EBRD Serbia Roads Final Phase 1 Report

PHASE 1 FINAL REPORT
EBRD Roads Technical Assistance Project in Serbia

Republic of Serbia Road Directorate

Activity No. 02-70064A
Grant No. GH2764567
June 2005

This report was funded by the U.S. Trade and Development Agency (TDA), an export promotion agency of the
United States Government. The opinions, findings, conclusions, or recommendations expressed in this document
are those of the contractor and do not necessarily represent the official position or policies of the TDA.

Mailing Address: Room 309, SA-16, Washington, D.C. 20523-1602
Delivery Address: 1621 North Kent Street, Suite 309, Arlington, VA 22209
Phone (703) 875-4357 Fax (703) 875-4009

The U.S. Trade and Development Agency

The U.S. Trade and Development Agency, an

Independent agency of the U.S. federal government,

Provides grants that assist in the planning stage of

Infrastructure and industrial projects in the middle-income

and developing countries. Through the funding of feasibility

studies, orientation visits, training grants, and various

forms of technical assistance, TDA facilitates partnerships

between American companies and foreign entities.

Mailing Address: Room 309, SA-16, Washington, D.C. 20523-1602
Delivery Address: 1621 North Kent Street, Suite 309, Arlington, VA 22209
Phone (703) 875-4357 Fax (703) 875-4009
Technical Assistance to Serbia Road Directorate Phase 1 Report TOC-1 Booz Allen Hamilton

T ABL E OF CONT ENT S

Executive Summary ES-1

Chapter I Introduction I-1

Chapter II Best Practices II-1

Chapter III Institutional Arrangements III-1
Introduction III-3
Current Situation III-5
Conclusions III-39
Recommendations III-45

Chapter IV Road Financing IV-1
Introduction IV-3
Structure of Road Taxes and User Charges in Serbia IV-7
Revenues from Road Taxes and User Charges IV-11
Serbia Roads Directorate 2003 Financial Plan IV-18
Road Maintenance Expenditures IV-21
Draft Law on Public Roads IV-27
Conclusions and Recommendations IV-29

Chapter V Road Planning V-1
Current Processes and Plans V-3
Analysis V-19
Recommendations V-25

Chapter VI Road Design VI-1
Introduction and Design Standards VI-3
Current Workload and Analysis VI-8
Recommendations VI-14

Chapter VII Construction and Maintenance VII-1
Current Situation VII-3
Analysis VII-20
Recommendations VII-30

Chapter VIII Environmental Issues VIII-1

Chapter IX Management Information System Analysis IX-1
Introduction IX-3
Current Situation In The Information And Document Center Department IX-6
Existing Situation And Current Computing Requirements Of Other Srd Departments IX-26
Comments On Department Analysis And Existing Situation In Other Departments IX-34
Recommended Improvements IX-41
Hardware, Software, And Equipment Requirements IX-50

Chapter X Procurement X-1

Chapter XI Preparation for Recovery Plan XI-1

Chapter XII Conclusions and Action Plan XII-1

Appendices

List of Persons Interviewed A-1
Summary Report on Rutting Problem on Corridor X B-1
Traffic Evaluation C-1
Support Documentation for SRD Investments D-1
EIA Scoping Checklists E-1
Comments on the Draft Law on Public Roads F-1


Glossary of Terms, Abbreviations and Acronyms

Arterial Roads Also called Main roads; these roads connect international routes, national capitals, important commercial
AADT Annual Average Daily Traffic
BECOM Societe Francaise dIngenierie
CIP Institute for Transportation
CPV Center for Roads of Vojvodina
SRD Serbia Road Directorate
EIA Environmental Impact assessment
EIB European Investment Bank
EBRD European Bank for Reconstruction and Development
EU European Union
FWD Falling Weight Deflectometer
GIS Geographical Information System
GPS Global Positioning System
HDM-4 Highway Development and Management application software
HI The Highway Institute
Hz Hertz (cycles per second)
IFI International financing Institutions
IMS Institute for Testing Materials
IRI International Roughness Index
IRIS Integrated Road Information System
ISO International Standards Organization
IT Information Technology
Main Roads See Arterial Roads
MMS Maintenance Management System
MoTT Ministry of Transport and Telecommunications
MPNRE Ministry for Protection of Natural Resources and Environment
MS Microsoft
PIU Project Implementation Unit
PMS Pavement Management System

PZP Road Enterprise
Regional Roads These roads connect regional centers and commercial centers with national capitals and Arterial roads
ROW Right-of-Way
SCG Government of Serbia and Montenegro
SIDA Swedish International Development Aid
SQL Structured Query Language
USTDA United States Trade and Development Agency
YUM Serbian currency unit Dinar
ZTP Railway Transport Enterprise

Participating Organizations

Several organizations collaborated to produce the information contained in this report:

The Serbia Road Directorate (SRD) is the subject and the beneficiary of the results and recommendations of the study.
The Directorate provided access to its personnel for interviews and consultations, helped set up and conduct interviews,
provided transportation and translations services, provided extensive comments on and recommendations for the report, and
contributed important members to the team that conducted the study, including:

o Dr. Djordje Uzelac Project Manager and member of the Faculty of Technical Sciences of the University of Novi Sad
o Ljerka Ibrovic Advisor to the SRD Director
o Bogoljub Mircic Economist and Financial Analyst
o Nebojsa Radovic Head of SRDs Road Information Center
o Dr. Vladan Tubic Member of the SRD Advisory Council, and member of the Faculty of Transport and Traffic
Engineering of the University of Belgrade
o Momcilo Veljovic Bridge Engineer
o Gordana Suboticki Civil Engineer
o Igor Radovic Head of SRD Environmental section
o Milutin Strbic Head of SRDs Development and Planning Department
o Djordje Djordjevic Head of SRDs Department for Main and Regional Roads
o Vladimir Joksimovic Member of SRDs Advisory Council

Booz Allen Hamilton led the study and prepared the report. Booz Allen provided a group of specialists that worked closely
with the SRD team to conduct investigations and interviews, analyze the information, and prepare the report. This group
included:

o Dr. Samuel Mintz Program Manager and Transport Economist
o Michael Avery Project Manager
o Bruce Brong Engineering lead
o Sergio DelaFuente Institutional Specialist

o Dr. Rafael Aldrete Engineering and Financial Analysis
o Antonio Di Polina Highway Engineering Specialist

FIDECO is a Serbian management and engineering consulting firm sub contracted to Booz Allen Hamilton for support in the
areas of management information systems and environmental issues. FIDECO supplied a group of specialists that worked
with the other team members to conduct investigations, analyze information and contribute to the report. That group
included:

o Milos Svarc Managing Director
o Vladan Stepanovic Assistant Managing Director and Environmental Specialist
o Nevena Colic Environmental Engineer
o Dr. Alempije Veljovic Management Information Specialist
o Zoran Eremija Management Information Specialist

European Bank for Reconstruction and Development (EBRD) is an international finance institution currently providing
financial assistance to the Serbian Government and, in particular, the SRD. The EBRD drew up the Terms of Reference for
this project and represents the grantor of the funding for the project. Members of EBRDs team provided general guidance
during the study and valuable comments on the draft report. EBRD team members include:

o Lin OGrady Principal Banker, Transport Team
o Miljan Zdrale Analyst
o Ulf Hindstrom Senior Banker, Infrastructure
o Jose Carbajo Director for Project Design and Appraisal

United States Trade and Development Agency (USTDA) is the grantor of the funding for the project. Its interests are
represented by the EBRD.

Technical Assistance to Serbia Road Directorate Phase 1 Report Booz Allen Hamilton

I. INTRODUCTION

Technical Assistance to Serbia Road Directorate Phase 1 Report I-2 Booz Allen Hamilton
This chapter provides an introduction to the Technical Assistance Project and Roads Recovery Plan
The project objectives are to:
- Examine the current and future operations and structure of the SRD and formulate suggestions for their
improvement
- Produce a Phase 1 Report with recommendations for Institutional Strengthening. This report will be useful input for
future financial support from IFIs
- Meet requirements of USTDA grant
- Produce a Road Recovery Plan in Phase 3. The plan will be used by:
Serbia Road Directorate
Government of Serbia
External organizations such as European Bank for Reconstruction and Development (EBRD), World Bank,
European Investment Bank (EIB) and European Agency for Reconstruction (EAR)

The project includes 3 phases, and there is a timetable for each Phase:
- Phase 1: Scoping and Recommendations for Institutional Strengthening (Due 15 January 2004)
- Phase 2: Procurement of Critical Equipment (Due April 2004)
- Phase 3: Road Recovery Plan (Due July 2004)

This report was written to meet the requirements of Phase 1. The report was prepared in 5 steps:
- Identify major functions performed by the Serbia Road Directorate. These major functions include:
Institutional
Road Planning
Design process and standards
Construction
Maintenance
Environmental issues
Information Systems including hardware and softwareDevelop a Best Practices Model for Road Directorates
in Eastern Europe. This model was used as the basis for recommendations for the Serbia Road Directorate
- Conduct interviews regarding the current situation
- Compare the current situation to Best Practice
- Develop conclusions and recommendations

Various activities were conducted during Phase 1. The most significant activities were:
- Conducted interviews with SRD staff, and representatives of other organizations. A list of interviews is in Appendix
A: List of Persons Interviewed
- Participated in numerous meetings with SRD representatives to ensure the project requirements were met
- Conducted Stakeholder Workshop:
Present the project objectives and timetable
Obtain comments and suggestions from road stakeholders on some of the important issues about road
improvements
Issues were organized into 3 groups: Institutional, Financial and Road Management
No final decisions were taken during the Workshop
- Prepared various interim progress reports and conducted various meetings with key stakeholders. The stakeholders
included the Project Steering Committee, and representatives of the EBRD and World Bank
- Provided support to SRD for:
Commissioned contractors to provided updated and expanded traffic growth forecasts for use in developing the
Road Recovery Plan
Commissioned one day traffic count methodology and plan for regional roads to support the Road Recovery
Plan
Helped to identify potential road segments for the Road Recovery Plan

Phase 1 was a major effort, and required significant staff time and commitment:
- BAH provided a team of experienced consultants
- SRD provided a team of experienced representatives to work closely with the consultants
- SRD appointed a Steering Committee to review project progress, and contribute their experience
- The working relationship between all people was excellent
- At BAH, we believe that SRD staff took the study very seriously and they did an excellent job

This report consists of these Chapters:
- Executive Summary
- Chapter I: Introduction
- Chapter II: Best Practices
- Chapter III: Institutional Arrangements
- Chapter IV: Road Financing
- Chapter V: Road Planning
- Chapter VI: Road Design
- Chapter VII: Road Construction and Maintenance
- Chapter VIII: Environmental Issues
- Chapter IX: Management Information Systems Analysis
- Chapter X: Procurement
- Chapter XI: Preparation for Recovery Plan
- ChapterXII: Conclusions and Action Plans
- Appendix A: List of Persons Interviewed
- Appendix B: Summary Report on Rutting Problem on Corridor X
- Appendix C: Traffic Evaluation
- Appendix D: Support Documentation for SRD Investments
- Appendix E: EIA Scoping Checklists
- Appendix F: Review of Draft Law on Public Roads

Technical Assistance to Serbia Road Directorate Phase 1 Report II-1 Booz Allen Hamilton

CHAPTER II

BEST PRACTICES

BACKGROUND

THE SERBIA ROAD DIRECTORATE (SRD) RECEIVED A GRANT FROM THE UNITED STATES TRADE AND
DEVELOPMENT AGENCY (USTDA) TO PREPARE A ROAD RECOVERY PLAN. A REQUIREMENT OF THE PLAN IS THE
ANALYSIS OF THE EFFECTIVENESS OF SRD AS AN INSTITUTION. AN IMPORTANT ELEMENT OF THE INSTITUTIONAL
ANALYSIS IS THE CONSIDERATION OF BEST PRACTICES IN MANAGING ROAD AGENCIES.

Why Best Practices?

Because:

Best Practices provide benchmarks or guideposts against which road organizations can be evaluated

Best Practices represent the view and consensus of expert practitioners

Best Practices provide an objective framework of best in class

Best Practices help to identify and define a goal to achieve

Compliance with accepted Best Practices provides status and prestige to an institution

BEST PRACTICES

Table II-1 presents the common global forces driving change in highway organizations around the world.

Table II-1: Global Forces On Highway Organizations
DRIVER SPECIFIC TRENDS CHANGES IN THE HIGHWAY SECTOR
More Open Trade among Nations Privatization
Increased competition
ISO Standards
Transparency
Increased pressure to provide high standard road networks
Increased emphasis on effective management and quality
assurance
Need for interoperability
Performance-based contracts
Advanced Technology Higher quality and lower priced
technology
IT Applications
Telecommunications
Internet
Increased use of Intelligent Transportation Systems (ITS)
Information Access
Local/Wide Area Networks
Increasing need for Transport
Infrastructure to Meet Growing
Demand
International Funding Institutions
focus
Private sector investment
Road Funds
Institutional Strengthening
Concession/other financing options to attract investment
Reduction of risk, investment friendly environment
Policy and Regulatory Reforms Decentralization
Customer Focus
Organizational restructuring
Consideration of outsourcing options
Interaction with and responsiveness to users

HIGHWAY ORGANIZATIONS WORLDWIDE HAVE BEEN FORCED TO UNDERSTAND AND DEAL WITH THE LOCAL
EFFECTS OF THESE GLOBAL CHANGES
BEST PRACTICES

THESE PRESSURES ARE BEING FELT IN COUNTRIES WITH VARYING POLITICAL, ECONOMIC AND SOCIAL SYSTEMS,
ALTHOUGH THE NATIONAL CONTEXT DOES INFLUENCE THE EXTENT AND PACE OF MODERNIZATION
Figure II-1 presents some of these pressures.

Figure II-1: Pressures on Highway Organizations

Political System
Economic System
Social System
Global Pressures:
Information Technology
Global Institutions
Efficiency & Productivity
Global Pressures:
Information Technology
Global Institutions
Efficiency & Productivity
Public Organizations
Highway Organizations
Feedback
National Context
BEST PRACTICES


I IN N T TH HE E B BA AL LK KA AN NS S, , R RO OA AD D A AG GE EN NC CI IE ES S A AR RE E C CO ON NF FR RO ON NT TI IN NG G A A N NU UM MB BE ER R O OF F I IN NS ST TI IT TU UT TI IO ON NA AL L C CH HA AL LL LE EN NG GE ES S
T Ta ab bl le e I II I- -2 2 p pr re es se en nt ts s s so om me e o of f t th he es se e c ch ha al ll le en ng ge es s. .

Table II-2: Selected Institutional Challenges in Balkan Countries
Institutional Challenge Albania Bulgaria Croatia Macedonia Romania Serbia
High level of political involvement and
interference in decision making

Some personnel promoted to executive positions
with minimal management experience and
training

Land expropriation laws not designed to handle
new road construction needs

Road sector improvements severely under
funded

Unclear roles and responsibilities

Increasing influence from foreign aid donors

Insufficient project management capacity or
experience to efficiently handle externally
financed projects

Lack of clear project management systems
which link project identification to implementation
performance targets

Lack of familiarity with international and EU
procurement, monitoring, implementation, and
reporting practices

BEST PRACTICES


ANALYSIS OF VARIOUS HIGHWAY ORGANIZATIONS SHOWS THAT AGENCIES MOVE THROUGH SEVERAL
TRANSITIONAL STAGES TO BECOME MORE EFFICIENT AND PRODUCTIVE, GIVEN THE CHANGING GLOBAL CONTEXT
Table II-3 presents these transitional stages

Table II-3: Characteristics of Highway Organizations
CATEGORY TRADITIONAL MIXED OR TRANSITIONAL MODERN
Regulatory Environment Extensive regulation of a multitude of
processes and units
Performance impeded by stop-and-
go regulations
Regulation of key outcomes
High level of transparency
Financial Mechanisms Dependence on government assigned
funds
Limited accountability in terms of road
condition or value of asset to society
High level of uncertainty regarding
future funding allocations
Resources from combination of
government and fees
Partial accountability for funds in
terms of road condition/value
Increasing justification of roads
expenditure in terms of
economic/social benefit
Stable mix of government and private
funds
High level of accountability for funds in
terms of road condition/value
High degree of awareness of
comparative performance for money
spent
Organizational
Characteristics
Large size organization with operations
performed by public workforces
Centralized control, minimal delegation
Lengthy decision-making process
Unclear lines of responsibilities

Smaller size with increased
outsourcing of functions
Increasing accountability
Smaller size focused on managing
contractors and information and
monitoring results
Decision-making decentralized to
lowest possible level supported by
standards and streamlined reporting
and monitoring systems
'Commercial' activities undertaken by
competitive tendering

BEST PRACTICES


Table II-3: Characteristics of Highway Organizations (Continued)
CATEGORY TRADITIONAL MIXED OR TRANSITIONAL MODERN
Processes Focus on technical and functional
areas, not long-term strategy,
integration or coordination
Management systems for planning,
organizing, directing and controlling
introduced

Customer-oriented vision and
mission developed and understood
Processes integrated to measure
performance
Competitive tendering of
construction and maintenance
Use of certification programs
Improved coordination and
cooperation to recognize
contribution to joint performance
effectiveness
Information Systems Limited use of
automated/computerized systems
Cumbersome systems
Process-intensive systems
I.T. has small, localized, non-central
focus within organization
Use of Maintenance Management
(MMS), Pavement Management
(PMS), and other stand-alone
systems
Advanced integrated systems
Timely electronic information
reported and used for management
of internal and contracted resources
Web-site access to information,
plans, forms, tenders, annual
reports etc.
Efficient collection and use of
'centralized' databases
I.T. has strong management focus
within organization
BEST PRACTICES

THE PRACTICES OF SEVERAL NATIONAL AND INTERNATIONAL HIGHWAY ORGANIZATIONS WERE EXAMINED TO
IDENTIFY 'BEST PRACTICES' WHICH COULD BE APPLICABLE IN SERBIA
These highway organizations were chosen as inputs to the Best Practices:
India, Tamil Nadu
USA, Virginia
Australia, New South Wales
Singapore
Argentina
Hong Kong
China
Malaysia
Colombia
Bulgaria
Romania
Croatia

These organizations are located in both developing and developed countries, and have a range of characteristics,
representing 'traditional', 'mixed' and 'modern' practices. Each one of them offers one or more Best Practices.

Based on a review of these organisations, a Best Practice model was developed

BEST PRACTICES

WHILE EACH OF THESE HIGHWAY ORGANIZATIONS ARE OPERATING AT DIFFERENT PERFORMANCE LEVELS, THEY
ARE FACING COMMONLY-SHARED PRESSURES WHICH ARE FORCING A MOVE AWAY FROM 'TRADITIONAL' TO MORE
PERFORMANCE-ORIENTED OR 'MODERN' APPROACHES

Traffic demand is increasing, at the same time government budgets are being tightened and organizations are being
asked to provide 'more for less'

More stringent conditions on external assistance and economic development objectives are key drivers for more efficient
use of resources

The private sector is increasingly providing services to the public sector more effectively and at lower costs

Increasing globalization and international mobilization of skills and techniques is raising overall awareness of 'best
practices' and improved processes

Public and users expectations of the road system are increasing (e.g. reduced travel times, improved system quality,
safer conditions, etc.)

