZS per litre of petrol and 140 UZS per litre of diesel sold at public retail stations would yield approximately 67% of the current road fund receipts (2010 forecast) from its divers sources of income. A number of remarks could be made concerning the realism of the assumptions made, but the tax impact could be easily recalculated using the actual petrol and diesel sales volumes to road going vehicles, and the excise collected, which would normally be known to the Ministry of Finance. The correlation between these and GDP growth should also be apparent, allowing easy prognosis of future revenues. The following table illustrates a possible RF revenue source scenario for Uzbekistan in 2010:

Table 6 : Simulated user-pays road fund receipts

Sources Receipts

Total (forecast 2010) million UZS Mill US$ %

Fuel charge (see preceding table) 792 500 502 100%

Transit, tolling and/or PPP 533 645 338 67%

Balance to be found (e.g. annual fee) 39 625 25 5%

Total (forecast 2010) 219 230 139 28%

Annual fee per vehicle

Total vehicle fleet (all categories) 1 596 682

Average annual fee (UZS per vehicle/year) 137 303

Average annual fee (US$/vehicle/year) 87


The simulation assumes that 5% of annual receipts could be collected from transit fees, and tolls, possibly under PPP type arrangements (see following section). An annual average vehicle charge (vignette or annual road tax) of approximately 137 000 UZS would cover the remaining 28% of RF receipts.

Under such a “user pays” funding strategy, all present Road Fund compulsory contributions (turnover and profit taxes) and new vehicle registrations fees could be rescinded or diverted to general government revenues. The option selected could depend, for example, on whether the fuel credit to the Road Fund was made from the existing fuel excise tax, or by an addition to the present excise tax. In either case, with appropriate adjustment the overall burden on the taxpayer and government tax receipts could remain the same as at present.

However, the preceding outline funding plan describes a hypothetical substitution of tax contributions to the Road Fund that maintains revenues as at present, simplifies the system somewhat, and places road users in a “user pays” situation.



Version 1

4. Analysis of the possibility for Public-Private Partnerships (PPP)

4.1. Introduction

The project’s Interim Report provided detailed guidelines for the eventual introduction of PPP to the road sector in Uzbekistan. It described:

• The potential scope and limitations of PPP • Preparatory actions to facilitate and enable road PPP projects to be initiated • Typical procedures to implement a project

These guidelines are now to be found in Appendix A4 of the draft final report issued end of June.

Also in Appendix A6 is to be found a Financial Model for testing the potential of PPP projects according the circumstances of each proposed case. The excel spread sheet to which the text of this model refers is being made available to the RF.

The section of the main report following further details the specific steps that could be taken to introduce PPP successfully to Uzbekistan.

4.2. Creation of a new legislative framework for PPPs in Uzbekistan - Initial steps

Introduction of PPP in Uzbekistan can be considered as an essential and an urgent issue. Resources of private businesses, their experience, motivations and other advantages can promote rapid modernization of the Republic’s social and economic infrastructure. PPP can be used to overcome negative tendencies which may arise in some infrastructure sectors (including roads). These tendencies may include degradation of fixed capital, significant losses of resources, bureaucracy in management, retention of dated technology and standards.

However, introduction of PPP in Uzbekistan is an extensive task which requires the benefit of experience elsewhere, deep professional analysis, and especially creation of a new legislative framework for PPPs. Under the creation of a new legislative framework it is proposed to change, update, revise some legislative acts of Uzbekistan, and eventually to adopt a new Uzbek Law on PPPs.

Hereafter the Consultant has outlined some legislative acts which should be given attention in the creation of a legislative framework for PPP. These acts may not represent all legislative acts of the Republic of Uzbekistan which should be updated / amended during the creation of the PPP legislative framework. Rather they represent the most important and urgent acts which should be given serious attention. The Government of Uzbekistan through its PPP Taskforce and other state agencies will decide on the final form of the PPP legislative framework appropriate for the Republic of Uzbekistan.

4.2.1. Law of the Republic of Uzbekistan “On Concessions” (No. 110-I dated 30.08.1995 and revised 31.12.2008).

This law requires serious revision if PPPs are to be implemented in the road sector in Uzbekistan. According to the UNDP Analytical Report No. 2007/06 “Private-public partnership in Uzbekistan: problems, opportunities, and ways of introduction”, from the moment of the acceptance of this law in 1995, not a single complete concession agreement has been concluded. In effect, the practice of concession implementation regime in the country is based on «quasi-concessions», granted on a municipal level in the sphere of public transport. International experts give a low grade to processes of concessionaires’ selection, performance and termination of similar agreements.



Version 1

Amongst other items of the law, at a minimum, the following Articles will have to be updated, considering:

1) Adding the word “roads” to Article 4 – Objects (Subject) of Concession.

2) Adding the word “national investors” to Article 4 to increase the number of PPP investors.

3) Increasing the allowed duration of concession agreements (contracts) from the current 15 years (Article 17) up to 50 years.

It is highly recommended to take into consideration the legislative and practical experience of foreign countries on concessions during the process of updating this law. The current law on concessions of the Russian Federation can be used as an example for this purpose.

The following table presents some differences between the Law of Uzbekistan “On Concessions” and the Law of Russian Federation “On Concession Agreements” (adopted in 2005 and amended through 2009)

Table 7 : Analysis of the Uzbek and Russian Law on concessions

No. Difference Uzbek Law Russian Law

1 Number of Pages (paper size A4)

8 47

2 Number of Articles 26 38

3 Roads as a concession Not included (Article 4) Included (Article 4)

4 National investor Not included (Article 4 mentions only foreign investors)

Included

(Article 5 1.2)

5 Duration of Concession Agreement

Limited to 15 years (Article 17)

Not limited (Article 6), parties to the concession agreement can set a duration period depending on the profitability and other matters related to the concession.

6 Regulated tariffs in case of concession products and/or services

Not addressed. Addressed (in Article 7)

7 Procedures for transferring and using land, water facilities and subsurface.

Not addressed Addressed in detail in Article 11

8 Guarantee of rights and legitimate interests of concessionaires

Addressed, but in a general manner. (Article 21)

Addressed in detail in the whole Chapter 2 which consists of three Articles

9 Competition (bid) procedures Addressed, but in a general manner (Articles 13 and 14). This section of the law needs serious updating.

Addressed in detail in the whole Chapter 3 which consists of seventeen Articles

Source: Prepared by Consultant based on Russian and Uzbek Concession law.

Given below are some examples of concession agreements which will be regulated under the Russian concession law.



Version 1

� In July 2009 Federal Road Agency (Rosavtodor) of the Russian Federation and “North-Western Concession Company” (Russia) signed a concession agreement on financing, construction and operation of a paid (toll) highway “Moscow – Saint Petersburg “ on the road section 15-58 km. Construction starts in 2010 and will last 36 months. The total cost of the project is about 60 billion Russian Rubles, out of which Russian Government’s share will be 23 billion Rubles and the rest will be financed by the concessionaire. (See more on the Internet at http://mfd.ru/News/View/?ID=1494991)

� A concession agreement with duration of 30 years for financing, construction and operation on a paid (toll) bases the “New Exit to Moscow Circular Highway off the federal highway M-1 “Belarus” Moscow – Minsk” was concluded between Open Joint Stock Company “Glavnaya Doroga” and Russian Federation on 17 July 2009. Total cost of the project is about 25.7 billion Rubles. The construction is expected to start in September 2010 and will be completed in two years. Consortium Open Joint Stock Company “Glavnaya Doroga” is formed by Closed Joint Stock Company "LIDER", a construction company Alpine Bau (Austria) and Limited Liability Company "Stroygazconsulting" (Russia). (See more on the Internet http://autorambler.ru/journal/road/27.04.2010/560959183/)

4.2.2. The law of the Republic of Uzbekistan on “Motor Roads” (dated: 02.10.2007 No. ZRU-117).

Article 2 of this law mention those terms/relations regarding the use of paid roads in Uzbekistan will be governed by other legislative acts. So new law on “PPP” should address paid road roads as one of the possible PPP investment (business) activities.

4.2.3. The taxation and currency exchange laws � Tax Code of Uzbekistan (effective since January 1, 2008 and updated through 2009): A separate

section or article in the Code should deal with PPPs. This should address taxation matters (taxation rate, basket, exemptions, etc) specifically related to PPP business forms such as concessions, build-operate contracts and service contracts.

� Currency exchange laws. It is recommended that in the new law on “PPPs” a separate article should address currency exchange matters related to PPP businesses. Specifically, this article should guarantee that (i) a foreign PPP investor has a right to convert its net earnings (after applicable taxes) from the national currency to applicable hard currencies at the prevailing exchange rates of the over-the-counter currency markets and/or commercial banks in Uzbekistan, and transfer these earnings to its banks accounts in foreign countries; (ii) a national PPP investor has a right to freely buy hard currencies from the over-the-counter currency markets and/or commercial banks in Uzbekistan for its PPP activities.

4.3. Creation of a PPP Taskforce

4.3.1. Structure of the Taskforce

Regarding the establishment/creating the Taskforce the following are proposed: � It can be established by a resolution of the President of Uzbekistan in which decisions on the duties,

authority, responsibilities, structure and financing sources and other matter related to the Taskforce will be taken.

� It can be under the Cabinet of Ministries of Uzbekistan. This is because the Taskforce should be able to instruct ministries and other government agencies within the framework of its authority and responsibilities.

The following organizational structure for the Taskforce is recommended:



Version 1

Figure 3 : Proposed Organisation Scheme for the PPP Taskforce

* It is recommended that Taskforce Council should be composed of key senior government officials who will be meeting on a quarterly basis or upon the proposal of the Chairman.

4.3.2. Activities for the Taskforce

It is proposed that drafting and processing a new law on PPP should be the main activity of the Taskforce. As a good practical model, the content of the current Kosovo Law on PPPs and concessions can be used during the development of the new Uzbek law on PPPs. The content of the Kosovo law, which was developed with the assistance of European Commission, and based on many years of experience in Europe, is very comprehensive, without being burdened with unnecessary details. The structure of this law is given in Appendix A5 of the present report.

The main activities of the Taskforce, with a proposed time schedule, are given in the following table (Table 6). This table has been prepared to the best knowledge and experience of Consultant. The exact scope, order of implementation and duration of the activities will be decided by the Government of Uzbekistan.

Cabinet of Ministries of Uzbekistan

* Taskforce Council

Chairman (full-time)

Professional staff

1. Lawyer-national (full-time, one staff)

2. Lawyer – international (hired on a contractual basis, one staff)

3. Expert on Economy and Finance (hired on a contractual basis, one staff)

Administrative staff

1. Administrative assistant (full-time, one staff)

2. Secretary (full-time, one staff)



Version 1

Table 8 : Major Activities and Time frame for the P PP Taskforce

№ Activity

Key ministries and other government agencies of Uzbekistan involved in the process

Time allotted

1

Revision of the Law on “Concessions” with special attention to Articles 4 and 17

Ministry of Economy, Ministry of Finance, State Committee on Demonopolization and Support of Competition, Ministry of Justice, Cabinet of Ministries, and Parliament

two years

2

Changes to the Law on “Motor Roads” with special attention to Article 2 and adding (to this law) a separate article on road charging instruments (taxes on vehicle fuel, tolls and other instruments which may be considered by the Government)

SJSC “Uzavtoyul”, Road Fund, Ministry of Economy, Ministry of Finance, Ministry of Justice, Cabinet of Ministries, and Parliament

one year

3

Preparation and processing of a draft Presidential Resolution to enable and to enforce road charging instruments in Uzbekistan (after the Law on “Concessions” and Law on “Motor Roads” are revised / changed).

Ministry of Economy, Ministry of Finance, SJSC “Uzavtoyul”, Road Fund, Ministry of Internal Affairs, Ministry of Justice, Cabinet of Ministries

Six months

4

Changes to the current Regulations of the Road Fund and current Charter of SJSC “Uzavtoyul” based on the updated Law on “Concessions” and Law on “Motor Roads”

Road Fund, SJSC “Uzavtoyul”, Ministry of Economy, Ministry of Finance, Ministry of Justice, Cabinet of Ministries

six months

5

Updating Tax Code of Uzbekistan. It is recommended to add a separate section/article to the Code. This section/article should address taxation matters (taxation rate, basket, exemptions and i.e.) specifically related to PPP business forms such as concessions, build-operate contracts and service contracts. (This activity is to be done by the time a new Uzbek Law on PPPs becomes effective.)

Tax Committee, Ministry of Finance, Ministry of Economy, Ministry of Justice, Cabinet of Ministries, and Parliament

one year

6

Updating the current Uzbek Law on “Natural Monopolies”. Since many complex infrastructures (airports, ports, i.e.) are “natural monopolies”, which means that they are face no, or very limited, competition, introduction of a new Uzbek Law on PPPs will have impact in this field. (This activity is to be done by the time a new Uzbek Law on PPPs becomes effective.)

State Committee on Demonopolization and Support of Competition, Ministry of Economy, Ministry of Finance, Ministry of Justice, Cabinet of Ministries, and Parliament

one year

7

Drafting and processing a new Uzbek law on PPPs

Ministry of Economy, Ministry of Finance, Ministry of Justice, Cabinet of Ministries, and Parliament

three years




Version 1

Chapter 4 - Assess institutional framework

1. Introduction This chapter summarised the work and the findings of the Consultants regarding the institutional parts of the assignment.

The TOR requires the consultants to deliver 4 tasks dealing with institutional arrangements: � Analysis of the need for a Road Agency � Investigation of the possibilities for introduction of competition into the maintenance market � Implementation of a planning unit � Proposals for an Institutional Development Strategy

The first part of the report presents the most important issues for the road sector in Uzbekistan, along with possible options for reform. This material was mostly presented in the Consultants Interim report issued in January 2010, with the aim to get directions or discussions with senior stakeholders of the road sector. This documentation is presented in its final form as Appendix B2 to the present report.

Sometime after issue of the interim report, it became apparent that no deep consultation with road sector decision makers (whoever they are) would take place during the present assignment, thus the consultants decided to pursue the preparation of the development strategy selecting by themselves the options judged to be the most appropriate for Uzbekistan, and having the best chances of providing the most suitable arrangement for a successful road network development and management.

The second part of this chapter present thus a summary of the Consultants proposals. The details can be found in the proposed development strategy, Appendix B1 to the report.

2. Issues and Options

2.1. General Approach, Rationale and Methodology

In approaching the institutional development component of the programme the Consultant identified several issues that need specific analysis and proposed, for each of the identified issues, various options for development.

The intent was that these options are analysed by the actors of the road sector, and after options have been selected, the consultants would move forward with the development of the implementation strategy for the institutional future setup.

The Consultant has observed and applied certain criteria:

(i) To make as much use as possible of the existing institutions and departments; even though traditional institutions normally observed in the transport sector were not in existence at the time of this study.

(ii) To optimise the current skill sets that are found amongst the staff of the existing transport related institutions - to ensure that much needed skills are captured in any reorganisation.

(iii) To create, along with our Client, an environment that allows the introduction of new methodologies and technologies BUT with a local Quality Assurance system.

(iv) To try and utilise the existing hierarchal structure of Government to steer a transport sector transformation programme towards a synchronisation with international practice on transport planning.



Version 1

Whilst we appreciate that the transport sector has evolved through a series of presidential and cabinet resolutions, we have nevertheless taken a more international approach to see what institutional structures and their interaction would be best for Uzbekistan. We appreciate that this may mean that our proposals would prompt both amendments to existing resolutions and possibly completely new ones.

Institutional development in Uzbekistan cannot be undertaken without a view on international practice.

An element applied to all transport sub-sectors is the introduction of Business Models to ensure that Government policies in the transport sector are as efficient as any private sector business making the most economical use of available public sector budgets.

We then enter into three phases of institutional modelling, a pattern for evolution:

A To find as many synergies and similarities as possible between what is existing, and what could be considered as ‘desirable’ in the more classical arrangements.

B To give different Options for different levels of evolutionary change to incrementally develop from the first level of synergy to an optimal Integrated Business Management Framework for the Road Sector.

C Through their choice of Options the Client will then be able to decide at which point in the evolutionary ladder they wish to initially move to… and to fix their own time frame to achieve that level.

This is clearly illustrated in the EBRD evolutionary matrix for transition:

Transition level2 4+431

Corporatised administratorwith private sector managers and contractors

Ministry ofConstruction orPublic Works

Owner

Administrator

Manager

Routine works

Periodic works

New works

Owner

Administrator

Manager

Routine works

Periodic works

New works

Owner

Administrator

Manager

Routine works

Periodic works

New works

Owner

Administrator

Manager

Routine works

Periodic works

New works

Owner

Administrator

Manager

Routine works

Periodic works

New works

Pub

lic s

ecto

r

Publicsector

Govt-ownedcompany

Privatesector

2 431

Figure 4: Five-stage strategy for restructuring promoted by EBRD

Source: Robinson, R and B Thagesen (eds), 2004. Road engineering for development, London: Spon Press.

Stage 1 � the roads organization is part of a monolithic Ministry of Public Works; thus the functions of ‘owner’,

‘administrator’, ‘manager’ and ‘contractor’ (for all works) are all combined in one organization

Stage 2 � the part of the organization responsible for the construction of new works is separated out as a

government-owned (para-statal) company



Version 1

� the road administration (with the functions of ‘administrator’, ‘manager’ and ‘contractor’ for routine and periodic maintenance works) is separated from the Ministry (the owner)

Stage 3 � the government-owned new works construction company is privatized, when it has developed

sufficient market skills and when a competitive market has developed � the periodic works part of the ‘contractor’ function is separated from the road administration as a

government-owned company � the routine maintenance works organization is separated functionally from the remainder of the road

administration, creating a clear client-supplier split

Stage 4 � the government-owned periodic maintenance company is privatized, when it has developed sufficient

market skills and when a competitive market has developed � the routine works part of the ‘contractor’ function is separated from the road administration as a

government-owned company

Stage 4+ � the government-owned routine maintenance company is privatized, when it has developed sufficient

market skills and when a competitive market has developed � the ‘manager’ functions in the road administration are privatized � the ‘administrator’ functions are set up as a government-owned company

The figure shows how functional roles are gradually being moved into the private sector. Each repositioning is a three-stage process: first there is functional-separation within the main organizational structure; then the supplier functions are getting corporate as ‘joint stock companies’. These are firstly companies in which the government owns all shares.

Few Western Counties, (As example some Australian state with large networks and low density of population) have stayed in Stage 3 of the evolution, whilst most states stayed for long years in Stage 4. Today, the situation in Europe is spread between stage 4 and 4+, both situations coexisting, depending on the density of the network, availability and skill of the local contractor and the government policy.

2.2. The Generally Accepted Phasing of Reforms in the Road Sector for Modernisation Programmes- privatisation of the client and producer functions and organisations

The evolutionary phases in commercialising the road sector are usually given as:

(I) the establishment of traditional construction and maintenance organisations

This is the system now needing reform; it is ceasing to be effective in the modern way of managing road networks. The traditional way is generally not the most effective way of using available finances.

(II) Separation of client and producer functions

This is in the proposal of the Consultant to set up a Road Agency. The Road Agency would be the Client.

Programming…..This could be effective within the coming few months (less then 1 year) if the Consultants’ recommendations to transform the old existing relevant Uzavtoyul organisations into a streamlined Road Asset Management organisation were put into place.



Version 1

(III) Separation of client and producer organisations

In the proposal of the Consultant to set up a Road Agency who undertakes all the roles and responsibilities of a Road Asset Manager and acts solely as the Client, with no direct production responsibilities - out sourcing all service provision to the emerging private sector.

Programming……This could be in the short term future (1-2 years):

This step could be phased over the next two years or earlier if political will supported it. [It requires a Change Management programme to be put in place, in a way that it applies due sensitivity to questions of re-positioning existing Government employees into a different sector. This could be carried out through a Change Management Programme that would be based on experience gained in other countries].

(IV) Corporisation or privatisation of the producer organisation

For the Mid Term Future (3-5 years) depending how fast and effective is the changes brought about in (III)

(V) Corporisation of the (client) road administration

For Uzbekistan this phase has to be considered a long term programme, if this stage 5 is part of the government programme for reform: requiring a seed change in the way Government views Private Sector powers and responsibilities.

The entry point and ‘change management’ process towards commercialisation of the road sector in any country needs to be an evolutionary process with stated objectives, outputs, and performance targets.

These are best presented in a completely transparent programme of repositioning of all the existing players into a business management framework.

2.3. Infrastructure Development and Maintenance – Considering it as a Business with Assets

2.3.1. Management of the Road Business

The modern approach to road management and operations is to treat it as a business; a business like any other, with assets that have to be valued and this value protected to provide roads that give optimal benefit of all stakeholders.

Like any modern business, in order to be efficient and effective in serving the customers real needs, those responsible for the road networks must use the best and most effective modern business management methods and technological tools and make optimal use of human and financial resources.

With a potential network of 45,000 km, all being financed through a central administration (Road Fund in this case) there appears a necessity to firstly approach the question: is there a systematic way for all clients of managing the road network through a common Road Asset Management System (RAMS)?

This question needs answering regardless of who the road owner is.

If there is an adopted RAMS that becomes the management tool for all concerned then this is a major improvement to the present system and negates in many ways the need for a Road Agency or Authority.



Version 1

2.3.2. Functions of RAMS

The term ‘asset management’ is used differently by different practitioners. It is not, as is often mistakenly assumed a new term for maintenance management or maintenance management systems. Equally it does not have the same meaning as pavement management systems. Either or both of these specific sciences are only a part of an Asset Management System and are some of the tools available to be able to effectively run the whole system. Again HDM 4 is just one tool available to the asset manager.

In the United Kingdom the British Standards Institute has produced a broad based definition of infrastructure management which defines asset management as:

“Systematic and coordinated activities and practices through which an organisational strategic plan, optimally manages its physical assets, and their associated performance, risks and expenditures over their life-cycle for the purposes of achieving its organisational strategic plan”

It is a way of doing business to provide road products and services.

2.4. Preliminary issue: Road Ownership

During the discussions with the various stakeholders of the road sector, the fact that the assets were held by Uzavtoyul was a fact systematically brought on the front ground.

The main argument from Uzavtoyul to consider it as the “road owner” is the presence of the roads asset in its balance sheets.

However, the ADB “Eligibility Report” made a very detailed legal analysis of the situation, and concluded that Uzavtoyul was the “Asset Manager” on behalf of the state; and the State categorically remains the owner. This argument was drawn largely from the legal framework of the Civil Code13 that applies to all state owned enterprises.

These articles indicate that Uzavtoyul (as all state owned enterprises) is charged, by delegation of the State Property Committee, with the rights of management of State assets in these enterprises on behalf of the State, and with the limits fixed by the owners.

In addition, arguments for this can also be found in the more specifically road sector related laws and regulations

Also, it seems obvious that the roads as state assets cannot be sold (this is part of the arguments put forward by Uzavtoyul to oppose the introduction of private capital into the companies share).

Based on the above regulations, and following the ADB14 analysis, we can conclude that Uzavtoyul is NOT the owner of the assets, which remain State property, but only their manager.

For future development of the road sector, and introduction of fair competition, it is essential that Uzavtoyul plays with equal arms compared to private sector companies. This would mean abolish any tax exemptions, but also ease the procurement rules to follow private sector practice.

From the various measures, one which would be of the highest importance would be to take out the assets from the company’s balance sheets. Assets could be held by Ministry of Finance, and integrated into the State accounts as this is done in most other countries.

This measure should apply, wherever Uzavtoyul’s role in future will evolve towards a Network Manager or towards a contractor.

13 Art. 178 and 179 of the Civil Code on the « right of operative management » of state assets

14 ADB TA-7053 Uzavtoyul Eligibility Report



Version 1

2.5. Issue 1: The need for a Road Asset Management System

It appears that the country needs to adopt road management policies and strategies that emphasize the value of the nation’s road and bridge assets, and define very clearly how to best conserve these assets, and then to embed these policies and resulting strategies into a recognizable asset management system or framework that is politically supported, and ultimately becomes the standard operating system.. This is especially the case where a dedicated road agency or authority is not in existence.

2.5.1. OPTIONS

a Maintain the current practice of reducing maintenance interventions into a continuous series of repair projects that are passed all the way up to Cabinet level for agreement on an annual basis, without the necessary emphasis on using economic modelling tools to produce the optimal programmes.

b Adopt a modern Road Asset Management System for the national road network

c Adopt a modern Road Asset Management System as national standard approach for all roads

Option Advantages Disadvantages a. • Keep organisational structures as they are.

• Existing system “works”; there is no need to change it.

● Current maintenance management of the network is wasteful. ● Preventive Maintenance planning and implementation is difficult. ● Does not address cyclic routine and minor periodic maintenance needs

b. ● Optimizes use of resources for national roads ● Outsources some services. ● Private sector should drive forward development of technologies. ● Ensures national network maintenance is prioritized properly. ● Road Agency function is more efficient as a client and can concentrate on the improvement of standards ● A step by step implementation is possible

● Requires full acceptance by the Min of Fin and Road Board ● Introduces transparency and public knowledge of the “business” ● Reduces the opportunity for non-prioritized interference. ● RF will have to consider a new separate Client (Agency) beneath it.

c. ● Same as above but now applies to all resources available for the road sector. ● National and State road networks are utilizing the same criteria, documents, and standard approach.

● Requires full acceptance at Government highest level. ● Requires streamlining of national and local government organizations –as the private sector would undertake both management and operational assignments on behalf of client.

Consultants Recommendation – Option b.

2.6. The Institutional Structures for Managing a Modern Road Assets System

In many countries the traditional responsibility for road sector policy would normally be vested with an appropriate Ministry for Transport…and the responsibility for delivery of policy through strategic plans and programmes would be vested with a Road Agency or Authority, they are distinct and separate roles.

In Uzbekistan neither of these institutions currently exists but policy and strategy are carried out by an overlapping set of activities carried out by a cross section of agencies and institutes.

The first level of change therefore has been easy to define - separate the Policy making function completely from Programme delivery . This change process involves handing over all programming and any involvement in project management from the Ministerial level to Road Agency level. This leaves the Ministry concerned to concentrate solely on Policy, strategic thinking and outline planning, and the Executing Agency to concentrate on managing and operating its road and bridge assets.

The second level of change takes place at the Road Agency level and this change usually externalises as much as possible both management and operations by outsourcing to external producers and service providers - the Public Sector Partners.



Version 1

The current arrangement in Uzbekistan is not a conventional business management model but also could be said to be a very modern arrangement with the functions of a conventional Ministry of Transport and Road Agency being dissipated between the existing organisations and thereby reducing the public sector.

Although the Road Fund is empowered to act as a legal entity it appears to be still acting as a department of the Ministry of Finance but with a role to act as the road Client or customer. Most Road Funds being completely autonomous and separated from the road authority or road agency and Ministry of Finance.

