Analysis of road maintenance capital in Ninh Binh Province, Vietnam

PhD. BUI THI HOANG LAN (National Economics University)

ABSTRACT:

Effectively using Road Maintenance Fund, ensuring the publicity and transparency are the important objects in the road maintenance. For past five years, the exploitation and maintenance activities of road have achieved many objective results, especially in capital mobilization. However, due to the lack of regular maintenance capital, the capital mobilization faces a lot of difficulties. Basically, it only meets the essential requirements for ensuring the safe and smooth traffic without the prevention of the works’ degradation. In terms of periodic repair, only seriously broken positions are given priority for repair (local nature, thorough solution can’t be reached), the periodic repair volume has not been fully implemented in accordance with regulations. As a result, the arrangement and allocation of expenses from Road Maintenance Fund should be researched accordingly and accurately compared to the actual requirements in order to improve the efficiency of capital use from Road Maintenance Fund.

Keywords: Road maintenance, maintenance capital, capital management, road, Ninh Binh province.

1. Concepts

Road maintenance is the assembly of tasks to ensure and maintain the normal operation and safety of the works in accordance with regulations of design during the process of exploitation and use. Those tasks include: checking, observation, quality accreditation, maintenance and repair of road construction works, excluding activities that change the performance and scale of the construction works.

Thus, the road maintenance is the mandatory assurance in accordance with law on the quality to maintain the force bearing capacity, aesthetics; to maintain the use or operation of apparatus, construction work items which have operated under time and required by the design unit to be repaired, changes, restore, ensure the shelf life and operation safety.

The road maintenance requires large fund investment, long time of withdrawal, many risks during the investment process, revenues usually calculated by domestic currency, so the specific policies should be built in comparison with the investment in other economic sectors to attract fund investment.

2. Contents of road maintenance

The road maintenance should be carried out in accordance with regulations on maintenance, norms, and technical standards on maintenance. The scale of maintenance shall decide the scale, requirement level of fund for this activity. Therefore, the content of road maintenance includes the tasks such as: checking, observation, quality accreditation, maintenance and repair of road construction works, excluding activities that change the performance and scale of the construction works. In details:

3. Regular road maintenance capital in Ninh Binh Province

The regular road maintenance capital is very low, about 30%-40% of actual demand.

From 2015 to 2019, the regular road maintenance capital is averagely about 32-35 mil/km/year.

- Local non-business economic capital: Based on the decision on assigning norms of eco-social development and estimate of State budget made by the provincial People’s Committee, Department of Transportation assigned norms of plan on regular road maintenance for two Transportation Management Units. The specified figures from 2015 to 2019 are as follows:

Table 1. Assigned norms of plan on regular road maintenance

in Ninh Binh Province

(Source: Plan on regular road maintenance from 2015 to 2018 in Ninh Binh Province)

From the above table, we can see that the annually regular road maintenance capital is low. In fact, this capital only meets about 30-40% of actual maintenance demand. Therefore, when applying it, the units failed to fully comply with standards and norms on regular road maintenance which resulted in the unsecured quality of regular maintenance.

At the same time, the Transportation Management Units were assigned to implement the annual regular maintenance by Department of Transportation under the managed routes. As a result, the Transportation Management Units were always in passive state, lack of inquiry, having no method for enhancing the product quality and competitiveness for units.

4. Periodic road repair capital in Ninh Binh Province, Vietnam

The periodic road repair capital is still limited, only meeting about 50% of actual repair demand.

From 2015 to 2018, the periodic road repair capital is averagely 99-135 mil/km/year and 5-6 mil/km/year for highway and provincial road, respectively.

The specific figures over the years are as follows:

Table 2. Plan on periodic road repair fund in Ninh Binh Province

Unit: million VND

(Source: Plan on periodic road repair from 2015 to 2018 in Ninh Binh Province)

(Source: Plan on periodic road repair from 2015 to 2018 in Ninh Binh Province)

The expense for periodic highway repair from 2015 to 2019 considerably increases from 99 mil/km to 135 million/km. However, the invested expense for periodic repair is still low, so the repair has been applied in some main tasks (road pavement repair without enhancing the force-bearing capacity of pavement and base), many bridge road works seriously degrade after many years due to lack of maintenance capital of the State.

5. Capital funded for unexpected repair in Ninh Binh Pronvince

The capital funded for unexpected repair mainly for make the storm consequences. Generally, the annual amount for this is not much, too small to meet the actual demand, causing many difficulties for maintenance and management, moreover, overloaded number of vehicles operating more and more resulting in damage to the road, unsafe traffic, negatively affecting the people’s travel every day.

Due to very small capital funded for road maintenance every year compared to the capital planned for capital construction, therefore, due attention has not been given to the management of road maintenance capital, the Department is focusing mainly on management of construction capital. The road maintenance capital allocation is based mainly on the proposal by the transportation management unit, the management of road maintenance has not been good due to very few officers in charge of road maintenance, most of them are dual role employees.