Political and community priority is being given to environmental and safety issues

Increased pressure from the international community and IFIs to implement fair, open, competitive, and transparent
procurement practices

BEST PRACTICES

THE PRESSURES ARE BOTH EXTERNALLY AND INTERNALLY DRIVEN
Figure II-2 shows some of these pressures.

FigureII-2: Pressures Driving Highway Organization Change
External
Drivers
The Push
Internal
Drivers
The Pull
Highway
Departments
"on the move"
The need for:
enhancedcapacity within the
road network to handle the
rapidly increasing vehicle
population
quality roads
a more rational approach for
prioritising road improvements
improvedroad user safety to
reduce highway casualties
reducedenvironmental impact
The need for:
a sharedvision
a clear regulatory environment
stable, expanded sources of
funding
an efficient and effective
organizational structure
modern, streamlined processes
integrated information
systems
BEST PRACTICES

SOME COMMON 'BEST PRACTICES' FOUND IN MODERN HIGH-PERFORMANCE ORGANIZATIONS

Clearly defined and easily understood vision, mission and objectives

Overarching planning strategies exist based on goals and stakeholder needs

Role is primarily establishing policy and carrying out planning and regulatory functions

Short, medium and long term plans to reach goals and objectives are well defined and respond to identified needs

Competitive tendering of construction and maintenance

Increasing use of appropriate information technology

Usage of innovative financing arrangements

Increasing accountability and transparency, with expenditures tied to achieving economic and social benefits

Performance management and measurement framework inclusive of stakeholders and road users

Inclusion of stakeholders in strategic planning and institutional reform

Stakeholders are clearly identified and kept informed of decisions affecting them directly

Clearly defined roles and responsibilities at all levels

Effective organizational structure that supports the roles and responsibilities

Adequate and appropriate legislation in support of goals and objectives

BEST PRACTICES

Promotion of private sector involvement

Clearly defined policy on outsourcing

Road safety policy effectively formulated and implemented

Use of construction and maintenance management to implement road investment programs

Active programs to minimize corruption

Ability to recruit, keep and motivate skilled staff

Access to appropriate, steady and reliable funding

Active focus on customer service

Support for cross border relationships and development of transport corridors

Effective protection of the road investment, through actions such as enforcement of axe loading limits

Coordination with other agencies on multi modal issues
BEST PRACTICES

IT NEEDS TO BE RECOGNISED THAT ANY SHIFT AWAY FROM A 'TRADITIONAL' ORGANIZATION NECESSITATES
CHANGE --- AND THIS CHANGE NEEDS TO BE CLOSELY MANAGED

The following represent some common 'lessons' identified by the organizations to help manage this process:

A vision, with a realistic timetable, is needed to help direct the change effort and this vision needs to be
communicated and supported

Key internal and external stakeholders need to perceive a sense of urgency in terms of crises or major opportunities

A powerful guiding coalition is required to support the change from inside and outside the organization (including
public-private involvement)

Short-term wins (results) need to be planned and created. Therefore the options selected should be achievable but
also oriented toward measurable results

Results need reinforcing and consolidating by producing more change over longer periods of time

BEST PRACTICES

SOME SPECIFIC LESSONS ARE APPARENT WHICH ARE SPECIFIC TO ORGANIZATIONS MOVING AWAY FROM THE
'TRADITIONAL' MODEL
Table II-4 presents some of these lessons

Table II-4: Lessons Unique to Traditional Highway Organizations
CATEGORY LESSONS
Regulatory Context The highway organization needs to become more aware of
external stakeholders and value their responses
Financial Mechanisms Stable sources of funds are required
Benchmarking studies can reorient leaders and financial
personnel to more commercial practices
Structural Characteristics Restructuring is highly political, and requires strong external
support
Organizational 'champions' are needed to help facilitate change
and focus the organization on performance and results
Processes Opportunities provided by technical assistance and technological
advances can be used to build organizational capability through
joint client/consultant teams
Information Systems Information technology awareness and significance must be
integrated into all aspects of capacity improvement work

BEST PRACTICES

LESSONS SPECIFIC TO FACILITATING CHANGE IN 'MIXED' OR 'TRANSITIONAL' ORGANIZATIONS ARE EMERGING
Table II-5 presents some of these lessons

Table II-5: Lessons Unique to mixed Transitional Highway Organizations
CATEGORY LESSONS
Regulatory Context Identify and prioritize regulatory constraints to
efficiency/productivity
Form internal/external task forces to develop recommendations
and implement the required changes
Financial Mechanisms As transparency and accountability increase, experiment with
innovative measures to ensure stable sources of funding through
increased use of private sector and dedicated funding sources
Ensure effective financial management procedures are applied
Structural Characteristics Combine structural reforms with other efficiency measures, taking
into account incentives for internal staff
Introduce competition as an incentive for continuous improvement
Processes Assure strategic management planning and control processes are
operational including certified project and contract management
staff
Information Systems Provide appropriate data and systems to support managers in
their decision making process
Focus on using available technology such as GIS to provide
timely information for management of internal and contracted
resources and to provide timely information to road users
BEST PRACTICES

THERE ARE FIVE ESSENTIAL COMPONENTS TO EFFECTIVELY MANAGING A ROAD AGENCY (see Figure II-3)

Example Vision: to be
the leading transport
organization in the
country.

Example Mission: To
provide a safe and
efficient state highway
system which meets
the needs of road
users and the
communities it
services
Needs:
- Safety

- Road system
reliability

- Support economic
growth and
competitiveness

- Efficiency

- Price and levels of
service
Needs Activities
- Top management
ensures that the
appropriate resources
and systems are in
place to make sure the
road network is
managed in a
professional, safe and
efficient manner and
that goals are achieved
Analysis:
- Cost benefit or
internal rate of return.

- Investments can be
grouped as safety
improvements,
network expansion or
asset preservation

- Tool: Pavement
Management system
(HDM-4), Bridge
Management System
Indicators
- Road maintenance
cost/km
- Percentage completion of
programme by cost
- Percentage completion of
programme by output
- Roughness, rutting
- Accident statistics
- Appeals in court
- Number of bridges with
posted weight restriction

Figure II-3: Essential components needed for managing a road agency
CLEAR VISION

AND

DIRECTION
UNDERSTANDING
OF STAKEHOLDER
NEEDS
TRANSFORMING
NEEDS INTO
ORGANIZATIONAL
ACTIVITIES
PRIORITIZATION
AND
OPTIMIZATION
OF TOOLS AND
TECHNIQUES
SET KEY
PERFORMANCE
INDICATORS
BEST PRACTICES

EXAMPLES OF PERFORMANCE INDICATORS
Road maintenance cost/km/year
Percentage completion of program by cost
Percentage completion of program by output
Return on the concession of services
Roughness
Rutting, flushing
Appeals to tribunals
Number of bridges with weigh restriction

For example, for road maintenance cost/km/year

Target (in constant cost):

Yr 2000 Yr 2001 Yr 2002
US$ 3,150 US$ 3,050 US$ 3,100
Table II-6 shows some important network performance indicators.

Table II-6: Network Performance Indicators
Efficiency Safety Assets
Cost of maintenance per km
Geometric efficiency
Change in road roughness
Bridge weigh restrictions
Number and cost of crashes
Compatibility of speed
environment
Sealed carriage width
Bridge width deficiencies
Road roughness
Rutting
Flushing
Skid resistance
Remaining seal life
Remaining pavement life

Another indicator:

Road user satisfaction can also be measured to make sure that the road network manager is interpreting the users needs
correctly, and most important, that the road management system is delivering

SPECIFIC INDICATORS ARE NORMALLY PREPARED BY EACH ROAD AGENCY TO REFLECT THEIR NEEDS AND
CONDITIONS AND THEIR CAPACITY TO MEASURE THEM
BEST PRACTICES

SERBIA IS ALSO SUBJECT TO GLOBAL PRESSURES AND IS IN A PERIOD OF GREAT CHANGE. THESE REALITIES
MUST BE CONSIDERED AS BEST PRACTICE IS BEING APPLIED IN SERBIA.
A majority of public enterprises formerly owned by the government are being privatized

Many engineers formerly employed by government Institutes are having difficulties to remain busy, and many are opting
for leaving the country creating a considerable brain drain effect

As part of the national privatization program, all Road Enterprises are in the process of being privatized

The government of Serbia has recognized that the completion of the Pan-European corridor X (especially related to
completion of road facilities and commercial facilities according to traffic volume requirements) is one of the highest
priorities for the development of the country, the stimulation of the international transit traffic, increased competitiveness,
and Serbias accession to the EU

An increasing proportion of road investments in recent years has been financed by loans from International Financing
Institutions (IFIs) and the amount of IFI funding is increasing
These works are subject to stringent cost/benefit criteria and their effectiveness is closely tied to economic
development goals
Most of the proposed works are focused in the preservation and recovery of the road infrastructure, rather than in
the construction of new roads and the expansion of the network

With Serbia starting to experiencing economic growth, and better economic performance, traffic growth and vehicle
ownership are likely to grow rapidly

Legislation affecting the road sector has been proposed and will make significant changes in how the road network is
planned, managed and operated

All the above, plus other unidentified pressures, will force change in the management of the road sector. Best practices
will help road managers to understand and implement the changes

BEST PRACTICES

THE MODERNIZATION RESPONSE SERBIA...

ALTHOUGH THE ROAD SECTOR IN SERBIA HAS A GENERALLY LEAN ORGANIZATIONAL STRUCTURE, ITS
INFRASTRUCTURE AND INSTITUTIONS WERE SEVERELY WEAKENED BY A DECADE OF INSTABILITY AND CONFLICT

The overall structure of the road sector in Serbia is sound and lean
Serbia has a central administration responsible for the main and regional roads
Most of the planning, design, construction and supervision are outsourced
Road maintenance (and some small improvement) works in Serbia are contracted out to independent commercial
contractors, on a geographic basis

Prior to the early 1990s, the road sector was rapidly moving towards modernization
Modern methods and standards were being introduced for planning, programming and budgeting as well as
infrastructure monitoring and design
Procurement was being conducted competitively and governed by sound regulations
Institutions were technically competent and staff well trained

Throughout the 1990s institutional capabilities were severely weakened
Systems and procedures for planning and budgeting are neglected or misused, and most decisions are made on a
political rather than on a technical or economic basis
Procurement and work supervision are not transparent and suffer from old practices
Staffing of road agencies is not consistent with requirements of workload

Source: Federal Republic of Yugoslavia. Breaking with the Past: The Path to Stability and Growth. The World Bank and the European Commission

THAT DISRUPTED AND EVEN REVERSED THE MODERNIZATION PROCESS

Technical Assistance to Serbia Road Directorate Phase 1 Report III-1 Booz Allen Hamilton

CHAPTER III

INSTITUTIONAL ARRANGEMENTS



I. INTRODUCTION III-3
II. CURRENT SITUATION III-5
III. CONCLUSIONS III-38
IV. RECOMMENDATIONS III-44


I. INTRODUCTION

INTRODUCTION

INSTITUTIONAL ARRANGEMENTS OF THE SERBIA ROAD DIRECTORATE (SRD)

The information presented in this chapter is based on a series of interviews conducted with Department heads, SRD staff
and members of other agencies and also on findings from Stakeholders Workshop.
The road network in the Republic of Serbia totals about 41,845 km classified in 5,525 km of Arterial road, 11,540 km of
Regional roads and 23,780 km of Local roads (including Kosovo and Metohija). About 80% of the network is paved road.
European Corridor X and its two branches constitute the main road infrastructure connecting Serbia with four neighboring
countries.
The SRD is the agency designated by the Road Law as responsible for maintenance, protection, utilization, development
and management of arterial and regional roads in the Republic of Serbia.
To manage and administer this important network and investment, the SRD is organized in several Departments under
the direction of a Director appointed by the Government. Currently the SRD employs approximately 970 people. The
Headquarters office in Belgrade has about 88 people, the Toll Collection Department about 850, and the Regional Center
- North in Novi Sad about 25.
This section of the report presents the results of an institutional assessment conducted in August 2003. The main
purpose of the assessment was to evaluate the adequacy of the SRD to manage the recovery of the road infrastructure
under its jurisdiction and to suggest changes where it was determined they were needed. The information presented
under Current SRD Organization is based on interviews of SRD staff and other interested people A Best Practices
model has been developed to serve as a basis for the recommendations.
The section presents the current institutional status of SRD, its relation with other agencies, the strengths and weakness
of the current arrangements and a set of conclusions and recommendations.
The information to prepare the section was obtained through a series of interviews conducted with Department heads,
SRD staff and members of other agencies.

CURRENT SRD ORGANIZATION

II. CURRENT SITUATION


BACKGROUND AND ORGANIZATION

The SRD was established in 1998 pursuant to the Law on Amendments of the Road Law (Official Gazette RS, vol.
42/98). A Managing Council, whose members are appointed by the Serbian Government, guides it.
The Managing Councils president is the Minister of Construction and Urban Planning, who was appointed by the
Government.
The Managing Council members have backgrounds (at senior levels) in finance, engineering, legal, planning and traffic
disciplines.
The Managing Council is the high level management of SRD.
The SRD is managed by a Director who is supported by a Deputy Director and an Assistant to the Director. The
Government of Serbia appoints the Director and the Deputy Director. The appointments are normally for a period of 4
years. Currently the Deputy position is vacant.
The Director appoints the Department heads. The staff within the Departments is also appointed by the Director but
normally do not change with a change of the Director.
Staff position descriptions were established several years ago under a system denominated systematization. The
position descriptions and salaries do not reflect the current needs of the Directorate. Several unsuccessful attempts
have been made to update the position descriptions and salaries.
The salaries of the SRD staff are 2-3 times lower than similar positions in the private sector. This situation makes it very
difficult for SRD to attract and retain qualified professionals.
SRD interacts with many government agencies, principally: MoTT, Ministry of Finance, Ministry of Construction, and
Ministry for Environmental Protection
Figure III-1 presents the Current SRD organization structure.
DIRECTOR
Deputy Director
MANAGING COUNCIL
CURRENT ORGANIZATION OF THE
ROAD DIRECTORATE
GOVERNMENT OF REPUBLIC
OF SERBIA
ARTERIAL AND
REGIONAL ROAD
DEPARTMENT
MOTORWAY
DEPARTMENT
DEVELOPING AND
PLANNING
DEPARTMENT
DEPARTMENT OF
INFORMATION
CENTER
TOLL COLLECTION
DEPARTMENT
GENERAL AND
LEGAL WORK
DEPARTMENT
FINANCIAL, ECONOMIC
AND COMMERCIAL
DEPARTMENT
The East Regional
Center
The Central Serbia
Regional Center
The West
Regional Center
The South
Regional Center
R
E
G
I
O
N
A
L

C
E
N
T
E
R
S
REGIONAL
DEPARTMENT NORTH

Figure III-1: Current SRD Organization Structure
DEPARTMENT OF PLANNING AND DEVELOPMENT
Responsibilities:
Managing the development and production of Spatial and Planning Documentation for the road sector in Serbia
Managing the planning and production of designs at the Master Plan level for Main, Regional, and Motorway roads.
This includes traffic and pre-feasibility studies
Managing the production of preliminary and detailed designs
Obtaining all required documents (agreements, permits, etc) from Government authorities (Min of Transport,
Construction & Planning, Environmental Protection, etc.)
Issuing all relevant documents (conditions, agreements and permits) for planning, design and construction of all
structures and objects in the Right-of-way (ROW) space
Managing research and development in the road sector. Research and Development includes traffic, pre-feasibility,
feasibility, environmental, and scientific studies; technical regulations, technical guidelines, specifications,
methodology, new technology and new materials for road construction.
Estimating road construction costs
Contracting design and design supervision services
Conducting construction and maintenance program and plan supervision and monitoring

Staffing issues:
Table III-1 presents the current staff information for the Department
- The Department currently functions with 11 staff members including the Department head.
The Department considers itself understaffed
Low salaries and the inflexible civil service law make it difficult to hire qualified staff

Table III-1: Staff of Department of Planning and Development
Position Number Qualification Level Average Monthly Salary
Dinars Euros
Department Head 1 VII/1 19,993 303
Engineer for price and bill of quantities calculations
and price monitoring
2 VII/1 18,005 273
Road maintenance engineer 2 VII/1 18,038 273
Planning documentation coordinator 2 VII/1 18,304 277
Chief Engineer for studies and designs 2 VII/1 18,463 280
Motorway maintenance and exploitation officer 1 IV 9,895 150

Training needs (according to the Department Head):
Computer training: Project Management, MS Office, AutoCad
English Language
Other training: Quality control, Contract preparation and management, Document Management System,
Procurement, General Management Training

Other than mid and end of the year reports, there is no measure of performance against pre-established goals and
objectives.

Figure III-2 presents the proposed department functional scheme.


Figure III-2: Proposed Department Of Planning And Development Functional Scheme
Development and Planning
Department
Program and Plan Urban and Spatial
Plans
Designs Studies
Infrastructure corridors,
Detail regulation plan,
Urban planning
Master, Preliminary, Final Traffic,
Pre-feasibility,
Feasibility Environmental
etc
Annual plan, Medium term
plan
Follow up
New
Construction
Reconstruction
Rehabilitation
Quality,
Research and
Technology
Cost Estimation Traffic Safety
Legal aspects impacting the functioning of the Department:
New Road Law is still under discussion and the existing law (from 1998) is still in effect.
A new Procurement law (enacted 13 July 2002) impacts work progress by slowing down the procurement of
consulting and special services (research and science)
A new Planning and Construction law (enacted 13 May 2003) has introduced new procedures for obtaining permits
and more restrictive urban construction conditions. The new law is considered too specific in some aspects and too
vague in others, many supporting regulations and guidelines are needed.

Financial and budgeting situation:
Plan and program is prepared on an annual basis. It is presented in October of the year before and usually
approved in the April to June period of the budget year. Normally there is a budget execution delay of 2-3 months.
The actual amount received is between 70-80% of the approved budget. This situation generates a deficit that is
then covered by the following years budget.
Budget priorities are occasionally determined (or influenced) by non-technical criteria.

Performance, control and evaluation issues:
Serbias long period under sanctions caused a disaster in road network condition and management
Department understaffing is one of the reasons for weak performance, control, and evaluation functions
Due to low salaries, it is difficult to attract and retain high-level, experienced experts.
Realization of planned activities depends on, or is obstructed by, the financial conditions
The main measure of program performance is the preparation of a mid- and end-of-year budget execution report

The Department is facing a number of difficulties and issues, most notably:

To avoid delay caused by understaffing, Department engages outside experts. This solution is causing
dissatisfaction in the SRD staff because hired experts are much better paid for the same work.
Lack of a long-term strategy for the road sector produces short-term or inadequate solutions.
The design and technical standards currently in use are more than ten years old. There is a need to update and
improve these standards and harmonize them with those of the European Union.
Lack of a modern, efficient consulting industry leaves SRD with inadequate technical support. There is sufficient
consulting capacity in the existing road institutions but they are poorly organized. Assistance is needed in
organizing these institutions to become modern and competitive businesses.
SRD has an obsolete internal organization that does not foster communication and the formal exchange of
information. Communications between departments is weak. Meetings are not properly documented. A new
organization structure and internal policies are needed to address these problems.
It is hoped that the new Road Law will help solve some of the issues affecting the Directorate (particularly the status
of the Road Directorate, the method and availability of road financing, and SRDs external relations).