Countries with developed economies have liberalized government business and streamlined government institutions and reduced government interference in the development and management of infrastructure.

For the road sector in Uzbekistan to achieve this generally observed international model it will not necessarily require the establishment of the two levels of institutional organisation, or even either of them…

BUT it requires that at least the responsibilities and functions of an appropriate Ministry and appropriate Road Agency are identified as a distinct role or roles and then to undergo their logical distribution to the entity (or entities), but without any overlapping or ambiguity.

2.7. Issue 2: The Need for a Road Agency?

In Uzbekistan, the role of the Agency has been distributed or dissipated through a network of Government Institutions, but the overall effect of the setup is that the arrangement has largely done away with the need for a specific ‘Highway Agency’. The framework could therefore be said to be very modern!

It has to be very strongly emphasised however that the framework, the way it is operated is the exact opposite of modern; and non-responsive to the needs of a road sector to support 21st century commerce and economy.

The Need to Provide for all the responsibilities an d Functions of a Highway Agency

We highlight the fact however that the accepted responsibilities and functions of a conventional road agency must be clearly highlighted and preserved – regardless of the non-existence of such an agency. The need for defining and drawing up clear lines of responsibility and the road agency functions that go with those responsibilities still exist.

2.7.1. OPTIONS

a. Maintain the current practice of containing the powers of road management at Cabinet level through the Ministry of Finance and the Road Fund and with the roles and functions of a road agency dissipated.

b. Devolve powers down to a Road Network Management Organisation, acting as a ‘Highway Agency’; this entity built out of the appropriate departments of Uzavtoyul; responsible through a very firm Performance Agreement

c. Devolve powers down to a Road Network Management Organisation, as the ‘Highway Agency’; this entity built out of the Road Fund with field representation; responsible through a very firm Performance Agreement

d. Form and empower a totally new Authority, with a Board and an appointed Chairman; the Authority empowered to deliver government road policy through delivering the Strategic Plans tailored to the policy.



Version 1

Option Advantages Disadvantages a. ● The existing system is familiar.

● Existing system “works”; there is no need to change it.

• Allows only the current approach to road development and maintenance. This is not achieving good roads

b.

● Optimizes the existing human resources of Uzavtoyul for national roads. ● The new Road Network Manager takes the lead on all annual programming and implementation; acting under a strong Performance Agreement with emphasis on outputs and deliverables. ● Strategic Plans have to be fully transparent to be evaluated for budget elaboration and funding requirements.

● Requires releasing Road Fund from roles as road agency. ● Requires the existing program unit of RF to become a Unit for project accreditation. ● Reduces the opportunity for interference from other institutions. ● Needs reorganisation, by separating clearly the contracting parts currently in the organisation

c.

● Clears the position and role of Uzavtoyul to go ahead with transformation to a contractor. ● The new Road Network Manager takes the lead on all annual business plans for all types of work. ● Transformed road fund has clearly overall responsibility and has to answer for its achievements.

● Requires releasing Uzavtoyul from responsibilities as road agency. ● It confuses Road Fund and Agency role. ● Requires strengthening the existing technical part of the RF transferring competences from Uzavtoyul

d.

● New Authority may orientate the road sector in the shortest time towards international models. ● It would have a better understanding on asset management and road business. ● It would improve standards by the use to the optimal level of the most advanced Strategic Partners for service provision.

● Requires the Government to accept more autonomy of the unit. ● Reduces the opportunity for political interference. ● Would not necessarily use resources from Uzavtoyul although staff with the required experience could be encouraged to apply.

Consultants Recommendation – Option b

2.8. Issue 3: As an Adjunct to the need for a Road Agency - The Need for a Ministry of Transport?

We would add to the fact that in addition to our opinion, as given above, that the existence of a Road Agency need not be considered as a prerequisite for change and institutional development…

Neither do we equally see at this stage the need to have a Ministry of Transport as a pre-requisite for development of the road sector.

Again the reasons are several:-

The question of forming a Ministry of Transport has been investigated in the past and in far more detail than this project demands and the Government has not seen a need for it since.

However, the lack of an organisation does not automatically remove the need to replicate the responsibilities and functions of the organisation concerned.

The Consultant believes that there is a need to replicate and distribute more precisely the roles and functions that a Ministry of Transport would undertake were it to exist.

The Need to Provide for all the responsibilities an d Functions of a Ministry of Transport

We make the same stressed emphasise that is made in the supporting argument for not needing a specific Highways Agency at this time…

The requirement still exists that the accepted responsibilities and functions of a conventional Transport Ministry and the part it plays in the road and road transport sector, both at an international and national level must be clearly highlighted and preserved – regardless of the non-existence of such a Ministry.

The need for defining and drawing up clear lines of responsibility and the Transport Ministry functions that go with those responsibilities still exist.



Version 1

We would prefer that the Government considers the modern approach; viz. identifying a Transport Committee ; who is overall responsible for international representation and transport policy co-ordination, reporting to Government through a Minister of State (Minister of Finance or Minister of Economic Affairs).

The Transport Committee (or Committee for Transport) should answer to the Cabinet of Ministers.

The Consultant stresses that this approach provides the very important synchronisation with international practice that is required for now.

2.9. Issue 4: Overall responsibility of transport policy

There is a lack of any one entity to take overall responsibility for delivery of all transport policy in the various sub-sectors; this role being the more conventional role of a dedicated Ministry for Transport but this does not exist, the need is however for someone to fulfil the responsibilities and functions that a Ministry would fulfil if it were to exist.

2.9.1. OPTIONS

a. Maintain the current and largely unclear definition of overall responsibility for transport sector policy formulation and provision.

b. Establish the post of Transport Committee within the Cabinet of Ministers. The work of the TC to be supported and augmented by a Transport Resource Group of amalgamated institutes, associations and research bodies, and provided with a small Secretariat to carry out his(her) day to day administration, no more than 4 or 5 staff. The Transport Secretary to be answerable directly to a Minister of State as decided upon by the Cabinet of Ministers and responsible for delivering the Governments transport policy.

c. Establish a Ministry of Transport, containing a transport policy directorate, a planning directorate, a directorate for economic regulatory issues, a directorate for international and public affairs, and the usual supporting service departments of legal and human resources.

Options Advantages Disadvantages

a. • The existing system is familiar. • Existing system “works” at least partly;

there is no need to change it.

• Unclear lines of responsibility. • No forward driving policy unit. • Mixtures of what is comprehended as

‘Planning’ with programming. • No International representation • No cross modal transport studies

b.

• A simple administrative adjustment can fill the vacuum of Ministry for Transport.

• Negates the immediate need for a Ministry of Transport.

• Enables cross modal analysis. • More common development and

research programmes • No need to change the existing Cabinet

of Ministers structure, just add on the TC to one of the existing ministries.

• Will require the Government to accept a role at the top level that does acknowledge the importance of transport.

• Will reduce the direct influence and involvement of each of the separate sub-sectors at Cabinet level.

• Will require the co-operation of all the various institutional partners involved in the supporting Transport Resource Group

c. • The policy making is in the parent

organisation which will perform all the tasks and duties of such an institution internationally.

• Each sub-sector is set at its level of importance to satisfy global transport demand.

• Will require the Government to carry out a complete U turn on previous decisions not to form a Ministry of Transport.

Consultants Recommendation – Option b



Version 1

2.10. Issue 5: The Role of the Road Fund in the Future Road Sector Management Structure

In countries where a Road Fund is established the Fund is regarded as a Facilitator – providing funding allocations for the road sector.

When administered correctly however, and utilising the full powers that Road Funds are normally considered to be empowered with, the Fund also has a major role to play as a Moderator – someone who sets the standards.

The Role of the Road Fund in Improving Road Plannin g and Asset Administration – The Moderator

It is in this first role as a Moderator where the Road Fund is the most effective, both indirectly and directly, in improving the conditions of a road network – it achieves this objective when it sets the pre-qualification criteria that demand certain standard s in competencies, capacities, technologies, and overall compliance of work standards for all pr oducts and services to be financed.

These parameters and criteria are the starting points for improving road network conditions, products and services. They set the benchmark standards.

The Road Fund is lowering its standing, as a senior arbiter of programme delivery on behalf of the Government, if it believes that it has to physically carry out these activities and actions itself.

A Road Fund therefore can be ‘strengthened’- by setting higher prequalification standards during the application process and these standards have to be observed by all the agencies applying for funding.

Important Actions by the Fund

(i) Detailed formulae and criteria for qualifying all funding allocations have to be determined by the Board in consultation with the stakeholders and reviewed when necessary.

(ii) Signing an annual Participation Agreement with the Board, accepting the conditions under which funding is made available from the Fund, has to be undertaken by all administrations wishing to make use of the Fund. There are no exceptions.

By initially setting, continuously improving, and finally enforcing the financing pre-qualification criteria for programme funding, the Road Fund can directly impact on the general levels of serviceability of a road network and ensure that funds were expended correctly achieving overall Government policies.

The prequalification process could specify that a modelling tool such as the computer based HDM model has to be used for all reconstruction, capital and mid-term works.

Strengthening the Fund – Is Self Determining

In summary, the Fund can strengthen its position in the whole process of road network administration, by its own administrative actions – and by implication – can impact upon and improve the standards of road network management and operations, by imposing clear, concise, higher or improved standards for all funding applications to conform to.

2.11. Issue 6: Strengthening the Road Fund’s Capacity to Plan Road Sector Programmes

(i) Collecting and Modelling Road Condition Data at Rayon Level

By introducing improved standards for funding application the Road Fund will automatically require a more technologically improved collection, collation, and processing of road and road environment data and information. This improved data collection assignment will have to begin at Rayon level.

(ii) The Network Analysis – Using Public Service Pa rtners

The correct and standardised Network Analysis and the follow up improved collation and processing of road date will be the first incremental step in strengthening the Road Fund’s position in the road sector – mentoring data measurement, collection and management to new standards.



Version 1

To assist with this advance in knowledge and technical management however, the Road Fund has to be prepared to finance the specialists of the knowledge based industry (Consultants) to collate this data on behalf of the individual road administrations and carry out the modelling to the agreed standards.

(iii) Assistance to the Annual Commissions

There will be implications in this outsourcing of data collection and analysis in the future. When a full national Network Analysis programme is automatically operative it will largely negate the work and purpose of the present system of Commissions actually carrying out the road visits and prioritisation processes themselves.

Rather the Consultants will be working in partnership with the local Rayons, Oblasts, and the Commissions; directly partnering with the Rayons to carry out the identification, measurement and analysis of road conditions and ultimately the formation of the list of candidate programmes for the Commission to consider.

The improved submissions, by the Rayon staff, to the visiting Commission will not change the scope of the Commission, but it will mean that the members of that Commission are better equipped to make the most optimal and objective decisions regarding the prioritised list it is considering and being asked to endorse.

2.12. Issue 7: Strengthening of the Road Fund’s role and functions

The Road Fund needs to strengthen its role and functioning in the road sector by improving its overall capacity and competencies to evaluate the works applications and to fit these applications into a broader Annual Business Plan model that conforms with and delivers Governments road sector policy and its longer term Strategic Business Plan.

2.12.1. OPTIONS

a. Retain the existing system of funding allocation analysis which agrees a submitted programme rather than checks if the proposed candidate works fit within a business plan format; an annual plan that contributes optimally to longer term strategic business plans for the road sector

b. Introduce and finance a framework of public sector partners (Consultants) to work alongside the Rayons and Oblasts to carry out the annual road maintenance review programme to give objective added value to the existing Work of the Commission. The Consultants to additionally carry out economic modelling to prepare a rational objective list of priority programmes in each category of works ; a list that is submitted directly to the Road Fund for reference of planning and to the Commission for inclusion in their annual candidate list of road products.

c. The Government to establish an independent Road Agency to be fully responsible for all matters relating to the road sector: to undertake all management and operations on the various levels of network and to carry out the annual Network Analysis, programme and project preparation utilising Public Sector Partners as appropriate for data collection, modelling and submittal of proposed detailed programmes to the Road Fund.



Version 1


a. • The existing system is familiar. • Existing system “works”; there is no need to

change it.

• The current system is not a planning system.

• The overlapping and layering of players lacks a core mission to optimise policy.

b. • The list of candidate roads will have been

subjected to an objective assessment and analysis and economic modelling.

• Will produce an Annual Business Plan that is at the core of road asset management systems.

• The Road Fund has to become proactive in the preparation phase of annual road programmes.

• The Road Fund, has to move from the approach that quality or works control is adversarial*

• The Road Fund must provide finance for the Public Service Partnerships to introduce a proper and objective annual road Network Analysis exercise

c. • All road sector matters now vested with a

team of professionals using up to date methodologies.

• All works programmes would have appropriate quality assurance programmes.

• The process of road sector management and operational is more efficient.

• The process would require full acceptance by the Government to establish a Road Agency.

• The lead in time to forming a Road Agency may take years.

• The Road Fund would have to revert to the pure ‘financing’ organisation.

* The Term Adversarial is used in Western Countries to describe the older or more traditional type of contract whereby the Owner appoints an Engineer to represent his interests and as they are on opposite sides of the contract it is viewed that the Engineer and Contractor are opposing or adversarial. The modern contract places them both on the same side of the contract and working in partnerships and collaboration they collectively deliver what the owner requires.

Consultants Recommendation –Option c also Option b may be a temporary measure

2.13. Issue 8: A Planning and Database Management Capability for the Road Fund

In modern institutional structures where there is a Ministry of Transport it often has a small co-ordinating unit for Policy, to carry out the day to day studies and research on which Government policy is based.

This unit is responsible for coordinating policy evaluation and carrying out analysis to support transport policy needs and to propose new and/or improved policies. This unit itself must have strategic alliances that supply it with the results of research, monitoring reports, collated to ensure policy is working.

However it does not act alone collecting and storing data for a wide range of sub-sector requirements; the task of collecting such data being outsourced to Public Service Partners drawn from the private sector.

The Consultant believes that such a unit could be made up of some of the existing institutes and/or departments within the country, working together, also in a partnership.

However there is a requirement for the Road Fund to have some capabilities to oversee the funding application process. The Consultant believes that the original standards for funding qualification should be set at a much higher level of analysis, prioritisation, and economic modelling to justify any programmes or projects requiring financing.



Version 1

Location of the HDM Capability

The concept of ‘capability’ may be wrongly interpreted as needing to have a technical capability within its own organisation and skills mix. Now a road administration can buy the ‘capabilities’ that it requires and need not hold the same detailed technical sophistication in house.

If the Road Fund accepts that it will have a most equitable and appropriate control over submitted programmes and projects if the funding qualification process is improved and technically refined, then the only remaining capability that the Fund will require in the future would be as a Performance Auditor.

The Planning Unit or existing department will therefore only require a watching brief over the whole process of road network analysis and programme evaluation. It need not be the main operator of the HDM model.

The Consultant believes that the best place to accommodate the modelling ability for the HDM 4 tool is the consortia of institutes that is proposes as the Transport Resource Group.

However, the HDM should also be available with the Technical Department at the Road Fund, in order to carry out performance auditing. This gives several options for evaluating projects through HDM.

There is a requirement for the Road Fund and Ministry of Finance to be able to evaluate if an application for funding for a road project has satisfied all the necessary checks and balances and has the optimal prioritisation given the funding constraints faced by the Government.

2.13.1. OPTIONS

a. Train a set of staff, two or three, from within the Road Fund (probably drawn from the technical wing) to fully run and operate HDM after receiving a set of data from a road network analysis (carried out by others) and import the necessary data from the model to allow them to independently evaluate the justification and prioritisation for all the submitted programmes and projects for funding; in effect a performance audit of the traditional way of measuring and preparing the annual maintenance programme.

b. Train a set of specialists from within the consortia of Institutes suggested to form the Transport Resource Group and for them to take full responsibility for running and operating the HDM model on behalf of the Road Fund and for collecting all the necessary data on road conditions through a series of road surveys either carried out by their own staff or through Service Contracts with third parties and presenting the results of these surveys to both the Commissions meeting in the Oblasts, for their processing into the application for funding from the Road Fund, and directly to the Road Fund.

c. Out source the complete annual maintenance programme preparation activity to a group of consultants or consultancy companies and make them fully responsible for field surveys, data collection and HDM modelling to produce an objective, prioritised, but also socially aware, annual programme of road maintenance and repair that is forwarded to the Road Fund independently of the existing road maintenance preparation programme headed by the Commissions. The Commissions to receive a copy of the Consultants analysis and report and to add their suggested amendments or a change in the prioritisation process because of social factors not considered by the Consultant and to make the official application for funding.



Version 1


a.

• Road Fund ‘acting’ as the Road Agency and deciding the Annual Business Plan.

• Existing staffing arrangements remain unchanged.

• The RF is not the Road Agency and does not carry out the strategic planning.

• Staff would only be required to carry out modelling every one or two years.

• Requires competency as a transport economist.

b.. • The specialists in the leading Institutes are

well acquainted with survey and data processing.

• The Consortia are able to concentrate on the network analysis.

• The Consortia would have the Database available of each network.

• Forming a TRG provides the necessary support for a Road Agency and a Transport Ministry.

• Requires Government to adopt the option of forming the Transport Resource Group

• Requires that the Road Fund recognises and has trust in the TRG to provide a true and objective prioritised program for the Annual Business Plan.

• Requires that the staff entrusted with the production of the ABP - from within the TRG – to be aware of the responsibility they face in preparing such an important program.

c. • This is the modern model for doing network

condition surveys and analysis. • Encourages the growth of a knowledge

based industry that can bring in the latest technologies to road condition surveys.

• Reduces the need to form any type of existing Institute that is at present attributed to carry out such work.

• Optimises financial resources available for research and development

• Requires Government to place its faith and belief in private sector capabilities and competences.

• Assumes that the necessary skills and resources would be available in the private sector to undertake this task.

• Requires that the Road Fund understand the need to provide appropriate funding and financial resources for this work to be properly carried out by the Consultancy industry.

Consultants Recommendation – Option b,

Because it provides much more than just a road sect or research and HDM 4 capability …but option C would work…and with optimal financial resources.

3. Institutional Development strategy The main axes of the institutional development strategy are the following: � Presently, a large Transport Ministry is not needed, but Uzbekistan would benefit from a reduced

structure, in charge of the policy making and international as well as multi-modal coordination � A Road Agency is urgently needed. Because of its unique experience, and current management

structure, a transformed Uzavtoyul is the best candidate for this function. To strengthen its position and capacities as Network Manager, Uzavtoyul has however to dispose of its contractor activities and concentrate on becoming a better Network Manager.

� The Road Fund itself should re-concentrate on its original functions as a Fund, but take a lead position in the policy making through its role in the funding accreditation process.

� Advice to the policy makers should come through a “Transport Resource Group”, an independent body of highly qualified permanent experts that can develop the policies through its planning and data base capacities, set the standards, but also are able to monitor the implementation of strategies by the network management.

� The common language and tools for all the actors of the road sector should be the Asset Management system, which needs to be implemented.

3.1. Strengthening the Road Funds role in Road Sector Administration

Modalities for strengthening - Adoption of a Funding Accreditation System

Adopt a detailed Funding Accreditation System that places a wide ranging set of commitments and demands on the Road Authority (the executing agency for roads); conditions that are imposed to the project, and apply to the delivery and aftercare of the product that is being considered for funding.



Version 1

These conditions are applied at the time of applying for funding and will have to be agreed by the Road Authority. The conditions will be part of a signed agreement between the Road Fund and the Road Authority and will automatically subject the Road Authority to a Performance Auditing process applied directly by the Road Fund.

As an interim measure (whilst the establishment of Min of Transport/Committee for Transport options are being considered) the Road Authority could answer directly to the Cabinet of Ministers.

[Note In a classical system the Authority would answer to the Ministry of Transport and a Road Fund would be a completely separate organisation.]

The agreements that are to be contained in the funding accreditation document will apply to every single application, regardless what level of intervention level the works are. No funding can be provided without a FAS document attached.

The conditions requiring commitments from the Road Authority would include but not necessarily be limited to: � Level of intervention or improvement � Level of supervision of the candidate project � Level of quality control system being applied to the project � The level and sophistication of the maintenance plan for the product � The management and operational structure responsible for

maintaining the delivered product during its life cycle.

Depending on the importance and level of sophistication of the candidate project the Road Authority would have to gain and commit itself to obtain a requisite number of credit points from the above conditions in order to obtain funding.

3.2. Introducing Road Asset Management and Performance Auditing Systems

3.2.1. The Road Asset Management Plan and System

The Consultant is recommending the adoption of a Road Asset Management System (RAMS) as the toolkit that will be at the basis for the whole road administration. Within the RAMS the Road Fund is placed at Policy making level .

Also within the RAMS the relationship and interaction that the Road Fund will have with the Road Authority is formalised and becomes part of the Standard Operating Procedures that the Authority will have to employ in its day to day activities. The RAMS will place certain executive powers with the Road Fund and empower them to demand a comprehensive reporting system from the Authority. At the forefront of RAMS documentation will be the Annual and Strategic Business Plans. These will be required to be submitted at a time and in a format that the Road Fund will decide upon.

3.2.2. The Performance Auditing System

The Auditing and monitoring role of the Road Fund as the Executive Authority under a FAS is now orientated to Performance Audits. These can include technical checks and testing of materials etc., but will be mainly concentrated on ensuring compliance with the commitments made by the Authority in the funding accreditation document. A negative report in an annual statement would place the full responsibility for any dilution in quality or delivery of any product or project firmly with the Road Authority. The Road Fund could employ in house Performance Auditors but a better system would be to have a register of private sector auditors who could be called upon to make spot checks and organise detailed testing and produce Audit Reports according to the wishes of the Road Fund.



Version 1

3.3. Creating an Uzbekistan Road Authority

Modalities - Reform the Uzavtoyul Organisation as a Road Authori ty

Reposition and re-orientate the Headquarter management Structure, including the management Board of Uzavtoyul into the corporate structure of the Uzbekistan Road Authority; with appropriate regulatory powers. The proposed structure should be in line with international models. The corporate structure and main functions would be: � Road network operations � Planning and Programming � Finance and Administration

The Headquarters of the Road Authority is in Tashkent and is made out of a reformed and re-orientated existing Uzavtoyul headquarter management structure.

Form regional Road Authority offices out of the existing Uzavtoyul network management organisations in the 13 Oblasts. With the following qualifications: � There will no longer be a requirement to retain 7 regional operators - although part of their

management could be transferred to the Avtoyuls to strengthen their experience in the management of international roads.

� This repositioning will also require that Uzavtoyul can no longer be part owner or directly involved in any of the design institutes or enterprises within the country.

� Large entities currently in the Uzavtoyul conglomerate that are dealing with construction should be privatised and/or separated from the Road Authority.

� Uzavtoyul will have to dispose of all existing plant and equipment holdings and physical assets; the

exception being the small equipment required as a minimum for routine maintenance.15 � The maintenance activities, if not outsourced, could stay inside the Road Authority but the number of

enterprises should be reduced (to about 50); their activities concentrating solely on routine maintenance operations and local management.

3.4. Adoption and Operation of a Road Asset Management Plan and System

The operating tool that the Road Authority will have to adopt and operate and will form the basis of its Standard Operating Procedure for all management and operational activities will be the Road Asset

Management System. (RAMS).16 � The RAMS will stipulate the reporting obligations on; strategic planning, management statements,

quality assurance systems, procurement procedures, financial and institutional statements, and other stipulated deliverables etc. that the Road Authority, as Manager of the Road Assets, will be required to provide to the Road Fund/Min of Finance representing the State (The owner of the Road Assets.)

� The RAMS will also be the framework for the cycle, beginning with periodic network analyses, of determining road network needs, priorities, and ultimately the preparation of Strategic and Annual Business Plans, and a detailed asset valuation process to determine if investments are increasing/decreasing the value of road and bridge assets. Publication of an annual or biannual Profit and Loss Statement being the ultimate goal.

15 One option would be to transfer the major equipment to Transyulkyrilish on the undertaking that these plants are kept in an equipment pool - one to each of the 13 Oblasts – for rental and leasing to the private sector.

16 The Consultant has prepared a Road Asset Management Plan and System for reference.



Version 1

3.5. Creating a Transport Resource Group

Modalities - Through a Memorandum of Understanding Combine the I nstitutes of Design and Research into a Transport Resource Group (TRG)

� With the Institute of Design as the lead agency, form the existing institutes for Design and Research

into a special interest group that combines and builds upon their individual strengths to provide a ‘one shop window’ on all transport data and to take responsibility for monitoring all transport outcomes to ensure overall Government Policy is being delivered and importantly, is the right policy.

� Appoint a provisional head of TRG to lead and coordinate the consortia for a 2-3 year period or reorganisation and consolidation.

� The TRG to monitor transport initiatives and development programmes and advise Government when a policy needs amendment or changing in order to further the objectivity intended.

� The TRG to answer to the Transport Committee (or Transport Secretariat) that is recommended for establishment in the Cabinet of Ministers. [See 4 Following].

� Specifically for the Road Sector:

• The TRG will be empowered to carry out network wide modelling and road transport studies and thereby to guide the Road Authority towards preparing Annual and Strategic Business Plans that are based on sound economic and technical modalities to obtain longer life cycles from the built environment. As such they should use HDM 4 and similar computerised models.

• The TRG will use its cross modal resources to advise Government on transport sub-sector priorities to ensure optimisation of resources.

• The TRG will be responsible for managing and updating a road sector Databank built on top of the digitisation of existing design, as built documents, and road passports, etc.

3.5.1. The Toolkits for the Transport Resource Group

The Road Asset Management System (RAMS)

The Consultant is recommending the adoption of a Road Asset Management System (RAMS) as the toolkit that will be at the basis for the whole road administration. Within the RAMS the relationship and interaction that the Road Fund will have with the concerned Government bodies is formalised and becomes part of the Standard Operating Procedures that the Authority will have to employ in its day to day activities.

For the TRG however, the RAMS is also part of their multi-faceted toolkit as it indicates the main components of the Annual Planning Process for the road sector and the detailed modelling operations that will be required for a full network analysis.

The RAMS also indicates the common database components for the road sector that the Group should hold on their Transport Databank at the TRG. It could be expected that in its independent role the TRG may be asked by the Road Fund to carry out analytical and structural tests on the road network as part of a Performance Auditing System that will be in force.

Government Information Technology Policies

As Guardian of the national transport data the TRG will have to observe and apply any protocols concerning data processing and security. These protocols will be especially applicable to data that is placed for dissemination by the Information Unit that the Consultant is recommending should be located or attached to the Resource Groups attributes.



Version 1

3.6. Establish a Committee for Transport (or Transport Secretary) in the Cabinet of Ministers.

Modalities - Through Presidential Decree establish a Committee f or Transport.

