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PPP - Improving Road Infrastructure in Africa:
Transcript of PPP - Improving Road Infrastructure in Africa:
Mauritius - A Case Study
Improving the link Road Verdun-Terre Rouge
Why would the private sector be interested?
The Terre Rouge- Verdun link project was given to the private sector (Colas Madagascar and Mauritius)
Potential problems and measures to address them
The link road was built to address the road congestion problem of my island, esp, in the capital
Costs & Services
Risks: The Govt
The government should look for sufficient funds
Risks: The Private Sector
The state of the Terre Rouge-Verdun link road, inaugurated in December 2013, has been deteriorating
Cracks were observed and landslides have damaged the infrastructure
Environmental Impact Assessment Studies
monitor and detect movements in the subsurface layers and measure the level of the water table
Review the design
The services proposed are based on the current state of the road infrastructure as can be seen in the video.
The link road cost around Rs 2 billion
The project could cost between Rs 500 m to Rs 1 billion depending on the design selected, i.e., whether the experts would support a new design or build on the current one.
The number of vehicles has drastically increased over the years. According to statistics, in 2000, Mauritius had 244 018 vehicles on our roads. In 2013, this figure nearly doubled to 441 500!
The link road also nearly reduced by half the amount of time to travel from the north of the island to the south
Infrastructure investment has been one way the government has tried to reduce the impact of the economic downturn
The project is viable as the allowance for road decongestion programme was made in the 2015 budget .
The initial project was supported by the French development Agency, which gave the government a loan of 40 m euros for the project.
The private sector backed the initial project (see reference) due to the windfall gains to the other sectors of the economy, esp the real estate sector.
The land value has increased around this region and the private sector forsee many private investment project in this region.
The tourism industry, a major industry on the island, has benefitted as many hotels are foundin the north of the island but the only airport is found in the south. Time taken to travel from the north to the south has drastically fallen, as mentioned earlier.
The initial project had the backing of srious lenders such as the French Development Agency
Flexibility in the budget - During the realization of the initial project, unforseen costs arose resulting in frictions between the Road Development Authority and the company working on the project. Delay in response worsen the situation. There should therrfore be some flexibility in the budget for such occurrences.
Careful drawing of the contract, esp in respect of work assignment and responsibilities
The government could raise funds at a faster pace and more cheaply
The government should also monitor the project and have independent monitors because public security is important for much a project
Local and international experts should also be consulted before a design is finalized
The private sector should have a say in the project design as during the initial project there were claims that the govt had come up with a "superficial design project"