ARTERIAL AND REGIONAL ROADS DEPARTMENT

The Arterial and Regional Road Department is responsible for the construction and maintenance operations that improve
the network, prevent deterioration and provide safe roads in Central Serbia. Central Serbia is the area from roughly
Belgrade south. (Construction and Maintenance operations in Vojvodina, from Belgrade north, are the responsibility of
the Regional Center - North, with offices in Novi Sad. The Regional Center North reports directly to the Director.)

The division of the construction and maintenance management into these two regions means that technical direction of
these operations is managed directly by the SRDs Director.

The planning and the budget preparation for the activities under the department are done largely based on the reaction
to emergencies, uncompleted work from previous periods, local requests, the input from field supervisors, and
experience of the Department head. There is some coordination with the MoTT but it is mainly for obtaining permits.

The Director allocates the budget for each department based on the yearly plan prepared by the department heads and
on the current allocation to the SRD from State budget. The amount actually received by the Department is always less
than the approved amount. The amount received varies between 70-80% of approved, creating a continuous deficit.

The Department relies principally on four roads consultant organizations (sometimes collectively referred to as the
institutes) the Highway Institute (HI), Institute for Testing Materials (IMS), Institute of Transportation (CIP) and Road
Center of Vojvodina (CPV) for consulting services in the preparation of designs, conduct of laboratory control, carrying
out materials testing and supervision of works in the field. Interviews were conducted with all of these organizations and
information about them is included below.

The Department manages the work performed by the Road Enterprises in 14 geographic areas in Central Serbia. This
work includes some construction works, all routine maintenance work, emergency repairs, winter maintenance and
support to local authorities.

On a daily basis, the Department head keeps the Director informed about activities performed and problems
encountered, but there is no formal report prepared on a regular basis. The performance of the Department is not
measured against previously established goals and objectives.

The Department has a staff of approximately 26 people to carry out its responsibilities. This includes approximately 16
professionals and technicians to supervise and monitors operations in the field. The field staff is supplemented by
consultants to help supervise and monitor works and to conduct material tests.

The Department Head considers the Department to be understaffed and to not have enough qualified staff. There is an
immediate need to employ:
4 engineers to assume responsibility for traffic markings, road signs and traffic safety
1 environmental specialist (if not in the Department then in some other department of the Directorate), 1 deputy,
and 1 secretary
More inspectors to enforce rules and regulations.

According to the Department Head, the Department needs training in basic computer operations, MS-Office, project
management, and English language.

Currently, the Department is involved in two important tasks:
Preparation of a three-year duration pilot maintenance-by-contract program. The World Bank and cover an area in
west-central Serbia will finance the program. The program is expected to begin in 2004.
Preparations to coordinate work activities of the SRD with the privatization of the Road Enterprises. The
privatization of these Enterprises will occur gradually over the next several years with the more competent ones
privatized first. The Department will need to ensure that this privatization process leads to competition among road
contractors and does not simply exchange one form of monopoly for another.

The Department is facing a number of difficulties and issues. Most notable are:
Inadequate salaries
Absence of an updated master plan and strategy to organize improvement and maintenance activities on a long-
and medium-term basis
Some overlapping in roles and responsibilities
Numerous demands by the police for safety related works. The Department often cannot fulfill these demands
because of budget restrictions. The police then issue citations that the Department has to address in court.
Long bureaucratic procedures to obtain construction permits and to enforce rules and prosecute offenders for right-
of-way encroachments and over weight vehicles.
Land related issues are some of the biggest technical problems facing the Department. For example:
ROW invasions, such as illegal buildings, services, and access roads and construction w/o permits
Lack of specialized land administration courts and judges
Lack of effective rule enforcement. There are only 10 inspectors. Given the number of rules and regulations to
be enforced, many more inspectors are needed
Land records have not been regularly updated
Traffic safety issues:
Lack of permanent driver control and adequate punishment measures
Users dont follow traffic rules
Lack of police enforcement in well known danger spots
Main causes of traffic accidents: ignoring traffic safety rules, poor pavement surface, speeding, etc.
The police investigate and report on accidents. There is, however, no cooperation between police and SRD.
The Directorate cannot directly and easily obtain accident statistics and reports and. Therefore, cannot analyze
accident causes, consequences, and impacts
Axle load issues:
Obsolete design standards that do not account for the higher axle loads of modern trucks. The design
standards need to be updated to current European standards
Lack of enforcement of existing vehicle weight regulations
Ineffective vehicle overweight fines. The fines are so low that users prefer to pay the fines rather than comply.
Over weight vehicles are one of the prime causes of pavement deterioration
Lack of studies to show the consequences of excess axle load in the network
Trucks by passing the motorways to avoid paying toll. This results in the destruction of the Main and Regional
roads that are used as alternatives
INFORMATION AND DOCUMENTATION CENTER DEPARTMENT

The Information and Documentation Department is responsible for:
Maintaining, updating and operating the SRD information technology infrastructure (servers, file backup, etc.), to
support all road directorate employees computer needs, and
Providing support to the Planning and Development Department and others with their databases.

The Departments customers include other SRD departments, road designers (public and private), industrial users, and
others, specifically:
Planning and Development Department
All SRD computer users
- Ministries, State organizations
Consulting Service organizations such as: HI, CPV, CIP, and IMS
Civil engineering faculty
Traffic faculty at University of Belgrade
Police for traffic data
Private enterprises such as Yugopetrol for the possible location of gas stations and other motorist support facilities

The Department is responsible for the following databases:
Road database covering the 16,000 km of arterial and regional roads
Bridge database covering about 2,500 bridges (bridges in Kosovo are not included). One bridge inspection of all
bridges has been completed in the past 10 years. A second cycle of inspections was begun in 2003.
Traffic database covering 117 traffic counters, principally along the arterial road network
Tunnels. The database is being developed and will include information about approximately 80 tunnels
Landslides. The database is still under construction and will record information about slippage and ground
settlement problems under and along the roads
Database on commercial objects: for example, fuel stations, restaurants, etc.
Toll collection information (vehicle counts, revenue collection) is processed by the Toll Collection Department.

Important legal aspects related to the Road Law are:
-- Article 71 (new article), in the new law, indicates that MoTT is in charge of strategy for road network maintenance
and development and harmonization with other transport modes
-- Article 73, in the old law, says SRD is obligated to produce 5 year plan for road network and annual plans for road
network. (Item 3). SRD is also required to produce program for maintenance. SRD is obligated to produce these
plans based on the condition of road network (Item 7). These articles mean that the SRD must monitor the road
network condition for purposes of effective management. Item 8 requires traffic counts. Item 9 requires the SRD
to give notification to the public about the road condition. Item 11 obliges the SRD to keep records, in other words,
manage its documents.
These articles provide the legal basis for some of the hardware, software, and staffing needs

Important financial aspects
For the 2003 fiscal year, the Department asked for about 1 to 1 percent of SRD budget but received only 1/3 of its
request
Last year Department prepared a study for road works using the HDM-4. This study was used by the IFIs, but SRD
internally used only a small part of the information in its annual planning process
Most of the Department funding (approximately YUM 50 Million) goes to the institutes to pay for engineering
services

Control and Evaluation
The performance of the Department is not formally measured. In SRD, the Director monitors senior managers.
There are two financial controls within the Department
There is an internal monitoring of spending
The SRD Finance Department monitors expenditures. Finance department will give a warning if a department
is spending too quickly or exceeding the yearly program. It will also advise the Director.
The Department occasionally prepares reports for upper management of the SRD. Sometimes, the Department
prepares internal reports. For example, a report may be prepared on contractors works, planned versus actual.

Problems faced by the Department
Most significant: the low salaries
Second: the need for additional staff
Third: the lack of stable funding for regular works and permanent development

Main challenge facing the Department in the future is increasing the usage of the databases and other information
system resources to improve the planning and business processes in SRD. The integrated information system is
discussed in detail in Chapter IX Management Information Systems Analysis.
THE REGIONAL CENTER - NORTH

The Regional Center - North is responsible for the management of all road related activities in Vojvodina. Maintenance
consist of: routine, repairs and emergency of:
100 km of Motorways (Belgrade Croatia)
170 km of semi-motorways (Belgrade Novi Sad Hungarian border)
1,300 km of main roads
1,700 km of regional roads

There are 25 people total working in the Center. The capabilities of the staff are considered adequate for the type of
work the Center performs.

According to the Head of the Center, additional staff is needed, as follows:
Two engineers to replace older technicians who will soon retire
One mid-level person to handle documents
One technical-level person in the legal section.

According to the Head of the Center, training needs include: MS Office, project management, effective use of the
internet, and English language.

Budgeting procedure: collect road condition and needs; prepare a summary of needs; add the needs from municipalities;
send budget to Belgrade for government approval. Traditionally, the Department receives about 50% of the funds
requested.

Budget implementation priorities are based on traffic volume, road condition and safety.

Legal aspects:
Road Law: Lack of funding doesnt allow fulfilling regulations regarding maintenance
Urban Planning and Construction Law: This is new law is considered too specific. The provisions in the Law would
be better implemented by supporting regulations rather than articles in the Law itself.
Procurement Law: procedures are too long and repetitious; Law doesnt take into account the lack of sufficient
qualified bidders

Control and evaluation: The performance of the Center is not formally measured. There are monthly meetings between
the head of the Department, supervisors, and technical staff. Each section prepares a report of activities performed
during the month and a plan for the following month. A report is also prepared regarding the quality of the work based on
lab results. The Center also prepares a Half of the Year and an Annual Report.

Relation with other agencies, the Center has good cooperation and communications with the following agencies:
Road Directorate in the municipalities
Water authorities
Electric power utilities
Railways (to maintain railway crossings)

Issues and problems: The biggest problem facing the Center it is its relation with the police. Traffic police continuously
ask the Center to perform specific works that were not included in the budget. If the requested work is not performed,
the police initiate legal actions against individuals within SRD. These actions divert SRD staff from their duties and
consume valuable time.

Success factors to ensure the continuous good performance of the Center:
Replace staff that will be retiring
Provide testing and data collection equipment to facilitate work:
Improve quality control of works (asphalt testing, pavement marking paint)
Regular pavement condition monitoring and recording pavement condition before/after works
Roughness measurement
Monitoring of road inventory (for example having a digital camera to record work done (e.g. installation of
signs) and other situations/conditions)

Miscellaneous
Except for gas stations, the Center handles all the permits related to roads.
Axle loads are checked via a contract with CPV
Traffic safety is a problem but, in the last two to three years, the situation has been improving. (Traffic police handle
accidents, but it is very difficult to obtain statistics from them).
GENERAL AND LEGAL WORK DEPARTMENT

Responsibilities:
Supporting the legal and general administrative matters at the SRD
Preparing organizational enactments
Drafting special contracts
Reviewing standard contracts
Handling land expropriation
Handling claims with the courts
Handling transgressions
Responding to legal related mail
Keeping track of SRD staff attendance records

Staffing:
- According to the Department Head, the Department is understaffed
- Currently, the Department has 14 employees - 6 high level educated professionals, 7 medium level and one
assistant
- The staffing needs are:
Lawyer (1)
Lawyer for Novi Sad office (1)
Land Surveyor (1)
Agricultural Engineer (1)
Office assistant to handle mail

Training needs: the Department Head identified the following training needs:
Basic PC operation
MS-Office
Labor related issues
Legal procedures

Traffic litigation
Insurance regulations
Contract preparations
Attendance at professional seminar/forums and other legal related events; etc.

Budget aspects: Department budget is prepared by the Finance Department. Money needed for legal matters but not
provided for in the budget is taken from the general operating funds.
Control and evaluation: The Departments performance is not regularly measured. Financial control is done by the
Finance Department. No other control and or evaluation take place.
Legal aspects. The Department interacts with the following legislation

Criminal Law Litigation Law Business transgressions Law
Constitutional cases Law Administrative disputes
Law
Labor Law
Enforcement procedures Law Obligation Law Road Law
Expropriation Law Inheritance Law Ownership/Legal Relations
Law
Registration Law Cadastre Law State Properties Law
Procurement Law Traffic Law Public Attorney Office Law
Forestry/Water management
Law
Public Administration Law Administrative procedures
Vehicle size and axle loads regulations Non-litigated procedures

Issues and problems: The biggest legal problem facing the Department has to do with the application of the Land
Expropriation law.
- The Law authorizes the government to establish the public interest for land expropriation for required construction
as long as the owner is fairly compensated. Determining the fair compensation is a difficult issue, however.
- One of the difficulties arises from the recorded property values verses the actual value. In order to avoid taxes,
many property transactions are reported at much lower values then the actual value. When the government
attempts to use the reported values as a basis for compensation, the property owners object.
- Another problem is proving ownership of property. Many properties are not recorded in the cadastral registry.
FINANCIAL, ECONOMIC AND COMMERCIAL DEPARTMENT

Responsibilities:
Tracking all the SRD money, based on annual plan.
Implementation of the financial and accounting regulations that apply to SRD. Accounting standards are SCG
standards.
Organizing the drafting and liquidation of all financial documents.
Drafting accounts and reports twice per year, January to June and July to December.
Preparing and paying the payroll and paying for all expert services.
- Managing accounts payable and accounts receivable

Staffing:
The Department has 15 staff working at the headquarters and 26 at various locations on the pay toll system
Headquarter staff: the Department head, two experts (one in investments; the other in financial resources and
loans)
Accounting service has eight people and the financial operating service has four people.
According to the Department Head, four additional people are needed at the headquarters. The field staffing seems
to be adequate.
Training needs identified include foreign languages, professional and advanced training, and basic PC operation.

Legal aspects: The Department interacts with the following legislation

Road Law Budget Law Tax Law
Excise and Sales Tax Law Law on Foreign Exchange Procurement Law
Law on Credit and Transactions with other Countries

Financial-budgetary aspects:
Road tolls go to State budget not directly to an SRD account. The State Treasury owes 350 million Dinars to SRD.
This situation causes problems with payments to creditors.
In year 2002, the initial SDR budget was 6.5 billion Dinars. The Ministry of Finance reduced the amount from 6.5 to
5.033 billion Dinars. SRD made commitments for the 6.5 billion and had to use the funds from year 2003 to meet
those commitments. This problem continues to occur.
Budget amounts. In the budget law for year 2003, SRD was allocated 8 billion Dinars (to be disbursed in 12
monthly installments). To date, 4 billion Dinars have been paid. This means payments are behind by about 1.3
billion Dinars. Therefore, the SRD is not expecting to receive the full 8 billion Dinars.
The new Road Law considers that the SRD budget should come from fees levied on fuels instead of from the
budget.
Currently, if needed, the SRD can ask for additional funds beyond what they have been allocated in the budget,
provided that sufficient justification is submitted and approved.
In summary, there is a significant difference between the amount of funding that is requested in the initial SRD
program and the actual allocated funds. It is not uncommon in recent years for the SRD to receive only 30% of its
original budget request
The SRD usually receives approximately 80% of the approved funds from state budget for fiscal year.
By law, all transactions have to be made in Dinars.
SRD pays a 20% tax on procurement of materials and services for road network maintenance. In 2002, for
example, SRD had to pay 1.2 Billion in tax. This is a significant impact on the funds available to purchase materials
and services. Under existing laws, there is no tax on materials and works for new constructions. (Consulting
services are charged with a 20% tax in both cases.)

Performance, control and evaluation:
There is an external control carried out by the tax authority and by the Financial police.
The following reports are prepared: Financial Operations report and the Annual report for works completed

Critical success factors:
Satisfactory coordination with other departments within SRD, especially in the preparation of timely reports with
required financial information.
Preparation and presentation of timely invoices, which are normally due on the 10
th
of the month

Problems and issues:
Budget cuts, which severely impact planning and operations
Low salaries

Interaction with other agencies:
National Bank of Serbia, Delta Bank, and other commercial banks.
Ministry of Finance:
Weekly controls (this is onerous)
Contacts for interpretation of laws and regulations (for example, the law on excise duties)
MoTT for an increase in tolls and for investments for new sections
IFIs (specifically: EBRD, EIB, and World Bank.)

HIGHWAY DEPARTMENT

Highways is used in Serbia to mean the motorways and semi-motorways

Department responsibilities:
- Management of construction works on the motorways and semi-motorways
- Management of maintenance works on the motorways and semi-motorways
- Coordinate planning of works with the Department of Planning and Development

Toll collection on the Belgrade Nis and the Belgrade Croatia border motorways and the Hungarian border Belgrade
semi-motorway is performed by the Toll Collection Department

Department has 12 staff positions:
- Head of Department position currently vacant; the Director performs the department head functions
- One database analyst
- Four construction supervising engineers
- One investment specialist
- Two maintenance supervising engineers
- One systems engineer
- Two maintenance technicians

Organization and operation:
- Management responsibility divided into four areas:
Belgrade Croatia border
Belgrade Hungarian border
Belgrade By-pass
Belgrade Nis Macedonian border
- Each area is managed by one of the engineers who report directly to the Head of Department
- Construction and Rehabilitation works are normally performed under contract
- Maintenance is performed by one of the Road Enterprises
Belgrade Croatia border by Vojvodinaput-Sremput, based in Ruma
Belgrade Hungarian border by Vojvodinaput Backaput, based in Novi Sad and Company Vojput
Subotica, based in Subotica
Belgrade By-pass by SerbiaAutoput, based in Belgrade
Belgrade N Macedonian border is by SerbiaAutoput and PZP Vranje, based in Vranje
- Supervision of the work is also split:
Regional Center North personnel supervise the sections in Vojvodina (Belgrade Croatia border and
Belgrade Hungarian border)
The other sections are contracted to either the Highway Institute or the Institute for Testing Materials
TOLL COLLECTION DEPARTMENT

Primary responsibility is toll collection on all Serbian motorways. They are required to organize toll collection in the most
effective possible way and to minimum costs.

Staff:
- About 850 people most of them are toll collectors
- 65% permanent, 35 % temporary. Temporary employees have a fixed time of employment.
- Department needs to use temporary employees to meet staffing needs
- Temporary employees do the same job as the permanent employees

According to the Head of the Department, the department is currently properly staffed.

Department is part of SRD. Because of this, their salaries are not competitive and they cannot attract highly skilled
technicians/engineers.

Department has a process for monitoring financing performance. The Department of Planning and Development (DPD)
performs this function. Toll Collection Department provides its annual plan to DPD. The procedure is very formal and very
detailed. There are monthly, half yearly and annual reports produced. The reports compare forecast and actual numbers
of vehicles and revenue

They have internal controls to check if toll collectors are doing their job correctly. This process is constant and random.
They prepare a report on each check that they do. They also have a second level of checks, which actually stop the toll
collection in that booth and perform an audit. If there are problems, a report is given to the legal department, for follow
up. Investigations could result in disciplinary action

According to the Head of the Department, the reports show that there is no problem

Planning of construction and rehabilitation of the motorway is done by the Department of Planning and Development

There are some major changes in the near future: a new toll collection system and revised toll fees

Department is seeking a contractor to implement a new electronic toll collection system
- Will probably have a single contractor to provide all the required services
- System to be operational within two years
- All existing equipment will be replaced and new equipment will comply with European standards
- New system will provide interoperability with European systems
- Objective is to decrease as much as possible the use of cash
- System will cost between Euro 8 to 9 Million and be funded by the SRD budget no loans will be required.
- New system will be on existing toll plazas. Existing lanes will be combined to provide electronic and manual toll
collection
- Will still need the staff in toll booths
- New staff skills will be required in the fields of: technical knowledge, financial knowledge, legal support
- Probably not much impact on staff numbers
- Does not mean additional staff, rather, staff with different skills
- Training will be provided by the contractor which provides the toll system
- Department will not maintain the new toll system, however, Department will need to have staff who can identify
problems

A second major change is for the toll fees
- Currently, toll fees are different for foreign and domestic vehicles
- Toll fees are being revised to be equal for both types of users and on par with European toll rates
- Timing and process to achieve the revised fee structure is not clear

Road maintenance on the motorway is currently managed by the Highways Department of SRD. SRDs Director
manages Highways Department. Highways Department is separate from the Arterial and Regional Road Department.

