Delivering a fit for purpose roads network
The recent announ-cement by the Ministry for Infrastructure, Transport and Communications that it is considering entering into a partnership with an international operator to design, build, finance and operate Malta's road network has brought roads...
The recent announ-cement by the Ministry for Infrastructure, Transport and Communications that it is considering entering into a partnership with an international operator to design, build, finance and operate Malta's road network has brought roads back on the national agenda.
There is certainly a national consensus that the current standard of roads is unacceptable and this recent announcement shows that the government is considering radical options to address the situation. Hence the temptation will be great to proceed with going to international tender with a concept which has not yet been fully developed, discussed and supported by key stakeholders. The approach being considered by the government would probably result in the largest ever Maltese public sector procurement.
Such a change initiative is so important that it should not be rushed through until all policy options have been considered. This may delay the government's intent to solicit expressions of interest from international operators in the third quarter for this year.
However the ministry responsible has a great opportunity to lead a national policy debate on roads which will engage key stakeholders and will hopefully secure their support. Such a process of engaging with key stakeholders, if properly planned, should take no more than six months. The time invested in consultation and analysis of policy options is certainly worthwhile to ensure that the initiative does not fail.
The starting point for such a national debate should focus on articulating the envisaged future state of our roads network. In doing so we should not solely look at engineering objectives but rather focus on the citizen's needs. These may include increasing road safety, reducing accidents, reducing congestion, improving the driving experience amongst other considerations.
Such objectives will inform the government and key stakeholders such as the Malta Transport Authority, the police, users, industry, public transport operators, the opposition and the local councils in assessing the best strategies to deliver these objectives which may also include partnering with one or more international operators.
This process will help the government decide what objectives and work scope to include in road contracts with the private sector. Such work scope may range from better engineering and delivery of road lay-outs and junctions to supporting better enforcement mechanisms such as managing speed on our roads to improved street lighting and signage to improving roadside landscaping. Moreover, scope of work could be awarded to one contractor or multiple contractors by splitting work by regional contracts (north, south etc.) or by work scope.
A decision should also be made on whether the government will be simply addressing the road problems associated with the main roads which are the responsibility of the central government or whether the solution will also address local roads which are the responsibility of local councils. Hence should any solution which is adopted also seek to engage the local councils perhaps through voluntary participation?
A key consideration which should also be addressed is why our road network is in such a sorry state. In the late 1980s the government made a deliberate decision to procure the construction and maintenance of roads from the private sector and has run down its capability to build roads. Few would argue against the principle of this decision.
However, while the involvement of the private sector has accelerated the development of roads in the early 1990s, one cannot but acknowledge that the experience of the last years has been plagued by delays and quality issues. Hence it is fair to question whether the local private operators have invested in acquiring the appropriate capability to build and maintain roads.
Notwithstanding the current weaknesses in the local industry any future option should ensure that local operators have an opportunity to invest and develop their capabilities to support Malta's road network. This is doable even if the government opts to acquire services from an international operator and is common practice across EU states where large international contracts also foresee the use and development of the local supply chain and give due consideration to local socio-economic issues. This point is certainly important in the current economic environment.
A fundamental issue which should not be overlooked is whether the Roads Directorate within the Malta Transport Authority is fulfilling its client obligations in effectively managing its contractors. Bringing in an international operator will not mean that contracts will not need managing or that the Roads Directorate can abdicate responsibility. To the contrary the Transport Authority needs to raise its game and be able to clearly stipulate what it wants in measurable service levels and be also capable of assuring delivery.
Once all these issues have been considered and debated, the government can make an appropriate decision to how it wants to approach the market, how much risk it is willing to transfer to contractor(s) in return for increased rewards to the private sector and the structure of such deals (e.g. private finance initiative etc.).
The success of such large-scale projects is dependent on stakeholder buy-in, effective planning and disciplined programme management. In ensuring the success of such an initiative the government can lead the way by adopting such an approach which will not simply focus on the means but on the end-state.
• Mr Mizzi is a senior programme leadership professional .
There is certainly a national consensus that the current standard of roads is unacceptable and this recent announcement shows that the government is considering radical options to address the situation. Hence the temptation will be great to proceed with going to international tender with a concept which has not yet been fully developed, discussed and supported by key stakeholders. The approach being considered by the government would probably result in the largest ever Maltese public sector procurement.
Such a change initiative is so important that it should not be rushed through until all policy options have been considered. This may delay the government's intent to solicit expressions of interest from international operators in the third quarter for this year.
However the ministry responsible has a great opportunity to lead a national policy debate on roads which will engage key stakeholders and will hopefully secure their support. Such a process of engaging with key stakeholders, if properly planned, should take no more than six months. The time invested in consultation and analysis of policy options is certainly worthwhile to ensure that the initiative does not fail.
The starting point for such a national debate should focus on articulating the envisaged future state of our roads network. In doing so we should not solely look at engineering objectives but rather focus on the citizen's needs. These may include increasing road safety, reducing accidents, reducing congestion, improving the driving experience amongst other considerations.
Such objectives will inform the government and key stakeholders such as the Malta Transport Authority, the police, users, industry, public transport operators, the opposition and the local councils in assessing the best strategies to deliver these objectives which may also include partnering with one or more international operators.
This process will help the government decide what objectives and work scope to include in road contracts with the private sector. Such work scope may range from better engineering and delivery of road lay-outs and junctions to supporting better enforcement mechanisms such as managing speed on our roads to improved street lighting and signage to improving roadside landscaping. Moreover, scope of work could be awarded to one contractor or multiple contractors by splitting work by regional contracts (north, south etc.) or by work scope.
A decision should also be made on whether the government will be simply addressing the road problems associated with the main roads which are the responsibility of the central government or whether the solution will also address local roads which are the responsibility of local councils. Hence should any solution which is adopted also seek to engage the local councils perhaps through voluntary participation?
A key consideration which should also be addressed is why our road network is in such a sorry state. In the late 1980s the government made a deliberate decision to procure the construction and maintenance of roads from the private sector and has run down its capability to build roads. Few would argue against the principle of this decision.
However, while the involvement of the private sector has accelerated the development of roads in the early 1990s, one cannot but acknowledge that the experience of the last years has been plagued by delays and quality issues. Hence it is fair to question whether the local private operators have invested in acquiring the appropriate capability to build and maintain roads.
Notwithstanding the current weaknesses in the local industry any future option should ensure that local operators have an opportunity to invest and develop their capabilities to support Malta's road network. This is doable even if the government opts to acquire services from an international operator and is common practice across EU states where large international contracts also foresee the use and development of the local supply chain and give due consideration to local socio-economic issues. This point is certainly important in the current economic environment.
A fundamental issue which should not be overlooked is whether the Roads Directorate within the Malta Transport Authority is fulfilling its client obligations in effectively managing its contractors. Bringing in an international operator will not mean that contracts will not need managing or that the Roads Directorate can abdicate responsibility. To the contrary the Transport Authority needs to raise its game and be able to clearly stipulate what it wants in measurable service levels and be also capable of assuring delivery.
Once all these issues have been considered and debated, the government can make an appropriate decision to how it wants to approach the market, how much risk it is willing to transfer to contractor(s) in return for increased rewards to the private sector and the structure of such deals (e.g. private finance initiative etc.).
The success of such large-scale projects is dependent on stakeholder buy-in, effective planning and disciplined programme management. In ensuring the success of such an initiative the government can lead the way by adopting such an approach which will not simply focus on the means but on the end-state.
• Mr Mizzi is a senior programme leadership professional .