6. Results of road maintenance capital in Ninh Binh Province

The collection and payment of road fee from the automobile going through inspection stations based on the reports made by Vietnam Register and notice from the State Treasure. The State has not to fund big amount for the toll collection staff as it had to do before establishment of the Fund.

As a first step the operation of the Central Fund has been closely managed. Quarterly, the Central Fund Council holds a meeting to review the duties fulfilled in the quarter and direction, tasks to be completed in the next quarter. The capital use from the Fund has been regularly inspected and continuously with a view to minimizing the irregularities, loss of road maintenance capital.

The dissemination of information relating to collection – payment of road maintenance Fund to the units, fee payers who use the road and people have been organized in comprehensive manner, most of fee payers advocated this measure, strictly complying with this guideline, policy issued by the State.

The establishment and completion of the Fund management institution has been gradually completed; the coordination among the agencies assigned to manage, use the capital from the road maintenance Fund has come into play, well serving the road maintenance.

The establishment of payment plan in proactive and flexible manner has helped the direction of the Central Fund basically meet the actual demand on road maintenance and repair, facilitating the Directorate for Roads of Vietnam and localities to make good the storm consequences, ensuring safe transportation and settle other urgent works relating to road repair, maintenance.

Capital allocation plan from Central Fund to Local Fund has basically complied with all regulations. In 2015, 2016, 2017, 2018 and 2019, State Audit and Inspectors from the Ministry of Finance have audited and inspected the Fund collection and payment and the Fund has been evaluated as effective and in compliance with applicable regulations.

7. Results gained from the Local road maintenance fund in Ninh Binh Province

Regarding capital: After 05 years of operation, step by step the Local road maintenance fund has been operated in stable manner, the annual amount paid for maintenance and other works in relation to the maintenance increases many times, particularly:

Table 3. Payment from Local road maintenance fund in Ninh Binh Province

Unit: billion dong

Source: Final payment settlement of Road Maintenance Fund in Ninh Binh province, 2015 - 2019)

Annually, the Central Fund Council makes the plan for fund allocation as 35% from the Central Fund to Ninh Binh Province’s road maintenance fund. Ninh Binh Province has effectively used this fund and local budget for concentrative repairing the long-time damaged sections of road, hardenization of many sections of soil roads, consolidation and extension of many routes, repairing many bridges, guard rails, culverts and ditches, treatment of many spillways…contributing its part to eco-social development, ensuring safety for the people and promoting the road maintenance fund to come into play. After 05 years, the road maintenance fund of Ninh Binh Province has gained following results:

Regular maintenance and road repair:
Treated weak bridges: 05 bridges
Treated dangerous sections: 35 sections
Supplemented, replaced road signs: 1,850 signs
+ Built, repaired guard rails, retaining walls: 1,000m
+ Repaired and innovated water drainage system: 1,000m of culvert & 7,500m of ditches
+ Repaired pavement: 1,300,000m2
Inspecting roads: previously, the roads have been inspected by observation and using simple tools and equipment but now the inspection has been supported with the software GovOne, bridge inspection car has been used in plot with the guidance and participation of the experts.

- The inspection of work quality: The road maintenance fund has helped inspect 09 bridges on the provincial roads. At present, 02 bridges on the highway, which was authorized to manage, are being inspected.

Further, over the last 05 years the corrective actions for natural calamity, flood, storm, ensuring safe transportation, due attention and priority have been given by Central Road Maintenance Fund Council to Ninh Binh Province. Although the fund allocated to Ninh Binh Province was not as much as needed to make good the natural calamity, from 2013 to 2017 Ninh Binh Province’s Road Maintenance Fund Council carried out 02 projects for making good the consequences caused by storm and flood in Gia Vien district and Yen Khanh district, Thus, the capital allocated from the Road Maintenance Fund has contributed significant contribution for treatment of many urgent problems in order to ensure safety for people and the political-social works of national meaning to reach the target set by Party and Government.

Annual results as follows:

Table 4. Resutls from Local road maintenance fund in Ninh Binh Province

Source: Final payment settlement of Road Maintenance Fund in Ninh Binh Province, 2015 - 2019)

8. Limitations, difficulties in using road maintenance capital

Capital for road management, maintenance was guaranteed by Road Maintenance Fund and used as follows: Central Fund was used for maintenance, management of highway system; local Fund was used for maintenance, management of local road system which was managed in accordance with hierarchy of provincial People’s Council.

Fund was used for the following tasks:

Figure 2. Details of payment by Road Maintenance Fund

- Payments for road works maintenance:

+ Regular maintenance payment.