There are various interfaces with other departments/agencies. These include: National Bank for foreign exchange
matters. Department must charge a 20% fee for foreign exchange. Department was forced to implement this decision by
National Bank. This has caused complaints, long lines of traffic, etc. New legislation would have to be passed to allow
payments of tolls in foreign currency without the surcharge.

The State receives income from various concessions for fuel stations and motels along the motorways. Those
concessions are not the responsibility of Toll Collection Department

There are a variety contracts with suppliers and contractors for services such as maintenance of existing equipment and
supply of paper supplies. The SRD Director is authorized to sign contracts according to emergencies, plans and
programs.

There is need to place communication fiber optic cable between all booths, so they can have real time monitoring. This
would be an effective improvement

Safety is a problem on the motorway. Department is not responsible for safety. Safety problems include:
- Unrestricted access by unauthorized vehicles, pedestrians, and animals to the carriageway from outside the road
reserve. Could be improved by putting fences along right-of-way
- Pavement is badly rutted, which causes vehicle control problems, especially when it is raining
- Relatively old horizontal and vertical signs. New technology could help be installing travel advisory warning signs.
- Age of vehicle fleet in Serbia (average age is 15 years)

One significant operational problem is the procurement process
- Department has no fund for small immediate spending. Department does not have authority to make relatively minor
spending decisions to respond to common, frequent problems such as computer system breakdowns and
repair/replacement of toll booths.
- These types of responses need to be made immediately. For example, if a booth burns or is hit by vehicle, it needs
to be put back into operation quickly.
- The Head of the Department proposes that the Department have a fund at its disposal based on some percent of
income. (He proposed to 10-12% of revenue.) The fund would be used, as required, for the effective operation of
this department such as making the immediate repairs necessary.

Two other concerns voiced by the Head of the Department were:
- The money collected in tolls should be used on toll roads, for example, to improve service and expand the network
- New Roads Law will allow concession companies to be established. Establishing such companies to provide
various services would improve the quality and lower the cost
OUTSIDE AGENCIES - THE HIGHWAY INSTITUTE (HI)

The Highways Institute is an important provider of engineering services to the SRD

HI is a scientific research and design institution established 53 years ago capable of providing consulting services in
transport infrastructure. It is the biggest and oldest of such institutions in Serbia.
The HI has experience and it is capable of conducting studies, design and supervision of works, for roads, city streets,
bridges, railways, tunnels and airports
The main HI client is the SRD which provides 70-75% of their income. The HI also provides engineering services to
cities, and few foreign countries.
The Institute employs 420 employees, of which, 160 are engineers. The disciplines covered are, highway design,
geology, traffic engineering, material testing, surveying and land surveying, road condition surveys.
The HI owns several laboratories and has been ISO 9001 certified for the past six years. For construction supervision,
they have 60 employees, plus quality control laboratories.
Fifteen years ago, the HI prepared the SRD master plan.
For the past 4 years, the HI has had a contract to collected data. The HI also had contracts for the bridge and tunnel
database and the landslide database.
The majority of the Institutes equipment is getting old and is in need of replacement. HIs current level of income cannot
cover the replacement costs.
The HI feels a negative impact from the new Procurement Law. The competition provisions of the Law allow small firms
to compete against it successfully.
According to the Privatization Law, the HI will have to be privatized under the auction procedure. Tenders will be called
by 2007.
Some of the problems affecting the HI are:
The upcoming privatization is causing great uncertainty among the staff.
The large number of employees means they always need a large pipeline to keep everybody busy.
Obsolete equipment and unstable funding.
OUTSIDE AGENCIES - THE ROAD CENTER OF VOJVODINA (CPV)

The Road Center of Vojvodina (CPV) is an important provider of engineering services to the SRD in the Vojvodina region.
Significant facts about the CPV are:

CPV under contract with SRD, is responsible for carrying out the following activities:

Supervision of works Traffic-economic studies
Design of traffic signalization and regulation Assembling road condition data
Land surveying and mapping Preparing road condition database
Design-technical documentation for civil engineering structures, bridges, project management
Quality control for asphalt, concrete and aggregates
Studies and accompanying designs related to work and road structures
Preparing databases for roads, bridges and traffic volumes
Testing of materials and soils, geological explorations for the design and implementation of works

CPV has a mix of experienced road professional staff to carry out engineering and transport economic studies, road
design and construction supervision. CPV staff numbers 150 people. They are housed in several buildings and are
seriously considering building a new one to consolidate their locations.

CPV purchased ROMDAS, a set of road condition inventory data collection equipment that allows CPV to collect a
variety of road data used, together with HDM-4, to prepare project analyses and road investment plans. Along with the
equipment, CPV received the training to operate the equipment.

According to the privatization law, CPV is scheduled to be privatized by 2007

OUTSIDE AGENCIES - THE INSTITUTTE FOR TESTING MATERIALS OF REPUBLIC OF SERBIA (IMS)

IMS was established by the Academy of Science in 1949
- Has 12 departments, one of which is Roads
- Originally structured, staffed, and equipped to address needs in all of the former Yugoslavia
- Now adjusting to the smaller market in Serbia

IMS is owned by its shareholders and there is a stakeholders assembly. That assembly names the Managing Board and
the Executive Director. Shareholders own 27% of the company and 73% is public property

There are approximately 300 employees, of which about 150 have university degrees

Roads department has a staff of about 40
- 18 engineers, including civil and others
- One computer expert and one traffic engineer
- 3 divisions: Laboratory, Construction Supervision and Research and Development

The staffing level in recent years has been steady. When revenues rise, they are able to increase salaries. But the
Roads Department is only one department in IMS. Because the Roads Department is profitable, it is expected to support
(subsidize) the other departments
Services provided:

Scientific Research and Development Research and Development of
Structural Systems
Quality Control Services
Feasibility Studies Preliminary/Final Design Asphalt Mix Design
Preparation of Construction
Specifications and Bid Documents
Authorized Testing and Certification of
Construction and Maintenance
Materials
In-Situ Testing of Constructed Works
Bid Evaluation Construction Supervision Pavement Design
Training Environmental Investigations Civil Engineering Structural Design
Development and Provision of
Concrete Prestressing Technology,
Equipment, and Systems
Video-based Pavement Condition Data
Collection

Additionally, The y have helped define and are maintaining the Road Referencing System.
- All nodes have been located and marked in the field
- Currently adding latitude and longitude coordinates for field locations using GPS-equipped vehicles. This is about
50% complete.

IMS is currently in the process of being registered as ISO 9001 Quality System Certified

The new law on public procurement is helping them, because they can be competitive. IMS would like a stronger
relationship with SRD. They also suggest that the SRD contracts should be long term

100% of revenue comes from SRD and other road agencies or enterprises such as Belgrade Put (the roads and streets
agency for the city of Belgrade). There is some work outside Serbia, but this is not a major focus

The future of IMS is not clear and there is no timetable. Privatization is a possible option and the stock price and net
worth of IMS is currently being valued. IMS will probably not grow significantly in terms of the number of employees
OUTSIDE AGENCIES - THE INSTITUTE OF TRANSPORTATION (CIP)

CIP founded in 1948 by the Yugoslavian Public Railway Transport Enterprise (ZTP)
- Merged with CIP (Center for Research and Design) in 1985
- CIP is a Public Company; therefore, the government must approve permanent salary increases
- If company earns a profit, the law requires it to re-invest it in the company

CIP is a division of ZTP
- Funding is exclusively from consulting services (no ZTP contribution)
- Operate under a Supervisory Board
- Managed by a Managing Board and a Managing Director
- Also have technical director, financial director, international project and marketing director, R&D director and
director for legal affairs.

In the market, they are independent and make their own business decisions
- They are facing increasing competition and are adjusting their prices to remain competitive
- They have some control over the temporary salaries of their staff, based on earned revenue
- The SRD provides about 40% of total revenue
- They want to expand their overseas business

Current staff is approximately 500, with 350 having university degrees. Staff 5-6 years ago was as high as 800. The
average age of staff is lower now than it was in the past

Their low salaries are a problem in attracting and retaining people. The best people go abroad or to private companies

They do not have a requirement to produce financial statements. They are building capability to record time, and
implement good financial accounting procedures

Future planning is difficult because the workload is unpredictable

They are progressing towards ISO 9000 certification

They have 11 departments, and offer a wide range of services. CIP provides:

Preliminary and Final Design for Rail and Highway Projects
Construction Management
Geotechnical Laboratory Services
Engineering Consultancy Services
Feasibility Studies
Surveying Services
Studies and Research
Training and Organizational Studies

Currently, they do not have the capability to offer field data collection

They do not generally provide asphalt designs. They do not have HDM experience

They have a bureau of approximately 100 people involved in roads design. They have done work on Corridor X and have
teamed with Serbian and international companies

They do not support the idea of SRD forming a design department, because in their opinion this will create a monopoly

They believe that communications between CIP and SRD can be a little better. Sometimes it is difficult to get decisions
about technical solutions from SRD. SRD may have too many projects on going and not enough staff

According to current law, CIP cannot be privatized because it is part of ZTP. But the new Railway Law may define a new
structure of ZTP. After this new law is passed, CIP may begin a privatization process in the longer term

In 5 years, CIP will probably have fewer employees and it will probably be a private company


III. CONCLUSIONS

CONCLUSIONS

FOUR BROAD CONCLUSIONS WERE DERIVED FROM THE FINDINGS (See Table III-2)

Table III-2: Conclusions Derived From Institutional Analysis

ROAD NETWORK
MANAGEMENT
RESPONSIBILITIES ARE
UNCLEAR
There are no strong, formal procedures and mechanisms established for planning, reporting,
performance monitoring or evaluation
The Strategic role of the SRD is unclear
Interagency coordination, liaison and cooperation is limited. This limitation negatively impacts the
quality of road sector planning and management

STRATEGIC LEADERSHIP
AND ROAD SECTOR
PLANNING ARE NOT FULLY
DEVELOPED
SRD does not perform the function of a strategic manager of the national road network because
it has limited objective assessment of overall agency and road sector performance (primarily
because of the lack of higher level administration support)
The inter-relationship between road planning, construction and maintenance and between road
infrastructure and road use management is not clear. This undermines sound road asset
management
Road sector planning, data collection and information management is not given a high enough
profile

PERFORMANCE IS INPUT-
DRIVEN INSTEAD OF BEING
DRIVEN BY STAKEHOLDER
NEEDS
Organizational performance is measured in terms of maintenance and construction works
expenditures instead of benefits provided or services delivered to road users and stakeholders.
The benefits and services are essential to the sustained development of the country.
Strategic plans do not specifically propose any measurable goals, indicators, or targets focused
on stakeholder benefits (e.g. mobility, safety, and environmental impact)
Management responsibilities should be aligned with funding responsibilities

KEY KNOWLEDGE AND
CAPABILITIES ARE
INSUFFICIENT
Capabilities and training in the area of strategic management are insufficient
The workforce has not adequately adjusted its focus to match its responsibilities as managers of
a road network
There is lack of experience, particularly in areas of transport economic, environmental protection,
and value engineering
A training needs assessment should be carried out to prepare a comprehensive training plan
CONCLUSIONS
ADDITIONAL CONCLUSIONS
Organizational responsibility for clear, strategic leadership of the sector is missing
SRD is not fully acknowledged or seen as having a role in providing road sector coordination and direction
There is no formal mechanism for coordinating agency activities or examining performance to determine the impact
of activities on the effectiveness of the road sector
Planning is primarily a process of preparing an annual program with the resultant plan being a consolidation of
'bottom up' inputs
SRD does not currently prepare medium- or long-term plans
There is no clear relationship between the work performed by the various road sector agencies and any coordinated
sector goals

Stakeholder involvement and inter-agency coordination is poor
SRD or sector activities are not specifically contributing to clear performance goals focused on benefits to road
users such as:
Mobility
Access
Safety
Environmental
Effective communication channels and sound relationships have not been established with important stakeholder
groups to provide input into its direction or provide feedback on its activities:
Road users (citizens, transport industry)
Employees
Other Government Organizations (Ministries of Finance, Construction, Environment, etc)
Consultants
Contractors
CONCLUSIONS
Measurement of the organization's progress is vague
Some monitoring of performance is measured, but not on regular basis and not on the achieved benefits
Generally, some outputs are measured (e.g, permits issued, road toll collected, amount of money spent etc) with
limited monitoring of the outcomes of these activities (e.g. impact on road safety compliance, road condition, etc)
- Communications, inter-agency involvement, databases, and systems are not established. Their establishment
would help support the measurement of outcomes
Performance measurement are not used and do not cover the sector
One organization alone cannot fully influence the road sector in a decentralized management structure
At present, there is little liaison and coordination between SRD and stakeholders on the impact of SRDs
overall performance on road users

SRD indicated that considerable effort would be required to reach the status of a 'modern' organization in the near future
Salaries at SRD are 2-3 times lower than similar positions in the private sector, however as a government institution,
SRD is limited to the pay scale established for government workers. In addition, there are limited possibilities for
professional status improvement and limited social benefits
The SRD expects that the new Road Law (waiting approval), will help solve many institutional and financial problems,
including:
Establishing a stable, dependable, and sufficient source of funding for operations
Providing flexibility in making salary decisions
Increasing the weight of engineering and economic influences on work program decisions

The current organization is very flat yet it contains the basic elements of a modern road management agency. What is
missing is breakdown of the departments into Sections to facilitate the management of the organization.
Functions and/or positions that are missing in the current organization:
Quality Control
Monitoring and Evaluation
Structures
Environment
Public Relations
Road Safety/Traffic Management
CONCLUSIONS
Contracts Management
Training and staff development
Standards Development
Value Engineering
In most road agencies, consultants are an important component in terms of the work to be done, however, the Serbian
consulting industry is in its infancy, it is not well organized and not very strong
Road users are not directly engaged in the road development process
The SRD (nor the MoTT) does not have an updated master plan and strategy to recover and preserve the existing road
infrastructure
The information system at SRD headquarters is not directly connected with Toll Department system
A document management system has been established but needs to be enhanced and strengthened
SRD has been receiving about 1/3 of the budget has requested
CONCLUSIONS
OPPORTUNITIES AND CHALLENGES

Throughout the discussions and interviews, SRD staff identified a number of opportunities and challenges in SRD's future
- Serbia is transitioning to a market economy, although the workforces remain largely under the management of the
State. Therefore, a complete transition to market economy conditions is unlikely to be achieved in the very near
future (legacy of the previous system)
- International assistance, awareness of best practices, and transfer of skills and knowledge of modern management
practices has increased recently. This has provided improved awareness of techniques and approaches that can
be adopted to assist the transition. However, uncertainty, inconsistency, instability, and insufficient systems and
capacity are still prevalent during the transition period hampering the pace and direction of reform.
- There is growing awareness of the shift from providing basic services to being responsive to customer demands
and requirements. This shift, however, requires significant attitudinal and cultural change over time
- SRDs role in managing the road sector is changing, yet its processes, systems, and training are not changing fast
enough to match these different roles
- Rapid application and assimilation of advanced technology, when transferred, is likely to advance progress within
the transport sector, although the reengineering of the databases has to be completed and management capacity
needs to catch up with new mechanisms
- Private sector participation in transport infrastructure is still minimal. SRD will need to do its part to ensure that the
privatization of transport infrastructure work encourages competition and does not encourage or continue
monopolistic practices.
- The pace of reform varies and the presence of market conditions in transport services is not matched by those in
infrastructure services


IV. RECOMMENDATIONS

RECOMMENDATIONS

THE INSTITUTIONAL RECOMMENDATIONS CAN BE SUMMARIZED INTO SIX FUNCTIONAL WORK AREAS (See Table III-3)

Table III-3: Summary of Institutional Recommendations
MAINTENANCE PLANNING INFORMATION
SYSTEMS
REGULATION /
COORDINATION
FINANCING /
BUDGETING
REHABILITATION
Ensure compliance
with the quality
standards established
for the road network
Develop
coordinated
plans and
programs for the
road network
based on
national policies
Establish modern
and updated
systems that
support the
management of
the road network
Coordinate key
functions, elaborate
policies, and regulate
activities
Establish a
stable and
sufficient source
of funding and
collect, allocate
and distribute
funds according
to plans and
priorities
Ensure that
rehabilitation and
construction projects
comply with
international (EU)
specifications
Design and implement a
Maintenance
Management System
Establish an
outsourcing program for
maintenance services
Supervise maintenance
projects using
performance based
measurements
Integrate global
and strategic
plans into the
planning process
Update IT
architecture
Train personnel to
use the new
applications
Establish procedure
manuals and technical
specifications for new
functions
Ensure organizational
structure has necessary
coordination mechanisms
Restructure national
technical entity to
optimize resource
utilization
Ensure financing
is dependable
and sufficient to
execute road
programs
Balance resource
distribution
among
Departments
Use technical
specifications manuals
Implement
management system for
programs and projects
Perform road
construction according
to priorities in the Road
Master Plan
Ensure appropriate
Supervision of
construction works

RECOMMENDATIONS
FUNCTIONAL AREAS RECOMMENDED FOR OUTSOURCING
MAINTENANCE
- Design and implementation of Maintenance Management System
- Supervision of the pilot maintenance project
- Performance of maintenance works

INFORMATION SYSTEMS
- Updating of the IT architecture
- Training of personal in the use of new applications

REGULATION/COORDINATION
- Establishment of procedures manuals and technical specifications for new functions
- Restructuring of the entity to optimize resource utilization

ROAD NETWORK REHABILITATION
- Design and bid preparation work for new projects
- Design and implementation of a management system to prepare programs and projects
- Development of a strategic road improvement and preservation program
- Supervision of works
RECOMMENDATIONS
ORGANIZATIONAL TRANSFORMATION
Inter-Agency and stakeholder relations and communication functions are required to assist in strengthening the
management and performance oversight of monitoring stakeholder requirements

SRD, through its Public Relations unit under the Directors Office, should start the process of identifying stakeholders,
stakeholder representative groups and their respective needs to involve them in the strategic plan and the medium-term
program development processes to gain their support and understanding. These stakeholders should regularly be
included in the work program decision-making process, possibly by participating in the meetings of the managing council.

The Public Relations unit would act as the primary liaison point with the SRD on issues of sectoral direction and
performance

The unit would also be responsible for organizing the establishment of formal stakeholder groups to represent road
users, including commercial and private users, transport providers for people and goods, etc.

