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road maintenance

Addressing the risks from climate change in performance-based contracts

Chris Bennett's picture


Output and performance based road contracts (OPRC) is a contracting modality that is increasingly being used to help manage roads. Unlike traditional contracts, where the owners define what is to be done, and oftentimes how to do it, OPRC contracts define the outcome that the owners want to achieve, and the contractor is responsible to meet those outcomes. Performance is measured against a series of key performance indicators (KPIs) or service levels.
 
Critical to the success of any OPRC contract is the assignment of risk between parties. Climate change has major implications for OPRC contracts because it affects the risk exposure of both parties. With funding from the Public Private Infrastructure Advisory Facility (PPIAF), a new analysis considered how to incorporate climate change risks into OPRC contracts.
 
What’s Happening Right Now?
 
Without clear expectations around climate risk, neither the asset owner nor the companies bidding for performance contracts will adequately address the risks. Bidders cannot be held accountable for risks that are not specifically cited or linked with performance criteria.
 
At present, climate change risks are generally carried by the asset owner through the Force Majeure provisions of the contract, and treated as ‘unforeseen’ events, with repair costs reimbursed to the contractor. This impacts the overall cost of the OPRC, and where extreme weather events are becoming common-place, reduces the efficacy of OPRC as a contracting modality. The most pressing issues challenging stakeholders during each phase of development are summarized in this chart.

Women in rural roads: recommendations for a second generation of interventions

Karla Dominguez Gonzalez's picture
Photo: Guillermo Barrios del Valle/Flickr
In the Andean mountain range in the province of Arequipa, women can be found working on rural road maintenance projects.

Meanwhile, back in the capital, members of Peru’s local and national government, as well as representatives from the World Bank and the Inter-American Development Bank, gathered in Lima at the “Experiences of Women in Rural Roads” conference to discuss the role of women in the transport sector.

The event highlighted women’s participation in rural road construction and maintenance as a significant step toward gender equality: it gave participants a chance to discuss the impact of these projects, share lessons learned, and inform a Gender Action Plan for the ongoing Support to the Subnational Transport Program. Indigenous women from rural communities in in Arequipa, Junín, Huánuco, and the Amazon attended the event and emphasized the importance of these projects in the development of their communities and the role of these employment opportunities in their own lives, their self-esteem, and their aspirations for a better future.

Since 2001, the World Bank Group (WBG) and the Peruvian government have worked together to promote women’s participation in rural transport projects, expanding employment opportunities for women in rural areas. The Peru Decentralized Rural Transport Project has seen the female participation in rural road maintenance microenterprises reach almost 30%.

There are many positive effects of women’s participation in these projects.

Empowering local women to build a more equitable future in Vietnam

Phuong Thi Minh Tran's picture


Vietnam’s economic emergence is perhaps best experienced along its rural roads: more than 175,000 kilometers of pavement, rubble and dirt track extend to two-thirds of the country’s population, including nearly all of the poorest people, who live among its productive farms, lush forests and meandering river valleys.

In recent years, road investments in Vietnam’s rural areas have improved socioeconomic development and promoted gender equity, social participation, improved school attendance, and more inclusive health services to impoverished regions. However, all but a few hundred communes remain off-grid, and infrastructural roadblocks and bureaucratic potholes have delayed the goal of a fully integrated road system.

The World Bank’s Third Rural Transport Project (RTP3) supported a win-win solution: employing ethnic minority women to sustainably manage road maintenance through an innovative participatory approach to local development. This blog entry describes the experience of improving the roads — and women’s lives — in rural Vietnam. Here are some of the lessons we’ve learned along the way:

Lesson 1: Solutions can come from unexpected sources.
The RTP3 task team’s investigation showed that up to a third of the population in Vietnam’s Northern Uplands provinces would be expected to contribute up to 10 percent of their total annual household expenditure to ensure safe passage along local roads — too much for most to afford. Furthermore, even when adequate resources are made available for maintenance, contractors have sometimes been unwilling to work in inaccessible regions for fear of mudslides during the rainy season.