In their analysis and evaluation of the deficiencies of the transport sector in Uzbekistan the Consultant came to the overall conclusion, that whilst there was no immediate need to set up a full and formal Ministry of Transport in the classical mode there was a requirement that some entity should take on the role and responsibilities that are normally associated with a Transport Ministry; especially with regard to international representation and the more modern approach of establishing optimised programmes and strategies that are part of a national plan that is based on transport cross modal planning. � Establish a small executive body with the minimum of specialists, supported by a small secretariat

(maximum 7 or 8 units in total) in the Cabinet of Ministers to undertake the role of leadership and coordination in overall Policy and Strategic Planning for Transport on behalf of the Cabinet of Ministers.

� Empower the Committee for Transport to demand transport sub-sector development programmes are integrated into an overall National Transport Plan that optimises transport sector resources of finance fixed and moveable assets and human capital. The National Transport Plan to be updated on an agreed basis

� The Committee of Transport is responsible for calling up studies, analyses, statistics, and transport development programme designs, from any suitable available resources in order to consolidate and optimise transport within the country

� The Committee of Transport to receive a separate budget to finance such activities as listed above but is directly linked with the Transport Resource Group as its main resource base for information and reporting [a recommendation in 3 above].

� The Committee is empowered to represent Uzbekistan in international meetings, conferences, and bi-

lateral and cross border negotiations in all the fields of transport; road, rail, aviation, and waterways. � The Committee is empowered to undertake any additional transport sector matters that are decided by

the Cabinet of Ministers to be relevant to its work and given powers and to act on behalf of the Cabinet in undertaking such duties.

The Consultant recommends that the Transport Resource Group act as the co-ordinators and direct suppliers of information, data and transport sector reports collated from all the transport sub-sectors and drawn from the results of individual sub-sector studies.

4. Ways to move forward without important institutional changes

4.1. Immediacy of Reform – Early Change Actions

Whilst establishing the Institutional Development Strategy (IDS) the Consultant presented a whole series of existing institutional issues that may contribute to the generally deteriorating road conditions; they then went on to give several options to change or improve for each identified institutional issue.

Based on their international experience, and with due regard to the corresponding Presidential Decrees in force at this time – the various options given by the Consultant were progressively more advanced; ranging from a ‘do nothing’ position to the full privatisation of both management and operational activities.

The major lending Banks have all more or less settled on an ‘Evolutionary Ladder’ to demonstrate the various stages of reform for road and road transport administrations. It is for the Government of Uzbekistan to decide where on this evolutionary ladder they wish to move up to and in what time frame.



Version 1

The recommendations of the Consultant in this Institutional Development Strategy are neither too ambitious nor are they too pedantic, as they recognise that Uzbekistan may have slowly evolving institutions and agencies …but this has had to be balanced with the serious need to rapidly arrest the deteriorating condition of the roads.

The Institutional Development Strategy developed in the chapter above contains moderate, non-radical responses to immediate and serious problems and has taken into consideration the conditions in prevailing Presidential Decrees.

Presidential Decrees Prevailing and Keywords:

The Prevailing Decrees numbers 299 and 499 have made serious mention of the need to…

‘make proposals for the improvement of the organisational structure of Joint Stock Company Uzavtoyul, taking into account the deepening privatisation processes in industry, optimisation of operational and contractual organisations’….and…’on the assumption of requirements of modern stage of development system of motor roads of the Republic, taking into account international experience in building and operating motor roads’.

Consequently the degree of changes proposed in the IDS range from keeping the existing institutional status quo, basically unchanged, to options that completely de-nationalise most road sector management and operational functions.

The expectation of the project’s TOR is that the recipient Beneficiary has expressed a desire to modernise and liberalise its transport infrastructure and operational activities. [Presidential Decrees 299 and 499 state as much.]

However, even without restructuring of the institutions, there are certain changes that can be adopted. And they all are considered much needed changes.

4.2. Required changes

The following points illustrate that these immediate reforms and changes are already possible as they are ostensibly included in the main tasks and functions of the Fund.

4.2.1. Adopt a modern Road Asset Management System (RAMS)

Adoption of a clearly established and recognized RAMS with a fixed asset management plan that shows the various levels of policy, strategic programming and operations and the detailed activities that such a complete system should include.

Then the immediate action is to begin to populate the activities and actions and clearly separate and divide the responsibilities and roles required to make the Plan complete.

When populating the Plan the activities selected can be carried out either departmentally or by outsourcing. Not all activities need begin at the same time to begin the process of good asset management.

The following abstracts are taken from the relevant Decrees and their utilisation by the Consultant is shown here.

Key actions (as contained in Decrees) are given with the corresponding interpretation as introduced by the Consultant during the course of the TA. [Italics]



Version 1

� Assessment of investment project and tender documentation – Asset management. � Coordinating, and coordination (lists of works) – Business management; � Control over legitimacy (of use of funds) – Performance auditing; � Carries out examination of construction documentation – Funding Accreditation Systems; � Provides performance (on improvement of road network) – Performance auditing; � Carries out market research of contract work market (construction industry capacity) – Private sector

initiatives.

4.2.2. Unify the Client Role

The immediate action in this regard would for a nominated Network Manager (Uzavtoyul, Road Fund or other), to be responsible as the Client for all works: improvements, reconstruction, and rehabilitation, capital repairs, mid term repairs, routine repairs and routine maintenance on a certain class of road. There should not be two separate clients for different works on the same length or section of road. This is both counterproductive and could lead to legal and contractual conflicts.

However, there can be a different client for local roads versus republican and international roads.

4.2.3. Adoption of Commercial Rates for all works of Repair and Maintenance

The adoption of commercial rates for all works of repair and maintenance will allow immediate reforms across a range of activities. Especially in the introduction of competition.

(i) By adopting commercial rates, having within them as they do an element of cost for plant and equipment, (the other two thirds for labour and material costs), would allow the Rayons and other agencies who did not hold their own serviceable plant to bid for works and then hire in the plant that they required. The present system precludes them from bidding unless they have available plant that they can use according to the Governments Schedule of Rates.

(ii) The Road Fund could and should cease the purchase of plant and equipment and from within the Commercial Rates the ‘contractor’ should be allowed to manage his own equipment.

(iii) In the perspective of strengthening Uzavtoyul in its present position, every single rayon level organisation has to be fully operational and have access to the required plant, or it should not exist.

4.2.4. Rationalise the Number and Capabilities of the Rayon Organisations

The present system of road administration being carried out through 159 road maintenance organisations requires a rationalisation exercise in order to make optimum use of equipment and experience.

At present some maintenance enterprises are well equipped and have a reasonable amount of business and road work contracts, unfortunately, and we believe from our own research they may be in the majority, many of them are now no longer even allowed to bid for works because their plant holding is so poor.

The Consultant recommends that one in 5 of the Rayons could be refurbished with all the remaining serviceable plant and equipment from the other 4 and could act in the interim as an ‘equipment pool’ for any works that required more than hand tools or simple labour intensive works. This would increase efficiency as staffing in the labour based Rayons would be reduced, in particular for mechanical servicing staff.

There may be other ways of rationalising the existing number of Rayons to a more economically viable number based on the amount of works and size of network.

The main aim would be to have all rayon level organisations in a shape to be fully operational.



Version 1

4.2.5. Improvement of Works Quality

Quality of Works is one of the major concerns in Uzbekistan. Permanent works control is required, and cannot be achieved by the few Road Fund Inspectors. The Consultant’s advice as set out elsewhere in the report would be to contract Supervision Consultant’s Companies, duly equipped, with corporate responsibility to ensure works quality & control (as ‘Resident Engineers’).

The “a-posteriori” control (after works acceptance) of financial flows is counterproductive. Contractors need to find some flexibility for efficient site organisation.

5. Example of a First Step towards Commercializing and Outsourcing Maintenance

5.1. Appointing Supervision Consultants for Annual Maintenance and Repair Works

Under the institutional reform components of the project one of the specifics that the TOR asks for are: ‘ways that the private sector can be involved in road maintenance and introducing competition into the road sector’.

Initial reactions to such a question usually focus solely on employing contractors to deliver works. However in reality the immediate need in this regard is usually twofold; privatising the maintenance works and privatisation the works management is best implemented at the same time as the intended change requires both the client and the contractor to have the same approach.

This first step, the privatisation of the maintenance management function can be implemented under current conditions and prevailing decrees by the simple expediency of the Road Fund contracting local Consultant Companies to supervise all maintenance activities country wide, in contracts that can be project specific or by geographical area.

For routine maintenance works, it will put to an end the conflict of interest between the Avtoyuls and the Rayon level enterprises, and for the mid-term and capital works, it will provide the adequate means for efficient quality control on site. For all works it supervises, the Consultant Company will take corporate responsibility for the works quality.

Initially, it is also recommended that the Road Fund’s Inspectors (19 No) are seconded to work for the successful Consultancy companies and that the process of gradually moving them off the Government payroll and over into the private sector begins.

This is repositioning them, complete with their experience and knowledge of the network, in the private construction industry.

As part of the transition and transfer arrangements the Inspectors should receive some training in modern contract management and the use of more international contract documentation. This will enable them to not just move to the private sector but help them negotiate better employment conditions. This transfer process could begin as early as 2011.



Version 1

5.2. The Objectives for Privatising Maintenance Management

The main purpose for outsourcing the management on the annual maintenance programmes is again two fold:

(i) To introduce modern methodologies and improve the quality in the delivery of road products and services - towards international levels and models and;

(ii) To possibly expand the role of the local consultancy industry in future to undertake annual Network Analysis assignments as their knowledge of road network increases.

The maintenance supervision contract should contain certain provisos; requiring the consultant concerned to implement improved methods of works management and a more computerised form of works measurement and reporting. This will be to the benefit of the Road Fund, reducing its reliance on hard copy and reduce overhead costs.

The consultant has prepared � A flow chart of implementation of possible supervision contracts with consultant companies � A sample document for employing a technical control supervisory consultant,

Both documents are given as Appendix A to the present final report.



Version 1

Chapter 5 - Introduce computerized road planning & management using HDM-4

1. Purchase of HDM and Roughometer The quotes received for the HDM-4 licenses were submitted to the RF on 29th of September, as there is a single source selling the products (HDM Global).

Approval of the purchase was received by the RF on 9th of October.

The software was immediately ordered, and was brought from France by one of the teams experts. It was handed over to the RF on 25th November. It was installed on 2 laptops used during the training course in December, and on the computer of Sergey Vovchenko following the course.

All the calibration data and all the data of the HDM run (Network, Programme and Project Analysis) have been part of the “data handover” disk that was submitted to Road Fund on 23rst July (reference U10-69).

The calibration data is contained in the HDM “objects file”, and the sample workspaces, with all the data and calibration for Uzbekistan can be opened from HDM-4 Menu by selecting the appropriate workspace, once copied to the computer.

The quotes received for the Roughometer were submitted to the RF on 15th of October. Due to the increase in exchange rates of the Australian dollar, the initial equipment cost was slightly above the allocated budget. Purchasing the Roughometer without the GPS-kit enabled to reduce the quotes under the limit of 15.000 USD.

Approval of the purchase was received by the RF on 23rd October.

The equipment was immediately ordered, payment was made directly from France, and the parcel was shipped was shipped from Australia on 4th of November. It was received in the customs in Uzbekistan on 13th November.

The Road Fund and PIU had many difficulties to get the customs clearance for the equipment.

It was certified by Gosstroy in February 2010, and final customs clearance was received only 25th of March 2010, when the equipment was handed over to the consultants. Once the equipment had been actually delivered to the RF, the Consultants started immediately the organisation of the surveys on the pilot trial sections.

Purchase of any other equipment planned under the project was cancelled, due to the impossibility for the consultant to purchase the equipment following Uzbek standard purchase procedures.

2. Calibration

2.1. Road User Effects Calibration

The calibration of the Road User Effects inputs to HDM-4 was carried out during the period January-May 2010. Axle load surveys which formed part of the calibration work were carried out during the period 26-27 April 2010 and are related in the report as part of the pilot surveys.

The details of the Road User Effects Calibration is given as Annex1 of Appendix C “Network Maintenance Strategy and Funding Plan. The aim of the calibration was to examine in detail the characteristics of the vehicle fleet using the network in Uzbekistan in order to adapt the Road User Effects inputs (including vehicle operating costs) to HDM-4 to specific local conditions.



Version 1

The starting point for establishing the RUE inputs to the HDM-4 model was the traffic count information collected during the manual classified counts and origin destination surveys carried out as part of the current project. Seven main vehicle classes were defined as follows: � Passenger cars (including 4 wheel drive vehicles), � Minibuses, � Buses, � Trucks up to 3.5 tons (light trucks), � Trucks 3.5–12 tons (2 axle trucks), � Trucks greater than 12 tons (3 axle trucks), � Articulated trucks (>3 axle trucks).

For each vehicle class, a representative vehicle type was defined and the engine driving and braking power specifications for these specific vehicle types were assumed representative of all vehicles within that category.

For each vehicle type, the derivation of the vehicle attributes has been described in detail. The current average salary in Uzbekistan has been estimated and values of passenger and crew time have been developed based on the average salary. Data on replacement vehicle and replacement tyre costs were collected locally and estimates of economic costs of fuel and lubricant costs have also been developed based on local conditions. The origin destination surveys yielded information concerning vehicle occupancy, proportions of trips in work time and truck loading rates. Specific axle load surveys were carried out in order to calibrate the average vehicle operating weights and the equivalent standard axle loading for trucks and buses.

A complete list of inputs to the Road User Effects model for each vehicle type is presented as part of the detailed Annex. This would be the basic information future HDM-4 users in Uzbekistan should use for further strategy or project level studies with HDM-4.

2.2. Road Deterioration

As specific data collection for HDM-4 calibration was not part of the Terms of Reference, the calibration process aimed at fulfilling the required level 1 “Desk study” calibration (Refer to HDM-4 documentation, Volume 5, section 2.3). The complete calibration report is part of Appendix C, network maintenance strategy, as Annex2.

The consultant could not get reliable data on last works date on more than 14 % of the total length of the pilot network. From those 14 %, most cover recent works (2007, 2008, 2009, and even 2010). Finally, Rehabilitation date for works in years 2006 and before is known on only 3.3 % of the length, and Mid-term maintenance date for same period is known on only 1.3 % of the network. Therefore, it was not possible to perform a complete calibration of the road deterioration prediction.

However, data collection on the pilot network showed that many default parameter values in HDM-4 are not appropriate for Uzbek context.

2.2.1. Pavement strength

Quality of materials is far from international standards: poor aggregate shape, segregation in mixes, bitumen quality questionable, poor compaction. All these reasons result in the fact that pavement materials do not comply with the required quality.

To take this into account, the values for strength parameters of pavement materials were adjusted to reduce their values compared to HDM-4 defaults.

Pavement SN was derived from known thicknesses, or from standards. CBR values were adjusted, adopting a low 5 value for most areas where water table is close to the surface, whilst a higher value of 15 is adopted in desert and mountainous areas, where soils are in more favourable environment.



Version 1

As pavement materials quality is questionable, an early cracking is observed, and a fast crack evolution. To take this parameter specifically into account, a 0.8 value was taken for CDS parameter, instead of the default 1. The impact of this value is to shorten by 40 % the time for first crack initiation.

2.2.2. Distresses

For pavement distresses, the visual surveys were not made according to HDM-4 format, which is too long to be carried out. The match between survey format and HDM-4 format has been detailed as part of the database specifications in appendix H2 of the draft final report.

Transverse cracking is a specific problem. In HDM-4, transverse thermal cracking appears only for Sub-tropical hot and Temperate freeze climate zones, as detailed in table C2.19, where NCTeq is the maximum number of transverse cracks per km, and Teq the time (in years) to reach that level.

Considering the temperatures, Uzbekistan is rather in “sub-tropical cool” region, however transverse cracking reaches a very high intensity in some places. The climate zones were set to subtropical hot (except for the mountainous areas), but even so the maximum intensity of transverse cracking still doesn’t go beyond 100 cracks per km (1 crack every 10 m), which is far less than observed on some sections. As it is not possible to modify those parameters in HDM-4, it must be reminded that HDM-4 results are likely to under predict the rate of transverse thermal cracking.

2.3. Roughness

Roughness values for new pavements are higher than usual. This is mainly due to material quality, and possibly to inadequate procedures for works realisation and control. The equipment, similar to those used in other countries, should not be part of the problem. Whatever the origin this problem arises from, it was taken into account in Works effects calibration with the two following assumptions: � Roughness for a new pavement is set to 2.5 IRI. � No maintenance works can provide a roughness better than 2.5 IRI.

Considering overlay works, the bilinear relationship used in HDM-4 was modified. The graph below shows the difference for 80 mm overlays.

Figure 5: Roughness reduction after thick overlays

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0.0 4.0 8.0 12.0 16.0

Ro

ug

hn

ess

aft

er

Roughness before

Roughness reduction, 80 mm

Uzbekistan

HDM-4 default

Similar changes were made for Overlays 50 mm and 40 mm.

Roughness progression was kept at the usual deterioration rate.



Version 1

2.4. HDM-4 configuration

In addition to the proper calibration of the models, the consultants reviewed all configuration parameters to adjust the HDM-4 workspace to the Uzbek Environment. This is also document in Appendix C Annex 2.

3. Training Training in HDM-4 was organised in three steps during the project: � 2-weeks beginners training course organized in the Road Fund in Tashkent in December 2009 � 1-week introductory training course in TRL in UK � 1-week “advanced” training course to be implemented in July 2010

The results of the 2 first sessions and assessment of the current knowledge of the Road Fund staff members regarding HDM is given in Chapter 8 of the present report.

The general assessment is that only few members of staff are fully operational, whilst a larger number gained overall knowledge of the software and its possible use.

Overall, it is not possible to develop HDM-4 capacities without an appropriate institutional framework defined.

4. Network Analysis This section of the report summarises the network analysis results when using HDM-4 for the development of a long-term network maintenance strategy. The full strategy analysis is presented as part of Appendix C.

The analysis in undertaken in steps as follows: � Analysis of possible optimal strategies using HDM, on “representative” sections on the network on

which full data are available. � Description of the full network of public roads in Uzbekistan for the use of HDM, in a summarised form,

by defining different classes of roads, according to their category, their condition and their traffic into a “network matrix”.

� Definition of possible maintenance treatments and maintenance scenarios (treatments applied over the whole duration of the study, here set to 20 years).

� Analysis of the costs and benefits for the various scenarios, to select the optimal level of service and related expenditure; without budget constraints and with several budget scenarios.

4.1. Long term optimum first approach

The first analysis was to evaluate, over a very long analysis period (50 years) the different possible strategies that could be used on different parts of the road network, and to determine the long term optimal strategy for each of the network fractions. These strategies can vary according to the type and timing of road works carried out, without any limitations in a first step.

This analysis must be conducted on a limited number of road sections, selected to constitute a representative sample of prevailing conditions met on the Uzbek network.

Sections were selected to cover: � All Road categories (traffic flow Very high, > 14 000 veh/d, High, 6 000 – 14 000 veh/d, Medium 2 000

– 6 000 veh/d, Low, 200 - 2 000 veh/d, Very low, < 200 veh/d); � All pavement types.

From the pilot network were extracted 9 sections, which are representative of the average characteristics of the relevant class.



Version 1

Those sections were then described as they were when they were just built, and the different strategies were analysed over a 50 year analysis period. This very long analysis period is not relevant for economic analysis, but shows the long term consequences of the different strategies.

4.1.1. Results

The Economic Indicators Summary Report of the analysis of possible strategies is given as Annex 3 at the end Appendix C.

The main trends are: � The actual strategy is not sustainable, as it leads to unacceptable roughness values in all cases,

except on low traffic sections. � The strategy that describes the Norm is the best one, in terms of net present value, except for low

traffic, but is also the most expensive. If we consider the NPV/Cost ratio, the Norm strategy is not well ranked and far from optimal.

Without any surprise, the criterion NPV favours the strategies that provide a low roughness, thus minimising Road User Costs.

Criterion NPV/Cost ratio favours the cheap strategies, or the strategies for which important works are delayed long enough to reduce considerably the discounted cost. These are mainly the Rehabilitation strategies.

An additional run was done, specifying in all norms a percentage of repairs of 100%, similar to Norm percentage, instead of the current estimated 30% percentage.

This has a considerable impact on optimal strategies, due to the fact that a comprehensive intervention at the very start of a distress evolution prevents from a fast extension and saves additional investments.

As roughness evolution is slowed down with improved routine repair, the roughness triggered interventions are cheaper in discounted costs, and this favours the frequent overlays triggered by roughness strategies.

The actual strategy cannot prevent roughness from reaching values of 10 IRI and higher, that are not acceptable for a modern network, even with low traffic volume. At that level, operating speed falls below 60 km/h, and this is a considerable nuisance for economic development.

The official “Norm” standard provides the best level of service, however, at the highest cost for the Road Administration.

From this first run, it is clear for the consultant that: � There should be more emphasis on routine repair; � If this is done, it is preferable to trigger overlays by road condition, namely roughness, rather than on

predefined schedule. If no emphasis is given to routine repair, the optimum may be to wait until very bad condition to trigger rehabilitation.

4.2. Budget Analysis

For the budget analysis, the network was modelled through a representation of the network with 77 road sections.

The segmentation criteria to define the HDM-4 sections were:

� Road Class: International, Republican, Local (grouping Regional and District); � Road Category: Categories I to V � Pavement type: Concrete, Asphalt on concrete, Asphalt, Cold Mix, Gravel, Earth; � Road condition: Excellent, Good, Fair, Poor, Bad.



Version 1

4.2.1. Strategies

From the set of strategies tested in the Long term optimum study described above, only the most relevant were tested and the model was run for the whole network matrix (77 sections) with these strategies.

4.2.2. Budget constraints

Some limitations were introduced to the budget levels, studying five alternatives: � Unconstrained budget; � Unconstrained, minus 20%; � Unconstrained, minus 35%; The last scenario was the (very pessimistic!) modelling of NO periodic and rehabilitation for the next 4 years, meaning a complete stand-still of investments till 2015.

4.2.3. Results

The optimal strategy is automatically selected by HDM-4 as being the one with the highest NPV. The report showing the optimal strategy for each section is given in Annex 3 of Appendix C.

The optimal strategy is no longer the “Norm”, except for a few sections. One reason could be that this strategy is optimal when you assign it strictly from the construction or the reconstruction of the pavement, but that it is no longer the case if you miss to trigger the adequate works at the adequate moment.

One important point to stress is the fact that, like in most HDM-4 studies, the current strategy is far from optimal one. The application of this inappropriate strategy over a long period of years leads to a situation where the current road network condition became step by step into mainly poor condition. This is the result of a huge backlog in road maintenance works, and consequently, as expected, all backlogged works are triggered in the first years of analysis period. This initial peak is not acceptable, and will be smoothed for the works programme definition.

Figure 6 : Annual budget needs to upgrade and maint ain the network in optimal condition

0

500

1 000

1 500

2 000

2 500

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

Mil

lio

n U

S$

Annual budget needs, unconstrained

Annual costs

Average

With the current modelled maintenance and repair costs, the optimal budget is established at about 5.5 Billion USD over the analysis period (20 years).

This would mean an annual budget between 250 and 300 Mill. USD, which is equivalent of an annual expenditure between 7000 and 10000 USD/km (as an average for all road classes).

This amount is close to international practice.



Version 1

4.2.4. Network conditions according to budget scenario

With the optimal strategy, road roughness is kept at a level that can be qualified as “Excellent” for International roads, “Good” for Republican roads, and “Fair” for Local roads.

Under the different budget constraints, this is no longer the case, and the average quality of the network is constantly decreasing when the budget constraints get tighter.

The situation is not too bad for the -20% option or the -35% option, where for each road class, the service level is only slightly deteriorated, except for Local roads at the end of the analysis period, for which roughness comes back to current values. International and Republican roads can still be kept in good to fair condition.

The average roughness level is established approximately as follows: � International roads: 4 � Republican roads : 4 and 5.5 � Local Roads: 6.5 and 8

Regarding the traffic volumes, in particular for the local roads network, this level of service is not fully satisfactory, but still acceptable.

On the contrary, the situation becomes critical with the “-50% option” (2.8 Billion USD), which leads to unacceptable road conditions at the end of analysis period, even for the international roads.

4.2.5. Annual Expenditures

From the findings above, with adjusted unit costs for works and vehicle operation, the annual expenditures have been developed in more detail. The expenditures have also been subdivided by network class, to identify the resources that should be allocated to each road class.

For the time being, the 3 following scenarios for the spending profile will be adopted: � The unconstraint budget of 5.5 Billion UZSums to achieve optimal network condition � The medium budget of 4.5 Billion UZSums which still allows to maintain the network in appropriate

condition � The constraint budget with 3.6 Billion UZSums over the analysis period.

For each of the scenario, the annual budget has been divided into “backlog maintenance” required to upgrade the network to acceptable condition and “periodic” maintenance (including mid-term and capital repair), required over time to maintain the network quality at the same level.

Table 9 : Annual forecasted periodic maintenance ex penditures, 2011-2030 Annual Expenditure over the period Total

Years 2011-2012 2013-2015 2016-2020 2021-2025

Scenario 1 5500

Backlog 250 250 100 0 1750

Periodic 200 200 250 300 3750

Scenario 2 4500

Backlog 200 200 100 0 1500

Periodic 150 150 200 250 3000

Scenario 3 3600

Backlog 200 150 100 0 1350

Periodic 120 120 150 180 2250



Version 1

4.2.6. Savings in RUC

For each strategy, the annual vehicle operating costs are presented hereafter.

The Balance between Road Administration costs and Road User costs over the analysis period (2011 – 2030) is presented in the following table (all costs in Million US$, M$):

Table 10 : Increase in Road User costs due to budge t constraints

Scenario Budget Road User Cost Budget

reduction

Increase in RUC due to budget

limitation

Unconstrained 5 600 444 971 0 0

-20% 4 500 447 710 - 1 100 2 739 -35% 3 600 454 224 - 2 000 9 253

No period & capital maintenance till 2015 5 540 460 499 - 60 15 528

This means that a relatively small reduction in the budget will have very significant impact on the road users, and, as such, on the overall economy of Uzbekistan. The effect is in particular important for scenario 2 (-35% budget reduction) but even worse for the very pessimistic assumption, where periodic and capital works are delayed until 2015.

4.2.7. Impact of works delay

Considering the high priority of investment works, a run was made to compare the strategies above with identical strategies delayed after 2015, with limited routine maintenance activities while waiting the availability of more funds.

In the case of “Delay works” option, the total undiscounted amount for works is approximately the same as for the base option, slightly lower. As this amount is distributed over 16 years instead of 20; this results in a 25% increase of annual budget for years 5 to 20 on average. However, this total amount is not equally distributed. In year 2015, the backlog is more than 3 800 M$. By the same time, Road users’ costs are considerably increased.