Increased focus on communication will be a critical part of the change process as performance-based information
becomes available
- The changes taking place as SRD moves away from its traditional role will be important for both internal and
external stakeholders
- Information about the SRD and agency roles and functions, the sector's plans and performance, education
campaigns, etc. should be available via a variety of media such as newspapers, internet (website), and handouts

SRD should take positive steps to strengthen the local consulting industry

SRD should invite the traffic police to start a road traffic accident prevention campaign that will include driver education
and traffic sign obedience. Such a campaign should be the first step in a more extensive effort to improve SRDs liaison
and communications with the traffic police. This effort should be aimed at understanding and emphasizing mutual needs
and improving the relationship between the two organizations, particularly in the area of road safety.

Through a concession program, SRD should commercialize the enforcement of traffic regulations and axle load
compliance
RECOMMENDATIONS
INFORMATION TECHNOLOGY
Information technology needs to take a much higher profile and be systemized to enable the SRD to effectively
undertake its new functions

The Directorate needs to unify its information systems and interconnect the headquarters with the Toll Department and
the regions under the guidance of the Department of Integrated Information Systems

The Department of Integrated Information Systems will be responsible for the implementation and management of all
information systems and activities throughout the Directorate

Information technology needs are the cornerstones of the organizational transformation because they:
- Are the support tools for accomplishing new organizational planning, communication and performance-monitoring
activities
- Are drivers of organizational change through increased communication and access to information and modern
technologies

The SRD's IT requirements need to be clearly determined, however it is again emphasized that strengthened and
expanded application of information technology through SRD is required to support the transition processes:
- A statement of IT standards with respect to hardware, data communications, and database structure needs to
continue to be developed
- IT infrastructure is required
- Procurement, customization and implementation of priority applications is required to support core processes

The Department should develop or procure and implement a document management system
RECOMMENDATIONS
ROAD NETWORK MANAGEMENT
SRD should be responsible for influencing the quality and efficiency of the road network through planning, promotion of
the use of appropriate design and operational standards, policy direction, and performance monitoring roles

The executive management of SRD and each of the related agencies (i.e. MoTT and Ministry of Construction) should
form a Management Committee which would meet regularly to develop implementation programs based on the sector
plan and to monitor achievement of performance targets. This committee, which would include the members of the
established Managing Council plus representatives of stakeholder groups and concerned government ministries, would
meet to review and advise on high-level policies and work programs to ensure broad input to the decision-making
process.

SRD should also be responsible for ensuring that the planning, design, construction, maintenance and operation of the
road infrastructure is carried out in accordance with the standards it adopts and publishes and that these standards and
procedures are designed to achieve efficiency, affordable quality and cost effectiveness. These functions should be
carried out in a way that:
Takes into account national and international benchmarks and international best practice
Promotes the safe transport of persons and goods
Promotes environmentally sound practices
Encourages efficiency and competition in the construction and maintenance of road infrastructure

The SRD needs to establish its capabilities in being able to provide accepted and sound direction for the road sector in
relation to both construction and maintenance, and improve its ability to sustain arm's length yet value-adding
relationships and liaison with implementing agencies
RECOMMENDATIONS
FUNDING
As SRD becomes stronger and sector agencies acknowledge its role as a planning and performance coordinating
agency, it is appropriate for funding to be coordinated and distributed through SRD and linked to specific performance
targets

Road sector funds should flow through one overall coordinating agency the SRD regardless of funding sources. This
arrangement must be in accord with the proposed Road Law.

Currently, there is a poor connection between funding and actual performance accountability. This connection needs to
be improved in the longer-term
- Funds are generally provided based on previous funding levels, agencies reporting arrangements are delineated
based on funding sources, and there is a poor correlation between funding and performance/efficiency targets
- It will be difficult for SRD to fully influence the performance and execution of activities without the support of
performance targets tied to the release of funds

The Government needs to stabilize SRD budget and allocate the funds requested to control the network deterioration,
reverse decay, and prevent the loss of the vast investment in the road network (about US$13 billion)
RECOMMENDATIONS
IMPACT ON STAFF
The SRD employs a significant staff and any changes in functions/activities need to take into account measures to
mitigate the effects of improved efficiency on the broader workforce and community

The impact of improvements on staff is a common issue during any reform/change process. A number of mitigating
options may be considered, such as:
- Benchmark efficient costs in performance agreements. Identify payments/funding for any costs over and above
these cost levels as a community service payments
- Undertake re-training programs to assist staff currently employed by SRD to be better utilized

One of the best ways to mitigate impact is to have well defined plans with timetables and to keep the staff informed
during the entire process.

SRD staff salaries should be adjusted to be in line with similar salaries in the private sector. Doing this may be more
possible when the SRD is reconstituted as an independent entity under the proposed new Road Law.
RECOMMENDATIONS
STRATEGIC MANAGEMENT PRACTICES
As SRD moves away from a traditional organization and becomes a public company, its functions and roles should
fundamentally shift from being administrators to being strategic managers

The challenge for SRD is to adopt management practices and skills that better equip it for becoming more strategic
managers of the road network, despite less direct control over resources

Key strategic management functions that the SRD needs to undertake include:

1. Strategic Planning
Strengthen planning to provide medium- and long-term programs and plans that respond to actual needs and
are in accordance with realistic revenue expectations

2. Stakeholder Relations
Improve interagency liaison, coordination and cooperation

3. Information Management
Improve information systems that are the basis for improved planning, management and accountability

4. Customer Focus
Better understand customers and their needs and improve accountability to customers

RECOMMENDATIONS
CAPABILITY STRENGTHENING
Effective and efficient road sector management rests on the foundation of a well-trained cadre
Figure III-3 diagrams this concept.

FigureIII-3: Building Road Sector Management Capability

Road
System
Structure
Foundation
Effective and Efficient
Implementation of State Management
Responsibilities (in Decrees 07/CP & Regulation 3525)
Effective and Efficient
Implementation of State Management
Responsibilities
ROAD
INFRA-
STRUCTURE
Well-trained cadre in management and technical areas
Well-trained cadre in management and technical areas
ROAD
TRANSPORT
ROAD
SAFETY
Road Sector
Performance
RECOMMENDATIONS
Key capabilities need to be strengthened to reflect SRD's changing role, Figure III-4 presents the principle
Competencies for effective management.

Figure III-4: Work Competencies for Management

Information
Technology
Interpersonal
Skills
Executive
Middle
Management
Experts in Road Sector
(Infrastructure, Transport
and Safety)
Technical Management
Work Process Competencies
Generic
Organizational
Skills
English
Project
Management
Construction
Management
RECOMMENDATIONS
TRAINING PLAN

A Road Sector Management Training Plan should be prepared as part of the broader improvement of SRD institutional
modernization

A training needs assessment should be completed and a training program should be developed
- Should be the subject of a separate technical assistance
- Training plan should be designed to improve the technical, professional and management capacities for the SRD
staff at all levels of the organization
- Plan should include the following components: performance measure, certification and salary recognition upon
successful completion
- Program should also include exchange with road agencies from foreign countries, study trips and external
(including abroad) specialization.

The plan should address all levels of SRD road sector personnel: Executives, Middle Managers, Experts and
Administrative Support Staff. The plan should include training in appropriate subjects identified during the training needs
assessment and should include the following:
- Basic computer operations
- Use of word processing, spread sheet, basic presentation and basic database
- Project and construction management
- Procurement and contract preparation
- AutoCad operation
- General Management and office administration
- Overseas training
- Study tours
- Exchange with other professional institutions
- English for business
RECOMMENDATIONS
ORGANIZATIONAL CHANGE
Based on the analysis carried out, the conclusions, discussions with SRD and best practices, the following changes to
the current organization are recommended
- Delete the position of Assistant Director
- Under the Directors Office (and under the management of the Deputy Director), create the Public Relations and
Training sections
- Separate the construction function and the maintenance function by creating a Department of Construction and two
Departments of Maintenance, one for Main and Regional Roads, one for Motorways
- Establish the Department of Maintenance & Management of Main & Regional Roads. Under this department,
establish sections for (Road) Maintenance Procurement & Contracts, (Road) Maintenance Control and Supervision,
and Road Maintenance in the three regional centers
- Combine the Toll Collection Department with the Highway Department to create the Department of Maintenance &
Management of Motorways. Under this department, establish sections for Toll Collection, Motorway (Maintenance)
Procurement & Contracts, Motorway Maintenance Control and Supervision, and Motorway Maintenance in the three
regional centers.
- Establish the Department of Construction to help plan and to supervise and control construction works on all roads
and motorways. Under this department, establish sections for Construction Procurement & Contracts, Structures
(with a sub section each for Bridges and Tunnels), and Construction Control & Supervision.
- Restructure the present Information and Documentation Center into the Department of Integrated Information
System. Under the department, establish sections for Network Administration, Database Management, and
Software Development.
- Expand the existing Department of Planning and Development. Under the department, establish sections for
Design Procurement & Contracts, Technical Standards & Research, Planning & Programming, Studies & Cost
Estimation, Design, Road Safety, Environmental Analysis, and Design Control & Supervision.
- Establish a joint section for Data Collection Coordination & Execution. The section will be composed of staff from
both the Information Department and the Planning Department. It will coordinate the requirements, timing and
performance of road data collection. The section will be nominally under the management of the Information
Department.
- Restructure the Department of General and Legal Work to establish the Department of Administration and Legal
Affairs. Under the department, establish of restructure sections for Human Resources, Contract Development &
Review, Land Acquisition, and Litigation & Conflict Resolution.
RECOMMENDATIONS
- Restructure the Department of Financial, Economic and Commercial Affairs. Under the department, add a section
for Permits and restructure the sections for Budget Preparation & Monitoring and Accounting, Finance & Auditing.

The revised SRD organization functional scheme is illustrated in the next page. SRD and Booz Allen worked together on
developing the revised functional scheme shown below. SRD is continuing to develop its proposal for the complete
functional scheme. The scheme below represents the most current thinking at the time of publication.
RECOMMENDATIONS

SRD Revised Functional Scheme
Managing Council
Directors
Office
Directors
Advisors
Department of
Maintenance &
Management of
Main and
Regional
Department of
Maintenance &
Management of
Motorways
Department of
Construction
Department of
Integrated
Information
System
Department of
Planning &
Design
Department of
Financial &
Commercial
Affairs
Expert Advisory
Board
Director
Deputy Director
Department of
Administration
& Legal Affairs
Public Relations
Maintenance
Procurement
Coordination
Training
Maintenance
Control &
Supervision
Road
Maintenance
North
Toll Collection Construction
Procurement
Coordination
Structures
Construction
Control &
Supervision
Planning &
Programming
Design Control &
Supervision
Data Collection
Coordination &
Execution
Accounting,
Finance &
Auditing
Road
Maintenance
Central
Road
Maintenance
South
Motorway
Procurement
Coordination
Motorway Mtce
Control &
Supervision
Motorway
Maintenance
North
Motorway
Maintenance
Central
Motorway
Maintenance
South
Bridges
Tunnels
Network
Administration
Database
Management
Document
Management
Software
Development
Permits
Technical
Standards &
Research
Design
Road Safety
Environmental
Analysis
Human Resources
Contract
Development &
Review
Land Acquisition
Litigation &
Conflict Resolution
Budget
Preparation &
Monitoring
Design
Procurement
Coordination
Studies & Cost
Estimation
RECOMMENDATIONS
IMPLEMENTING THE RECOMMENDATIONS
The SRD should establish a task force or working group to drive the implementation of the recommendations and the
pace of reform

Lessons from organizations already transitioning away from 'traditional' road sector management, as outlined in Chapter
II Best Practices, show that the change and reform process needs to be lead and driven by champions

A working group or task force comprise of leaders from the SRD and key transport sector agencies supported by current
and planned technical assistance could fulfill this role of champions

One of the primary purposes of the task force is to continue the discussion and motivation for modernizing SRD and to
prepare an action plan for the following:
- Implementing the short-term organizational structural changes and adoption of the recommended strategic
management practices into day-to-day activities, based on a detailed road network management process analysis
- Design and implementation of a Training Plan
- Application of performance management to monitor and evaluate progress and take corrective actions
RECOMMENDATIONS

Table III-4: Summary of Recommended Improvements
ISSUE BEST PRACTICE RECOMMENDED IMPROVEMENT
Organizational Improvements
The current organization is not fully
responding to present and expected
future demands
Conducting periodic reviews of the
adequacy of the organization to respond
to demands and implementation of
needed reforms
Adopt the organization structure proposed in the previous
section with the understanding that this new organization will
have a strong focus on managing SRD responsibilities and
functions, and that the actual duties will be carried by
contracting with the private sector
SRD staff salaries are 2-3 times lower
than the salaries paid by the private
sector for similar work. This situation
makes it difficult to attract and retain
quality and qualified staff but SRD is
restricted in its salary decisions by
regulations limiting government worker
compensation.
Establishing compensation packages that
allow the organization to attract and select
qualified staff are consider a key part of
the labor investment
As part of adopting the proposed organization structure and
while awaiting the approval of the new Road Law, prepare a
new salary schedule that will be compatible with similar
positions in the private sector, and, if necessary, develop and
implement compensation packages program (education,
social benefits)
Lack of a formal Training Program Developing well defined training plans to
offer continuous skills updating to the staff
in a variety of subjects
Conduct a training needs assessment to formulate a realistic
training plan to improve the skills of the staff at all levels
Lack of regular monitoring and
evaluation function
Recognizing monitoring and evaluating as
a key function to ensure the reaching
objectives
Make sure that monitoring and evaluation are part of the new
organization structure. Be careful not to confuse monitoring
and evaluation with supervision
Inter-agency coordination is not
adequate
Maintaining constant and active dialog
with the road related agencies
Prepare a plan, schedule and master agenda of topics and
issues to discuss with the road related agencies
A public relations and marketing
function is not formally defined
Maintaining the public, stakeholders and
the road users in general, informed about
road developments
Include the public relations function as a way to keep all users
informed about road development that might have an impact
on them and, through marketing activities, provide support for
plans and programs
The consulting industry is weak Using strong consultants and contractors
as the implementers of road development
projects
Prepare a plan to strengthen the consulting and construction
industries. Plan should include technical assistance,
classifications, registrations, and the establishment of
professional associations
Road users are not engaged Considering road users as part of the
road decision making process
Make sure that road users are included in the decision making
process

RECOMMENDATIONS
Table III-4: Summary of Recommended Improvements (Continued)
ISSUE BEST PRACTICE RECOMMENDED IMPROVEMENT
Financial Improvements
Budgets are not focused enough on
fulfilling goals and objectives
Calculating budgets to fulfill needs
defined as a function of goals and
objectives
Implement the practice of performance budgeting to
calculate SRD budgets to allow rational justifications of
funds requested as well as adjustments
Planning and Strategic Improvements
An updated road master plan does
not exist
Establishing a road master plan to
provide for the rational direction for the
development, operation and
maintenance of the road infrastructure
Prepare and update a road master plan with a horizon of at
least 20 years into the future. Plan should take into account
the country development objectives and activities must be in
accord with the new Road Law
Lack of clear medium and long-term
strategies for identifying and
allocating investment funds
Establishing medium- and long-term
strategies as important management
tools to achieve road development
objectives
Spend the necessary resources to improve short-term (1-2
years), and develop medium- (3-5 years) and long-term
(over 5 years) strategies to fulfill the goals and objectives
established for SRD
Technical Improvements
The following important functions are
missing or not fully developed:
- Quality control
- Environmental considerations
- Value engineering
- Document management
- Road management systems:
maintenance, pavement
information, and bridge
- Traffic and safety management
system (and statistics)
- Executive information
management system
Effective road agencies have the
following functions:
- Quality control
- Value engineering
- Road management systems:
maintenance, pavement information,
and bridge
- Traffic and safety management
system (and statistics)
- Executive information management
system
Ensure the new organization will have the following
functions:
- Quality control
- Value engineering
- Road management systems: maintenance, pavement
information, and bridge
- Traffic and safety management system (and statistics)
- Executive information management system

CHAPTER IV

ROAD FINANCING

Technical Assistance to Serbia Road Directorate Phase 1 Report IV-1 Booz Allen Hamilton

I. INTRODUCTION IV-3
II. STRUCTURE OF ROAD USER CHARGES IN SERBIA IV-7
III. REVENUES FROM ROAD TAXES AND USER CHARGES IV-11
IV. SERBIA ROADS DIRECTORATE 2003 FINANCIAL PLAN IV-24
V. ROAD MAINTENANCE EXPENDITURES IV-27
VI. DRAFT LAW ON PUBLIC ROADS IV-38
VII. CONCLUSIONS AND RECOMMENDATIONS IV-40


I. INTRODUCTION

INTRODUCTION

Chapter IV examines the current situation and future state of road financing in Serbia. It reviews several important aspects of how
Serbias roads are financed and managed, including: (i) the structure of road user charges in Serbia; (ii); the type and level of road
taxes and user charges; (iv) the revenue and sources of road finance, administration and maintenance; (v) the current expenditures
and future annual investment requirements for road maintenance; and (vi) the governance of the roads sector. The chapter ends
with a section on conclusions and recommendations. This introductory section examines the policies and principles of road
financing.

POLICIES AND PRINCIPLES OF ROAD FINANCING

The basic principle for pricing road use is full cost recovery for pavement damage caused by road vehicle use. Such costs typically
represent the cost of road administration and road maintenance. Implementing this principle requires a strategy to bring road user
charges more in line with cost of road use by different vehicle types (cars, buses and trucks, etc.) and uses. Efforts to achieve this
in the Serbian context has meant, inter alia, imposing a fuel excise tax on petroleum products i.e., petrol and diesel fuels;
establishing a toll collection system on motorways, and collecting annual fees for vehicle registrations, licenses, etc.

In a number of countries, a system of earmarking user charges to cover the costs of road administration and road maintenance has
been introduced through road funds, road boards, and road authorities.
1
Although the responsibility for setting road pricing policies
varies, in a number of countries, these institutional structures generally have overall financial, operational and management
autonomy to manage the road network. In these countries, the guiding pricing policies are

Users should pay their proportional share of the cost of operation and maintenance of the road network
User charges collected should equal the cost of constructing and maintaining road projects that are economically
justified.

1
Although many countries have since followed their lead, early pioneers of the concept of earmarking and dedicating road taxes to special trust funds for the purpose of maintaining the road network
include New Zealand, Japan, and the United States. New Zealand established its road fund in 1953. Japan also introduced a special system for funding roads in 1953. This was followed by the
United States, which established the Highway Trust Fund in 1956. In the United States trust fund revenues are derived from such user taxes as fuel taxes on gasoline (petrol), a graduated tax on
tires of 40 lbs or more, retail trucks and buses, taxes on heavy vehicles, etc.
INTRODUCTION

Financing and managing the road network typically occur through:

General revenues i.e., a line item in the national budget, which we refer to as the Budget Line model; or
Road user charges or as we prefer, the Road Fund model

In many cases, these sources of financing alone are insufficient to manage and finance the road network and keep pace with traffic
growth and road surface deterioration. Recognition of this in several countries, including Serbia, has led to government policies
that promote private provision, operation and maintenance of the road network. Current evidence suggests that private participation
in road infrastructure through arrangements such as performance specified maintenance contracts, design-build-finance-operate
(DBFO) and build-operate-transfer (BOT) among others, offers efficiencies and savings that can help relieve some of the financing
burden the road network.

