Resource information
This note aims at providing feedback on
Brazil's successful experience in using performance
based contracts in the rehabilitation and maintenance of the
road networks. Since its introduction in the early
2000's, the use of this contract management model has
progressively spread to reach, as of today, one third of the
federal network and more than 10 percent of the states'
networks, and expectations are for higher figures in the
short run. The note highlights the context which led to the
introduction of these contracts in the road sector and the
strategic orientations adopted in their structuring. The
model was notably expected to bring rationalization,
accountability and credibility to the sector at a moment
when road maintenance, though a crucial issue when
considering the networks' characteristics and
conditions, was not given sufficient consideration by the
road administrations. The note then provides an evaluation
of the positive achievements resulting from these contracts.
The evaluation, comparing objectively performance based
contracts to the traditional input-admeasurements approach,
shows that these contracts brought an overall improved
efficiency to the sector which translated to better road
conditions at lower costs for the governments and reduced
management burdens on the administrations. Finally, the note
provides insights, gained from ten years of continuous
learning, on the main lessons learnt, and perspectives on
desirable evolutions in the future, while a balanced share
of responsibilities and initiatives between the public and
the private sectors is essential, strengthened
administrations, fully accountable for preserving public
interests, remain key to success; better articulating
contract duration and rehabilitation works service life,
which would lead to extended contract duration, is also one
of the possible orientations for future performance-based
contracts in Brazil.
