ROAD INDUSTRY AGENDA
For Ministry of Infrastructure and Ukrainian State Agency of Roads
АНТИКОРУПЦІЙНИЙ
ШТАБ
UA
The following challenges for the development of road infrastructure were identified within the event:
High corruption risks in the road sector and low awareness of road users about their condition and funding of the roads
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01
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02
Ineffective planning system of repair works and high level of political interference in the development and maintenance of roads
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05
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10
03
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09
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03
Absence of an effective system of quality assurance of road repair works and of preconditions for compliance to the warranty terms
An outdated pricing system and a time-consuming, regulated process of composing a contract price
Low level of qualification of specialists in the road industry
Low level of competition on road maintenance market
Inefficient use of MFI funds
Imperfect public procurement system for road objects
Ineffective management of JSC "Automobile Roads of Ukraine"
Insufficient rates of updating the regulatory framework
POSSIBLE SOLUTIONS

01
High corruption risks in the road sector and low awareness of road users about their condition and funding of the roads
02
Ineffective planning system of repair works and high level of political interference in the development and maintenance of roads
03
Absence of an effective system of quality assurance of road repair works and of preconditions for compliance to the warranty terms

04
An outdated pricing system and a time-consuming, regulated process of composing a contract price
05
Low level of qualification of specialists in the road industry
06
Low level of competition on road maintenance market
07
Inefficient use of MFI funds
08
Imperfect public procurement system for road objects
09
Ineffective management of JSC "Automobile Roads of Ukraine"
10
Insufficient rates of updating the regulatory framework
High corruption risks in the road sector and low awareness of road users about their condition and funding of the roads

-leading of a tender for the creation of the «Transparent Construction» software complex, analogous to the Korean Clean Construction system

- assistance from the authorities to the engagement of all road works contractors in disclosure of data in the CoST Portal system

- coverage on the official websites of the contracting authorities of accurate and complete information on the lists of objects, precise anchorages of the places of work, the amount of financing, execution in the format "plan / fact on the current date" in physical and monetary units

-introduction of the geoinformation system of roads management, which will allow to receive up-to-date and accurate information about the state of roads for making quick and effective management decisions

-development of quality documentation of competitive bidding without discriminatory restrictions in order to effectively procure services for the creation and implementation of a geoinformation system for managing the state of roads

- cancellation of normative legal acts that contradict the Law of Ukraine "On Conformity Assessment" and violate the current norms and standards for the confirmation of the quality of road works

- transformation of the document circulation between Ukrainian State Agency of Roads and the enterprises in the area of its management into electronic form
Ineffective planning system of repair works and high level of political interference in the development and maintenance of roads

-activation of diagnostics and certification of roads and bridges

- use in the planning of the work of PMS(Pavement Management System) and analytical and expert system of bridges management (AESBM) for roads of national importance and the collection of relevant data for roads of local importance

- development and enforcement of the implementation of justified medium- and long-term road development programs at national and regional levels

- elimination of subjective interference (necessity of agreement with the budget parliamentary committee) in the planning of objects

- cancellation of the concept of "current medium-sized repair" and setting the requirement for the possibility, since 2020, of current medium-sized repair to perform work only at the objects at which they started in 2019 or for which in 2019 the development of project documentation was completed and received a positive expert opinion (to approve by the end of 2019 an exhaustive list of such objects)

Absence of an effective system of quality assurance of road repair works and of preconditions for compliance to the warranty terms

- introduction of independent inspection quality control of works by budget financing of an enterprise independent from Ukrainian State Agency of Roads; withdrawal of the State Enterprise "Road Quality Control" from the sphere of Ukrainian State Agency of Roads management

- creation of prerequisites for the activity of independent consulting engineers: defining the conditions of engagement, rights, duties, powers, functions, responsibilities

- reforming the system of certification of responsible contractors of certain types of construction work (engineers of technical supervision, designers, experts) in the direction of increasing the requirements for experience and education, eliminating the monopoly on certification, shifting the main focus of testing for compliance with high qualification requirements

- monitoring the activities of technical engineers in order to prevent misconduct and conflict of interest

- 100% financing of operational maintenance of sections of roads, which are under warranty after construction, reconstruction, repairs

- implementation on particular objects and studying of efficiency of designing - construction (repair) - maintenance of object by one contractor

- continued implementation of weight in motion (WIM) systems and increasing the effectiveness of dimensional and weight control (when planning the placement of weighing systems, the emphasis should be placed on the linkage to the bridges to minimize the possibility of detours)

- launching an online registry of vehicle fines issued and paid for road traffic weighing / dimensional parameters exceeding permissible

An outdated pricing system and a time-consuming, regulated process of composing a contract price
- the use of a strict contractual price, taking into account the risks involved in concluding contracts in a competitive bidding environment