2
BUDGET LINE MODEL
Under the budget line model the road sector is financed from general revenues regardless of their source. The budget line model
compels the road sector to compete with health, education, national defense and other sectors of the economy for a share of the
national budget. In the budget line model the road sector is treated as a public good, and thus tends to be subject to more political
interference by the government, by constituent lobbying, etc. than other approaches. The budget line model is the approach used
to finance the roads sector in Serbia.

ROAD USER CHARGES MODEL
The road user charges model seeks to capture the costs of road use through earmarking road use taxes to a dedicated road fund.
This model relies on the road taxation system using both direct and indirect road taxes on road users. . Direct charging for road
use amounts to charging a user fee, such as tolls, for the actual time and/or distance a vehicle travel on a section of the road
network. On the other hand, indirect charging for road services is often done through fees on proxy transactions (such as fuel
taxes, vehicle licenses and other fees).

2
The budget line model tends to be the preferred approach of the International Monetary Fund and, very often, the preferred model of the Ministry of Finance in most
countries. This is because it provides better control over public expenditures and allows the flexibility to allocate tax revenues across the national budget as warranted.
INTRODUCTION

To maximize net economic benefits, road user charges should be set equal to the cost of the resources consumed when using the
road network. There are two costs to be considered, fixed and variable. Fixed costs are costs that are independent of the road
utilization (traffic), while variable costs are a function of the road utilization and loading.

Reverting to the road pricing principle of cost recovery discussed above, the present system of road financing in Serbia appears to
obscure the distinction of who benefits from road funding and who should pay. This is especially evident when one looks at toll
rates. The current road financing system also impacts the ability of mandated public agencies to charge road users for the benefit
they receive. Moreover, it overlooks the willingness to pay for certain levels of service or road types.


II. STRUCTURE OF ROAD USER CHARGES IN SERBIA

STRUCTURE OF ROAD USER CHARGES IN SERBIA

As in the case of most countries, charges for road use in Serbia are applied as both direct and indirect road use taxes. Table IV- 1
provides a detailed description of the structure of road taxes and user charges in Serbia.

Table IV-1: Road Taxes and User Charges in Serbia
Ratio of Earmarked Revenues (%)
Fee or Tax Basis Legal Basis Serbia Road
Republic
Local Budget
Directorate
Budget
Excise Tax on Fuel
1)

2)
- petrol YUM 20.65 Per liter
- Law on Budget 100 0 0
- diesel
YUM 11.47 Per liter
Road Toll - distance traveled
- vehicle category
- road toll ratio by
categories
1: 1.5 : 3 : 6
- road toll / km:
l3)
- Roads Law 0 0 100
4)
- Rulebook on road toll
5)
- Decision on road toll
6)
- Road toll pricelist
- domestic 0.88 - 5.28 YUM/km
- foreign 3.51 - 21.06 YUM/km
Annual Vehicle Registration Fees
Per vehicle per year
3)
- Roads Law
7)

- motorcycles
Engine cubic capacity:
min. YUM 30 (up to 125 cm
3
)
max. YUM 200 (over 1,000 cm
3
)
- Law on local self-government 0 100 0
8)
- Ordinance on registration
- cars Engine cubic capacity
3
) min. YUM 120 (up to 900 cm
max. YUM 3,200 (over 3,150 cm
3
)
- buses, vans Per registered seat: YUM 50
- trucks
- up to 3 tons Per ton: YUM 400
- over 3 up to 8t Basic fee YUM 1,200 for each ton
over 3 up to 8 t YUM 400
e.g. for 6 t truck - YUM 2,400
over 8 up to 10 t YUM 450 e.g. for 9t truck
- YUM 3,850

" " " "
- over 10 t Basic fee YUM 4,300 for each ton over 10t
YUM 650 e.g. for 12t truck YUM 5,600
- trailers /
semi-trailers

- up to 3 tons Per ton YUM 300

Ratio of Earmarked Revenues (%)
Fee or Tax Basis Legal Basis Serbia Road
Republic
Local Budget
Directorate
Budget
- over 3 up to 8t Basic fee YUM 750 for each ton
- over 10 t Basic fee YUM 3,500 for each ton over 10t
YUM 450
Engine output:
- tractors min. YUM 30 (up to 18 kv)
max. YUM 100 (over 46 kv)
min. YUM 1,400 (up to 66 kv)
- truck-trailers max. YUM 3,700 (over 177 kv)
Annual Motor Vehicle Use Tax Per vehicle, annually
- Law on duties for using, holding and
carrying goods
100 0 0 - passenger cars and vans Engine cubic capacity
9) 3
) min. YUM 600 (up to 1,150 cm
max. YUM 30,000 (over 3,000 cm
3
)
- motorcycles

Engine cubic capacity
min. YUM 600 (do 125 cm
3
)
max. YUM 15.000 (over 1,100 cm
3
)

" " " "
Tax reduction at 5% each year vehicle's
age; total reduction may not exceed 40%
Foreign Vehicles
Transit Fee

3)
- Roads Law
- freight motor vehicle, freight
trailer and semi-trailer
0.003 USD / gross ton-km
- Decision on road fees for foreign 0 0 100
vehicles
10)
- buses (less than 30 seats) 0.032 USD / km
- buses (more than 30 seats) 0.041 USD / km
3)
Extraordinary Transport Charges amounts specified in the Decision (for over-
dimensions, excess gross weight and axle
overload)
- Roads Law
- Decision on fees for
extra transport
0 0 100
11)
Source: Serbia Roads Directorate, December 2003
Notes:
1) From the Structure of retail prices for engine petrol and diesel fuel, dated 22 Feb. 2003
2) Law on Budget of the Republic of Serbia ("Off. Gazette of the Republic of Serbia" No. 86/2002)
3) Law on Roads ("Off. Gazette of the Republic of Serbia" Nos. 46/91, 52/91, 53/93, 67/93, 48/94, 42/98)
4) Rulebook on collection of special fee (road toll) for using motorways and semi-motorways in the Republic of Serbia ("Off. Gazette of the Republic of Serbia" No. 50/99 dated 25 Nov. 1999)
5) Decision on the amount of special fees for using road, its section or structure ("Off. Gazette of the Republic of Serbia" No. 28/03 dated 21 March 2003)
6) Road toll pricelist dated 21 March 2003
7) Law on local self-government ("Off. Gazette of the Republic of Serbia" No. 9/2002)
8) Ordinance on the amount of fees for road motor vehicles, tractors and drawn vehicles ("Off. Gazette of the Republic of Serbia" Nos. 8/2000, 9/2002, 91/2002)
9) Law on duties for using, holding and carrying goods ("Off. Gazette of the Republic of Serbia" Nos. 26/2001, 80/2002)
10) Decision on road fees for foreign vehicles using roads in FR Yugoslavia ("Off. Journal of FRY " Nos. 4/98 and 7/98)

As Table IV-1 above reveals Serbia earmarks revenue from user charges revenues to the road sector that are derived from road
tolls, transit fees on foreign vehicles and transport charges resulting from excess gross vehicle weight limits. Of the three user
charges being earmarked 100 percent of the revenues goes to SRD.

11) Decision on fees for extra transport on arterial and regional roads in the Republic of Serbia ("Off. Gazette of the Republic of Serbia" No. 56/03 dated 30 May 2003)
12) Aside from those mentioned, road users also pay sales tax on: engine petrol and diesel fuel, vehicle, tires, spare parts, etc. (revenues to the Republic budget).
13) Revenues to the Road Directorate of the Republic of Serbia are also fees collectable according to "Rulebook on the amount of fees for access and connection to arterial and regional
roads, for construction of amenities and development of land pertaining to the road" ("Off. Gazette of the Republic of Serbia, No. 50/99). These fees are for: placement of billboard on the
right-of-way; lease over some portions of land in the right-of-way and other land pertaining to a public road use of agricultural or other land pertaining to a public road placement of
installations on the road construction and use of commercial amenities accessible from the road.


III. REVENUES FROM ROAD TAXES AND USER CHARGES

SERBIA ROAD DIRECTORATES 2003 FINANCIAL PLAN

Table IV -2 shows the amount of revenue the Government of Serbia derived from various categories of road taxes and user
charges over the past four years.

Table IV-2: Revenues from Road Taxes and User Charges
2000 2001 2002 2003
REVENUE SOURCE FORECAST ACTUAL FORECAST ACTUAL FORECAST ACTUAL FORECAST
YUM
million
USD
million
YUM
million
USD
million
YUM
million
USD
million
YUM
million
USD
million
YUM
million
USD
million
YUM
million
USD
million
YUM USD
million Million
Retail Fuel Price
1)
1,119.0 34.4 1,015.1 31.2 21.0 0.3 27.8 0.4 / / / / / /
Road Budget Revenues
2)
/ / 42.5 1.3 2,470.0 37.4 2,095.7 31.8 6,500.0 100,0 5.083,0 78,2 8.000,0 141,6
Road Tolls 859.6 24.7 885.5 24.9 1,505.5 22.8 1,639.5 24.8 3,210.0 49.4 2,608.8 40.1 4,508.0 79.8
391.0 12.0 389.8 12.0 533.5 8.1 671.2 10.2 1,990.0 30.6 1,371.9 21.1 2,164.0 38.3 Domestic
468,6 12.7 495.7 12.9 972.0 14.7 968.3 14.6 1,220.0 18.8 1,236.9 19.0 2,344.0 41.5 Foreign
3)
Vehicles Registrations
330.4 10.2 380.5 11.7 348.7 5.3 325.5 4.9 90.0 1.4 94.6 1.5 / /
Motor Vehicle Use Tax
Foreign Transit Vehicles 87.1 2.7 100.3 3.1 375.8 5.7 406.1 6.2 460.0 7.1 630.7 9.7 645.0 11.4
Extra Transport Charges 2.0 0.1 7.1 0.2 6.3 0.1 8.1 0.1 10.0 0.2 16.8 0.3 22.0 0.4
TOTAL REVENUE: 72.4 68.2 129.8 233.2
Source: Serbia Roads Directorate, December 2003

Notes:
1) Abolished on 1 April 2001, when it amounted to 2.13 YUM/liter for petrol and 0.09 YUM/liter for diesel fuel. The fee was established in 1962 and existed for 30 years until 1992, when
roads started being financed from the budget. It had a maximum share in retail price of petrol and diesel fuel in 1991 - 36%. Having in mind effects of investments in roads, the
Government of the Republic of Serbia directed a portion of retail prices of petrol and fuel, by special ordinances, in the following way: (i) 0.50 YUM/lit of petrol and diesel - in December
1996 this amount was reduced in November 1997 to 0.38 YUM/lit of petrol and 0.09 YUM/liter of diesel; (ii) 0.25 YUM/liter of petrol - May 1998; and (iii 1.50 YUM/liter of petrol - May 2000.
These ordinances were abolished by changes in laws on taxes since 1 April 2001, whereas road fees from retail price of oil derivatives were transformed into unique sales tax. A portion of
funds for roads is earmarked from the budget again.
2) Revenues from the road budget: (i) in 2000, funds from budget reserves for natural disasters and (ii) since 2001, amounts planned in the Law on budget and realization thereof
3) Road fee payable at annual vehicle registration: The table presents amounts for arterial and regional roads (for the Road Directorate of the Republic of Serbia). From 18 March 2000 - 6
March 2002, this fee was being paid for arterial and regional roads (56%) and for local roads (46%). Since 6 March 2002,


Figure IV-1 presents the total revenues from road use in recent years. As illustrated in the waterfall diagram in Figure IV-2 the two
most important sources of road financing in Serbia are

Road budget revenues
Road tolls

During the past three years (2000 to 2003), revenues from these two sources accounted for more than the total revenues
generated from road uses taxes. Data for year 2003 were the estimated budget request by SRD and did not reflect actual
revenues.

Figure IV-2: Waterfall of Road User Charges Revenue
Total Revenues (USD Millions)
70.3
233.2
129.8
68.2
125.9
72.4
0
50
100
150
200
250
2000 2001 2002 2003 Avg 2000-
2003
Avg 2000-
2001
T
o
t
a
l

U
S
D

M
i
l
l
i
o
n
s
Figure IV-1: Total Revenues from Road Use
Average Revenues from Road Taxes and
Users Charges in 2000 and 2001 (USD Millions)
0
0
70.3
0.15
4.65
8.3
24.85
16.55
15.8
0
10
20
30
40
50
60
70
80
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EXCISE TAXES ON FUELS
Until 2001, when the practice was abolished, excise taxes on fuels were the largest source of funds for road administration and
maintenance in Serbia. In year 2000, excise taxes on fuels alone accounted for some 43.1 percent of the revenues from road
taxes and user charges.

Unlike in some other countries where excise taxes are charged on all petroleum products (e.g., oil, lubricants, kerosene, etc.),
Serbia applies excise taxes to only petrol and diesel fuels. Table IV-3 shows the retail price structure and the excise tax rate for
fuels in Serbia. Excise taxes account for approximately 43 percent of the retail price of petrol and 30 percent of the retail price of
diesel fuel. According to SRDs 2003 Financial Plan, Serbia consumes about 2 billion liters of petrol and diesel fuel per year. This
consumption is split about evenly between petrol and diesel fuel. Taking into account both excise and other taxes on petrol and
diesel fuels, estimated tax revenues collected in 2003 amounted to EUR 807.04 million. A significant portion of these tax revenues
could be used to finance road maintenance in accordance with the Draft Law on Public Roads. This could have a significant impact
by:

Reducing the road maintenance backlog
Providing a stable and reliable source of road financing
Placing the road network administration and maintenance on a sustainable path.

Table IV-3: Structure of Retail Fuel Prices in Serbia
(in YUM/liter)

y of Finance, Government of Se December 2003 Source: Ministr rbia,
PETROL
/ DIESEL
FUEL
REFINERY
PRICE
EXCISE
TAX
TAX 20% PURCHASE
PRICE
MARGIN RETAIL
PRICE
MB-86 14.51 20.65 7.03 42.19 2.81 45.00
MB-95 16.92 20.65 7.51 45.08 2.92 48.00
MB-98 20.27 20.65 8.18 49.10 3.10 52.20
BMB-95 16.77 20.65 7.48 44.90 3.10 48.00
D-1 18.47 11.47 5.99 35.93 2.37 38.30
D-2 18.19 11.47 5.93 35.59 3.11 38.70
EURO D 21.73 11.47 6.64 39.84 3.16 43.00

Earmarking fuel excise taxes to financed road maintenance and administration is a common practice in many countries around the
world and is widely considered a best practice in road financing policy. As the figure below reveals Serbia charges a higher excise
tax per liter on petrol (YUM 20.65/65.8 = 0.31 per liter) than the average charged for diesel fuels (YUM 11.47/65.8 = 0.17 per
liter). Serbias excise tax rate for diesel fuel is above the average rate of neighboring countries by 0.05 per liter. Correspondingly,
Serbias excise tax rate on petrol, on the other hand is higher than the average rate of neighboring countries by 0.19 per liter.

Figure IV-3: Excise Taxes on Fuel Fuels in South East Europe

0.11
0.31
0.16
0.17
0.15
0.20
0.12
0.09
0.17
0.16
0.12
0.10
0.13
0.12
0.00
0.10
0.20
0.30
0.40
0.50
0.60
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Petrol Diesel

Section II, Article 16, (1) of the proposed Draft Law on Public Roads provides for a minimum 25 percent of the retail price of oil
derivatives for public road development and maintenance. Revenues derived from these taxes would be dedicated to a new road
institution for operations and maintenance. The exact derivation and basis of the proposed 25 percent excise tax is difficult to
determine. SRD submitted a request for 19 percent of the retail price of fuels in 2002. For some 30 years prior to 1992, the
allocation of tax revenues derived from the retail price of oil derivatives for the road sector had reached as high as 36 percent.
Presented below is Booz Allens analysis of the cost of road maintenance and operation costs to determine the adequacy of the
revenues from a 25 percent share of the retail price of oil derivatives.

ESTIMATED FUEL TAX REVENUES TO FINANCE ROAD MAINTENANCE AND ADMINISTRATION

Booz Allen conducted a high level analysis to establish a range for the approximate percentage of the total annual fuel excise taxes
collected in Serbia that should be allocated to roads, using 2003 as a base year. The analysis was prepared with a view towards
fully covering three basic costs: road maintenance, SRD administration, and debt service. The following assumptions were used in
the analysis.

Financing Needs Assumptions

Annual cost of road maintenance (including bridges) ranges between EUR 135 to 160 million (assuming conditions
existing in 2003)
Annual SRD administration costs remain constant at EUR 12.65 million (as of 2003)
Annual debt service remains constant at EUR 77.6 million (as of 2003)
Total SRD annual financing needs are between EUR 225 and 250 million (2003)

Revenue Assumptions

Toll income is EUR 70.7 million (as of 2003)
Vehicle fleet distribution (as per vehicle type) remains as described in the Jenkins report of 2001
Total vehicle fleet in 2000 was 1,590,000 and grew in line with GDP with an elasticity factor of 0.6 (that is, grew at
60% of GDP growth), for a total of 1,702,072 vehicles in 2003
Fuel consumption in 2003 is 2.5 billion liters split 50% each between petrol and diesel

Fuel excise tax per liter of gasoline is EUR 0.135 and for diesel EUR 0.19
Other tax at 20% per liter of petrol and diesel fuels of the refinery price plus the excise tax: EUR 0.03 and EUR 0.04
Exchange rate 71.4 YUM/Euro

Using the World Banks Road User Charges (RUC) model, and adapting the model to the information available for Serbia, the total
fuel excise tax collected in 2003 was estimated at EUR 807.04 million. The kilometers driven per year and fuel consumption values
used in the calculation were the default values found in the RUC model for each vehicle type in the Serbian fleet.

ESTIMATED FUEL TAX LEVIES IN 2003 (in EURO)
Fuel Excise Tax Revenues Other Tax Revenue Total Revenue
Petrol 362,840,877 133,890,919 496,731,796
Diesel 201,539,218 108,764,408 310,303,627
Total 564,380,096 242,655,328 807,035,423
Source: Booz Allen Analysis, April 2004
Table IV- 4: Estimated Annual Fuel Tax Revenues in 2003

Under the above assumptions, our analysis indicates the percentage of the total annual fuel excise tax revenues collected and
allocated to roads sector should be between 24.59% and 29.0%. If the Government of Serbia allocated both excise taxes and
other taxes on fuels to the road sector, the share of revenues required to fund operations and maintenance should be between
17.2% and 20.3%. This range is in line with SRD 2002 budget request through the national budget. Booz Allen estimated this
figure based upon debt service requirements for 2003 and should be taken with caution because SRD debt service will likely
change in future years. Table IV-5 below illustrates this analysis.