Figure 6 shows roughness evolution under this option.

Figure 7 : Evolution of Road Roughness under the “D elay” option

Over the 77 road sections of the global network, the “Delay” option has a positive NPV only in 4 cases, all on Category V road sections.



Version 1

4.3. Conclusion

The important outcomes of the strategy analysis are the following: � The actual strategy that is presently carried out on the network is not sustainable, as the time intervals

between interventions on the pavements are too long, it leads to unacceptable roughness values in all cases, except on low traffic sections.

� The strategy that is describes in the standards (‘Norm’) is the best one, in terms of net present value, except for low traffic, but it is also the most expensive. If we consider the NPV/Cost ratio, the Norm strategy is not well ranked and far from optimal.

� Strategies that or rehabilitation at a intervention level, described in terms of pavement performance rather then time interval are generally selected as optimal; they also include significant numbers of surface dressings or seals, relatively inexpensive techniques, which are particularly appropriate for the Uzbek roads, that crack at early age.

� Regarding the analysis of possible strategies, the importance of improved routine repair should also be noticed, as it significantly improves the pavement deterioration rate.

The result that should be noted from the budget scenarios is the need for immediate periodic and backlog maintenance. The optimal budget would be 5500 Million USD over the 20-years period. With a 20% reduction of this optimal budget, the road network will still be in satisfactory condition, whilst a 35% decrease would mean an important loss of service level, for low volume roads. The worst case modelled, that has not been taken forward to the financing plan is the assumption that no maintenance would be carried out during the next 4 years, whilst the development programme is being implemented. This would not only mean deterioration of the road conditions and increase in user costs, but also a more important, although delayed, investment need and overall budget effort. The analysis also shows that the network is still in a condition, where it could be recovered with limited back-log rehabilitation, but this would not be the case if the effort would be delayed or diverted elsewhere.

5. Programme Analysis The report on the programme analysis has been submitted end of July as appendix I of the final report. It demonstrates in detail the typical development of maintenance and investment programmes using HDM-4 based economic analysis, based on the data collected during the consultant’s pilot trials.

The programme has been set-up without considering the present investment programme of resolution PP1103, as the detail of this programme was not available to the Consultants when preparing the present report.

The works programme has been set-up in coherence with the national road network maintenance and backlog recuperation strategy (Appendix C of the Draft Final Report) that preserves the value of the whole asset while minimising costs for users as well as for the taxpayer contributing to the road fund. The technical options and related costs are explored and explained by modelling two possible budget allocations for the next 3 years, based on the middle strategy17 presented in the Network Analysis.

The pilot represents only 11% of the total network length, but carries almost 40% of the traffic flows. Therefore, the pilot network analysed does not represent a typical part of the Uzbek network, as being of the higher strategic importance. The budget proposed to be allocated for this network has thus been modelled as a part of the total budget reaching from 20% to 35%.

17 See Appendix C, Chapter 4&5, Budget scenario 2, with a budget constraint of 20% compared to the required (unconstraint) funds, at 4.5 Billion USD over the 20 years analysis period



Version 1

The programme is prepared using the following steps:

� Modelling of the pilot network from the data base: the 4000km represented in fact over 5200km of

carriageways, where most important road condition data (excepting pavement structure and maintenance history) were available.

� Definition on possible works sections, that should be homogenous in terms of condition, based on the survey data: criteria for defining sections limits were pavement type, traffic and number of carriageways. As condition data showed a very high dispersion, it was not used for segmentation. A total number of 327 works sections were defined covering the whole pilot network.

� Preparation of possible strategies and works, in coherence with the above mentioned strategy. The optimal strategies resulting from the network analysis were used, and those were completed by routine and intermediate maintenance works.

� Programme Analysis using HDM-4 to define optimal strategy and timing for the individual sections. For this, two budget constraints were used, deducted from the “middle” network analysis budgets. This resulted in an annual budget constraint for the period 2011-2013 from 70 Million USD to 122 Million USD.

� Running HDM-4 without budget constraint resulted in a 360 Mill USD programme, most works being triggered in 2011. From this run, sections were postponed, as not all sections could be financed. This selection was done manually, to postpone rather backlog maintenance then periodic interventions.

� The results comparing the budget options showed that a constraint of 70 Million USD/year did provide almost no improvement of network conditions during the analysis period, whilst the 122 Million ISD constraint is close enough to the optimal unconstraint run to be a feasible alternative.

The results are illustrated by the figures below:

Figure 8 : Roughness evolution under 70 Mill. USD A nnual budget



Version 1

Figure 9 : Roughness evolution under 122.5 Mill. US D Annual budget

In Option 1, average roughness reaches the level “Excellent” (4 IRI) as soon as 2012 for Republican roads, but it is necessary to wait until 2018 or 2019 to get the same quality on International roads. In option 2, the time to reach the “Excellent” level is almost as long for International roads, (2017 instead of 2018), but they reach the “Good” level (4 – 5 IRI) as soon as 2014.

6. Project Analysis The project analysis was prepared as part of the final HDM-4 training, on 4 selected examples of the development plan from Resolution PP1103. The sections selected for the pilot project analysis have been indicated by the Road Fund: � 1 - A-380, between km 916 and km 1204: Rehabilitation, using asphalt concrete, on three sections, to

be implemented in 2012, 2013, and 2014. � 2 - M-39, between km 1330 and km 1451: Rehabilitation, with asphalt concrete, on three sections, in

2011 and 2012 � 3 - A-380, between km 228 and km 315: Widening from 2 to 4 lanes (2 carriageways of 2 lanes each,

building a new concrete pavement next to the existing asphalt one. The existing pavement is rehabilitated. Works scheduled in 2011.

� 4 - A-373, between km 116 and km 195: Pavement reconstruction, changing pavement structure from Asphalt concrete to cement concrete, in 2011.

Above providing useful information on possible sections to be considered for a maintenance programme over the next 3 years, on the pilot network, one of the main targets whilst writing this report was to provide sufficient explanations and back-ground information so that the staff trained during the project would be able, after the last training course, to use this material and to be able to take the method forward for future analysis.

The main economic results for the four projects are given below, and explained in detail in the Appendix:



Version 1

6.1. Project 1, A-380, 916 – 1204

The economic evaluation results are displayed in the table next page. As expected, the three sections have very close indicators. For all of them, the NPV is negative, with a very low value of the IRR. This means that the reconstruction is not economically justified, because the decrease in Road User Costs is too low to compensate the cost of the project.

It is interesting to produce the report Road Works Summary (by Section), which shows that the rehabilitation (120 mm asphalt concrete) triggered in 2015 in the frame of the Base alternative has a financial cost of approximately 12.3 M US$.

The same report shows that the reconstruction triggered in 2012 on the same section, in the frame of the Reconstruction alternative, has a financial cost of approximately 73.3 M US$, six times more.

Maybe the project design and evaluation should be revised.

We made an additional run, adding for each section a new alternative, “Immediate rehabilitation”. This immediate rehabilitation (120 mm AC) is triggered the same year as the Reconstruction. Before the standard “Wait” is assigned, and after rehabilitation, the standard “Asphalt” is assigned.

Table 11 : Economic Analysis results for project A- 380, km 916- 1204

Section Alternative

Present Value of Agency Capital Costs (CAP)

Increase in

Agency Costs

(C)

Decrease in User

Costs (B)

Net Present Value

(NPV = B-C)

NPV/ Cost ratio

(PNV/CAP)

Internal Rate of Return (IRR)

A-380 - from 0916 to 1004 - Asph

Base Alternative: no reconstruction 2.096 0.000 0.000 0.000 0.000 0.000

Reconstruction in 2012 64.757 62.597 27.900 -34.697 -0.536 3.0 (1)

A-380 - from 1004 to 1104 - Asph

Base Alternative: no reconstruction

2.381 0.000 0.000 0.000 0.000 0.000


A-380 - from 1104 to 1204 - Asph

Base Alternative: no reconstruction

2.381 0.000 0.000 0.000 0.000 0.000


6.2. Project 2, M-39, 1330 – 1451

Project 2 is very similar to Project 1, with a lower traffic, and a higher cost for the Reconstruction project. Without any surprise, the economic indicators are worse than for Project 1. Immediate rehabilitation is justified only on two sections.

6.3. Project 3, A-380, 228 – 315

For section 1 (from km 228 to 250), the widening gets a positive NPV when compared to the Base alternative. The IRR value is 16.4%. On the opposite, section 2 (from km 250 to km 297), and section 3 (from km 297 to km 315), get a negative NPV, with an IRR value of -6.8% and -7.0% respectively. The reason is of course traffic volume, 6 000 veh/day AADT, compared to the almost 25 000 veh/day AADT for section 1.



Version 1

Table 12 : Economic Indicators for project A-380, k m 228 - 315

The total positive NPV of widening alternative on section 1 (96.930) is slightly greater than the total negative NPV on section 2 and 3 for the same alternative (71.316 + 23.966 = 95.282). This means that if the project had been defined as a whole on the total link, for instance using the by Project option in HDM-4), its profitability would have been positive.

6.4. Project 4, A-373, 116 - 195

The Economic Indicators Summary is displayed in the next table. Reconstruction gets a positive NPV on two sections. But in all cases, the best alternative (highest NPV) is for Maintain alternative. Once again, there is a too big difference between the Reconstruction cost and the cost of the rehabilitation that is triggered in the frame of the Maintain alternative, and traffic volume is not high enough to compensate these costs.

Table 13 : Economic Indicators for Project on A-373 , km 116 - 195

Section Alternative


Increase in Agency

Costs ( C )

Decrease in User

Costs (B)

Net Present Value

(NPV = B – C)

NPV/Cost ratio

(PNV/CAP)


A-380 - from 0228 to 0250 - Asph Base Alternative 3.234 0.000 0.000 0.000 0.000 0.000

Maintain, no widening 3.350 0.084 58.033 57.949 17.300 No solution

Widening to 4 lanes 58.143 56.909 153.839 96.930 1.667 30.1 (1)

A-380 - from 0250 to 0297 - Asph

Base Alternative 5.670 0.000 0.000 0.000 0.000 0.000

Maintain, no widening 6.849 1.123 46.786 45.663 6.667 283.4 (1)

Widening to 4 lanes 125.028 123.583 52.267 -71.316 -0.570 2.0 (1)

A-380 - from 0297 to 0315 - Asph


Maintain, no widening 2.363 0.398 21.794 21.396 9.055 359.4 (1)

Widening to 4 lanes 47.412 46.914 22.949 -23.966 -0.505 3.6 (1)

Section Alternative


Increase in

Agency Costs

(C)

Decrease in User

Costs (B)

Net Present Value (NPV = B - C)

NPV/Cost ratio

(PNV/CAP)



Maintain 1.220 -0.033 6.346 6.380 5.229 161.0 (1)

Reconstruction 7.898 6.919 7.571 0.652 0.083 13.5 (1)

A-373 - from 0121 to 0133 - As+Conc


Maintain 2.015 0.482 15.157 14.675 7.281 160.5 (1)

Reconstruction 19.987 19.155 18.522 -0.634 -0.032 11.4 (1)


Maintain 7.419 -0.931 46.555 47.486 6.400 253.9 (1)

Reconstruction 50.934 44.350 58.666 14.316 0.281 16.6 (1)


Maintain 4.710 -1.651 30.851 32.502 6.900 188.8 (1)

Reconstruction 48.516 43.850 40.796 -3.053 -0.063 11.1 (1)



Version 1

6.5. Conclusions

Four pilot projects have been analysed regarding their economic benefits under defined works options. These projects have been used to train the Road Fund staff on HDM-4 and to demonstrate the aim of economic analysis.

All four projects are part of the investment programme of the Road Fund for the coming 4 years.

Only for one project (A-380, km 228-315) the economic analysis showed a positive return on investment, for all other projects, the NPV is negative and the IRR low, although all pavements are in deteriorated conditions.

This can be explained by two reasons: � On one side, the traffic volume on most projects is very low, meaning road user benefits and travel

time savings are limited for an improved road condition � On the other side, the projects costs are generally high, due to important works that are triggered.

When reconsidering the same projects with more limited investments (e.g. rehabilitation instead of reconstruction) or a different time scale (e.g. opening in 2015 rather than 2011) the economic benefits can be much increased, and most projects could become economically viable.



Version 1

Chapter 6 - Data base

1. Importance of a Data Base All road management aid systems rely on road data extracted from an "information system", a term that covers all software tools, procedures, and organisations created to guarantee to the road managers the pertinent, accurate and up to date information they need to make their decisions. It is the purpose of the following description to point out the objectives and main characteristics of the data base, considered as the plinth software for the Road Asset Management.

In the process of development of an information system, a fundamental issue is to clearly define the final expectations of the tool.

When considering the adoption of Asset Management the databases and tools are multiple (referred to as “the toolkit” in institutional development). One of the most important tools is the RMMS or “Routine maintenance management system”, to programme and monitor the routine maintenance and thus most assets on the road side. This tool has not been subject of the present technical assistance, but should part of the future development (see Chapter 9 of the report).

The general objective of the data base developed during the present project and at this stage was to serve HDM-4 as defined in the Terms of Reference for the planning and programming of maintenance. However some other features have been judged useful and have been added to the software during its development.

The Consultants consider that the knowledge of the current road condition through systematic surveys is that backbone of any decent road planning and works programming. Knowledge of the condition is more important that the use of sophisticated methods and software. In Uzbekistan, it was seen that a lot of condition data was already collected at various levels, but is a burdensome paper format, and unfortunately limited use is made of all this information.

Compilation of such data, and use of modern technologies to store and analyse the data in an objective way would improve greatly the programming process, in terms of exactness and efficiency.

The ideal data base for pavement management studies should have two main goals: � An exhaustive and adaptable (“lively”) record of the road conditions, susceptible of evolution through a

future handling and management. � The referent plinth for the other modules of the PMS mainly HDM-4.

Whilst the second objective has been fully filled, the additional development of data to be stored for other reasons and goals is in the hands of the clients.

As already developed in the institutional part of the assignment, the consultants do not see necessarily the management of the surveys and data base to be done by the Road Fund. The responsible organization within the Road Sector is better seen in a technical institution (as design bureau or research institute) and should more generally be under the responsibility of a Road Network Manager (who can decide to do this work in-house or sub-contract it).

The daily cumbersome work of data collection, compilation and analysis should better not be done in a high level organization as the Road Fund, but maybe successfully outsourced to specialized consultants. However, the Road Fund would benefit from this information being available in a digitized form as support for its decision making, in the form and at the date it requires.



Version 1

2. System Overview The present database and its link with HDM-4 were targeted for improvement of the long term strategic planning and short-to mid-term programming of maintenance: meaning periodic (mid-term) maintenance, strengthening, rehabilitation and reconstruction. Whilst improvements, in particular widening can also be addressed with the developed tools, this was not the main objective of the ToR.

Several aspects of a road database have been analysed, that are all of importance to make the tool sustainable in future: � Structure of the data base and availability and format of the data required for the HDM-4 analysis (see

next section); � Calculations and data processing; � Reporting and exporting of data (in particular regarding the future link with HDM-4); � Programming language and owner/programmer.

For the present project, the consultants developed a software program with its local counterpart, designed specifically for the Road Fund and that can and could be enhanced later. All the source code and software routines will be handed over to the Road Fund at the end of the project. The software should be seen as a “pilot RMS” for Uzbekistan. It includes the core requirements of a road data base, and demonstrates the possible tools and uses, but it is would gain from additional developments, regarding the data range (additional assets and data to be stored), the data processing and export (development of GIS interface or similar, not part of the present assignment), management of user rights and dissemination at regional / local level and perhaps development of specific programming tools, as selection of treatments, decision trees, monitoring indexes… The possible ways of improvements are multiple.

As the development of a full data base and PMS tool is a multi-year ambition, the present system should be viewed as the nucleus of a system to be developed further.

As the software is not a commercial generic tool, changes in the software structure can be done, and additional interfaces and data processing can be developed. The future changes recommended by the Client or other Consultants can be possibly implemented at local level.

The Consultants have analysed in the first project phase what features are the core requirement of the road data base in Uzbekistan: � User inter-face and data up-loading tools (in particular, import of bulky pavement survey data files...); � Checking procedures, to detect errors preventing insertion of data in the wrong fields and detecting

errors or omissions, ensure the integrity and security of access; � the compatibility of the reference location system used in the data base with the “language used by

the engineering profession in Uzbekistan ; � the compatibility to HDM 4, achieved by the possibility to create files directly used by HDM ; � the possibility to export the data for its manipulation in Excel or similar to produce statistics, graphs

etc...

The data base has been designed to gather and organise as a first priority all the information necessary for HDM-4 analysis. In this respect, the Consultant has analysed what these core requirements are, and data that sometimes was even recorded during the pilot trial was still left aside as less crucial.

Indeed it became quickly apparent that a compact database, but filled consequently with the relevant data is more useful then the preparation of a large system, that would only virtually exist as being mostly empty. Also the data base design has to take into account the future possibilities of updating the data, thus sustainability and it is therefore a general recommendation to limit the data collection to the strict requirements.



Version 1

The data base structure can be explained with the following figure:

Figure 10 : Data base structure

References

Vehicle types Materials Pavement Layers Traffic lanes Structures Geometry parameters soils ………

Pavement Structure

Subgrade strength

Traff ic Sections

Traffic details

Strength

Roughness

Other condition parameters…

Oblasts

Rayons

Climate

Network

Road

Reference location system

Import of Data

Export of Data

Description

Calculation

A B Means table B depends on table A Export to HDM

The data tables can be divided in 3 groups: � The location reference system, meaning the list of the roads and their identification, as well as the

location system used to locate all events on a road; � The actual data or events that are located on a section or a point of the road. These can be divided

into road description data, road condition data, road use data (traffic) and environment. � The reference tables or libraries, tables that give lists or ranges of values that are used in the

software. In the particular case of Uzbekistan, the libraries are also often used to give the correspondence of data values between the database and HDM.

Above the data tables, the software includes a certain number of calculations.

The information has been stored per elementary road section (defined at regular interval, generally 1000 m for example), and includes: � road geometric characteristics ; � road surface condition ; � road structure conditions ; � historical data on the road construction, rehabilitation and maintenance (where available) ; � environment data; � traffic in volume, nature and growth;

The data screens have followed a template to standardise the work of the user. When inputting data (manually or though loading features) a certain number of coherence checks are carried out to ensure data integrity.

A typical user interface can be seen on the following example:



Version 1

Figure 11 : Typical Road Database user interface

The data inside the database are presented in a grid at the right side of the screen.

The left part of the screen is designed for data input or editing.

3. Specifications The initial specifications for the system were developed as part of the inception report. The first version was dealing mainly with the structure and definition of the database itself, ignoring the link to HDM and other features.

The consultants at that stage also described a quite ambitious reference system that would update the road inventory completely. Finally, when the pilot surveys were implemented, the feed-back from the surveys teams was that a complete new system could not be implemented easily, and the whole profession was used to a “kilometre” system.

The principle of a “kilometre” referencing system is a continuous location system, counted from the roads starting point till its end. In practice, due to changes of alignment, measurement precision, etc... The total road length recorded in such a system is never accurate compared to the situation in the field. For this reason, most countries adopted a “reference point” system, where the road length is a sum of short individual sections, identified by the “reference points”.

Whilst this system gives a higher a precision it needs a significant investment in accurate distance measurement, implementing of physical reference points or posts, and it was not possible to organise this change in the limited project scope.

The consultants thus reverted to the kilometre system traditionally in use in CIS countries.

In the second project period, the consultants developed in more detail the link of the database and HDM, and the different calculations required to transform the field data, in individual survey segments (about 1000m of length), into average data for a HDM-works section (that are generally between 3 and 30 km). The revised specifications were submitted as part of the monthly report for February.

In the last project period, the specifications where updated on specific technical issues and these changes mostly covered 2 issues: either errors or ambiguity of the initial version, or specifications that were found unpractical during the tests.

The final specifications, representing the final software handed over were part of the draft final report as Appendix H2.



Version 1

4. User Manual The aim of the user manual that was prepared as part of the present assignment is twofold: � To guide the user through the input screen and give advice on the practical manipulation of software

and data � To comment on the data that is used, and give technical explanations on the data.

This second aspect of the user manual was found of particular importance.

Indeed, the user interface is based on usual access forms, and is intuitive for MS Excel and Access users. On the contrary, the technical system used in HDM (and therefore in the database) is largely following American AASHTO standards, that are not well known in Uzbekistan. The manual is giving the back-ground information for the users on the values used in the software and their significance.

The user manual of the database has been prepared and submitted as Appendix H1 to the draft final report issued end of June 2010.

5. Future Steps Additional future developments can be ambitious or small improvements to simplify the daily work.

Simple improvements include: � Including of other data that are not covered now (management of assets like signing, marking, etc…). � Additional loading facilities (for other data than condition data, like traffic…). � Additional export facilities. � Reviewing some of the interfaces and user restrictions. � Improving some of the software routines to improve speed. � � Additional features that would be adding value to the software are: � Development of query facilities, to allow the user to develop its own queries, involving multiple tables. � Development of condition indicators to be able to monitor the condition of the network in a

summarised form over the years, and to produce summarised condition information for planning and programming purposes (as a sophistication of the previous point).

� Development of charts and graphs based on the software (although most graphs could be as easily produced using Excel).

� � Additional complex developments: � Adding GIS interface or at least mapping facilities. � Similarly, adding a facility for automatic editing of strip diagrams. � Addition programming rules, like selection of treatments and priorities for sub-sections, according to

condition and load. � Eventual developments of user access rights, in case of regional and local dissemination.



Version 1

Chapter 7 - Pilot data collection

1. Pilot sections

1.1. Approved programme

In a meeting on 12th October between the Consultants and the Road Fund (PIU and Planning Department), it was agreed that for various reasons, the pilot trial should cover: � the international network � selected important sections in Tashkent region

There are various reasons for this selection � These are the sections of key interest for the Road Fund, regarding the planning of periodic

maintenance, rehabilitation and also development of the network. � From a practical point of view, on these sections, most passport data should be available. � The pilot data collection of the Consultant would enable to review and transpose this data into the

format needed for HDM-4. It would constitute a sample with described and validated procedures for data processing that could be reproduced later for the remaining part of the network.

The final approved list of sections was received on 27th of October 2009 and included the following:

Table 14: Approved list of Trial Sections

Road N° Road Number Section Total length

(km) 1 M-34 Tashkent - Dusanbe 160

2 M-37 Samarkand Ashkabad - Turmenistan 365

3 M-39 Almaty - Bischkek -Tashkent - Termez 628

4 M-41 Bischkek - Dusanbe - Termez 191

5 A-373 Tashkent - Osch 399

6 A-376 Kokand - Djizak 168

7 A-377 Samarkand - Aini 37

8 A-378 Samarkand - Karschi 138

9 A-379 Navoi - Utchkuduk 289

10 A-380 Border – Kungrad – Nukus - Guzar 1204

11 4P1 Tashkent ring-road 67

12 4P2 Tashkent - Almalik 52

13 4P12 Bektemir - Chirchik - Gasalkent- Charvak 75

14 4P20 Karacyb - Buka - Bekabad 109

15 4P29 Gulistan - Gagarin section km 0-35 35

16 4P45 Samarkand - Kolzevaia section 0-8 & 33-46 21

17 4P87 Guzar - Chim - Kukdala 73

TOTAL 4011

Following this, the consultants prepared specifications for the survey work (including traffic, visual inspections and roughness in a first instance) and submitted a budget and programme for the realisation of the trial.



Version 1

The specifications and template data sheets can be found as Annexes in the technical Appendices (E for network condition and G for traffic) along with the detail of results and analysis. Approval on the budget and programme was received on 23rd of November. After the first series of surveys were completed, and some budget was still available, the consultants submitted a request to carry out limited deflection surveys and one axle load survey. The approval for these additional surveys was received late March 2010, and the surveys carried out immediately. All surveys, including roughness, deflection and axle loading were completed end of April.

2. Traffic counts, O/D and traffic data collection

2.1. Traffic counts

The Consultant was required to examine and review existing data records for traffic and vehicles using the road network in Uzbekistan. A separate request for historical traffic data was submitted to Uzavtoyul to provide complete classified traffic count data covering all individual sub-sections of all international roads (11 roads covering 3626km) and all State Roads (269 roads covering 16909km) in Uzbekistan over the past five years.

The main objective of the traffic surveys was to verify and complement the existing traffic data supplied by Uzavtoyul. In accordance with the Consultants proposal, a total of 10 manual classified counts were proposed and these were supplemented by 6 origin/destination surveys which were to be carried out during daylight hours.

The planning of the traffic surveys was intended to be fully coherent with the roads included in the pilot survey trial, as well as meeting the needs for projecting future traffic and complementing the historical information that exists.

In order to ensure maximum safety during roadside interviews and to facilitate assistance from the GAI traffic police, it was decided that all the origin destination surveys should be carried out at existing GAI control points on the main road network. In most cases (but not all) these locations corresponded to the boundaries between Oblasts. Figure 1 on the following page presents a graphical representation of the manual classified traffic count and origin-destination survey locations. Table 2 below gives the detailed traffic survey locations.

Table 15: Detailed Traffic Survey Locations

Site No Classified O/D Road Km Location Detailed LocationCount Survey Number Point

1 X X A373 57km Tashkent - Andijan (Axangaran) GAI Post adjacent 4P2, 60km from Tashkent2 X X M39 872km Tashkent - Gizak GAI Post 70km from Tashkent, Tashkent/Sirdariya Oblast Border3 X X M39 1039 Gizak - Samarkand GAI Post 55km from Samarkand, Gizak/Samarkand Oblast Border4 X A378 59km Samarkand - Karshi GAI Post 65km from Samarkand, Samarkand/Kashkadariya Oblast Border5 X M37 147km Samarkand - Navoi GAI Post 150km from Samarkand, Samarkand/Navoi Oblast Border6 X X M39 1308km Guzar - Termez GAI Post 70km from Guzar, Kashkadariya/Surhandariya Oblast Border7 X M37 213km Bukhara - Navoi GAI Post 60km from Bukhara, Navoi/Bukhara Oblast Border8 X X M37 272km Bukhara - Tadjikistan Border GAI Post 14km from Bukhara9 X A380 150km Bukhara - Karshi GAI Post 80km from Bukhara, Bukhara/Kashkadariya Oblast Border10 X X A380 367km Bukhara - Korezm GAI Post 150km from Bukhara, Bukhara/Korezm Oblast Border

Source: Consultant’s estimates

The Transport Economist was mobilised in October 2009, the planning and organisation of the surveys commenced in mid October and the actual surveys were carried out in late November and early December 2009, after final approval of the survey budget by the Republican Road Fund under the Ministry of Finance.

