世界发展银行-Angola-Road-Sector-Public-Expenditure-Review_58页_1mb

Summary of Angola Road Sector Public Expenditure Review

Core Content

This report provides an in-depth analysis of Angola's road sector public expenditure, focusing on efficiency, allocation, and the impact of spending on infrastructure quality and accessibility. It highlights the challenges in road maintenance, the institutional framework, and the need for policy and governance improvements to enhance the performance of the road sector.

Main Points

1. Road Network Overview

• Total road network length: Approximately 76,000 km.
• Paved roads: Only 18% of the total road network is paved.
• Road density: Low compared to countries with similar GDP per capita. Spatial density is 6 km per 100 km².
• Regional distribution: Higher density in the western coastal provinces; lower in central and eastern regions.
• Access issues: Half of the population is located more than 2 km from any road. Only 37% can reach hospitals and schools within 2 hours.
• Agricultural access: Almost three-quarters of agricultural production value cannot reach markets, indicating a significant need for rural road development.

2. Road Characteristics

• Classified roads: 43,655 km (58% of total network), including:
  • Fundamental roads: 26,000 km (connects Luanda to 18 provinces and main cities), 52% paved.
  • Complementary roads: 17,500 km, only 210 km paved.
• Unclassified roads: 32,345 km, managed by provinces and municipalities, with no available data on their characteristics and conditions.
• Road widths: Most classified roads are 6 meters wide, with some sections at 4.5 meters.

3. Road Sector Institutional Setup

• Main institution: Ministry of Construction and Public Works (MPW).
• National Road Institute (INAE): Manages fundamental and complementary roads, employs around 700 staff (1.6 staff per 100 km), close to the international recommended efficiency level of 2 staff per 100 km.
• Road Fund: Established in 2015 by presidential decree, initially reported to the Ministry of Finance (MINFIN), but later shifted to MPW in 2019. It is responsible for financing road maintenance, with around 30 staff, a board of directors, advisory council, and supervisory board.
• Procurement transfer: The procurement function of road maintenance was transferred from the Road Fund to INAE in 2019.

4. Public Expenditure Trends

• Annual public expenditure on infrastructure: Averaged 4.4% of GDP between 2002–2009, and increased to an average of 4.1% of GDP between 2008–2018.
• Transport sector expenditure: On average 2.1% of GDP for the road sector in 2008–2018.
• Road maintenance share: Only 3.5% of total road expenditure was allocated to maintenance, despite a 25% increase in 2015.
• Central vs. subnational expenditure:
  • Central government spent around US$20.64 billion on national roads (2008–2017).
  • Subnational governments spent around US$17.5 billion per year on provincial/tertiary roads.
• Unit cost of road maintenance: High compared to the SSA average, with an average of US$2.52 million per km for national roads.

5. Efficiency and Effectiveness of Spending

• Low efficiency: Despite significant investment, road quality and physical output have not improved proportionally.
• High unit cost: The unit cost of national roads is around US$2.52 million/km, much higher than the SSA average of 0.8–1.0 million/km.
• Potential output: Angola could have built three times more national roads and doubled the municipal road network if resources were used efficiently.
• Cost savings: Every US$ spent on road maintenance generates US$3.4 in cost savings for road users.

6. Road Sector Financing Needs

• Annual rehabilitation and maintenance needs:
  • National roads: US$924.8 million per year (US$771.4 million for rehabilitation, US$241.2 million for periodic maintenance, US$70.4 million for routine maintenance).
  • Subnational roads: US$153.4 million per year.
• Post-rehabilitation needs: After initial rehabilitation, US$320.4 million per year is needed for preservation, with 90% allocated to routine and periodic maintenance.
• Net present value: US$660.8 million per year over the 20-year evaluation period at a 6% discount rate.

Key Recommendations

• Improve Road Fund effectiveness:
  • Issue implementing regulations to mobilize and transfer road user charge-based revenue to the fund.
  • Validate road maintenance programs on technical and economic grounds.
  • Conduct independent financial and technical audits of road maintenance works.
  • Reduce the number of staff to a lean management structure.
• Enhance road data and asset management:
  • Create a road database and geographic information system (GIS) within INAE.
  • Allocate budget for regular road inventory, condition, and traffic surveys.
  • Hire consultants to develop and maintain a road asset management system.
• Revise road classification:
  • Update the current classification to reflect the new road database and assert ownership of complementary and unclassified roads.
• Develop subnational road management:
  • Establish provincial-level road management agencies on a pilot basis.
  • Develop a municipality road development program based on accessibility gap analysis.
• Strengthen the road contractor industry:
  • Review current unit costs of road works.
  • Carry out a study of the road construction industry to support a competitive local contractor industry.
  • Promote competitive bidding methods and e-procurement.

Conclusion

Angola's road sector has seen substantial investment, particularly post-civil war, but this has not translated into improved road quality or efficiency. The lack of effective road maintenance, outdated classification systems, and insufficient institutional capacity have led to inefficiencies and high costs. Addressing these challenges through improved governance, data management, and procurement practices is essential to enhance the performance of the road sector and support Angola's socio-economic development goals.