Table IV- 5: Annual Fuel Tax Revenues Needed to Finance Road Maintenance

TOTAL ANNUAL AGENCY COSTS (EURO Million)
Cost Item Low High
Maintenance 135.10 160.13
Administration (2003) 12.65 12.65
Debt Service (2003) 77.60 77.60
Total 225.35 250.38

REVENUE Excise
Revenue Low High
Toll income (2003) 86.59 86.59
Surplus (Shortfall) (138.76) (163.79)

Excise Taxes Excise + Other tax
Low High Low High
Total fuel levy collected in 2003* 564.38 564.38 807.04 807.04
Percentage required to meet shortfall 24.59% 29.02% 17.19% 20.30%
Source: Booz Allen Analysis, April 2004

The relevant ministries (Ministry of Finance and Economy (MOFE) and the Ministry of Transport and Telecommunications (MOTT)
of the Government of Serbia appear not to arrive at a consensus as the road financing policies and level of funding as specified in
the Draft Law on Public Roads. During the field investigation discussions with senior Serbian officials in the (MOFE and the MOTT)
revealed divergent views as to (a) the proposed article dedicating user charges and (b) the level of excise tax on fuels for road
maintenance and development. The views expressed by MOFE were:


Section II, Article 16, (1) that proposes a minimum 25 percent of the retail prices of oil derivatives for public road
development and maintenance has not been substantiated by either MOTT or MOFE.
The fiscal impact of adopting Section II, Article 16, (1) is not known nor has it been validated by MOFE to determine its
impact on public expenditures and revenues.

The alternative proposed by MOFE to dedicating 25 percent of the retail of oil derivatives petroleum products to finance the road
sector is to use a combination of revenues from the proposed value added tax and excise tax revenues from fuels. Using Value
Added Tax (VAT) revenues to finance road administration and maintenance does not assure a stable source of funds because
such revenues are derived from general consumption tax. And as such would flow through the general budget where other
government priorities might prevail. Similarly, without an explicit acknowledgement of the need to dedicate excise taxes on fuels to
finance the roads sector, Serbias budget line approach is likely to continue. Nonetheless, MOFE officials expressed agreement
with the general road financing principle of full cost recovery. In line with this Booz Allen conducted an analysis of the required
percentage of excise tax revenues from fuels that would be required to finance the road sector. The results of our analysis indicates
that the level at which a dedicated excise tax on fuels should be set in a range between 16.5 and 19.1 percent of total fuel excise
tax collected. Although such an effort is an important aspect of public expenditure analysis, the fiscal impact of dedicating excise
taxes on petroleum products to the roads sector is beyond the scope of this study.


ROAD TOLLS
Road tolls are collected on some 600 kilometers of Serbias motorways and semi-motorways. With the exception funds allocated
from the national budget, road tolls are the largest sources of revenue for the Serbia Road Directorate. Toll rates in Serbia are
calculated on the basis of: distance traveled; vehicle category; Road toll ratio by categories; Road toll per kilometer for domestic
and foreign vehicles.

To minimize adverse socioeconomic impacts on
its domestic population Serbia should adopt a
phased approach to harmonizing its road tolls on
motorways and semi-motorways to equalize the
tolls with those of neighboring and western
European countries.

Harmonized domestic and foreign toll rates could
be achieved within a three-year timeframe in
which toll rates could be adjusted incrementally.
From a Serbian National Toll Rate Policy...
towards a Harmonized Toll Policy
Serbias toll policy for motorways and semi-
motorways set toll rates for distance traveled and
by four vehicle classes for different road users.
Toll rate adjustments to achieve equalization:
Domestic toll rates: increase by 50% in
2005 and 25% in 2006 and 2007;
Domestic tolls range from 0.015 Euro/km
for cars to 0.1Eur/km for heavy vehicles
Foreign toll rates: decrease by 12.5% in
2005, and 2006; by 25% in 2007
All motorways and semi-motorways are to be
tolled as toll rates are incrementally adjusted.
Foreign tolls range from 0.065 Euro/km
to 0.385 Euro//km heavy vehicles
Toll revenue should remain a key source for
financing road expenditures
Serbias toll revenues collected on motorways
and semi-motorways are not for the exclusive
maintenance of motorways and semi-motorways
but are allocated along with general revenues to
the entire road network.

As revealed in Figure IV-4 below Serbia lags behind neighboring countries in harmonizing its domestic and foreign toll rates with
those of Western Europe. Domestic tolls on motorways and semi-motorways are set below the rates established for the same
class of foreign vehicles.

0.051
0.042
0.127
0.049
0.081
0.066
0.077
0.065
0.164
0.674
0.099
0.039
0.154
0.011
0.239
0.138
0.182
0.078
0.172
0.261
0.010
0.013
0.018 0.019
0.030
0.3079
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Serbia
(Domestic)
Serbia
(Foreign)
Croatia Hungary Macedonia Bulgaria Slovenia Greece
Figure IV-4: Comparison of Road Tolls Rates by Vehicle Class
(in EURs/km)
Class I Class II Class III Class IV
Source: REBIS Study, Road User Charges Study. 2000, Booz Allen Hamilton Analysis, March 2004

From 1997 to 2003 road tolls contributed an average of 26.1 percent of the funds for road operations and maintenance.

REVENUE FROM ROAD TOLLS
Domestic and foreign tolls combined accounted for almost a third of the total revenues derived road user charges from years from
2001 to 2002.

FIGURE IV-5: DOMESTIC AND FOREIGN TOLLS, 2001 FIGURE IV- 6: DOMESTIC AND FOREIGN TOLLS, 2002
Domestic and Foreign Road Tolls as a Percentage of
Total Revenues from User Charges, 2001
64%
15%
21%
Others Road Toll Domestic Road Toll Foreign
Domestic and Foreign Road Tolls as a Percentage of
Total Revenues from User Charges, 2002
69%
16%
15%
Others Road Toll Domestic Road Toll Foreign

EQUALIZATION OF ROAD TOLLS
Different toll rates exist for domestic and foreign registered vehicles in Serbia. The road toll rate per kilometer for domestic vehicles
range from 0.88 to 5.28 YUM per kilometer, while the rate on foreign vehicle range from 3.51 to 21.06 YUM per kilometer. The rate
for foreign registered vehicles using the Serbian road network is approximately 4 times the rate for domestic vehicles.

Policy dialogue on equalizing domestic and foreign toll rates has taken place between the Government of Serbia officials, the
EBRD and representatives from other multilateral development banks during recent loan negotiations for road sector investments.

Although the Government of Serbia has expressed a desire and appears committed to revising its toll rate policy to equalize
domestic and foreign rates, this policy decision is unlikely to be implemented in 2004.

From a road pricing policy standpoint, the level of road toll rates should be a function of vehicle type, distance, etc. and not of
vehicle ownership. This is because different motor vehicle classes impose different pavement damage on the road network.
Nonetheless, Government of Serbia officials have raised two critically important issues. Serbia officials believe that potentially
adverse socioeconomic impacts on the citizenry could result from equalizing domestic and foreign toll rates. Also, equalizing toll
rates could potentially lead to toll avoidance, and thus to a decrease in toll revenues collected.
3

Additionally, to bridge the apparent policy gap between the EBRD and the Government of Serbia on equalizing toll rates, we
propose adjusting the domestic and foreign toll rates incrementally. Phasing in the toll rates to bring them in line with those of
neighboring and western European countries is likely to stimulate a positive response by the Government of Serbias officials.
Although the policy dialogue between the International Financing Institutions and the Government of Serbia on equalizing toll rate
are expected to continue, the focus should be on phasing in toll equalization rates instead of revising rates all at once. There
appears to be some preliminary interest by Serbia officials in a phased approach. This policy option offers the prospect for
reaching final agreement on this issue and should be explored. Table IV-5 presents an indicative approach to adjusting Serbias
domestic and international toll rates. EBRD may want to consider this schedule as a basis of its policy dialogues with the
Government of Serbia.

Table IV-6 below presents a schedule in which domestic and foreign road toll rates might be equalized. As the table indicates, toll
rates for different classes of domestic vehicles will be increased over a three-year period while foreign vehicles of the same class
are deceased over the same period. Adjustment factors applied to each class of domestic vehicles ranges from 1.2 to 1.5, which
represent an annual percentage increase of 20 to 50 percent. Conversely, toll rates on foreign vehicles classes were decreased
by a range of between 15 to 25 percent over three years.

Current laws require the Government of Serbia to maintain a free road parallel to a toll road.
3

(i n EUR/k m)
Vehicle Class
Domestic
RateToll
Adjustment
Factor
Adjusted
Domestic
Toll Rate
Foreign
Toll Rate
Adjustment
Factor
Adjusted
Foreign Toll
Rate
Class I 2005 0.015 1.5 0. 0225 0.065 0.875 0.057
2006 0.023 1.25 0.028 0.057 0.875 0.050
2007 0.028 1.25 0.035 0.050 0.750 0.037
Class II 2005 0.025 1.5 0.038 0.095 0.875 0.083
2006 0.038 1.25 0.046875 0.083 0.875 0.073
2007 0.046875 1.2 0.056 0.073 0.750 0.055
Class III 2005 0.050 1.5 0.075 0.195 0.875 0.171
2006 0.075 1.25 0.09375 0.171 0.875 0.149
2007 0.09375 1.2 0.113 0.149 0.750 0.112
Class IV 2005 0.100 1.5 0.150 0.385 0.875 0.337
2006 0.150 1.25 0. 1875 0.337 0.875 0.295
2007 0.1875 1.2 0.225 0.295 0.750 0.221
Source: REBIS Study, 2003, Booz Al l en Hami l ton Anal ysi s March, 2004


IV. SERBIA ROAD DIRECTORATES 2003 FINANCIAL PLAN


As discussed in the sections above, SRD finances its road administration, operations and maintenance primarily through

Income derived from the national budget, about 40 percent (YUM 8 billion)
Road user charges, (road tolls), 22.2 percent (YUM 4.5 billion)
Credits from international financial institutions, 18.4 percent (YUM 3.7 billion)

The Financial Plan for 2003 was based on a budget of YUM 20.3 billion. Figure IV-5 presents the breakdown of the 2003 Financial
Plan.

Road maintenance, rehabilitation and construction are about 72 percent (YUM 14.6 billion) of SRDs expenditure allocation in 2003.

Road maintenance is the largest share of SRDs overall expenditures at 26.5 percent of the total budget
Repayment of credit and liabilities is the second largest share at 24.3 percent or YUM 4.9 billion
- Current liabilities carried over from the prior year is YUM 3.1 billion
- Debt service is YUM 1.8 billion

Expenditures on current liabilities and debt service represent about 91 percent of SRDs expenditures on road maintenance.
Because the debt service obligations are tied to international credits, restructuring the debt is unlikely. However, to improve its
financial performance, SRD may want to develop a more explicit strategy to substantially reduce its outstanding liabilities. Such
liabilities are largely attributed to contracts for maintenance and related services provided to SRD by third parties. This effectively
means SRD funding maintenance contracts as recurrent annual expenditure rather a long-term liability or a carry over.

The current system of financial road administration and maintenance in Serbia is inadequate to meet current and future network
requirements. Earmarking user charges from taxes on petroleum products is a more stable and reliable source of financing
Serbias road network than the current budget line approach. This is the approach put forth by SRD and MOTT in the proposed
Law on Public Roads.


0
5000
10000
15000
20000
25000
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39.4%
22.2%
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9.6%
15.6% 100.0%
FIGURE IV-5: SERBIA ROAD DIRECTORATES FINANCIAL PLAN, 2003
Sources of Funds (Income)
(
i
n

Y
U
M

M
i
l
l
i
o
n
s
)
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10000
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Uses of Funds (Investment)
(
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)
21.6%
8.8%
0.7% 0.3%


V. ROAD MAINTENANCE EXPENDITURES

SRD is mandated with the responsibility to manage and maintain the road network of Serbia. SRD is responsible for the
maintenance of a 14,500 kilometer road network that includes motorways and semi-motorways, arterial roads and regional roads.
As indicated previously, SRD derives its funding from the national Governments budget. In order to secure operation and road
maintenance funds, SRD prepares and submits annual budget requests through the Ministry of Transport and Telecommunications
to the Ministry of Finance and Economy. This process is summarized and illustrated in Figure IV-6 below.

SRD prepares
annual O&M
budget request
SRD prepares
annual O&M
budget request
SRDs O&M
budget request
SRDs O&M
budget request
MOTT aggregates
budget requests
MOTT aggregates
budget requests
MOTTs budget
request
MOTTs budget
request
MOFE adjusts and
aggregates budget
requests into
National Budget
MOFE adjusts and
aggregates budget
requests into
National Budget
Budget requests
from other ministries
and agencies
Budget requests
from other ministries
and agencies
Parliament reviews
National Budget
proposal and
approves
Parliament reviews
National Budget
proposal and
approves
Approved
National Budget
Approved
National Budget

Figure IV-6: SRD Operations and Maintenance Annual Budgetary Process

According to SRDs 2003 road sector program, maintenance alone was estimated at approximately EUR 84.5 million (YUM 5.4
billion). Of this amount, approximately 16 percent (EUR 13.1 million) was estimated for maintenance of the motorways and semi-
motorways, 38.2 percent for arterial roads (EUR 32.3 million), and 46.3 percent (EUR 39.1) for regional roads. SRDs 2003 Plan of
Work indicates that given the poor condition of the road network, annual expenditures for maintenance could reach as high as YUM
25 billion a year or EUR 392.5 million (YUM25, 000,000,000@ 63.7 YUM exchange rate in 2003).

No Main Expenditure Items 1997 1998 1999 2000 2001 2002 2003
1 Studies and Projects 25.9 33.6 4.4 57.7 205.8 454.2 9.20
2 Maintenance 233.2 512.7 405.8 1075.1 3141.4 6032.0 84.52
Procurement of materials and equipment,
winter and summer maintenance 82.17
Other items 1377.6 2.35
3 Rehabilitation 763.6 68.70
Own resources 10.30
Foreign Credits 58.63
4 Reconstruction 1450.9
5 Construction 724.1 487.4 135.0 473.6 1132.2 1511.6 65.82
Works 61.75
Expropriation 0.94
Technical systems (toll roads) 3.14
6 Additional Programs* 128.0 83.4 66.4 174.3 472.3 919.6
50 Towns - 50 streets 0.00
Local roads 0.00
Miscellaneous 0.00
7 Directorate's Expenses 52.3 70.5 64.7 159.8 288.3 430.1 12.65
Road toll collection 6.88
Technical Services 1.73
Information Center 1.41
System maintenance toll road collection 1.57
Turnover expenses and bank commissions 1.05
8
Credits and Liabilities/Debt Service
Obligations
209.5 127.3 295.3 195.6 72.6 2924.3 77.60
Repayment of credits 28.40
Repayment of carryover liabilities 0.00
Total Expenditures 1570.5 1449.5 1013.0 2660.6 6690.2 14486.3 318.5
TABLE IV-7: ANNUAL ROAD EXPENDITURES, 1997-2003
(in YUM millions)
197.4 134.6 41.4 526.5


THE COST OF ROAD MAINTENANCE
Estimating the level of expenditures SRD should commit to road maintenance requires a detailed analysis of the cost of maintaining
the road network to acceptable international standards.
4
Booz Allen has observed some disparities in the estimated costs per
kilometer to maintain different classes of roads for different road surface conditions in Serbia compared to neighboring countries.
Jenkins estimated a cost of USD 13,000 per kilometer for road maintenance in 2001.
5
Jenkins indicated that the figure of USD
2,720 per kilometer executed by the Road Directorate in year 2001 is below the level needed to sustain the countrys road network.
Road maintenance costs per kilometer used in recent road feasibility studies conducted by Booz Allen in Romania, Bulgaria, and
Macedonia are shown in Table IV-8. The results in Table IV-8 show that Jenkins estimates for annualized road maintenance costs
per kilometer are within the following ranges from Booz Allens estimates:

Motorways and semi-motorways 44 percent higher
Trunk roads are 18 percent higher
Regional roads are 22 percent lower

Table IV-8: Annual Road Network Maintenance Estimated Financing Needs

Estimate Motorway Semi-Motorway Trunk Regional Total Network
(in Euro Millions)
Booz Allen 15.50 2.80 46.60 87.59 152.49
Jenkins 22.85 4.97 56.72 71.34 155.88
World Bank 10.10 3.49 43.74 77.78 135.10
Skopje Bypass 16.15 2.79 44.23 96.96 160.13

Table IV-9 below presents the annualized maintenance cost per kilometer for different class of roads in the Serbian road network
based on several assumptions about the conditions of the network in the Jenkins Report, Booz Allens own estimate of

4
Such an analysis requires the following data: detailed profile of the road network characteristics; vehicle fleet characteristics; vehicle operating costs; traffic and demand forecasts; climate
conditions data; road and bridge condition survey data, and macroeconomic data.
5
See Jenkins, Ian (2001) Review of the Roads Sector in Serbia, Final Report, November, European Bank for Reconstruction and Development. London, page 10.

maintenance cost in Serbia. These data are compared with maintenance cost estimates derived from road feasibility studies
conducted by Booz Allen in neighboring countries. The reader is cautioned that Booz Allen has not independently verified the
network conditions or the estimated costs in the Jenkins report. The results in Table IV-9 are used only as a basis for cost
comparisons and are intended to be used only as indicative costs. Table IV-9 presents cost estimates for maintaining difference
road surfaces of varying surface conditions. As such, our methodology was to compare the maintenance costs of the neighboring
countries with the results in the Jenkins Report. A more thorough maintenance cost analysis will be developed based on data
collected in Phase II and the analysis performed under Phase III.
Motorway Semi-Motorway Trunk Regional Entire Network
A. Network Characteri sti cs
Length of Network (km) 495 171 4,096 9,659 14,421
Assumed Pavement Width (m) 19 11 6.5 5.5
Assumed Pavement Thickness (mm) 70 70 50 40
Assumed AADT (2000) 9,000 7,000 3,000 800
B. Estimated Road Maintenance Cost
(US$ per km)
Length of repeating maintenance cycle 20 20 20 20
Routine maintenance
(incl. winter service):
Unit cost/km 10,496 5,447 3,238 2,914
Number per maintenance cycle 20 20 20 20
Periodic maintenance (resealing):
Unit cost/km 17,977 9,418 7,106 5,329
Number per maintenance cycle 20 20 20 20
Total cost per km over cycle 569,444 297,313 206,872 164,868
Annualized cost per km 28,472 14,866 10,344 8,243
Annualized road network cost
- Routine Maintenance 5.20 0.93 13.26 28.15 47.54
- Periodic and Renewal Maintenance 8.90 1.61 29.10 51.47 91.09
Total Road Maintenance 14.09 2.54 42.37 79.62 138.63
Bridge maintenance @ 10% above 1.41 0.25 4.24 7.96 13.86
Annualized road and bridge maintenance
cost
15.50 2.80 46.60 87.59 152.49
C. Estimated Network Cost (US$ million)
Table IV-9: Estimated Anual Maintenance Costs for Serbia's Road Network


ROAD MAINTENANCE EXPENDITURE REQUIREMENTS

Removing the road maintenance backlog that has resulted from years of neglect and under funding, while keeping pace with future
road surface deterioration is the main challenges to be faced by SRD or the proposed new road administration. Although our
estimate is preliminary and is derived from data collected in other countries, it does provide an indication of the magnitude of
Serbias future road maintenance requirements. Based on the network assumptions provided in the Jenkins Report and assuming
the average annualized cost per kilometer in Table IV-8, our indicative estimate is USD 152 million per year will be required to
sustain Serbias road network once it returns to a stable condition, following new investments for reconstruction and rehabilitation.