The results of the manual classified traffic count surveys are summarised in Table 5 below. The count period is specified and the number of vehicles for each of the nine vehicle types counted is summarised. Appendix G contains the detailed traffic flows by vehicle type for each half hour during the count period for each count location.



Version 1

In order to convert the counted traffic volumes to annual average daily traffic, the Consultants used the conversion coefficients available in the Uzbekistan “Instruction on Traffic Counts on Automobile Roads” Departmental Norm MKN 45-2007.

Firstly, the counts were converted to total daily volumes using the daily coefficient factors developed in Appendix F of Departmental Norm MKN 45-2007. Due to delays and difficulties in commencing the surveys at Site 1, the daily coefficient is based on a 7 hour count commencing at 10.00am in November (2.19). At Sites 2, 3, 4 and 5, the daily coefficient is based on a 9 hour count commencing at 08.00am in November (1.71). At Site 6, the daily coefficient is based on an 8 hour count commencing at 08.00am in December (1.97). At Sites 7, 8, 9 and 10, the daily coefficient is based on a 9 hour count commencing at 08.00am in December (1.76).

Secondly, the counts were converted from the month of count (November or December) to an average month. The respective coefficients were November (0.96) and December (1.09).

Finally, the total volumes were sub-divided into the seven main vehicle classes based on the proportions recorded during the count period.



Version 1

Table 16: Results of Manual Classified Traffic Coun t Surveys

Site No Road No KmCount Period

Passenger car Minibus Autobus

Truck up to 3.5 t.

Trucks 3.5-12 t.

Trucks > than 12t.

Articulated trucks

Two wheeled

Agriculture Vehicles/

Other TOTAL1 A373 57 07.30-18.00 15859 454 195 309 161 275 138 5 5 174012 M-39 872 07.30-17.00 4699 346 193 44 84 128 162 3 5 56643 M-39 1039 07.00-17.00 4059 195 328 51 186 125 141 0 5 50904 A378 59 07.00-17.00 1237 43 94 11 151 60 9 15 12 16325 M-37 147 07.00-17.00 2840 756 240 32 147 50 104 1 27 41976 M-39 1308 07.30-16.30 878 25 52 9 60 90 74 4 6 11987 M-37 213 07.00-17.00 2716 174 125 98 90 93 133 2 76 35078 M-37 272 07.30-17.00 6047 359 66 72 135 139 115 2 20 69559 A380 150 07.00-17.00 516 31 7 22 49 55 31 0 8 71910 A380 367 07.00-17.00 250 16 52 8 11 47 37 0 1 422

Source: Traffic count surveys carried out in November and December 2009.

Table 17: Estimates of Annual Average Daily Traffic 2009

Site No Road No Km Passenger

car Minibus Autobus Truck up to 3.5

t. Trucks 3.5-12

t.

Trucks greater

than 12t. Articulated

trucks TOTAL 1 A373 57 24279 709 292 477 242 420 193 26612 2 M-39 872 7558 553 309 71 136 207 259 9093 3 M-39 1039 6386 305 504 79 284 195 218 7972 4 A378 59 1914 67 151 16 227 90 15 2480 5 M-37 147 4283 1131 358 51 228 79 159 6289 6 M-39 1308 1707 47 101 19 112 163 131 2280 7 M-37 213 4850 313 217 180 155 171 221 6106 8 M-37 272 11119 675 125 138 253 255 213 12778

9 A380 150 942 58 13 40 75 100 59 1287

10 A380 367 445 25 82 15 13 86 67 735

Source: Consultants estimates based on traffic count surveys in November and December 2009.



Version 1

2.2. Origin Destination Surveys

2.2.1. Objectives of the Origin Destination Surveys

The main objective of the Origin Destination Surveys was to provide information concerning the geographic traffic flows within Uzbekistan and traffic flows between Uzbekistan and the bordering countries. The information gathered in the Origin Destination Surveys can be used to create trip matrices for different vehicle types.

The Origin Destination Surveys provide specific information regarding the volumes and structure of traffic with respect to:

� The characteristics of the vehicles:

• the type of the vehicle, and • the type of vehicle registration plate.

� The characteristics of the passenger demand:

• the number of passengers transported, and; • the trip purposes (at origin and destination).

� The initial origin and final destination of trips,

• the proportions of local, regional and international trips, and; • which border station the vehicles pass through in case of an origin or destination abroad.

� the characteristics of the freight:

• empty or loaded truck, and; • the origin and destination of trips.

2.2.2. Methodology

The methodology of the surveys is given in detail in Appendix G.

The origin and destination survey interviews included (in addition to the day, hour and traffic direction) for passenger vehicles (car, taxi, minibus, bus): � Vehicle type � Number of passengers in vehicle � Location of origin � Location of destination � Passenger demand: purpose of the trip.

For Freight vehicles: � Vehicle type � Location of origin � Location of destination � For international traffic, the border crossing post � Freight characteristics: loading

The driver of the vehicle was interviewed for every vehicle.

A total of 187 zones were identified and adopted for the origin destination interview surveys. The complete list is included in Appendix G of this report.

2.2.3. Results

The table below sets out the recorded traffic flows, number of interviews and the sample size for each OD site.



Version 1

Table 18: Number of Interviews and Sample Size for Each OD Site

Station Recorded Traffic Number of interviews Sample Size

1 6851 514 7.5% 2 2636 805 30.5% 3 2509 804 32.0% 6 565 473 83.7% 8 3528 659 18.7%

10 183 176 96.2%

Total 16272 3431 21.1%

Source: Consultants estimates based on origin destination surveys in November and December 2009.

A total of 3,431 interviews were carried out and the overall sample size was in excess of 20%. The sample size at Site 1 was relatively low due to the very high traffic volumes. However, sample sizes at Sites 6 and 10 were very high (in excess of 80% and 90% respectively).

Origin destination matrices for all vehicles were prepared for each site and these are presented in Appendix 5. The matrices covered initially the movements in the direction interviewed and it was assumed that the matrix in the opposite direction would be completely symmetrical. As a result of this simplification (rather than interviewing in both directions and applying separate factors by direction) there are minor differences between the sum of the movements in each matrix and the estimated AADT flows calculated in the previous Section.

The matrices have been analysed and the results of the analysis have been set out in the detailed Appendix G. Analysis has been carried out to examine the numbers and proportions of international traffic movements (with origin and/or destination outside Uzbekistan), “Inter Oblast” movements (with origin and/or destination beyond the oblasts adjacent to the count site) and local trips (with origin and destination in the oblasts adjacent to the count site).

Additional analysis has also been carried out to examine vehicle occupancy rates by vehicle type and the proportions of work and non-work trips by vehicle type. These data have been incorporated in the Road User Effects inputs to HDM-4.

One of the most interesting results was the proportion of international and long-distance trips, for which the results have been reproduced below:

Table 19: International Traffic Movements for Each OD Site

Site No Road NoPassenger

Car Minibus AutobusTruck up to

3.5 t.Trucks 3.5-

12 t.

Trucks greater

than 12t.Articulated

trucks TOTAL1 A373 0 0 0 1 0 0 0 12 M-39 5 0 0 0 0 0 36 413 M-39 8 0 1 0 2 4 35 506 M-39 1 0 0 0 0 0 9 108 M-37 10 0 0 0 0 0 11 2110 A380 2 0 0 0 1 3 2 8




Version 1

Table 20: Proportion of International Traffic Movem ents by Vehicle

Site No Road NoPassenger

Car Minibus AutobusTruck up to 3.5 t.

Trucks 3.5-12 t.

Trucks greater

than 12t.Articulated

trucks1 A373 0% 0% 0% 2% 0% 0% 0%2 M-39 1% 0% 0% 0% 0% 0% 55%3 M-39 2% 0% 1% 0% 2% 6% 81%6 M-39 0% 0% 0% 0% 0% 0% 47%8 M-37 2% 0% 0% 0% 0% 0% 48%

10 A380 2% 0% 0% 0% 50% 25% 12%


These figures indicate that articulated trucks make up the majority of international traffic, particularly on M39 and M37. A significant proportion of these articulated trucks are in transit through Uzbekistan with both origin and destination in other countries. Small numbers of cars were recorded on international trips, but these are relatively insignificant as a proportion of total traffic using the roads. Surprisingly, only a single truck was recorded as being on an international trip on A373 east of Tashkent.

2.3. Traffic data collection

The Consultants were required to provide traffic data covering the complete 16,909km of State roads in Uzbekistan.

The Consultants requested Uzavtoyul to provide complete classified traffic count data covering all individual sub-sections of all international roads (11 roads covering 3626km) and all State Roads (269 roads covering 16909km) in Uzbekistan over the past five years. Uzavtoyul initially provided data covering the following roads:

• M37 (Samarkand – Ashkabad Turkmenistan) – 365km • M39 (Almaty-Bishkek-Tashkent-Termez) – 628km • A373 (Tashkent-Osch) – 399km • A378 (Samarkand-Karschi) - 138km • A380 (Border-Kungrad-Nukus-Guzar) – 1204km

After further discussions with Uzavtoyul, the Consultants were given access to the outstanding traffic count data covering the additional pilot trial sections namely:

• M34 (Tashkent-Dushanbe) – 160km • M41 (Bishkek-Dushanbe-Termez) – 191km • A376 (Kokand-Gizak) – 168km • A377 (Samarkand-Aini) – 37km • A379 (Navoi-Utchkuduk) – 289km • 4P1 (Tashkent Ring Road) – 67km • 4P2 (Tashkent-Almalik) – 52km • 4P12 (Bektemir-Chirchik-Gasalkent-Charvak) – 75km • 4P20 (Karacyb-Buka–Bekabad) – 109km • 4P29 (Gulistan-Gagarin section km 0-35) – 35km • 4P45 (Samarkand-Kolzevaia section 0-8 & 33-46) – 21km • 4P87 (Guzar-Chim–Kukdala) – 73km

For the outstanding data covering the additional regional roads which make up the remaining 16,909km of State Roads, the Consultants were given access to the office records covering data for 2009.



Version 1

2.3.1. Compilation of Data Records

Based on all available traffic records for 2009, the Consultants compiled a listing of regional roads in the range 4P1-4P287, including sub-sections by kilometre length and connecting roads with suffixes (for example 4P2A, 4P2B etc.) A data table in Excel was created and the table was filled with data based on 10 vehicle classes as follows:

� Cars � Buses � Trucks <2 Tonnes � Trucks 2-5 Tonnes � Trucks 5-8 Tonnes � Trucks 8-12 Tonnes � Trucks >12 Tonnes � Articulated Trucks � Tractors � Motorcycles

Most of the count data related to short period counts and the data table also included the total vehicles counted, the expansion factor to ADDT (from the Uzbekistan “Instruction on Traffic Counts on Automobile Roads” Departmental Norm MKN 45-2007) and the total AADT.

On other sections, only the total AADT was available and therefore the breakdown by vehicle type was not recorded.

After examining all available data, it became clear that there was an absence of data on various connecting roads and also, on a very small number of roads, there were no data records whatsoever.

2.3.2. AADT by HDM Vehicle Types

For use in the HDM-4 analysis, it was necessary to convert the AADT traffic flows into the 7 HDM vehicle classes namely: � Cars � Minibuses � Buses � Trucks up to 3.5 tonnes � Trucks 3.5-12 tonnes � Trucks >12 tonnes � Articulated Trucks

Based on the finally compiled sample of regional roads, the average proportions by HDM vehicle type were established as follows:

Table 21 : Typical proportions of vehicles on repub lican roads

Passenger car Minibus Autobus

Truck up to 3.5 t.

Trucks 3.5-12 t.

Trucks greater

than 12t. Articulated

trucks TOTAL

56% 4% 2% % % 7% 2% 100%



Version 1

Hence, the next stage was to apply these proportions to the recorded AADT for each section. In order to correct rounding errors, the actual number of passenger cars was adjusted to ensure that, after application of these proportions, the total vehicles corresponded precisely to the count records.

2.3.3. Weighted Average AADT by Road

For the purposes of the HDM evaluation, it was decided that each road would be treated as a single link without sub-sections. Therefore the next step was to calculate the average AADT weighted by the length of each sub-section in order to provide a single AADT for each road link.

The flow by vehicle type was multiplied by the length in kilometres of the respective sub-sections of the road. The volumes for each sub-section were then summed together and divided by the total length of all sub-sections to give the weighted average ADT by road.

These weighted average AADT flows (classified by HDM vehicle type) were then listed in a single sheet by road number.

The final stage was to combine the list of international and regional roads and then to sort them in order of descending total AADT which can then be used to fix the thresholds of flow ranges for the HDM network assessment and therefore to calculate the average AADT by road category.

3. Visual Condition Survey

3.1. Introduction

The data collected and the surveys carried out by the project for the Pilot Road Network have provided the basis for the conclusions presented here. The data whilst being analysed also using HDM4 do also provide statistical information of the state and condition of the road network. Other data collected for parts of the International and State Roads and also the Local road network, although of less detail, similarly provides a picture of the condition of these other roads. .

The survey field work has been carried out between beginning of November 2009 and beginning of January 2010. It was followed by the roughness survey, whose role also was to confirm the distances recorded during the visual condition survey.

The distance measurements made during the condition surveys were based on car odometers with limited precision, and the distances recorded in the condition surveys have been corrected after the roughness surveys have been completed end of April 2010. However, the adjustments that were finally necessary were limited, and the distances measured for al sections generally no more then 100m different. However, another unexpected problem arose, as the teams did not record exactly the same types and length of carriageways i.e. the change of cross-profile was not recorded at the same distances. Adjustments were made according to the surveys crews and consultant’s best estimate.

While the overall objective of the data collection is to provide data for the road strategy analysis and the pilot programme that will be carried out by the project, the analysis of the field and associated collected data can and has provided some very useful information, as will be seen below.

More details on the field surveys, and associated data collected were included in Appendix E of the draft final report.

The analysis presented here is based on the road condition data collected from the sources indicated below: � Road inventory and condition survey; � Data obtained from road passports (pavement structure and year of significant works); � Detailed diagnostic data for 430 km of A380 (pavement structure details);



Version 1

3.2. Pilot Network Road Visual Condition Analysis

The analysis carried out was of two forms:

� the first was an analysis of overall road condition, and � the second was the estimation of rates of deterioration of key defects namely cracking and potholes.

Whilst an analysis of rut development would have been very desirable (as it a key indicator of structural adequacy) the fact that rutting is not significant has meant that roughness measurement is not currently been carried out.

Although traffic loads and volumes are low and the pavements have thick asphalt pavements there are some serious pavement performance issues. As noted earlier and reflected in the data summarized in Figures and also in the Tables below, the asphalt pavement layers appear to deteriorate quickly and need repairs early in their life.

Given the above it is possible that environmental factors may be as important as and possibly even more important than traffic load on many roads in Uzbekistan.

3.2.1. Basic Road Analysis Results

The table below summarises the condition of the surveyed roads by intensity of cracking. As will be noted, only few of the roads are without cracks. Further as can be seen on the figures presented below, this cracking appears to start within a few years of reconstruction or resurfacing. A major issue regarding the reliability of the analysis is that the data on location of works relays on lists of approved contracts, as provided by the Road Fund and this information may not be accurately overlaid on the road condition data, even after its correction.

It is interesting to note that if only a limited percentage of roads are severely or completely cracked, many roads are in process of cracking. This would be an indication that deterioration has started on most roads, and intervention would be required to maintain the asset value and the road conditions for limited investment. Delaying interventions will irremediably result in a need for more important works.



Version 1

Table 22 : Summary of Crack Intensity for Surveyed Roads

Road 0 (no Cracking)

1 (0 to 10%)

2 (10 to 30%)

3 (30 to 50%)

4 (>50%)

4P1 31.8% 62.3% 5.6% 0.3% 0.0%

4P12 49.5% 48.8% 1.6% 0.0% 0.0%

4P2 22.8% 30.0% 29.8% 15.9% 1.5%

4P20 22.2% 21.3% 27.9% 25.4% 3.2%

4P29 1.7% 52.0% 28.3% 17.1% 0.8%

4P45 20.4% 47.0% 26.9% 5.7% 0.0%

4P87 39.4% 8.6% 42.8% 9.2% 0.0%

A373 32.2% 20.1% 28.0% 12.9% 6.8%

A376 11.8% 28.6% 36.7% 14.9% 8.0%

A377 2.4% 15.4% 72.8% 9.5% 0.0%

A378 1.8% 7.7% 52.1% 36.9% 1.5%

A379 14.8% 25.3% 53.1% 0.3% 6.5%

A380 6.5% 7.8% 16.0% 13.5% 56.2%

M34 17.3% 47.8% 15.1% 10.5% 9.3%

M37 8.9% 25.2% 28.5% 18.3% 19.1%

M39 10.7% 31.6% 38.9% 10.3% 8.5%

M41 0.7% 0.0% 47.0% 29.0% 23.4%

ALL 14.8% 24.1% 27.9% 13.0% 20.1%

Source: Prepared By Consultant from Field Survey Data

The second analysis table below summarises the condition of the surveyed roads by intensity of potholes. Only approximately 40% of the surveyed roads are without potholes. This is not surprising given that Uzavtoyul’s summary of the 2008 Autumn Commission inspection, as detailed in Appendix E shows that approximately 1% of the actual road surface area on International Roads consists of potholes.



Version 1

Table 23: Summary of Pothole Intensity (number of P otholes/km) for Surveyed Roads

Road 0

(no potholes) 1

(up to10/km) 2

(10 to 40/km) 3

(Over40/km)

4P1 83.4% 16.6% 0.0% 0.0%

4P12 95.5% 4.5% 0.0% 0.0%

4P2 40.6% 35.6% 18.2% 5.0%

4P20 30.4% 29.2% 31.4% 8.9%

4P29 10.1% 63.7% 18.2% 6.0%

4P45 58.1% 18.1% 23.8% 0.0%

4P87 50.7% 10.5% 16.1% 0.0%

A373 40.7% 32.3% 14.9% 6.2%

A376 29.3% 58.5% 12.2% 0.0%

A377 2.4% 32.4% 62.9% 2.4%

A378 23.1% 71.6% 5.3% 0.0%

A379 56.5% 34.0% 9.4% 0.1%

A380 24.1% 61.4% 10.6% 3.5%

M34 47.3% 33.9% 13.3% 5.6%

M37 48.1% 29.9% 18.5% 2.8%

M39 40.1% 32.2% 16.7% 1.9%

M41 32.0% 66.0% 0.0% 2.0%

ALL 41.6% 41.7% 13.6% 3.0%

SOURCE: Prepared by Consultant from Field Survey Data

It has also to be noted, that the republican roads that are part of the pilot trial (even though not representative of republican roads as such) are in generally better condition than the international roads.

3.2.2. Calibration Results

This section shows the rate of crack and pothole development following 2 categories of work, namely rehabilitation/reconstruction and mid term repair (periodic maintenance). The adopted differentiation between the two categories of work was as follows:

� Rehabilitation/Reconstruction = Works costing more than USD 200,000 per (2 lane) kilometre; and � Mid Term Repair/light rehabilitation = Works costing from USD 35,000 to 200,000 per kilometre,

typically around USD 65,000 per kilometre.



Version 1

Factors that have influenced the calibration analysis include: � Significant variations in pavement structure and asphalt concrete thickness - actual pavement

thickness data was not available for most road sections; � Limited historical works data - data largely limited to the period between 2007 and 2009, although

some data was available back to 1999; � Routine maintenance and repair (RMR) programs (for which details are not readily available) would

normally fill cracks and potholes quickly. As RMR is under funded, it is possible that the effects of this program on the analysis results may be minimal;

� A lack of details on the works actually carried out made it impossible to take into account into the analysis the variations in works performed; and

The results of the calibration analysis are presented in the following summary table and some graphical plots: � Table 21 showing the Summary of calibration analysis for cracking and pot holes; � Figure 9 showing the Crack development following midterm repair/light rehabilitation (based on

average figures); � Figure 10 showing the Crack development following midterm repair/light rehabilitation (based on

average plus standard deviation); and � Figure 11 showing the Crack development following rehabilitation/reconstruction (based on average

plus one standard deviation of records);

The rate of deterioration of potholes can also be seen in the summary table below.

The above Tables show ratings and not actual area / length or % of surface area. The ratings for the cracking and potholes are defined as follows:

Crack Rating

0 = 0% cracking;

1 = 1 to 10% cracking;

2 = 11 to 30% cracking,

3 = 31 to 50% cracking

4 = more than 50% cracking.

Pothole Rating

0 = 0% cracking;

1 = 1 to 10 potholes/km;

2 = 11 to 40 potholes/km cracking;

3 = more than 40 potholes per kilometre.



Version 1

Table 24 : Summary of Analysis for Crack and Pothol e Development

Crack Development (rate of change) Pot Hole Development (rate of change)

After Reconstruction

After Periodic Main.

After Reconstruction

After Periodic Main.

Year Average Avg + STD

Average Avg + STD

Average Avg + STD

Average Avg + STD

1998 3.0 4.1 2.8 4.6 2.0 2.5 1.6 2.9

1999 2.9 3.6 2.8 4.1 1.0 1.0 1.0 1.4

2000 3.3 4.3 2.6 4.2 0.3 0.8 0.9 1.8

2001 ND ND ND ND ND ND ND ND

2002 ND ND 2.1 3.0 ND ND 0.5 1.0

2003 ND ND 1.8 2.7 ND ND 1.2 1.6

2004 2.3 3.3 1.2 2.1 1.5 2.0 1.0 1.8

2005 2.6 3.8 0.9 1.9 0.4 1.0 1.5 2.3

2006 1.7 2.8 0.7 1.8 0.0 0.0 0.7 1.5

2007 0.9 1.8 1.1 2.3 0.7 1.6 0.5 1.0

2008 0.9 1.9 0.7 1.4 0.4 0.9 0.3 0.8

2009 0.1 0.5 0.06 0.3 0.1 0.3 0.04 0.2


Figure 12 : Crack Progression - Average Figures

It is interesting to see that the crack progression, globally, would mean that 10-year old roads should be cracked by a little less than 30%. This result has to be combined with the analysis of extend of cracking presented in the previous section. The standard variation around the average is an indication regarding the reliability of the analysis.



Version 1

Figure 13 : Crack Progression - Average + 1 Standar d Deviation

Figure 14 : Crack Progression - Average + 1 Standa rd Deviation

No significant difference can be seen between the cracking progression avec simple periodic overlays (mid-term repairs) and the rehabilitation / reconstruction works. In recent years the tendency would be even the contrary of technical expected results, and reconstruction performing worse than overlays.

Amongst other reasons (insufficient design of reconstructions, preventive overlays? different traffic classes and loads, etc…) this could highlight the bad quality of the present works, as older pavements seem to have longer lives then the present constructions.



Version 1

4. Roughness survey

4.1. General

The roughness survey was conducted between late March 2010 and the third week of April 2010. During these weeks, the survey teams carried out roughness measurements on the Pilot Road Network of approximately 4000 km (Refer to list in Section 1 above). The survey recorded the distances between the location reference points established during the condition survey as well as the roughness along the target roads. The results of the surveys are summarised below and are presented in more detail in Appendix E.

During the survey, unfortunately, some data was lost on the last sections, as the Roughometer accelerometer did not give correct responses. The missing data was substituted in the analysis by the spring surveys from Uzavtoyul.

Following the defects, the Consultants contacted ARRB to send the equipment for repair, as part of the warranty. However, being Road Fund property, the Road Fund needed to sign the appropriate documents for a “temporary export” of the defect parts. This procedure is required to allow future re-import without additional delays in customs clearance.

At the time of writing of the report, the request for customs clearance had not yet been submitted.

4.2. Roughness Data Analysis

The roughness as recorded by road are summarised in the Table below.

Table 25 : Average Roughness Indexes on the Surveye d Roads Road No. Average Quality

4Р1 4.05 Good / Acceptable 4Р12 4.00 Good / Acceptable 4Р2 4.57 Good / Acceptable 4Р20 5.71 Acceptable / Poor 4Р29 5.60 Acceptable / Poor 4Р45 5.05 Acceptable / Poor 4Р87 3.87 Good / Acceptable А-373 6.51 Acceptable / Poor А-376 6.53 Acceptable / Poor А-377 6.77 Acceptable / Poor А-378 4.89 Good / Acceptable А-379 7.32 Poor А-380 7.73 Poor М-37 6.93 Acceptable / Poor М-39 6.11 Acceptable / Poor М-41 5.75 Acceptable / Poor Total general 6.20 Acceptable / Poor

The average values are very high, when compared to international standards for these types of road classes and categories. Only few roads are in acceptable condition, (IRI<5), and 2 roads are in definitively poor condition, with AVERAGE roughness over long sections above 7.

This situation is most probably due to the high number of defects (potholes) on the road, that generate very high, if local, value, that influence to average quality level. The Roughometer seemed particularly sensitive to these local disruptions, and isolated values up to IRI 30 (and beyond) could be found in the processed data.



Version 1

The analysis is confirmed when looking at the distribution of roughness in quality classes for all roads:

Table 26 : Summary of Roughness Distribution on the Surveyed Roads

IRI Range Road length (Km)

% MSHN 14-2005 Criteria

International Criteria Highways

<3 95.3 2% Good Good

<5 1496.1 31% Good/Acceptable Good/Acceptable

<7 1050.825 22% Acceptable Acceptable/Unacceptable

<9 1474.1 31% Acceptable Unacceptable

<11 427.8 9% Acceptable/Unaccept

able Unacceptable

<13 142.8 3% Unacceptable Unacceptable



TOTAL 4798.925


Figure 15 : Distribution of the roughness values ov er the whole pilot sections


If the sections, where the road can be considered as « unpassable », with IRI above 13 are very limited, there are only 2% of good sections, with IRI<3. Over half of the pilot network has mediocre roughness performance, with values between 3 and 7.

In various countries of CIS, the measured roughness is high, as traditionally, the engineering approach is focussing on asset preservation and strength rather than on user costs and vehicel operating costs. From an economic approach, this is a serious strain to the economy, and improving the roughness should be one of the main aim when providing better roads.



Version 1

5. Deflection Survey

5.1.1. General

The deflection testes were carried out in beginning of April 2010, after the thaw period, when the pavement temperature exceeded 25°C. The method and exact location of tests is presented in detail in the Appendix E. The aim of the testing, which was limited in scope because of the limited funding and time was to get an appreciation of the structural adequacy of pavements, in different condition states, as reported in the condition surveys.

The other reason for conducting the surveys was to see whether the flexibility of the pavement was such that it was impacting on the performance of the asphalt surfacing layers. The measured deflections as reported in the Figure below would suggest that pavement flexibility is excessive (> 0.7 mm average) for asphalt concrete and this is no doubt contributing to the more rapid rate of deterioration of the asphalt layers.