- abolishing the practice of regulating material prices

- application of the resource method only at the stage of preparation of investor budget estimates

Low level of qualification of specialists in the road industry
- promotion of higher and secondary professional training institutions for the road industry

- involvement of specialists with specialized education and experience in the work of state institutions and state-owned enterprises

- stepping down from the practice of appointing «acting» persons for a long term

- popularization of the road mender profession through television, media, social networks and other communications and public events

- preventing late payment of wages to road menders

- creation of attractive conditions for employment of graduates of road educational establishments on the acquired specialty

- establishment of increased requirements for working conditions of road workers at the legislative level

Low level of competition on road maintenance market
- introduction of use of maintenance contracts for more than one year

- implementation of pilot projects of maintenance of repaired sections of roads by the end result of the project

- determination and regulation of the mechanism and restrictions on the involvement of subcontractors by the executor of services / works with fair distribution of income between them

- complete elimination of the practice of ordering and performing works / services beyond the limits of budget financing and limiting the adjustment of such limits during the budget year

Inefficient use of MFI funds
- analysis and enhancement of the effectiveness of the project management team`s activities implemented at the expense of MFIs

- competitive procedure for attracting the project management team to new projects, transfer of SE "Ukrdorinvest" to the area of management of the Ministry of Infrastructure of Ukraine

- disclosure of information on procurement and implementation of projects implemented with MFIs

- exploring the possibility of increasing the guarantee on MFI-financed assets

- review of requirements for contractors for projects implemented at the expense of MFIs, in order to ensure the possibility of participation in the bidding of domestic companies
Imperfect public procurement system for road objects
- development of standard or indicative tender documentation (including the mandatory terms of the draft procurement contract), depending on the specifics of the subject of procurement in the road sector (design, research, engineering services, maintenance, repairs, construction, etc.)

- developing recommendations for the application of non-price evaluation criteria for proposals

- development of methodological recommendations for determining the estimated purchase value for the implementation of life-cycle contracts under "Design & Build" or "Design & Build & Operate" schemes

Ineffective management of JSC "Automobile Roads of Ukraine"
- conducting an independent audit of the company

- introduction of good corporate governance of JSC "Automobile Roads of Ukraine" using the best world practices (formation of an independent supervisory board, elimination of administrative influence of Ukrainian State Agency of Roads on the company and its subsidiaries, appointment of top managers of the whole group of enterprises of the company for the competition, transfer to another state body authority to manage the state corporate rights of the company, etc.)

- sale of surplus and non-core property of JSC "Automobile Roads of Ukraine" and lease it exclusively through transparent sales system «Prozorro Sales»

- identification and elimination of the facts of the problem in the lease of property, provision of services at low prices, involvement of subcontractors in unreasonable cases by the subsidiaries of JSC "Automobile Roads of Ukraine"

- formation of a complete and conditionally open register of fixed assets of the group of enterprises of JSC "Automobile Roads of Ukraine" in order to monitor the efficiency of their use

- establishing a list of critical infrastructure facilities for the proper maintenance of road facilities (bases, fixed assets and minimum supplies, such as routine work and / or seasonal winter maintenance)
Insufficient rates of updating the regulatory framework
- involvement of representatives of profile associations (associations, unions, guilds, etc.) in the activities of Scientific Council of Ukrainian State Agency of Roads

- promulgation of minutes of meetings of Scientific Council of Ukrainian State Agency of Roads with voting results

- accelerating the pace of updating the regulatory framework for operational maintenance of roads (P-D.1-218-113 - 2009, P D.1-218-118 - 2005, DSTU (National Standard of Ukraine) 3587 - 1997) and bringing it to modern requirements

In discussing issues and preparing possible solutions within the event "Road Industry Agenda for the Ministry of Infrastructure and Ukrainian State Agency of Roads" participated:
Vitaliy Styozhka
consultant of the National CoST Initiative
Yaroslav Pylypchuk
Expert of Economic Analysis and Transport Infrastructure of the Ukrainian Institute for the Future
Natalia Forsyuk
Deputy Minister of Infrastructure of Ukraine
Svyatoslav Abramov
Executive Director of the National Secretariat of the CoST Initiative
Artem Bezugly
Director of the SE «State Road Research Institute
Artem Grinenko
Head of the Ukrainian Road Association
Vladislav Pritomanov
Office of Effective Regulation
Yana Shchigurova
Association of Engineers-Consultants
Irina Koshel
Director of the Reform Support Team at the Ministry of Infrastructure of Ukraine
Dmytro Kletz
Project Manager of the Road Sector Reform Support Team at the Ministry of Infrastructure of Ukraine
Irina Lagunova
Expert of «Together Against Corruption» initiative
Roman Khmil
Head of the Board of the union "My Road"
Serhii Mytkalyk
Executive Director of the CSO «Anti-corruption Headquarters»).
"Road industry agenda": how was it
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