The creation of a road fund has been a key component of all three projects. It was to ensure the availability of adequate financing for operation and maintenance of project roads. To date, however, the road fund has not operated as envisaged. Because of the IMF restriction that the government should have only one consolidated central budget account, the government requested, and in 2001 was granted, an ADB waiver on the loan covenant that a special account for a road fund be created. If the project team of the first project understood IMF’s firm position at the stage of project design, ADB and the government could have explored a more realistic alternative to fund road maintenance. It should be remembered that ADB’s Operation Manual requires that no policy advice should be given that conflicts with that of other development partners.
Road Rehabilitation Project, Second Road Rehabilitation Project, and Third Road Rehabilitation Project [Loans