All surveys where carried out on a selection of pavements in the Tashkent Oblast, to avoid travelling for a limited number of spots. On 5 specific spots on M39 the pavement type consisted of cement concrete slabs with asphalt overlay, all other pavements where full depth bituminous constructions in different types of condition.

5.1.2. Data Analysis

The deflection figures given below are the characteristic deflections calculated for 0.5 kilometre road sections. The deflections were measured in the outer wheel path of the outer lane, at 100 metre intervals (6 readings per 0.5 km section). The characteristic deflection was determined by taking the average plus 1.5 times the standard deviation of the 6 readings. If the mean plus 2 standard deviations were adopted as is other the done for major roads the characteristics deflections would be 12 to 15% higher.

A summary of the test data on the asphalt sections is presented in the Figure below.

Figure 16 : Distribution of the deflection values o ver the asphalt concrete pilot sections




Version 1

Although it is difficult to base some evidence on the limited number of trials, it can be seen that deflections are generally high, sometimes even excessively high. When assuming that for a full bituminous pavement (general thickness of asphalt exceed 20 cm on Uzbek roads of this category and class) 0.8 mm would the highest acceptable limit before intervention, the figure shows that over 1/3rd of the tested pavements would require some periodic maintenance (overlay) or strengthening.

For the concrete sections, the values ranged from 0.29 mm to 1.01 mm. These values are surprisingly high for concrete slabs and are proving that the slabs are now broken and working like (sometimes even deteriorated) cement treated sub-base. This evidence was useful when trying to model those pavements in HDM-4.

6. Axle Loads

6.1. Importance of Axle Loading

Axle load surveys were carried out on the M39 Tashkent — Gizak road at KP 872 some 70km south of Tashkent at the GAI post at the border between Tashkent and Sirdariya Oblasts on 26 and 27 April 2010. The Appendix G of the report describes in detail the equipment used, the survey methodology and the analysis of the survey data, whilst the section hereafter only gives the main results.

In the HDM model, the vehicle damage factor (VDF) is a measure of damage caused to the pavement by a heavy vehicle and is a function of the axle configuration and the mass.

The standard axle load for a dual wheel single axle is 80KN (approximately 8.16 tonnes) and the HDM documentation recommends that different values of standard load are used depending on the axle configuration. The recommended standard axle loads (SXj) for different axle configurations are set out below:

Table 27 – Recommended Standard Axle Loads for Diff erent Axle Configurations

Axle Type Configuration SX (tonnes) Single Wheel Single Axle 12 6.60 Dual Wheel Single Axle 14 8.16 Single Wheel Per Tandem Axle Group 24 12.20 Dual Wheel Per Tandem Axle Group 28 15.10

Single Wheel Per Triple Axle Group 36 19.80 Dual Wheel Per Triple Axle Group 312 22.90

SOURCE: CONSULTANTS ESTIMATES BASED ON HDM DOCUMENTATION CONCERNING RUE MODEL CALIBRATION.

There are several important points to note with regard to the vehicle damage factor (VDF).

• Because of the 4th power for the exponent in the VDFVEH equation, the VDF must be calculated as the average VDF per vehicle and not as the VDF for a vehicle with an average mass. The average VDF is always higher than the VDF of the average load.

• The VDF is the sum of all axle load factors for all axle groups of a vehicle, not the damage factor of the average axle load.

• The VDF must represent the average VDF of all vehicles in the class in the traffic, inclusive of empty, partially loaded, fully loaded and over-loaded vehicles.

The aim of the axle load surveys was therefore to determine the VDF for each of the selected seven vehicle types.



Version 1

6.2. Survey results

A total of more than 350 vehicles (trucks, buses and minibuses) were either weighed or interviewed during the two days of surveys on 26 and 27 April 2010.

The final adjusted results of the axle load surveys are shown in the table on the following page. The table includes the average gross vehicle weights loaded and unloaded, the average load and the average operating weight. The table also includes ESA loaded, unloaded and average as well as the damage factor expressed in terms of ESA per 100 tonnes load.

The resultant loading inputs to HDM-4 are summarised in the table below.

Table 28 – Summary of Final Loading Inputs to HDM-4 for the Fleet in Uzbekistan

Vehicle Category ESAL Operating Weight (tonnes)

Passenger Car 0 1.30 Minibus 0.023 3.40 Bus 1.978 14.16 Light Truck 0.019 3.67 2 Axle Truck 0.778 7.50 3 Axle Truck 0.949 14.76 >3 Axle Truck 2.935 29.66

SOURCE: CONSULTANTS ESTIMATES BASED ON AXLE LOAD SURVEYS CARRIED OUT ON 26 AND 27 APRIL 2010



Version 1

Table 29 – Final Adjusted Results of the Axle Load Surveys

Vehicle Type Sample Weighed Sample Interviewed Sample Adjusted Average GVW Average GVW Average Average Average ESA Average ESA Average Damage FactorLoaded Unloaded Total Loaded Unloaded Total Proportion Proportion Unloaded Loaded Load Operating Unloaded Loaded ESA ESA/100 tons load

Loaded Loaded (c) (t) (t) (t) Weight (t)

Minibus 10 - 10 0 - 0 1.00 1.00 - 3.40 - 3.40 - - 0.0234 -

Bus (a) 22 - 22 0 - 0 1.00 1.00 - 14.16 - 14.16 - - 1.978 -

Light Truck 2 2 4 0 0 0 0.50 0.58 3.08 4.10 1.03 3.67 0.009 0.026 0.019 1.854

2 Axle Truck 6 3 9 46 24 70 0.66 0.59 5.17 9.13 3.96 7.50 0.031 1.298 0.778 19.667

3 Axle Truck 7 4 11 20 12 32 0.63 0.59 10.26 17.89 7.63 14.76 0.187 1.479 0.949 12.438

>3 Axle Truck (b) 39 19 58 21 10 31 0.67 0.87 17.87 31.43 13.55 29.66 0.497 3.299 2.935 21.654

(a) Average ESA for buses is the overall average for all the sample of weighed vehicles(b) Includes all articulated trucks, truck-trailers and >3 axle trucks(c) Adjusted proportion of loaded trucks based on overall average results of OD Surveys November-December 2009.

Source: Consultants Estimates based on Axle Load Surveys carried out on 26 and 27 April 2010 and OD Surveys November-December 2009.



Version 1

Chapter 8 - Training

1. Training Seminars and Workshops in Tashkent

1.1. Technical seminars

1.1.1. Technical seminar in Road Fund

The Consultants held various technical seminars during their assignment. The main technical seminar took place on 9th and 10th of December in Road Fund. The seminar gave an overview of all topics dealt with in the project, reaching from institutional aspects, the aim of strategic planning and programming, possible technical improvements, to an overview of HDM-4.

The presentations were made in English, with a translation into Russian. The schedule of training seminar was 10h – 16h, with lunch break.

The attendance was a concern during both days. The main reason appeared to be that the staff of the Road Fund had not been informed in advance, and was busy with the daily work especially intense at this period of the end of the year.

Attendance varied between 3 and 8 people according to the sessions. Most questions arose on the HDM-4 software, as participants asked questions about its exact scope and usage.

1.1.2. Technical seminars in the Design Bureau

Two specific seminars were organised by and for the Design Institute, with the particular aim to familiarise the project designers with new technologies and methods that would be of particular interest in Uzbekistan. Some engineers were already acquainted with recent technologies, and it seems that their introduction is mostly hindered by hindered by administrative issues: � approval and introduction of new standards, � certification and import of recent equipment, � lack of funds and strategy for research and development, � to detailed and conservative expertise and approval of projects, not allowing proposals to

divert from existing practice. The technical seminars focussed mainly on 2 important technologies: � the use of sprayed seals, in various forms, to upgrade the existing practice of surface

dressing, that is currently existing but not extensively used due to down-run equipment and low quality outputs,

� the use of recycling as part of rehabilitation technologies.



Version 1

1.1.3. Workshop on Service level agreements

On 4th of June the Consultants organised a common workshop for staff from Road Fund and Uzavtoyul on the specific issues of Service Level Agreements.

The project’s highway Engineer M. Zachara gave a presentation on experience regarding performance based contracts and service level agreements in Western countries, including Australia.

The main features and pre-conditions for such contracts can be summarised as follows: � The main precondition is that available funding is linked and adequate for the maintenance

standard that is specified; � During the contract, a quoted price per kilometre per year is paid monthly when the specified

maintenance standards are achieved; � The works are inspected on completion and invoice paid within a specified period; � The contractor takes over additional roles and responsibilities

• To prepare the road work program; • To control its quality; • To choose the right treatment as it will be his risk if the selection is wrong and early repair

is required. � Several types of contracts are possible, from short-term (3 years) and limited scope (road side

maintenance only) to long-term contracts (about 10 years), where periodic maintenance and rehabilitation are also part of the scope of work of the contractor.

� All contracts include also a traditional Bill of Quantity, for unforeseen works, or works that are difficult to be specified as a lump sum.

For Uzbekistan, the participants agreed that the principle would be a step forward, but stressed on the limited possibilities of introducing such contracts, within the present regulatory frame.

The major discussion between the stakeholders was that currently, only identified defects are funded, not defects that were likely to occur during the next year, and therefore, there is a systematic routine maintenance backlog. Whilst all parties agreed on the issues, the possible way out of it was not clear.

Preparation of a simplified administrative frame and implementation of a pilot trial were seen as the necessary and suitable steps to move ahead.

1.2. Institutional workshop

On 17th June, the ADB organised a workshop on recommended institutional reform, targeted for all stakeholders of the Road Sector, with presentations from the consultants. Participants of stakeholder ministries attended this workshop, but without representation from government bodies.

The Consultants presented during this workshop their proposals and recommendations as detailed in Chapter 4 above and in the Appendix B1 and B2 on institutional reform.

The main conclusions of the presentations were:



Version 1

� The fact that there is a need for a Road Agency/ Authority clarifying responsibilities was acknowledged by the participants

� The Proposal for reform was understood as being twofold to :

• Transform / Strengthen Uzavtoyul as an Road Authority • To strengthen the Road Fund’s Policy Role whilst reverting to its core attributions

� As an adjunct, the Road Assets should not be within Uzavtoyul � The Consultants also mentioned that there is no need for a large Ministry now, but the Road

Sector could gain from a small “Transport Committee” in charge of the cross-modal policy � A “planning unit”, whilst required, may be best located outside RF (inside or next to the “policy

maker”).

The workshop concluded that more discussions were needed in order to prepare a proposal, common to all stakeholders for the review of the government. ADB stressed on the importance of the institutional reform to accompany the important investments it supports.

The consultants proposed to have another presentation of institutional reform, for all interested staff members of the road fund during the last project period, but the idea was still under consideration at the time of writing the report.

1.3. Working meeting with private sector delegates

The consultants gathered during the last month of the project several delegates from private sector, including consultants and contractors for discussions on the possibility of improving the participation of private companies in the road sector.

The consultants presented briefly the proposed institutional strategy, and focused on 2 possible issues for private sector initiatives:

- Possibility of area maintenance contracts and performance based contracts (as discussed in a seminar at the Road Fund)

- Possibility of introducing private consulting companies as part of the supervision (as developed as part of the institutional strategy.

Participants agreed after discussions to points raised by the consultants: � That the present system of financial control is rigid and imposes many constraints on the

contractor without necessarily improving quality. � That the development of private contractors and consultant companies would be beneficial to

raise standards in the road construction and maintenance. � That more daily supervision is needed and that there would be a role for private sector.

2. HDM-training

2.1. In house HDM-4 seminar

The first HDM-4 training seminar took place between and 14th and 25th December 2009. It was open to other institutions and invited participants included delegates from the Road Research Institute and the Design Bureau.



Version 1

The trainees had been informed that they should bring their laptops. Actually, only three of them did, and additional computers were provided by the Project.

Training was delivered in English, with a translation into Russian. The slides were presented in Russian. The schedule of training seminar was 14h – 18h, with a break.

The attendance was a concern the first three days. The main reason appeared to be that the trainees didn’t realise what the training seminar really was, and that they should be present the entire training seminar through. 11 trainees attended at least one day, but only 5 of them have been present more than 8 days, only one being present the full session (10 days).

Those trainees were: � Sergey Vovchenko � Ilkhom Ismatov (Research Institute) � Makhamat Isaev (Research Institute) � Bakhrom Appanov (Design Bureau) � Komil Tulaganov (Design Bureau)

In addition, a second Road Fund participant, Pulat Alimov participated few days, but very successfully.

As has been repeated in the institutional part of the report, the consultants’ opinion is that the HDM-4 capabilities should not be limited to the Road Fund staff, but rather shared with other specialised institution. From this point of view, the staff trained would fill this objective. It is proposed that the external staff that attended the first session successfully should also participate in the final session.

Training format was similar to training sessions that are delivered by PFE (one of the official HDM Global partners) in Paris. The trainees are distributed a booklet that describe the exercises that will be studied during the sessions. All HDM-4 facilities are illustrated by examples coming from a dummy country, but based upon real case studies. The trainees are also distributed a hard copy of the slides presented. All these documents were written in Russian. The solutions of all exercises was also translated into Russian and distributed to trainees after the courses. The trainees have as well been given in an electronic form the comprehensive folder that includes text of the exercises, input data, text of solutions, slides, HDM-4 workspaces, all this in English. With the V2.05 demo version, trainees are able to go through all exercises and check their knowledge.

Considering the time available and the constraints of the translation into Russian, it was decided to limit slide presentation to the absolute necessary. Only slide sets 1-Introduction, 2-Model description, 8-Bituminous road deterioration, and 9-Calibration were presented. Emphasis was put on hands-on exercises.



Version 1

Table 30 : HDM-4 training course for Road Fund, sum marised programme Day Lectures Hands on exerci ses Monday 14 Introduction

HDM-4 model

Tuesday 15 HDM-4 model Configuration Vehicle Fleet

Wednesday 16 Sections

Works standards input

Thursday 17 Works standards input

Friday 18 Study definition

Runs

Monday 21 Bituminous roads deterioration Calibration

Exercise 2, calibration

Tuesday 22

Section data input Calibration factors calculation

Wednesday 23

Exercise 3, Project analysis Road Network import Works standards input, Study definition Results analysis ,Sensitivity analysis

Thursday 24

Exercise 4, Project analysis : construction New construction standard input Study definition Diverted traffic input Runs and results analysis

Friday 25

Exercise 5 Programme analysis Works standards input Study definition, Results analysis Training evaluation

At the end of the training, an evaluation form was filled by the trainees (attached to the project’s interim report). The global conclusion is rather satisfactory.

From the point of view of the trainer, it appears that the main problems are the English language skills. For many of the trainees, HDM-4 user interface was difficult to understand and even to read.

HDM-4 concepts and computer use were NOT a problem. It is unlikely that HDM-4 can be of common use if there is no Russian version, and if the aim of its use is not accepted by decision makers.

2.2. HDM-Training course in TRL

The HDM-4 training course organised by TRL took place between 17th and 21rst of May. It was initially planned to have 4 participants from the Road Fund. Unfortunately, just before the training course took place, 2 of the participants were refused entry clearance to UK (see Chapter 1 on pending contract management issues.). The 2 participants from Road Fund were Sergey Vovchenko and Abduhakim Djumankulov.



Version 1

The structure of the HDM-4 training course is very close to the training that the project organised in December, as it also alternates theoretical presentations with practical exercises. It is however limited to 5 days, which is certainly insufficient to be able to autonomously work with HDM-4.

The programme is given below.

Table 31 : HDM-4 training course in TRL, summarised programme Day Lectures Hands on exercises Monday 17 HDM-4 Overview

Adaptation & Configuration Vehicle Fleet Road Networks

Exercise 1: Creating Vehicle Fleets Creating Road Networks

Tuesday 18 Analytical Applications RD&RUE Models

Exercise 2: Maintenance and Improvement standards Exercise 3 & 4: Project Case Studies

Wednesday 19 Calibration of RUE and Road Deterioration Economic Analysis Energy & Emissions Multi-criteria Analysis

Exercise 5: Calibration

Thursday 20 Programme Analysis Concepts Strategy Analysis Concepts Exercise 6: Programme Analysis Case Study

Friday 21 Implementation of HDM-4 with Road Management Systems

Exercise 7: Strategy Analysis Case Study

Both trainees were very satisfied with the course. Both Participants had a good overview of all facilities of the software and gained knowledge to be able to make a critical review of a HDM-4 study. This would be particularly useful for the PIU as it may deal further with international financed project using HDM-4 during feasibility studies. Because of his initial participation in the December workshop, Sergey Vovchenko had more experience operating the software, and is probably today the most competent end-user inside the Road Fund.

2.3. Final database and HDM-4 training

The final HDM-4 training has been carried out during the third week of July, every afternoon. It was mostly dedicated to the project analysis, as this is seen as the capacity that should be most developed for Road Fund staff, and PIU. In parallel with the training, a separated report on the project analysis carried out during the training has been prepared and has been issued as Appendix I part of the final report.

2.3.1. Logistics

The training seminar took place in the meeting room of the Road Fund, second floor. The overhead projector was provided by the PIU. A paper board and the pens were provided by the Project. On Tuesday, the room was not available and the training took place in the Amphitheater, 3rd floor.

At start of training session, HDM-4 version 2.05 was installed on available computers. The unlock codes provided by TRL were effective until Saturday 24.



Version 1

2.3.2. Training material

Data input screens hardcopies were prepared to help in data input. These hardcopies were provided for Sections, Maintenance standards, Improvement standards. Comments in Russian were added for a better understanding. These documents were also distributed in an electronic form at the end of the training session.

2.3.3. Training agenda, attendance and program

Training was delivered in English, with a translation into Russian. The schedule of training seminar was 14h – 18h, with a break. Actually, training session started most of the time between 14h15 and 14h30. Last day, the training session was scheduled in the morning, 9h30 13h.

4 people attended regularly, and got a certificate at the end of the seminar. Unfortunately, only one participant of the Road Fund attended all sessions.

Participants from the Design Buro joined the course and successfully participated.

Table 32: HDM-4 Model - Training session, 19 – 23 JULY 2010 - Attendance Имя Name

Организация Affiliation 19-07 20-07 21-07 22-07 23-07

Сергей Вовченко Sergey Vovchenko

Отдел финансирования, Республиканский Дорожный Фонд Finance department, Republican Road Fund

X X X X X

Фойяз Бекмухамедов Foyaz Bekmuhamedov

ООО «Йул-Лойиха бюроси», главный специалист Chief Specialist, Design Bureau (Uyul-Loiha Burosi Ltd)

X X X X

Х.З. Гуломова H.Z.Gulomova

ООО «Йул-Лойиха бюроси» Design Bureau (Uyul-Loiha Burosi Ltd)

X X X X X

А.Б.Сурапов A.B.Surapov

ООО «Йул-Лойиха бюроси» Design Bureau (Uyul-Loiha Burosi Ltd)

X X X X X

Абдухаким Жуманкулов Abduhakim Djumankulov

Республиканский Дорожный Фонд, Инженер ГРП PIU, Republican Road Fund

X

Голиб С. Ахатов Golib Ahatov

Республиканский Дорожный Фонд, Отдел договоров, Republican Road Fundб Contract Department

X

The RMS software, installation disk and data were also part of the CD “Data handover submitted to the Road Fund on 23rd of July. The RMS software was installed during the last training course on the computers of the participants and A special session was dedicated to the RMS training (the software is quite easy to use) on Wednesday 21rst July. Unfortunately, during that day, the only present staff member of the Road Fund was S. Vovchenko. On his quite old personal laptop, the installation did not succeed, but he followed the steps of all data manipulation and export to HDM. The trainees from design office have completed the installation of the software and the database.



Version 1

2.3.4. Training evaluation

An evaluation form was filled by the trainees. A summary of the filled forms is attached below. The global conclusion is rather satisfactory.

From the trainer’s point of view, only Sergey Vovchenko, who has followed all 3 training sessions, in Tashkent and TRL is currently able to complete a quality HDM analysis. All other participants have a good overview and will be able to make critical analysis of projects, but are not sufficiently acquainted with the software to be fully operational.

Оценка реакции на учебную программу

Evaluation of reactions to training programme

1 – В целом, по Вашему мнению, семинар был:

1 - Globally, you consider this seminar was :

Неудовлетворительным Sub-standard 0

Средним Average 0

Удовлетворительным Satisfactory 4

Очень удовлетворительным Very satisfactory 0

2 – Какова Ваша общая оценка содержания семинара и изучения?

2 - What is your global appreciation on seminar con tents and learning?

Недоста-точное

Insufficient

Среднее Average

Удовлетво-рительное Satisfactory

Очень удовлетво-рительное

Very satisfactory

Новый словарный запас и понятия New vocabulary and concepts 0 1 3 0 Методы работы Working methods 0 0 2 2 Практические знания Practical knowledge 0 0 1 3 Соотношение между лекциями и практическими упражнениями Balance between lectures and hands-on exercises

1 3

3 – Как вы оцениваете организацию семинара?

3 - How do you rate seminar organisation?

Продолжительность Duration

Удовлетворительная Satisfactory

2

Слишком короткая Too short

1

Очень длинная Too long

0



Version 1

Координация и управление Coordination and management


4

Недостаточная Insufficient

0

Обсуждение с преподавателем Discussions with trainer

Удовлетворительное Satisfactory

4

Слишком короткое Too short

0

Очень длинное Too long

0

Документация Documentation


4


0

Учебная комната Learning room

Приспособленная Adapted

4

Не приспособленная Not adapted

0

Организация и логистика Organisation and logistics


4


0

Радушие и наличие людей Welcome and availability of people

Удовлетворительное Satisfactory

4

Недостаточное Insufficient

0

4 – Какие темы, не упомянутые во время обучения, вы хотели бы рассмотреть?

4 - Which topics, not mentioned during training, wo uld you have liked to be?

Impact of budget constraints on construction and routine maintenance works

To have practical exercises on example of existing roads (for instance M-39 or A380) would be useful; And such exercises would be useful for 2010 real year.

Method and approaches of European designers; how they work and which software they use.

3. Study Tour to France and Germany

3.1. Introduction

The Study Tour was carried during the period 31 May to 13 June 2010.

The Study Tour was attended by eight members of staff from the Road Fund of the Ministry of Finance as follows:

Table 33 : Participants in the Study Tour

Name Position

ELMURATOV OYBEK Deputy General Director (Finance)

MUMINDJANOV HABIBULLA Deputy General Director (Technical)

YUNUSOV HAMDAM Head of Expenditures

SAVITSKI NIKOLAI Project Implementation Unit (responsible for projects with international financing)



Version 1

ASHIRMATOV KAMMOLIDDIN Deputy Head of the Service for Works Programming

DAVLETIAROV SHUKRAT Deputy Head of the Service for Works Supervision

NUSEROV NURLAN Head of Accounting Services

SOLIEV MIRZAJON Deputy Head of Accounting Services

The group was accompanied by John Worthington, Specialist on Transport Economics and also Nargiza Khoshimova, Translator.

The Study Tour comprised a series of technical visits in France and Germany and the programme of visits was developed in close consultation between Alexandra Spernol (Team Leader) and the staff of the Road Fund. Appendix 7 to the draft final report issued end of June has summarised the content and presentations of the visits.

Table 34 : Programme of the study tour

Date Day Topic Visit location 31-mai Monday Arrival

01-juin Tuesday 13h30

VECTRA (company dealing with road surveys)

La Verrière (Paris suburb)

02-juin Wednesday 9h30 Visit of EGIS-BCEOM (Consultant)

St. Quentin (Paris suburb)

02-juin Wednesday 14h00

French Ministry of Transport and Road Directorate (Paris) Paris La Défense

03-juin Thursday 9h30

Weight in Motion Site (Sterela - Toulouse) transfer to Aix

Pins Justaret (Toulouse)

04-juin Friday 10h00

Road & Bridges Databases & Planning, GIS (TWS) Aix les Milles

05-juin Saturday Transfer to Paris 06-juin Sunday FREE

07-juin Monday 9h00

Cofiroute (private motorway operator) A10 maintenance operations centre, toll collection, PPP

Sèvres then St. Arnoult (Paris region)

08-juin Tuesday 9h30 A86 / Vinci

Reuil-Malmaison (Paris suburb)

09-juin Wednesday FREE – transfer to Cologne

10-juin Thursday 9h00

BAST (German National Road Research centre), PMS&BMS

Bergisch Gladbach (near Cologne)

11-juin Friday 9h00 Private Operation & Concession of a concrete motorway A8 Dasing (Munich)

12-juin Saturday FREE 13-juin Sunday Departure to Tashkent



Version 1

Chapter 9 - Long-term programme for implementation of databases countrywide

1. Introduction The implementation of a long-term programme of systematic network condition surveys and administration of this data is subordinated to the definition of a clear strategy regarding this task (and the tasks of a planning Unit, located in the RF or elsewhere, as discussed in previous chapters of the report).

It is also conditioned to the actual storage mean (i.e. the database software that is required to store and analyse the survey data) and its management.

Almost all actors of the road sector interviewed during the project were supporting the digitising of the road information. Indeed, many data on the network and its condition are actually available, but in disseminated places and in various paper forms. Therefore, the move towards an integrated data base system should not be questioned for the mid-term.

Issues raised during the present assignment, but not yet solved include the following: � Location of the actual unit administrating the data base and the surveys (this unit could and

should be different of the planning unit of the road fund). The consultants suggested using the “Transport Resource Group” to be created for this issue, or alternatively Research institute or design bureau.

� Structure of the database, in particular the involvement of the regions (the 13 oblast offices of Uzavtoyul and the 7 Magistrals) and the possibility of creating a client-server structure with a network, possibly web-based application, giving web-access to various types of users.

� Specifications for a full data base, regarding the location system to be adopted for the country, the type of data to be collected and stored, and the output results expected, etc… It is expected that much of the functions of the database would be similar to the pilot data base developed under the project.

These questions will modify significantly the scope, duration and cost of the system, including its maintenance and operations cost later on, should be answered before a project dealing with these issued is initiated.

2. National Survey Programme

2.1. General

This section discusses the requirements for the collection of road data for a road management system, for all Common Use roads. It has been assumed that this would be completed as part of the Phase 2 ADB Loan, or by other means, but would happen in near future.

The first steps towards a sustainable Asset Management are an organised approach to road inventory and condition surveys. It is important that all data collected are useful and that the strict minimum data required for the analysis are collected, to avoid the unnecessary use of resources



Version 1

and time. Similarly, it is important the management systems concentrate on the collected data, rather then developing large systems, with unreliable or absent data.

