International Development Finance
COST AND QUALITY ISSUES IN ROAD CONCESSION CONTRACTS
P. Alexander, D.W. Burger, G. Esterhuysen, J.J. Smit and A. Taute
ABSTRACT
Road concession contracts provide one way of delivering roads that differ significantly from the more traditional means of designing and calling for state-funded conventional construction tenders. Concession contracts can provide some significant benefits over conventionally-funded construction projects but they also create their own unique set of problems that need to be dealt with to ensure value for money and a successful outcome for the user and sponsor. This paper provides some insight into the various problems and opportunities that are created by concession contracts. Several of these aspects are discussed in the context of the newly completed N4 Maputo corridor toll road and the contractual and quality issues that emerged during the initial construction phase of the project. The issues are put forward for debate and discussion with a view to providing input into future contracts and into the remaining operational period of some of the current concession contracts.
1. INTRODUCTION
Road concession contracts provide one way of delivering roads that differ significantly from the more traditional means of designing and calling for state-funded conventional construction tenders. Concession contracts can provide some significant benefits over conventionally-funded construction projects but they also create their own unique set of problems that need to be dealt with to ensure value for money and a successful outcome for the user and sponsor. This paper describes the process and experiences regarding toll road procurement and operation that were gained on the N4 Maputo corridor Toll Road concession. The paper reviews the entire process of documentation, tendering, tender evaluation, contract award and construction and operation of the project with a view towards providing material improvements for future projects of this nature.
P. Alexander, D.W. Burger, G. Esterhuysen, J.J. Smit and A. Taute
ABSTRACT
Road concession contracts provide one way of delivering roads that differ significantly from the more traditional means of designing and calling for state-funded conventional construction tenders. Concession contracts can provide some significant benefits over conventionally-funded construction projects but they also create their own unique set of problems that need to be dealt with to ensure value for money and a successful outcome for the user and sponsor. This paper provides some insight into the various problems and opportunities that are created by concession contracts. Several of these aspects are discussed in the context of the newly completed N4 Maputo corridor toll road and the contractual and quality issues that emerged during the initial construction phase of the project. The issues are put forward for debate and discussion with a view to providing input into future contracts and into the remaining operational period of some of the current concession contracts.
1. INTRODUCTION
Road concession contracts provide one way of delivering roads that differ significantly from the more traditional means of designing and calling for state-funded conventional construction tenders. Concession contracts can provide some significant benefits over conventionally-funded construction projects but they also create their own unique set of problems that need to be dealt with to ensure value for money and a successful outcome for the user and sponsor. This paper describes the process and experiences regarding toll road procurement and operation that were gained on the N4 Maputo corridor Toll Road concession. The paper reviews the entire process of documentation, tendering, tender evaluation, contract award and construction and operation of the project with a view towards providing material improvements for future projects of this nature.