+ Periodic maintenance payment (including: material repair, medium repair)

+ Unexpected repair: remedy consequence of natural disaster, flood, storm, remove black spots, potential traffic accident spots or other abnormal causes, site clearance payment (if any) for transport guarantee and road traffic safety in line with regulations.

+ Payment for inspection, observation, quality verification or road works in line with regulations; payment for process preparation and norms for management, exploitation of road works in use with specific requirements.

- Payments for road works management:

+ Payment for fixed and removable vehicle load checking stations, including: Regular operation expense, irregular operation expense (purchase, repair, equipment testing; station repair and improvement).

+ Support for ferry use service (priced-excluded expense) in line with regulations of competent authorities.

+ Payment for purchase, repair of vehicle, equipment in direct service of State management of road maintenance activities.

+ Payment for patrol outfit.

+ Payment for station repair and improvement.

+ Payment for inspection road traffic infrastructure (including support for local traffic inspectors who work at assigned national highways) (if any).

+ Payment for supporting vehicle load check by Directorate for Roads of Vietnam.

+ Payment for technology application and lease and purchase of technology products, services to enhance quality, efficiency of road works management and maintenance.

+ Payment for monitoring, maintaining road works in some specific cases as regulated.

+ Payment for speed humps and accident warning signs at intersections between road and railroad.

+ Payment for purchase, repair of vehicles, equipment serving the river crossing (ferry, steel ferry and motor boat) to ensure the smooth traffic in the road system in accordance with regulations.

- Payments for Fund Management apparatus’s operations: Apply the standard of the State agency (for personnel in charge) and other payments in accordance with current policies to ensure the operation of Road Maintenance Fund Management Council and its assisting apparatus.

- Other payments related to the road management and maintenance decided by the Fund Management Council.

9. Conclusion

For past five years, the exploitation and maintenance activities of road have achieved many objective results, especially in capital mobilization. However, due to the lack of regular maintenance capital, the capital mobilization faces a lot of difficulties. Basically, it only meets the essential requirements for ensuring the safe and smooth traffic without the prevention of the works’ degradation. As a result, the arrangement and allocation of expenses from Road Maintenance Fund should be researched accordingly and accurately compared to the actual requirements in order to improve the efficiency of capital use from Road Maintenance Fund.

REFERENCES:

Ministry of Transport (2015), Circular number37/2018/TT-BGTVT on 07th June 2018 regulation about Road work maintenance, exploitation operation and management.
Government (2012), Decree number 56/2014/NĐ-CP on 30th May 2014 ro modify and suplement some article of Decree Number 18/2012/ NĐ-CP on 13th March 2012 about Road maintanance Fund.
Government (2012), Decree Number 18/2012/ NĐ-CP on 13th March 2012 about Road maintanance Fund.
Staticstics Department of Ninh Binh Province (2018). Statistics Anual Yearbook. Hanoi, Vietnam: Statistics Publisher.
Bui Manh Hung, Bui Ngoc Toan (2012). Management of resources of work construction investment project. Hanoi, Vietnam: Construction Publisher.

PHÂN TÍCH THỰC TRẠNG VỐN BẢO TRÌ ĐƯỜNG BỘ TRÊN ĐỊA BÀN TỈNH NINH BÌNH, VIỆT NAM

TS. BÙI THỊ HOÀNG LAN

Trường Đại học Kinh tế Quốc dân

TÓM TẮT:

Sử dụng hiệu quả Quỹ Bảo trì đường bộ, đảm bảo công khai, minh bạch là mục tiêu chủ đạo, xuyên suốt trong hoạt động bảo trì hệ thống đường bộ. Trong năm năm qua, tại tỉnh Ninh Bình, hoạt động khai thác, bảo trì đường bộ đạt được nhiều kết quả khả quan, đặt biệt là công tác huy động vốn. Tuy nhiên, do nguồn vốn còn hạn chế, kinh phí dành cho bảo dưỡng thường xuyên hạn hẹp nên công tác này gặp nhiều khó khăn, cơ bản mới đáp ứng được yêu cầu thiết yếu để đảm bảo giao thông an toàn, thông suốt, chưa đáp ứng được yêu cầu ngăn chặn sự xuống cấp công trình. Về sửa chữa định kỳ, mới chỉ lựa chọn các vị trí hư hỏng nặng để ưu tiên sửa chữa (mang tính chất cục bộ, không xử lý triệt để), chưa thực hiện đủ khối lượng công việc sửa chữa định kỳ theo quy định. Vì vậy, việc bố trí, phân bổ kinh phí Quỹ Bảo trì đường bộ đòi hỏi cần được nghiên cứu sao cho phù hợp, bám sát yêu cầu thực tế, tăng hiệu quả sử dụng vốn từ quỹ bảo trì đường bộ.

Từ khóa: Bảo trì đường bộ, vốn bảo trì, đường bộ, tỉnh Ninh Bình.

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