The initial task would be to survey all the roads not already surveyed (38540 km) to populate the road database. This would be followed in later years by annual surveys (to update the data) which would survey a percentage of the road network. The percentage surveyed is dependent on the condition of the road network and on the rate of change in condition. Where road conditions are largely good and pavement deterioration is slow and road managers fully understand the rate of deterioration the percentage that needs to be surveyed annually is small. When the reverse is true the percentage to be surveyed is much higher (estimate will be made after the collected data is analysed).

Also discussed is an alternate survey program that could be implemented immediately by modifying existing surveys conducted by the Research Institute in Uzavtoyul. This could be implemented and used to provide valuable data until the road management system is fully operational.

2.2. Initial Data Collection Survey

Management of Road Database and Data Collection

The data required for road management, as described below, needs a dedicated management unit whose responsibility would include the coordination of all the data collected presently, as well as the additional data (condition, roughness, roughness, pavement characteristics, etc) discussed below. It should also check and verify the data, analyse the data to produce annual reports of changing road conditions. It should also prepare the data to be used by the road management system (RMS).

Note: It is important that a database is kept up to data at all times, otherwise, the data reliability is questioned and the data base cannot be trusted. It may as well not exist.

Irrespective of the location of the database and RMS, which logically should be the future URA, approved users of the database (viewing access only) should include the RF, the Oblast level management organisations and the Rayon Based Maintenance Enterprises (where they are involved in the network management and have internet access).

Data collection could initially be outsourced to specialist consultants (foreign consultants working with local partners). Later annual surveys could be outsourced to local consultants. Regional Managers should be involved in all surveys and be trained in all aspects of data collection and database usage and analysis as they are best placed to ensure surveys are carried out.

It is not proposed that the future URA or Road Fund should carry out any surveys themselves, but the strategy is rather to contract specialised organisations that are equipped with the suitable equipment and are organised to used and maintain this equipment. Organisations - that could include but not be limited to the laboratories already operating in the research and design institute - should procure, operate and maintain the required equipment from their fees.



Version 1

Road Condition and Inventory

The road network managed by Uzavtoyul and the RF totals 42540 km of which 20529 km are International and State Roads. The survey completed by the project has completed a condition assessment of the International roads and also some State roads. Given that is has taken approximately 2 months (by 2 teams) to complete the inventory and condition of the 4000 km a total of 39 survey team months would be required for the remaining 38540 km.

The first phase could start with the State road network, consisting of approximately 17000 km and would take approximately 17 team months (approximately 4 months if 4 teams are used).

If additional precision is required (as should be for a full re-inventory of the road network), it is recommended that AT LEAST precision odometers are used, but better still GPS equipment, to prepare for future precision mapping of the network and GIS use.

Whilst the duration of the survey would be not much extended, the time and resources allocation for the data processing should be increased.

Visual condition surveys (preferably using semi-automatic recording of defects, with use of computer and keyboard inside the car, linked to the distance meter to record the defects) however would still be the base of the pavement’s condition assessment.

After initial inventory, the road condition recording would be repeated yearly (or every 2-3 years) whilst inventory survey should be carried out at about 10 year intervals.

Geometry

Geometry details can be measured using sophisticate equipment (like the GPS), be established from maps or design drawings or be assessed in the field as has been done in the survey carried out by the project team when surveying 4000 km of International roads. The latter can be seen in the field sheets included in Appendix E. The data that describes the vertical and also the horizontal alignment in terms of “classes” have been included in the pilot road database. This information would be sufficient for road asset management purposes. For complete re-inventory of the network, more precise surveys may be recommended.

Roughness Data

Roughness surveys should be carried out at the same time by a separate team using Roughometer or other modern devices including necessarily a trip meter. This survey task is carried out more quickly and can be completed in approximately 5 months (1 survey team) for the whole network.

The data requirements are not more detailed as the data already collected for the 4000 km under this project, for which survey the details are included in Appendix E, but use should be made from modern equipment.

Traffic

Traffic volumes and classifications are presently collected by the Rayons a number of times per year. The data consists of classified counts which can be corrected to produce AADTs using factors that are included in the Traffic normative. Either a traffic database with the detailed traffic information is linked to the road database and would contain the corrected data as classified counts, or the traffic data is directly introduced inside the road database, as this has been done for the pilot database.



Version 1

Similarly data should be collected on axle loads. This could be collected separately (manual axle load measurement surveys) or using “weigh in motion” weighing equipment which not only records the weight of vehicles but also traffic volumes by vehicle type and also travel speeds.

There is a definite need to improve traffic data collection and data management through the implementation of automatic traffic counters. There is no possible Road Asset Management without knowledge of the road conditions on one side, and the road use on the other.

The aim of implementation of automatic counters would be to better characterise the traffic in Uzbekistan, possibly by regions, and to establish a system of analysis and reporting that would provide data for use by planners and designers. During the study tour, the participants were introduced to the current existing technology that is used all over the world, and can be bought through tenders of the shelf. Automatic counters do not only provide data with better reliability (the Uzavtoyul traffic counts are generally limited to 2 hour counts, meaning the statistical error could be very large) but also provide data on hourly, daily and seasonal flows which are at the present time completely unknown. As a matter of fact, Uzbekistan seems to be one of the very few countries that have not yet implemented any automatic counting stations. Countries in the region as Kazakhstan or Kyrgyzstan have done so in previous years.

Implementation of automatic counters should be done in 3 steps: � “pilot project” on international roads with a limited number of stations, to learn about the

technology � “generalisation” to at least the whole republican network with a large number of counters � Eventual expansion of the functionalities of the system to integrate Weight in Motion.

Before starting the project regarding implementation of traffic automatic counters it is important that the client has a determined view on the two following questions: � What are the traffic data that are required for the Asset Management, and to what precision?

This would determine the type of equipment (and its cost), in particular the definition of number of points to be installed with fixed counters, and the number of mobile / temporary counters

� Who is going to manage the counters? In recent years, the management of the traffic counters has been more and more delegated to the specialised company, that implement the counters, maintain and repair them, but are paid on a “results” based output, i.e. monthly and annual reporting on the traffic of the network. This has been successfully implemented in countries like Brazil, with large networks, and has been found to resolve the generally problem of badly maintained counters, untimely delivery of reports and general lax data management.

Pavement Strength Characteristics

The HDM4 model uses pavement deflection (8.2 axle loads) and/or structural number which is calculated form the thickness of the pavements and the sub-grade characteristics. The source of this data would include: � Rayon’s maintenance enterprises - they should be able to provide close approximations of the

pavement structure and possibly sub-grade soils classes/types; � The Road Research Institute - would have some data on pavement structure, deflection and soil

types for approximately 600 km of A380 and possible other similar data from past investigations;

� Uzavtoyul / Rayon maintenance enterprises - they could collect pavement details and past treatments from Passports;

� Road Design Institute and consultants - could also have relevant soil, pavement thickness and deflections.



Version 1

Educated assumptions would need to be made where detailed data is not readily available. The recommended - more expensive but only reliable - long-term solution would be to procure FWD (Falling Weight Deflectometer) or equivalent (like Russian Dyna-3M), in sufficient number to Uzbekistan (to Road Research Institute, Design Institute Laboratory, or private operators) to create a multi-annual programme of systematic strength assessment of the network.

Maintenance and Improvement Works

Construction and maintenance works will alter the condition and the characteristics of pavements and also their performance. The road management system and database(s) will need to have a facility for documenting these changes and also the new physical and condition road characteristics.

Data sources would include the road works schedule produced by the RF and also design documentation produced by consultants who should be required to submit, with their design documentation, the changed road characteristics in a format that can be directly imported into the road management by the road data managers.

One of the core tasks of the data base manager will be to provide an annual update of the pavements included into the database, taking into account all periodic and capital maintenance, as well as improvements. Only this will allow maintaining the database with reliable and updated information.

2.3. Subsequent Annual Surveys

The subsequent annual road field surveys should only be carried out on part of the road network each year and focus primarily on recording road conditions and also verifying any changed physical road characteristics, such as widths, surface type, etc. Office based tasks will included the updating of traffic figures, adding data on newly completed work, adding data on pavement thickness data and possible deflection, as may be available from investigations, etc.

Alternate Interim Data Collection

Uzavtoyul laboratories presently record the roughness of the International and State Road Network 2 times per year. They also assess a number of other road conditions which are rated 1 to 5. Unfortunately the rating for the pavement is combined with other features and cannot be seen as a condition of the pavement on the standard sheets. It is proposed that the rating system be expanded to include the following: � Road surface rating (reports on cracking and ravelling); � A structural rating (rutting and failures); � A road surface safety rating (surface texture); and � A drainage rating (shoulder and/or road side drainage).

This will provide a record of the condition in each year as well as changes in condition. It will also give data that can be used to assess the effectiveness of the road maintenance program.

Improvements to Existing Annual Work Identification Surveys

The present annual works identification assessment conducted by Commissions in autumn and in spring produces detailed data on the quantity of defects requiring attention on each road. Whilst the annual summary report, prepared by Uzavtoyul, reports the changes in defects from one year to the next it is not clear if this comparison is done for each road, and in each Rayon.



Version 1

If not done already (field data records have not been sighted to date) it is recommended that the work needs identification process be modified as follows: � Area of ravelling be recorded; � Bitumen condition is assessed for surfacing that has not cracked; � Defects to be recorded for each kilometre.

The analysis of defects data would show how defects; such as cracking, ravelling and potholes/failures/patches where changing with time (show trends). The record of worsening conditions will indicate when more significant works are required. Costing of the repair works in past years and the repair work need in the current year will put a money value that could be used to demonstrate the need for more significant works.

A maintenance management system (MMS) which tracks and costs all identified repair works would be useful in doing the above. The system would not only assist the Rayon based maintenance enterprises to manage their work but would also cost the work carried out and manage resources.

3. Routine Maintenance Management System Existing road data collection by Uzavtoyul in the areas of annual monitoring of road characteristics are used to measure performance of the network. Defects recording and monitoring reflect important elements of road management, and therefore, the existing practice needs to be improved and enhanced. The aim would be to assess correctly the maintenance work needs (linear/corridor and routine repairs) to integrate them into road management planning and also allow the cost of this work to be calculated, based on actual resources used. The same data and system would also enable Uzavtoyul to improve resource (men, machines and materials) utilization through improved knowledge of needs and their costs.

The computer systems required for the above include the following: � Maintenance Management System (MMS) � Eventual Stand alone Road Performance Monitoring Database; and � Road Inventory (road and road furniture) database - key element of a road management system

as already discussed elsewhere in the report;

Note: Most of the data is already collected in some form for the first 3 items in the list. The addition of missing data would complete the requirements.

Once the above tools are in place, a road maintenance organisation (Uzavtoyul today or URA in future) would have the data and analysis tools required to effectively monitor costs, performance of maintenance units, and also road conditions (refer to details below). Significant improvements in management and cost effective utilization would then be possible. The system would also enable monitoring of decisions taken during works planning and work quality. Both of these are key elements to improving road management and maintenance operations.

Like time, development in technologies and methods do not stand still. Also problems in Uzbekistan are not unique which means that there are solutions, developed internationally which have possible applications in Uzbekistan. Whilst it is evident that individuals in the road sector are following developments, there is no well defined system or budget for research and development (R&D) or implementation of up-to-date systems. This needs to change, with the understanding that much could be gained in terms of future cost by promoting efficient asset management.



Version 1

3.1. PMS and RMMS System

A full Asset Management system would request implementation of PMS (pavements), BMS (bridges) and RMMS (assets and routine maintenance) and various other systems.

The priority for the implementation of databases country-wide should be given on one side to the RMMS, and on the other to the PMS. � RMMS is important, as the current allocations, monitoring and execution of routine maintenance

is inadequate, and this forms the basis of the rapid road deterioration. � PMS is traditionally the first step of asset management, because of the financial impact of

pavement maintenance that can represent up to 80% of the total annual maintenance cost.

Both systems are complementary, they could use common inventory and be interlinked, or not, at a first stage.

The RMMS would be used by Uzavtoyul / URA and/or other road maintenance administrator or contractor and whilst its main purpose is to manage the road maintenance and repair operation, it could include some of the winter maintenance.

Whilst the PMS is focussing on larger and more costly works (pavement repair and road network development), and looks at economic evaluation of the expenditures, the RMMS addresses the daily routine maintenance issues in a more practical “contracting” approach.

The attributes of a RMMS compared to a PMS are summarized in the following table.



Version 1

Table 35 : Tasks and needs for RMMS / PMS Tasks Present Need RMMS PMS (HDM4 based) Handling of the road defect data collected in autumn and Spring OR during the year

Data is collected 2 times per year but not digitised and stored.

Standard input for the RMMS which stores defect details and location.

PMS does not do this. This would be handled by the associated database which would have to process and aggregate the data first.

Categorization by work type

This is done in Autumn and plan adjusted the following spring

Output from RMMS would allow categorization to be done manually or in a spreadsheet or in a special module.

Done in part after a full analysis has been completed.

Recording completion of each defect

Done now using a manual system

Existing daily reports of defects completed and resources used on each defect are entered directly into RMMS. Once entered the defect is removed from the defect list. This is a standard feature of RMMS

Not done by PMS

List of defects and priority for completion of each defect for works planning

Exists in a manual form, but there is no priority given

Standard output with priority (indicated by the standards being used) shown against each defect. Time left to complete the defect to comply with the standard is also indicated

Not done by PMS

Weekly and monthly summaries of resources used

Weekly reports are used by maintenance managers and monthly reports are required by the client for payment purposes.

These summaries are a standard feature

Not done by PMS

Reporting of production rates and unit costs for each maintenance team. Reporting of time between defect identification and defect repair (response times)

Production rates and unit costs are not calculated presently. Time to fix defects is not systematically recorded.

Reports are standard feature. Response times calculations are a standard feature

Neither is done by PMS. PMS needs this data to model pavement deterioration

Report of all defects for each km on each road

Information is collated from various records

Reports are standard output Not done by PMS. PMS needs this data

Report of current status of defects

Data is manually held. Reports and summaries take time to prepare.

Defect status reports are a standard feature.

Not done by PMS.

Performance rating of road maintenance operation and road network

This is done 2 times per year using data collected in spring and autumn. Calculation is manual.

Not a standard feature but data exists in the system to do this and output could easily be used to determine a performance rating. The performance rating could also be extended to include factors for unit costs and response time, presently not possible.

Not done by PMS.

Report on average actual cost of maintenance works by road and per kilometre

Reporting by road is done Standard feature. Not done by PMS



Version 1

Tasks Present Need RMMS PMS (HDM4 based) Forward Planning - to 3 years

Not done Data available for routine planning. Previous years defect reports and expenditure when used with the current year’s situation as reported in October would provide planners with an idea what is required in the next 2 to 3 years. With 3 or more years of historical data some of this decision making could be automated.

PMS needs condition data to be collected or the autumn/spring data to be entered into the database to be aggregated before the PMS could process the data. Historical data is required to calibrate the PMS. Data held in an RMMS would be the best source of data for calibration

Quality of engineering solution identification

Acceptable but could be improved

Good because better quality data is used (defects are identified in detail). Also the engineer uses a wide range of indicators when making decisions.

PMS (using HDM4) uses aggregated data for a broader type of programming. It does not model all defects or early indicators of upcoming maintenance problems.

Long-term network maintenance and development strategies

Not done Not done by RMMS Standard feature

Development of deterioration progression curves

Not done Data available, but analysis not a standard feature

Standard feature for pavement deterioration

Economic evaluation of maintenance strategies

Not done Not done by RMMS Standard feature

Effect of budget limitations on network conditions

Not done Data available, but analysis not a standard feature

Standard feature for pavement deterioration

Preventive maintenance planning

Not done to any great extent at present.

Data exists to do this. Decision rules (defect definition and response times) developed as part of the RMMS ensure that key problems are dealt with quickly.

Preventive maintenance is seen only as a pavement issue and treated partly.

3.2. Other Computerised Systems

Other computerised systems not already discussed in the report include: � Equipment Management System and the servicing and workshop facilities necessary to ensure

optimum equipment performance and long service life. It was noted that Transyulquirilish have received a large fleet of equipment from the ADB / GoU but have neither a system nor a workshop. Similar systems also need to be operated by the Rayon level enterprises although in their case smaller systems and even spreadsheet based systems may suffice;

� Contract management system to track (physical and financial) all contracts. The present system in the RF is spreadsheet based and appears to consume a lot of manpower and time.



Version 1

3.3. Intelligent Transport Systems (ITS)

The range and levels of sophistication of ITS is extensive and beyond the scope of this project.

If the implementation of such systems is not the priority for Uzbekistan at the present time, it is important that road operators and engineers are aware of the possible readily available technologies. Three systems that are directly related to road maintenance and road operations are as follows: � Road Winter Information System (RWIS) - this is a mini weather station that collects normal

weather data as well as pavement temperatures and snow depths at a particular site. This data is used with the normal metrological service data to more accurately predict the weather situation and the conditions of the pavement. This allows the maintenance organisation to select the best method for dealing with the upcoming conditions. Countries in Europe and North America, and Japan where many RWIS have been operational for many years have resulted in very significant winter cost savings, reduced salt and sand usage, and allowed increased usage of alternate methods, such as anti- icing. They have also improved snow and ice clearing times and significantly improved road operational conditions;

� Highway Advisory Radio (HAR) - a mini transmitter that is linked to an information centre in the operational area, which also has links to RWISs and metrological service. After the data has been analysed appropriate messages are then beamed out via the HAR (each with a range of up to 40 km depending on terrain) to road users who are encouraged (via signs along the roads) to tune to specific frequencies or via electronic signs and/or the road authority web site;

� Fixed or “Weigh in Motion (WIM)” axle control is needed to ensure that the impacts of overloaded are minimised. This is the third stage of deployment of better traffic knowledge systems, as mentioned above. The WIM equipment includes the installation of equipment into the road which is connected to a computer system and database. As trucks pass over the equipment their characteristics and weight are recorded. Those close to or exceeding the legal limit would be directed to a slow speed “WIM” site or a fixed weigh bridge where they would be re-weighed and appropriate action taken if they have exceeded the limits. The equipment ranges in sophistication for semi manual systems through to fully automatic systems for which special site with approach roads need to be constructed.

3.4. Other Systems

These include a mixture of process, procedures with some computer support. Full RAMS would cover a range of system, but two key systems identified by the Consultants are as follows: � Quality management (from planning to design to final acceptance) - objective is to optimise the

use of resources at all levels by making sure that the funds are allocated to the right projects at the right time and that the works are done to an acceptable standard; and

� Works inspection and supervision - ensure that key elements of the works process are checked in detail and not rely just on looking at the final product. This would in particular cover the monitoring of works performance in a systematic way so quality can be assessed along the execution and cause (could be design) of the problem can be established. Longer warranty periods for the more significant works (from mid term repairs to construction) could also be part of an improved quality system.



Version 1

4. Proposed timeframe for implementation Even the dissemination and implementation of data base system should rely on an overall strategy for asset management.

Before implementation of any country-wide surveys and databases, the client has to decide: � What is the desired strategy regarding surveys (what data to collect, at what frequency and by

whom)? � Who will administer the database in the long-term? As discussed elsewhere, it is the consultants

opinion, that the databases ad management systems should not administered in the Road Fund.

The following table gives a possible time-table for actions described in the previous sections:

Table 36 : Implementation of Surveys and Databases Task Possible start Duration Service

Provider Future Operator *

Initial inventory and condition survey of International and Republican roads

2011 1 year International Consultant

Local Consultant / Contractor

Implementation of Road Data Base

2011 2 years International / Local? Consultant

Data base Manager (URA / TRG?)

Implementation of PMS/HDM

2012 1 year International Consultant

Data base Manager (TRG)

Training for years 2-3 PMS Operation and Update

2013 Local Consultant with TRG

Data base Manager (TRG)

Implementation of RMMS 2012 1 year International / Local? Consultant

Uzavtoyul or URA

First year RMMS Data collection

2012 1 year Local Consultant with URA

Uzavtoyul or URA

Training for years 2-3 RMMS Operation

2012 Local Consultant with URA

Uzavtoyul or URA

*: List of possible current and envisaged institutions: URA : Uzbek Road Authority TRG: Transport Resource Group (Research Institute / Design Institute)

The implementation of the management systems is proposed to happen slightly after the initial surveys and data base implementation, as all management systems will need the core network data to operate.

It should not be forgotten that in many Western countries, the way to systematic use of computer aided road asset management took between 5 and 10 years, to develop, implement and efficiently use the systems. Because of previous experience in other countries, it should take less time in Uzbekistan, once the decision to move forward has been taken, but it cannot happen over night.



Version 1

Chapter 10 - Conclusions

The present conclusions to the final report present first the consultant’s main finding to the report. They then go in some detail in technical issues that were found important for the development of the road’s quality, but could not be strictly related to the TOR. The final section contains some recommendations and consultants view on the way forward.

1. Consultants main findings According to the terms of reference, the consultants investigated a large series of questions and issues, and this can only be seen as a starting point for the development of Road Asset Management in Uzbekistan.

Regarding the road financing, the Consultants reviewed the financial system of the Road Fund and the current road sector revenues. The Road Fund is operating according to international best practice, whilst reform of the revenues seemed desirable, to introduce possible road user charges it is not required. The possibilities of introducing PPP in Uzbekistan will be limited in the close future, as they would need considerable adaptation of the present legislation. Also, the simplified financial model attempted to show that only a limited number of schemes would be eligible for private investments. The maintenance strategy and funding plan showed that the revenues of the Road Fund should be sufficient to allow maintenance of all roads to a good quality level, if the resources are not used for development of the network. The financial scenarios modelled include a sufficient routine maintenance funding, and assumed that periodic maintenance will be funded, at least to the lowest budget scenario, whilst the 5-year development plan is being implemented.

On the institutional aspect, the main finding was that a Road Agency or Authority is urgently needed in Uzbekistan, to rationalise institutions and clarify responsibilities. The best candidate for a future Agency was found in Uzavtoyul, whilst the Road Fund should concentrate on its core functions and take a larger role at the policy level. To be a better road network manager, Uzavtoyul should be strengthened, but also dispose of its contracting activities, and rationalise its regional managers (to maintain 13 oblast solely as network managers) and local districts (reduce the rayon level enterprises to about 50-60). The introduction of competition in the road sector is already on its way, and little needs to be done to increase its pace. The introduction of a planning unit is a more controversial subject, as it is difficult to find its place without the broad picture of reform.

The Consultants however implemented HDM-4, and trained staff from the road fund and other road institutions, developed a pilot data base and collected data on a pilot network of over 4000 km to demonstrate the use of the database and HDM-4 analysis. Currently, there is no champion for this work and data that has been deposited at the Road Fund, but has also been given to the Research laboratory of Uzavtoyul.

The training provided during the assignment and in particular the study tours were an important element to demonstrate road asset management in western countries, along with modern technologies and examples of institutional setup.



Version 1

2. Improving the technical standards of the road sector

2.1. Attitudes and Expectations

There is a general expectation that a specific performance of treatments will be achieved (this expectation is presently low) and that if achieved then all operations and decisions are working well. This can be seen in the requirements that norms and SNIP’s are followed yet there is minimal supervision and inspection of the work process. Similarly performance of materials and roads is poor yet little is done to correct the problem.

The research of available literature shows that there have been significant advances over the last 20 to 25 years in road management and maintenance, the result of which is significantly improved road and pavement performance, improved ride quality, for all road categories, even minor local roads, and lower average maintenance costs.

The Norms based approach discourages a serious examination of this question. It also means that expectations of pavement performance are fixed.

2.2. Road Maintenance and Repairs

Road standards, whether they be design or maintenance standards, are only relevant if they are likely to service the communities and road users and ensure acceptable levels of access. They are also only relevant if they can be achieved and are an indicator of expectations and performance.

The current standards in Uzbekistan were possibly right for a period of time when funding levels were higher. The question is: are they still relevant or should they be modified to reflect the likely future funding levels, taking into account the poor state of the road network, especially the local road network? As shown elsewhere in the report the present funding levels are not achieving the maintenance intervals indicated in the norms, namely 5 years for mid term repair and 15 to 17 years for capital repairs. Having standards that are not attainable or reachable is like having no standards as there is no actual target to meet. The same applies if roads are built or maintained to the specified standards whilst, at the same time, most of the network is largely ignored.

There is a serious need for a review of the standards (design, maintenance and accessibility) to ensure that the standards being used reflect future operational and safety needs for all road categories. This will mean modifying some design standards, staging construction (build one carriageway today and the second in 10 to 15 years), using other established measures to increase capacity, adopting alternative pavements and improving pavement performance in order to lower costs and thus make more funds available for the lesser roads so that they too can meet the new and more modest, but achievable standards.

2.3. Maintenance Adequacy Perceptions

It is generally believed that inadequate maintenance funding is the main reason why roads fail early and there is a short cycle of construct repair and replace.

An examination of the poor performance of roads in many developing countries, in which repairs are needed at early age, will show however that the problem is not always the fault of poor or inadequate maintenance, but often the fault of poor and inadequate design and construction.

It could be said that the clients who oversee the investment projects are in fact handing over roads which are substandard even though they may look OK. It is suggested the clients look closely at



Version 1

their policies and procedures regarding the procurement of consulting and inspection services, ensuring that the team size is adequate and insist on improved services. These should be independently audited to ensure that the roads are properly designed and constructed, to the performance standards expected in developed countries, so that the Client does not hand over roads which start to deteriorate rapidly with defects starting to appear within the first 2 to 3 years.

2.4. Possibility for introduction of New Technologies/Methods

The introduction of new technologies ranges from new systems as discussed above to maintenance methods (listed below) and philosophies (e.g. preventive maintenance). It also includes introduction of road management tools such as automatic traffic counters and information systems that will lower the cost of operations and provide information for better decision making.

2.4.1. New Philosophies

These include: � Increased focus on preventing problems, rather than only reacting to the acknowledged

problem. In the latter case, small problems are not dealt with for a year by which time it becomes a bigger problem that is much more expensive. In the present situation, the number of defects at the end of the construction season (defects that develop during the construction season but which are not treated as no funds are allocated for this) is as high and often higher, than the defects at the start of the construction season. This situation needs to be urgently dealt with. Until this is dealt with, performance based maintenance contracts would be difficult to implement and/or manage;

� Adopting more appropriate design, maintenance and operational standards for the whole road network. The present unattainable standards, because funding levels are inadequate, mean that there is no target to try and achieve;

� Improving performance and operational capacity through the use of alternate pavement structures and materials and stage construct road networks so that their capacity grows with the needs of the road.

� Employing capacity improvement methods that will increase capacity at minimal costs (passing lanes, improved access during winter, fewer disruptions because of road works, etc). It should be remembered that environmental factors have as big a role in pavement deterioration as traffic, especially on roads where traffic levels are low, therefore every additional investment will require an increase of future maintenance funds.

Whilst not a new philosophy, the need for axle load control is critical to the performance of the road network in Uzbekistan. The issue is not just overloading, relative to the legal load. When the new axle loads of 13 ton become common as they will soon, its impact on the few roads designed for this limit will be minimal. The same cannot be said for most of the other roads some of which were designed for 10 tonnes whilst many more were designed for loads of 8 and less tonnes. For these latter roads even a 10 ton load is excessive, even though it may be legal. These roads should not be forgotten. They will need to have lower axle load limits which will need to be communicated to road freight operators and be respected.

2.4.2. Road Construction and Maintenance Methods

Whilst the possible options are extensive, the initial additions and improvements to existing treatments should include those listed below. The authorities in Uzbekistan should look closely at alternative treatments as they are all working effectively and used worldwide from the cold winters of Canada and Russia to the hot climates of Australia and Africa.



Version 1

From smaller works, up to more costly and extensive rehabilitation techniques, the consultants would recommend to investigate the following: � Sprayed Seals - exist presently but quality is very poor - would be used as a preventive

maintenance treatment to renew surface texture, seal the existing surface, stop ravelling and also slow the rate of oxidization of the asphalt layers. Presently used in Kazakhstan, Kyrgyzstan, Europe, North America, Australia, etc;

� Slurry/micro-surfacing - as for sprayed seal but used where a smoother texture is required. Used widely in Europe, Russia, Belarus, North America, Southern Africa and Australia;

� Consider using sprayed (small aggregate) or slurry seals to seal the asphalt surface approximately 4 years after a new asphalt concrete surface has been applied (reconstruction or mid-term maintenance) to slow the rate of deterioration;

� Improve bitumen quality - through the use of lime as the “filler” fraction in asphalt concrete or other bitumen modifier. It is recommended here that a full bitumen analysis through a qualified specialised laboratory (like Shell Road Bitumen Laboratory or similar) should be carried out to indicate the best possible modifications. Then it will be possible to modify the bitumen properties with polymer and / or rubber additives. These technologies are used widely worldwide to change performance characteristics of bitumen and asphalt concrete;

� Introduce geo-textiles in appropriate locations to stop reflective cracking and reduce thermal cracking. Also used worldwide;

� Introduce in-situ stabilizing as a repair (large) and pavement modifying/recycling treatment when specifying some mid-term maintenance, rehabilitation and reconstruction. Use could be made of the fly ash that is available from the coal fired power stations. Used worldwide to recycle existing pavements. It is understood that recycling of existing pavements has been incorporated, following presentation made by the project team, in the reconstruction of A380, to be funded through an ADB loan;

� Consider concrete pavement recycling, by rubblizing. This is the alternative (when pavements are old and slabs are moving) to the present technique of overlaying concrete pavements with asphalt concrete. The procedure reduces (crushes) the existing concrete to a high quality aggregate without removing the concrete. It is then compacted before being resurfaced with asphalt concrete.

3. Road sector in the future As long as the general approach to maintenance planning, programming and budgeting does not evolve, there is a high chance that the standards of roads will not be raised, even if additional funds become available.

The funding analysis showed that the current level of funding of the Road Fund should be sufficient to at least ensure appropriate standards on the main network (scenario 3, the most constrained scenario).

That this level of quality is not reached is a complex combination of several reasons that have been in detail discussed in the present report and its appendices, from which the consultants would like to highlight the most important ones: � The budgeting process giving more importance to the large projects, and funding maintenance

by the “remaining” resources. The international practice is to fund first routine maintenance to its required level, then to programme the required periodic maintenance, and to fund improvements and new constructions from the remaining budget, or from loans;

� The present institutional arrangement with overlapping responsibilities and conflicting approaches between organisations. Added on this is the lack of flexibility that discourages



Version 1

possible initiatives and the over-emphasis on hard copy reporting at a time when more flexile and computer based systems have been implemented elsewhere.

� The lack of a structured asset management approach that treats roads as an asset and road management as a business

� The low level of quality of the present works, during all stages of the project, from design to construction and supervision, as developed above.

The Consultants strongly believe that the time has come to implement the road sector reform. � The current institutions, whilst putting significant energy into the operating of the roads do not

achieve the best possible results. � The present investment programme ensures a steady revenue to the road industry, making

changes in organisation and re-positioning of actors more easily acceptable � It is a requirement that the maintenance organisations are reformed when they will take over the

newly constructed and improved roads, to ensure sustainability of the investments in the future. Ways forward include: � In the first place implementation of appropriate institutional arrangement, with a properly funded

and responsible Road Authority. A technical assistance project could be recommended to assist in the further transformation process.

� Secondly, a large effort into review of standards and methods, materials and execution, to improve the output quality at all levels of the project cycle. Technical assistance would be beneficial for the research into asphalt materials improvement, implementation of quality control / assurance systems, etc…

� Thirdly, a progressive implementation of an asset management system, common to all actors in the road sector, from which the first sub-systems should be on one side the routine maintenance management, and on the other side, the long term planning tool. This would require longer-term technical assistance.



Version 1

Appendix A

Flow chart for introduction of supervision contracts

Example TOR for supervision consultants

INSTITUTIONAL DEVELOPMENT STRATEGY - FIRST STEP TO COMMERCIALISING AND OUTSOURCING OF ROAD MANAGEMENT

CURRENT SITUATION

Road Fund Inspector :

today public sector

tomorrow part of private supervision consultant

PROPOSED SITUATION – UTILISATION OF SUPERVISION CONSULTANT COMPANIES

STEP 1: Utilisation of Supervision Consultant Companies – Providing advisory services for the Road Fund Inspectors to improve Quality Control

Technical Control / Supervision Consultant Companies:

• Contract for 2 or 3 years

• Responsible for 2 -4 Oblasts

• Undertakes responsibility on behalf of the

Road Fund for managing all road

maintenance, repair and reconstruction

contracts

• For this initial period of his contract, acts as

Assistant and Advisor to RF Inspectors (2/

contract)

Road Fund Inspector:

• Contracted by Road Fund to augment the Consultancy Company’s supervision contract

• 2 persons for in each contract: for maintenance and for repair/construction

ROAD

FUND

ROAD

FUND

Maintenance Construction





STEP 2: Complete Integration of Road Fund Inspectors into the Supervision Consultant Companies

Technical Control / Supervision Consultant Companies:

• Contract for 2 or 3 years

• Responsible for 2 -4 Oblasts

• Undertakes responsibility on behalf of the

Road Fund for managing all road

maintenance, repair and reconstruction

contracts

• For this period of his contract, the existing

RF Inspectors (19) are transferred out of RF

and are EMPLOYED DIRECTLY by the

Consultant company with guaranteed

employment for 1-2 years

Road Fund Inspector becomes Consultant Inspector Staff:

• Contracted to Consultant Companies with employment conditions equivalent to RF conditions

• Guaranteed employment for 1-2 years

• To receive assimilation training by the Supervision Consultant Company on International Contract Management

STEP 3: FINAL STEP - Assimilation of Road Fund Inspectors under the Supervision Consultant Companies acting as “Resident Engineers”

Remaining control of supervision consultant companies

from Road Fund Head quarter inspectors (Appr. 5)

ROAD

FUND

ROAD

FUND



Version 1

EXAMPLE - Terms of Reference for Capital Works Supe rvision Contracts

1 Appointment of the Consultant

The Road Fund (as The Employer) intends to appoint a qualified Consulting Engineering Company to supervise the technical control services that are concerned with the Road Fund financed annual maintenance and repair programmes as described herein.

2 Objectives

(i) The overall objectives of the Terms of Reference are to ensure that high quality construction and maintenance programmes are achieved in time and within budget allocations and that all work is carried out in full compliance with the approved engineering designs, technical specifications, agreed work schedule, and are within the terms and conditions of the contract documents and as per sound engineering practices and to raise the level of awareness of the existing technical control inspectors and staff of international procedures in the execution of road works.

(ii) The detailed objectives of these services are to commercialise and ultimately to privatise the supervision and control for routine maintenance, routine repairs, mid-term repairs, capital repairs, rehabilitation and reconstruction contracts and works programmes financed by the Road Fund; works that previously were always supervised and controlled departmentally, by outsourcing to the local consultancy industry and through the use of a Construction Supervision Manual (see scope of services) to lead the existing RF Technical Control Inspectorate and its staff towards an uplifted and quality based site management situation which coincidentally also converts the public service control organisations into a viable private sector for works supervision within the greater road sector.

3 Project Description

The subject works services are the design review, supervision, control and reporting on all works financed by the Road Fund on the networks of ………, …………., and ………………..in Oblasts………..and ……………….and ……………..

In addition to undertaking the supervision and approval of all works as The Engineer, the scope of services also includes agreeing all traffic management schemes on works sites with the executing agency concerned and ensuring all national regulations regarding Safety at Work are observed on all sites at all times including the proper signing and diversion provisions.

These services are to be carried out initially with the direct employment of the existing Road Fund inspectorate staff on a seconded basis for the first year and a private sector employment contract for the second year.

4 Reporting Requirements and Responsibilities of th e Consultant

The Consultancy Company shall be designated (as defined in the Contract Agreement with the Employer) for all civil and ancillary works under the programme of annual repair and maintenance that is funded by the Road Fund. The Consultancy Company shall administer the civil works’ contracts, make engineering decisions, be responsible for quality assurance, material testing, providing general guidance and furnish timely response to the Contractors in all matters relating to the civil works, and to ensure that all clauses of the Contract Agreement between the civil works Contractors and the Employer (Road Fund (or Highway Authority) are respected and adhered to.



Version 1

The Consultancy Company shall advice the Employer (Road Fund (or Highway Authority) on all matters relating to the efficient and successful execution of the civil works contracts and shall act at all times so as to protect the interests of the project and shall take all reasonable steps to keep expenses to a minimum, consistent with sound economic and engineering practices; and shall prepare a “Construction Supervision Manual” for the use of the existing Road Fund Technical Control Inspectorate staff outlining routines and standard operating procedures to be applied in construction supervision based on internationally recognised practices.

The Consultancy Company will be responsible for providing qualified professional and supporting staff (to augment as necessary the existing number of Road Fund Technical Control Inspectors seconded to them) according to the quantity and sophistication of the works under this supervision contract and all necessary services as are required for the efficient cost-effective and timely execution of the consultancy services.

5 Services

The services of the Technical Control Supervisory Consultant shall include, but not necessarily be limited to the following:

a. Design Review

The Supervisory Consultants shall review any available design and drawings in detail. If any amendments to design are required by the Supervisory Consultants shall be incorporated only after approval by the Employer. The Supervisory Consultants thereafter shall assume equal responsibility with the Design Consultants for the soundness and safety of the design. In case of difference of opinion between Supervisory and Design Consultants, decision of the Employer shall be final. No separate fee shall be permissible for design review. The cost of design review/vetting shall be deemed to be built into the charge rates of the Supervisory Consultants. Also the Consultant shall check CPM Planning based charts using primavera software or equivalent by the contractor to verify project duration and how he intends to monitor the progress on the Project with an objective of achieving planned progress.

b. Survey Work

(1) The Supervisory Consultants shall be responsible to obtain the bench marks and other information from the Design Consultants as required for commencement of construction activities.

(2) If necessary, carry out modifications in survey and stakeout the revised Right of Way limit for the purpose of land acquisition and relocation of utilities where required.

(3) The Supervisory Consultants shall supervise and verify the following works. (a) Stake the Centreline, ROW limits and relocation of roadway

structure and appurtenances. (b) Setting of Grade-stakes (c) Relocation of permanent monuments in the construction.

(4) With out relieving the Contractors of their obligations under the Contract, review and approve the traffic management and safety plan, and ensure compliance such that the Works are carried out at all times in a safe and secure manner and damage or injury to persons or property is avoided.



Version 1

c. Rules and Regulations

The Supervisory Consultants shall ensure that all Uzbekistan Government and any Provincial Government rules as well as Local rules and regulations applicable to the Works are followed. The Supervisory Consultants shall issue necessary instructions to this effect, to the Contractor on behalf of the Employer.

d. Supervision Responsibility

The responsibility of supervision shall rest with the Consultancy Company acting as the Engineer who shall issue instructions in writing to the Inspectors of the Road Fund for the supervision of Works as per the Contract. Supervisory Consultants Agreements with the Employer.

The Supervisory Consultants shall carry out a revision in the plans and specifications as required and prepare all change orders instantly thereto and shall further assist the Employer in negotiations necessary for execution of the changes. Such revisions shall be encouraged which result in improved project performance.

The Consultant will check surface quality by Conducting Surface Characteristics Surveys at the time of take over & subsequently at end of Defect Liability period as per Engineering Practice.

e. Construction Supervision

The Supervisory Consultant Company shall be fully responsible that the Works are executed in accordance with the plans and conform to the specifications. The Supervisory Consultants shall carry out the supervision ensuring the following:

(1) That all soils and construction materials incorporated into the Works are properly tested and comply with approved specifications.

(2) That all the Works completed are inspected by the Engineer or his Inspector acting as his Representative.

(3) That Works comply with the approved Specifications, Work Methodology, sound engineering practices and in accordance with provisions of the Contract Documents.

(4) That Contractor complies with the Conditions of Contract with reference to provision of Insurance Guarantees etc.

(5) That quantity measurements and quality control are in full compliance with the stipulations of the Contract.

(6) That the laboratory equipment is in working condition at all times.

(7) Ensure that necessary services are provided corresponding to the Contractor's Schedule of Work without any delays caused on the part of the Consultants.

(8) Timely assistance and directions are provided to the Contractor in all matters relating to ground survey controls, quality control, testing and other matters relating to the performance and progress of the project.

(9) Assure quality of the works during construction; continuously inspect the soils and materials, construction operations and the works with regard to workmanship and compliance with the specifications.



Version 1

(10) Evaluate Portland Cement Concrete and bituminous mixture designs prepared by the Contractor and recommend improvements (if any) to ensure the desired performance and accord approval thereof.

f. Checking and Inspections

(1) Assess, maintain and regularly update list of Contractor's construction equipment and ensure that the same complies with the list of equipment submitted by the Contractor with his bid or as per subsequent commitments.

(2) Jointly inspect the Works with the Employer and/or his appointed Performance Auditor and assist in formal handing over and provide a report certifying satisfactory completion of the Works.

(3) Inspect and evaluate all installations, housing, medical clinics or dispensaries, shops, warehouses, equipment and other accommodations of the Contractor to ensure compliance to the terms and conditions of the Contract.

(4) Make arrangements for inspection of sites and project office for Employer's staff and ensure that all relevant information is available and detailed progress report discussed before site inspections are undertaken.

(5) Where the maintenance period of the construction contract is completed within the period covering the Consultants' contract, the Supervisory Consultants shall carry out maintenance inspection with the Employer and assist in planning of remedial/maintenance Works and their supervision. This shall be done by nominated staff of the Consultants.

(6) Assist in early maintenance inspection of those Works completed at the end of the Supervisory Consultants' assignment and assist with planning of any remedial works and in the possible supervision for a period of up to Two (02) months after completion of the Works.

(7) Assure submission and advice on the adequacy of the Contractors' insurance policies, performance bonds, and advance payment guarantees.

(8) Carry out continuous inspections at the locations where construction activity is in progress.

(9) The Supervisory Consultant shall organize one day training session for his own staff and the staffs of the RF Inspectorates who are seconded to him, once every six months at project to familiarize them with latest quality assurance techniques and latest developments in construction of highways and bridges. This session can be attended by Employer or his appointed Performance Auditor as well as Contractor's Engineers/ Supervisors.

g. Reviews, Verifications and Records

(1) Assure the receipt of and maintain permanent record under terms and conditions of the Contract Documents for materials including their source and equipment accepted and incorporated in the project.



Version 1

(2) Maintaining up-to-date progress schedules in the form of bar charts and other appropriate systems indicating the major items of work being performed according to the Work Program/Schedule approved by the Employer.

(3) Review the Contractor's proposed Work Schedule and issue acceptance or rejection of the same as the case may be.

(4) Verify the quality of work performed by the Contractor and submit the report thereto including certification for release or otherwise of the Performance Guarantee.

(5) Assure the receipt of and maintain as permanent records of all warranties required under terms and conditions of the Contract Agreement for materials including their source and equipment accepted and incorporated in the project,

(6) Establish a comprehensive system of maintaining site records including site correspondence, survey data, inspection records, test data, site diaries, records of meetings, financial records, progress records etc.

h. Progress and Other Reports

(1) Prepare and submit Monthly Progress Reports to the Employer on a format as provided by the Employer. The progress report format includes various chapters and contains guidelines of the contents to be included in the Monthly Progress Report, which shall be adhered to strictly.

(2) The Supervisory Consultants shall also prepare, as the part of the progress report, Monthly Contract Administration Report. A copy of Monthly Contract Administration Report shall be submitted to any local representative or monitoring body appointed by the Employer.

(3) The Consultants shall produce as necessary technical reports and position papers dealing with technical matters arising during the project.

(4) The Consultants shall prepare an Interim Completion Report for contracts, which reach the stage of substantial completion. These reports must be submitted immediately after the "Taking Over" of the project.

i. Payment Certificate

(1) Prepare monthly contract payment estimates and prepare narrative progress reports and certifications for payment for approval of the Employer or Engineer including up to date cost estimates projected for construction and supervision till completion of the project and comments on Contractor's program.

(2) Verify and certify work done for each Interim Payment Certificate in the form designed by the Employer as Standard IPC Processing utilising international Proforma in this regard wherever possible - in addition to the existing practice.



Version 1

j. Cooperation, Assistance and Joint Measurement

(1) Assist Employer with interpretation of Drawings & Contract Documents, more particularly with respect to any disputes with the Contract or other affected parties.

(2) Inform Employer of problems or potential foreseen problems which may arise in connection with the construction contract and recommend appropriate solution(s) to overcome the same.

(3) Evaluate and take the necessary actions/recommendations with respect to claims, disputes, extension of time and other changes outside the scope of work of the Contractor. The actions/recommendations must be supported by necessary provisions of the contract concerning the exact quantification of claims. Further in case of extension of time clear recommendations based on the actual site conditions and unambiguous appraisal of the extension of time with further recommendations of making it conditional or otherwise must be submitted.

(4) Respond to the requests made by the Employer for application of special attention to any area/activity or in other matter, which is deemed important by the Employer.

(5) Recommend interim request and carry out joint measurements with the Contractor for preparing a document, which clearly and accurately describes the work done and payments due.

(6) Participate in accepting the completed Works and prepare a Final Report testifying and certifying the acceptability of the completion Works.

(7) Cooperate with the Employer, and the Contractor in the use where required of, project-vide standardized or computerized methods, formats or programs of reporting physical or financial progress or forecasts.

(8) Prepare format required for training of the Road Fund Inspectors and Consultants own field officer in the application and quantity and quality controls, work programs implementation/ construction management, contract administration etc.

(9) Advise the Employer on the need for effective liaison with local authorities, police, landowners, utility owners, the public and other organizations affected by the Works in order to minimize or avoid unnecessary delays or disputes.

(10) Assure that the Contractors comply with all the necessary requirements of Environmental regulations issued by the Government of Uzbekistan and coordinate with other concerned agencies / NGO's related to the implementation of the environmental mitigation measures.



Version 1

Appendix B

Comments from Road Fund on Draft Final Report and Consultants Answers



Version 1

Comments from RF

The chapter 3 – Assess of the Road Fund financing system

I. Analysis of asset management systems

At page 18 the number of Presidential Resolution is wrongly indicated. Parameters of revenues and expenditures of the Road Fund for 2010 have been approved by the Resolution of the President of the Republic of Uzbekistan № PP-1245 “On forecast of the basic macroeconomic indicators and parameters of the State Budget of the Republic of Uzbekistan for the year 2010” dated from 22.12.2009

In the format of the examples the advised methods of the asset management system is not illustrated as supported by the international experience.

The chapter 4 – Assess institutional framework

In the report, paragraph 2.3, page 38., the paragraph from bottom says that “From the various measures, one which would be of the highest importance would be to take out the assets from the company’s balance sheets. Assets could be held by Ministry of Finance, and integrated into the State accounts as this is done in most other countries”. However, according to the existing local legislature, the holder of road assets may be authorized state enterprise or the State Property Committee. The above mentioned conclusion of the Consultant contradicts the principles of the international law as well as normative documents of the local legislature.

Answers from EGIS BCEOM

Number Corrected.

The issue of asset management systems has been dealt with in chapter 4 and Appendix B1/B2 as part of the institutional analysis.

There is no unique model or tool/software that constitutes an Asset Management System, Road Asset Management System (RAMS) is a “Concept” that is supported by multiple tools, including the road and bridge database, models as HDM-4,

The RAMS flow charts in Appendix B1, charts 1 and 2 show all the interactions between the various players and their tools, according to international practice.

Chapter 4:

The Consultants are well aware that the national legislation assigns the road assets as a property to the “authorized body”. As already stated in the consultant’s report, and in the ADB eligibility report, the roads as state property cannot be sold. The preservation of a very long term assets as a public service duty is totally different from commercial motivations of shorter term. To have a clearer division of objectives, public and commercial, it would appear preferable for the road infrastructure assets to be held on the balance sheet of a state budget entity with a purely public service objective, and absence of commercial motivations.

The Consultants would favor a change of legislation to separate the roles of the road owner and the road asset manager (road agency).

We do not see where the change, if supported by the relative national legislation, would contradict international law. As an example, Republic of Moldova with the same legislative history, introduced this change supported by World Bank just few years ago.



Version 1

In the report, paragraph 2.11.1, page 46, table DISADVANTAGES says that “The Road Fund, has to move from the approach that quality or works control is adversarial ”. In fact, quality or works control is conducted not to with the hostile aims as indicated in the report but to check the compliance of civil and erection works being conducted, and documentation of design and estimates. Hereby the Consultant has to clarify the mentioned conclusion.

Besides, in the report the Consultant considers the advantages and disadvantages of the existing and proposed levels of the road sector management. Examples of EBRD and EU are provided (page 7 Issues and options of the development of the road Sector institutes) Issues and option of the development of the road sector institutes.)

However, the Consultant did not indicate the sequence for the implemented institutional reforms in the illustrated example.

Because it is important for identifying the period of the reforms to be implemented, to avoid risk and for social protection of the population that may lose the jobs during the transformations.

In the Main Report the Consultant did not indicate to what institution the function of the Client is to be attached.

The Term Adversarial is used in Western Countries to describe the older or more traditional type of contract whereby the Owner appoints an Engineer to represent his interests and as they are on opposite sides of the contract it is viewed that the Engineer and Contractor are opposing or adversarial ..

The modern contract places them both on the same side of the contract and working in partnerships and collaboration they collectively deliver what the owner requires.

The main report has been developed to more clearly show the evolution of the reform.

If the sequence is generally very similar in all countries, the pace of change and the final stage to be reached depends on government initiative and can vary significantly.

The Consultant re-iterates that the Client is the Road Asset Manager – The Road Agency. That is international and normal practice. The main text has been updated to clear this issue.



Version 1

The chapter 5 – Introduce computerized road planning & management using HDM-4 and the chapter 6 Data base

1. Concerning the task 41 - “Purchase and installation of HDM-4”.

Even though four (4) discs with licensed key were transferred to the RF no installation of this software with calibration of the input data on the computers of RF has done.

We think it is necessary to install licensed software with calibration of the input data on the computers of RF people who passed the special training course with HDM-4.

One needs to be emphasised that according to the opinion of the international experts said in the report many default parameters of the HDM-4 are not relevant to the conditions of Uzbekistan that implies the lack of efficiency of the HDM-4 in conditions of Uzbekistan. 2. Concerning the task 52, 53 - “Development of the data base system” and “Installation of the data base system and association with HDM-4”.

In the Report it is said that at the end of the project implementation the RF will receive the source code and software product of the developed pilot RMS project for Uzbekistan”.

Within the project the proposed data base has not been delivered to RF as well as no training for practical use of the software has not been carried out.

We believe it is needed to install the data base system and train the relevant people of the RF with input and processing of the data operations.

All the calibration data and all the data of the HDM run (Network, Programme and Project Analysis) have been part of the “data handover” disk that was submitted to Road Fund on 23rst July (reference U10-69).

The calibration data is contained in the HDM “objects file”, and the sample objects data just needs to be replaced by the data supplied by the consultants.

The consultants will liaise with their local partners to complete the installations.

The RMS software, installation disk and data was also part of the CD “Data handover mentioned above.

The RMS software was installed during the last training course on the computers of the participants.

A special session was dedicated to the RMS training (the software is quite easy to use) on Wednesday 21rst July. Unfortunately, during that day, the only present staff member of the Road Fund was S. Vovchenko. On his quite old personal laptop, the installation did not succeed, but he followed the steps of all data manipulation and export to HDM. The trainees from design office have completed the installation of the software and the database.



Version 1

Above, page 56, section1, para. 3 says that following the course licensed software of HDM-4 was installed on the computer of Sergey Vovchenko. In fact, following the training course Pier Jouber installed on the computer of Sergey Vovchenko only the demo version of HDM-4. This version includes the training exercises carried out during the training course between 14 and 25 of December, 2009 and it is not relevant for inputting new data and operations for automatic planning and road management.

Following the closing course of HDM-4 between 19 and 23 of July, 2010 it was the same demo version of HDM-4 installed on the computer of Sergey Vovchenko with the same exercises of the passed course.

Page 98, section 2.1, para. 3 indicates wrong data for running training seminar HDM-4.

Appendix A7, section 1, para.1 says that 8 RF people participated in the training course within May 31 and June 13, but the table with participants lists only 7 people.

Under consideration of the abovementioned let us inform you that the final draft report will be accepted after clearing (solving) of the mentioned comments.

Sincerely,

Director J.Shukurov

The Consultants installed various copies of HDM-4: - During the December training, 3

copies were installed on various laptops used by the trainees but the software was “uninstalled” as these computers were not the final equipment to be used for HDM.

- During the July training, the software was installed on the personal laptops of the trainees, including T. Komilov, G. Axatov, and A. Djumankulov, because the intention was to use their laptops during the training. As these computers are not official Road Fund computers, they were reverted into ‘DEMO’ versions. To re-activate a DEMO version, it is sufficient to activate the software at TRL.

- However, we agree that the situation is not clear, and the Consultant’s local partners will complete the installations, as soon as the Road Fund has designated the computers to be installed.

Corrected in final issue of report

The correct list could be found in the main text of final report. The participants were: ELMURATOV OYBEK MUMINDJANOV HABIBULLA YUNUSOV HAMDAM SAVITSKI NIKOLAI ASHIRMATOV KAMMOLIDDIN DAVLETIAROV SHUKRAT NUSEROV NURLAN SOLIEV MIRZAJON

CAREC-UZB-Road Sector Management System - Final Report_Eng_issued

Documents

Transcript of CAREC-UZB-Road Sector Management System - Final Report_Eng_issued