The estimated annual maintenance investment requirement is well above the funding level anticipated from SRDs traditional
sources (i.e., the national budget, user charges and international credits). Furthermore, to finance Serbias road network at this
level requires a new road financing policy. The Government of Serbia should adopt a policy that explicitly earmarks road user
charges to maintain the road network. Such a policy undoubtedly has to be based on a significant share of the excise taxes (and
or other levies on petrol and diesel fuels) collected, the largest source of revenues from road user charges. Also critically important
to supporting the road financing policy are road tolls that are equalized with European standards.

Booz Allen used the World Banks Road Use Cost model as one of the methodologies to derive the total estimated annual
maintenance cost for different classes of roads in Serbia and under varying loads. Table IV-10 presents the results of this analysis
for annual and periodic maintenance. As Table IV-9 below reveals both fixed and variable costs are estimated for each type of
maintenance.


Annual Maintenance Periodic Maintenance
Fixed Variable Total Fixed Variable Total Fixed Variable Total
Road Class and
Average AADT
Length of
Network
(km)
Length of
Network in
2-Lane
Equivalent
(km)
Motorway & Semi-
Motorway - 10000 vpd 495+171 1,161 1.86 0.38 2.24 7.73 2.38 10.11 9.59 2.76 12.35
Trunk - 6000 vpd 1022 1,022 1.64 0.30 1.94 6.80 1.52 8.32 8.44 1.81 10.26
Trunk - 3000 vpd 3074 3,074 4.93 0.59 5.52 16.44 7.54 23.98 21.38 8.13 29.50
Regional - 3000 vpd 3381 3,381 5.43 0.26 5.69 12.35 4.53 16.88 17.78 4.79 22.57
Regional - 1000 vpd 4830 4,830 7.75 0.47 8.22 22.15 4.32 26.47 29.90 4.79 34.68
Regional - 600 vpd 1449 1,449 2.33 0.28 2.60 9.24 1.62 10.85 11.56 1.90 13.46
Total 14,421 14,916 23.94 2.27 26.21 74.71 21.90 96.61 98.65 24.17 122.82
Notes:
Regional Road Traffic: - 30% Trucks / Loading: Low
Arterial Road Traffic: - 30% Trucks / Loading: High
Source: Booz Allen Hamilton Analysis, March 2004
Total Maintenance Costs
Table IV- 10: Estimated Annual Maintenance Costs
(in Euro millions/year)


Figure IV-8: Estimated Annual Costs Of Road Maintenance
(In Euro millions)
Annual Routine Maintenance
Annual Road Maintenance Costs
(Total Euro 26.2 million)
(Total Euro 122.82 million)
Source: Booz Allen Hamilton Analysis, March 2004
24.17
98.65
23.94
2.27
Variable Costs
(20 %) Fixed Costs
Variable Costs
Annual Periodic Maintenance
(80%) (Total Euro 96.6 millions)
74.71
21.90
Variable Costs
Fixed Costs
Fixed Costs

Figure IV-9 compares the available estimates of annual road maintenance costs for Serbias entire road network. Annual
maintenance ranges from a high of approximately Euro160 million to Euro 135 million. Although these estimates are based on
different derivations they are within an acceptable tolerance. Booz Allens estimate of Euro 152.5 million is comparable to the
Jenkins estimate as Figure IV-9 indicates. The World Bank model yielded results that on the low end of the sample and was Euro
17.4 size below Booz Allens estimate at Euro 135.1 millions.

Figure IV-9: Comparison of Total Annualized Road Maintenance Costs (including Winter Maintenance)

(in Euro millions)
135.1
160.1
152.5
155.9
0.0
25.0
50.0
75.0
100.0
125.0
150.0
175.0
200.0
Jenkins Report Booz Allen Skopje Bypass Study World Bank

Sources: Jenkins Report, 2001 and Booz Allen Hamilton Analysis, March 2004


VI. DRAFT LAW ON PUBLIC ROADS


Although significant challenges remain, adoption of the Draft Law on Public Roads in its current form offers a unique opportunity for
the Government of Serbia to establish an institutional structure and provide a reliable funding source to better manage and finance
the roads sector.

Booz Allen reviewed the existing Roads Law, the Draft Law on Public Roads, and the Comments prepared by the EBRD. We
concur with the comments of the EBRD and will not reiterate them in this report. Appendix F presents a detailed analysis of our
review of the proposed Draft Law on Public Roads. However, we offer the following thoughts.

Adoption of the Draft Law on Public Roads, according to the view expressed by MOFE officials, should await the
outcome of the proposed Draft Law on Value Added Tax of September 2003
Equalization of tolls for domestic vehicles with those of foreign registered vehicles using Serbian motorways and with
neighboring countries remains a challenge that is unlikely to be met in 2004 (at least not at the required equalization rate)
as per the EBRDs loan conditionality requirement. This is due to the potentially adverse socioeconomic impact a rate
change will have on domestic road users

The status of the Draft Law on Public Roads is that the law is currently under review by MOTTs legal officers.

MOTT is conducting a legal review to ascertain its compatibility/conformance with other laws, such as Law on Public
Enterprises, the Law on Privatization and other relevant Serbian laws
MOTT senior officials anticipate the Draft Law on Public Roads can be presented to the assembly by the end of April,
which appears overly optimistic
MOTT is fully aware of the desirability of EBRD to get the Draft Law on Public Roads introduced and passed by the
Assembly as expeditiously as possible

MOTT appears to be in agreement as to the institutional arrangements proposed in the Draft Law. Discussions with senior MOTT
officials regarding establishing a new road institution indicate that MOTT has no objection to the road taxation article in Section II,
Article 16, (1), of the Draft Law on Public Roads. MOTT also does not object to the institutional arrangement clauses under
Section III of the draft law.


VII. CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS AND RECOMMENDATIONS

In this section, we present conclusions and recommendations relative to road financing. These conclusions and recommendations
are intended to inform the future direction for SRD. The SRD and the EBRD should consider them in reforming the approach used
to finance and manage the Serbia road network and place it on sustainable path. Our recommendations are aimed at advancing
the program for road sector investments in Serbia through policy and institutional reform. In this spirit, we offer recommendations in
the areas of: road user charges, equalization of tolls, road financing, road maintenance costs, road maintenance expenditures, and
the draft law on public roads.

ROAD USER CHARGES

There does not appear to be complete agreement between the Ministry of Finance and Economy, the Ministry of Transport and
Telecommunications and SRD as to dedicating user charges from a 25 percent of the retail price on fuels to the road sector. EBRD
should promote further dialogue between SRD and MOTT senior officials in an attempt to overcome the MOFE expressed concerns
about the approach in the proposed Draft Law on Public Roads.

Recommendations: To inform the policy dialogue Booz Allen conducted a study of the required level and source of funding
required to fund annual maintenance. We recommend that the government of Serbia in accordance with the road recovery
principle in the Draft Law on Public Roads earmark a portion of the excise taxes on fuels for road maintenance and administration.

The level at which a dedicated excise tax on fuel should be set is between 24.5 and 29.0 percent (or between 17.2 and 20.3
percent of the total levies) on petrol and diesel fuels collected annually.

EQUALIZATION OF ROAD TOLLS

Although in principle, the Government of Serbia agrees with EBRD and appears committed to revising its toll rate policy to equalize
domestic and foreign rates, the challenge is to bring this policy decision about. Adopting and implementing this policy is likely to
require far more engagement with the Government by international financial institutions than what is apparent to date. Moreover,
what appears lacking is an empirical basis to address the issues raised by the Ministry of Finance and Economy as to the
socioeconomic impact domestic consumers and the fiscal impact that might result from such a policy change. Both of these issues
have merit and should be given serious consideration. An indicative three-year schedule for equalizing tolls rates was presented in

an earlier this report section. And although the exact toll rate adjustment factors may vary over the three-year phase-in period the
important aspect SRD and EBRD should focus on is achieving a consensus with MOTT and MOFE on the policy

Recommendation: We recommend that the Government of Serbia adopt a phased policy approach to equalize its
domestic and foreign toll rates. Such an approach would incrementally adjust domestic rates upwards while
simultaneously adjusting foreign tolls downwards.

ROAD FINANCING

The current system of financial road administration and maintenance in Serbia is inadequate to meet current and future network
requirements. Earmarking user charges from taxes on petroleum products to fund the road sector represents a more stable and
reliable source of financing than the current budget line approach. This is the approach put forth in the proposed Law on Public
Roads.

Recommendation: MOTT and MOFE should undertake a concerted effort to resolve the gap in current and future road sector
financing requirement through the adoption of a road fund as the institutional approach and a dedicated user fee derived from
petroleum products as the source of funds. We recommend that between 16.5 and 19.1 percent of the revenues collected from
excise taxes on fuels be earmarked for road maintenance and administration.

ROAD MAINTENANCE COSTS

The disparities that exist in the estimated costs per kilometer of road maintenance cannot be justified and are a barrier to efficient
management of the road network. Left unattended, the opportunity to introduce the efficiencies of performance specified
maintenance could be adversely affected. As such, urgent action is required to remedy this situation.

Recommendation: The imperative of SRD having a better understanding of its annual maintenance costs for different classes of
roads cannot be understated. We recommend that SRD undertake immediate steps that will lead to a comprehensive study of
actual road maintenance costs in Serbia. Such an effort should be designed to arrive at a more reliable estimate of the cost of
maintaining the Serbian road network.


ROAD MAINTENANCE EXPENDITURE REQUIREMENTS

Although the results are preliminary, Booz Allen estimated that Serbia requires approximately Euro 160.13 million per year to
maintain its road network to acceptable international standards and keep pace with future road surface deterioration.

Recommendation: The Government of Serbia acting through the Ministry of Finance and Economy and the Ministry of Transport
and Telecommunications should urgently address its road maintenance requirement primarily through the passage of new
legislation that provides for a road fund based on earmarking excise taxes on petroleum products to the road sector.

DRAFT LAW ON PUBLIC ROADS

The prospects for getting the proposed Law on Public Roads before the Assembly and have it passed in 2004 are not very
promising. Moreover, significant challenges remain to build ownership, ensure the proposed law is compatible with existing laws,
and overcome the concerns of the Ministry of Finance and Economy as to the efficacy of a dedicated excise tax on fuels for the
road sector and the level of such tax. The proposed Law on Public Roads further appears to lack a champion in the Government
despite its proponents, SRD and MOTT. The importance of having a clear and recognized champion, even if the proposed law
does not survive in its current form, cannot be overemphasized.

Recommendation: SRD and MOTT should devote key staff to work on promoting the Law on Public Roads on a full time basis.
Their mandate would be to shepherd the law through the political process.

Technical Assistance to Serbia Road Directorate Phase 1 Report V-1 Booz Allen Hamilton

CHAPTER V

ROAD PLANNING


I. CURRENT PROCESSES AND PLANS V-3
II. ANALYSIS V-19
III. RECOMMENDATIONS V-25


I. CURRENT PROCESSES AND PLANS

CURRENT PROCESSES AND PLANS

ROAD PLANNING PROCESS
Planning Performed by Development and Planning Department with support from Information Center Department
- See Chapter III - Institutional Arrangements for the institutional analysis of the Departments
Department performs planning function for all Directorate roads, including Main and Regional roads and Motorways, with
support from Information Center Department
- Department responsible for the following planning activities:
Development and production of Annual program of works
Preparation of a Master plan for all roads under the care of the Directorate
Preparation of Terms of Reference and bid documents for studies and designs
Managing the conduct of studies, including pre-feasibility, feasibility, environmental, traffic, and scientific
Managing the production of preliminary and final designs (discussed in Chapter VI Road Design)
- Department is additionally responsible for managing and supervising design (see Chapter VI)
- Staffing issues are discussed in Chapter III, however, it is worth reiterating that the Department is expected to carry
out the above duties for over 14,000 kilometers of roads (without road network of Kosovo and Metohija) plus those
additional duties mentioned in Chapter III using a staff of only 10 people, including the Department head and the
administrative staff. Table III-1 (in Chapter III) presents the current staffing of the Department

- Staff deployment:
The two price and bill of quantities engineers function as part of other Departments and are not fully available
for the tasks of the Department of Planning and Development
The development of the annual program employs one of the planning coordinators almost full time during the
year and requires significant contributions from other staff during the November to April period
The development of the master plan employs one person nearly full time
The preparation of terms of reference and related documentation demands most of the time of one of the chief
engineers plus much of the time of the technician (motorway officer) and some time of the Department Head.
To complete this work, the Department also contracts the services of two engineers.
Managing the contracts requires significant time from the Department Head and one of the planning
coordinators plus support from other staff
Design tasks consume the remaining time of the two chief engineers and the technician


General Process Description
- An effective road agency planning processes can be divided into four general types of plans and time frames:
Long-Term or Strategic (10 to 30 years), which looks at the entire network and considers the corridors in the
network
Mid-Term (approximately five years), which also looks at the network but considers specific roads and road
segments on the network
Annual, which considers specific projects for execution during the planning year
Project, which details the works to be performed for a single project
- SRD planning tools
Department contracts almost all of the information collection and the conduct of studies and designs for
planning purposes
Department does not make use of the Highway Development and Management model (HDM-4). This model is
used by the Information Center but there is a need to establish a regular collection and update process to
maintain the HDM-4 information.

SRD current long-term planning process
- According to the existing and the proposed Road Laws, strategic planning for the transport sector (including the
road sector) is the responsibility of the Ministry of Transport and Telecommunications (MoTT)
- The Department should contribute a Master Plan for the roads sector to the MoTT strategic plan
- Currently, the Government does not have a formally adopted Strategic (long-term) plan. In 2001, the Advisory
Council of the SRD produced a strategic document called Traffic Basis for Republic of Serbia - Related to Road
Network.
- Currently, long-term planning is not being done on a regular basis, although there is broad agreement within and
outside the Directorate (including the SRDs Managing Council) that this type of planning is needed

Current Mid-term Planning Process
- According to the existing and the proposed Road Laws, this type of planning is the responsibility of SRD
- Currently, such planning is not done on a regular basis, although the steps in the process are known:
Perform or collect economic and needs studies
Perform or obtain traffic volume, road condition, road use, and other technical information about the area of
interest or the entire network

Obtain information from other departments and interested parties outside the SRD about needs
Use traffic volume as the primary project technical determinant factor with existing road condition as second
factor
Contemplate works on roughly 3,000 to 5,000 kilometers of roads during three to five-year planning period
- Department prepared a program of works for presentation by the Prime Minister
Eight-year coverage (2003 2010)
Addressed European Corridor X and its connections in Serbia
Listed specific works on specific segments with expected costs and benefits
Many of the listed projects are now part of EBRD/EIB loan rehabilitation projects, others are being carried out
using local funds, while some identified projects are still in the conceptual or planning stage
- In 2002, the SRD Information Center (in consultation with the Department) and the Traffic Faculty of the University
of Belgrade prepared a program of priority interventions needed on the arterial road network:
Analyzed 4,855 kilometers of roads in Serbia (excluding Kosovo and Metohija
Used existing data in SRD databases (Roads, Traffic, and Bridge) as sources
Used HDM-4 to perform the analysis
Analyzed road condition, traffic volume, bridge condition, accident statistics, vehicle fleet characteristics, and
road capacity
Identified priority rehabilitation projects on road network, bridges, tunnels, and landslides
Study was reviewed by experts of the World Bank
Study used as input to identifying priority projects for State and international financing
Study was presented on 3
rd
IRF Conference held in Belgrade, 2002

Current Annual Program Planning Process
- Sources:
Developed from economic needs and studies
Non-technical factors often included in consideration
- Process:
Use existing or new feasibility studies for specific projects
At end of year, the Department receives government reports on income and budget forecasts
Department tries to estimate funds available for projects

Department prepares a set of projects and their estimated costs as a submission to upper management and,
eventually, to the government
Currently, the preparation of the first draft of annual works program for the next year starts in September
of current year
The annual program is not finalized until May
The construction season begins in May or June
Process tends to over-estimate the program by as much as 60%, expecting it will be cut back
Currently, approximately 60% of the road network is in unacceptable condition
There are so many potential projects that the problem is how to fund them all
After consultations and negotiations with MoTT and Ministry of Finance, revisions are made to the annual plan
Annual Plan usually approved around May
- Non-technical influences play large role in the eventual list of projects in the annual program

Road Referencing System
- The SRD has an existing referencing system
The road network is established by law. That law defines the main, regional, and local roads. SRD started
development of a Road Information System in the early 90s and established the current referencing system
based on the nodes, sections, and routes of the existing road classification system of the former Yugoslavia.
Development begun approximately 15 years ago by the Faculty of Transport and Traffic Engineering at
Belgrade University
This system was enlarged and formalized later by the Institute for Materials Testing and the Highway Institute
The institutes produced a set of definitions for the elements of the system
= These definitions are contained in the document "Basics For Set Up Of Road Data Base" (1991)
= The basic elements of the referencing system are Nodes and Sections
Node = a point of intersection with another road, political boundary of significant geographical
feature
Section = the road between two nodes
Section between two nodes is adopted as main object of road data base
There are approximately 1,200 nodes and 1,500 sections on the defined road network (Main and
Regional roads) with approximately 420 section on the main road network

They also developed the procedures for collecting data in the field, transferring it to the office, and
recording it
The basic work was completed in 1993
Figure V-1 presents the defined network in the Belgrade area
- The system was updated and improved by IMS in 1995 to 1997
- System covers all Main and Regional roads in Serbia (Vojvodina, Central Serbia and Kosovo and Metohija); does
not cover Local roads
- SRD is responsible for maintaining the referencing system (usually done by contract)
- Identified problems include:
System has not been updated recently to reflect changed conditions (For example, some of the sections no
longer have homogeneous characteristics because of recent construction or rehabilitation.)
The system needs to updated with Geographic Information System information, such as latitude and longitude
coordinates of the nodes


Four-digit numbers identify Nodes
Boxed four-digit numbers identify Sections

Figure V-1: Reference system in the Belgrade area

- The designation of the road network needs to be revised
Designation is the official process of classifying a road as Main, Regional, Local or another classification
The broad definitions of classifications are establish in the Road Law and are supplemented by by-laws and
regulations. The new Road Law proposes a revision of the classes. Work is currently underway to produce
the necessary by-laws and regulations to support the new Road Law.

The MoTT is responsible for designating the classification of a road
The current designations are compiled in the official gazette of the government
This gazette has not been revised in 20 years, therefore, it still contains roads that now are part of the
nations that made up the former Republic of Yugoslavia
The chainages (beginning and ending kilometer) for the roads in the gazette are also 20 years old. (For
example, the M-1 road at the border with Croatia has a beginning chainage of approximately 400.
The current network is too large
Many roads are designated at a higher classification then their characteristics, traffic volume, usage,
and/or importance justify
This occurred during the last few years because local and regional authorities did not have the funds to
maintain the roads they were responsible and successfully petitioned the State government to assume the
responsibility for those roads
By one estimate, the management of the current road network requires an SRD staff that is two to three
times the current staff

Planning Information
- Current sources
Feasibility studies
Existing studies performed over a as many as ten years
Department can (and does) perform or contract for new studies when necessary and funds are available
Only four institutes have the capacity to competently perform the complete feasibility studies
Road and traffic databases in Information Center
Center has databases on Roads, Bridges, Tunnels, and Landslides
Not used consistently because of doubts about accuracy of data (Specifically, the existing data has not
been updated on regular basis, some data are old more than 5 years, and acquisition of data is
performed by different equipment without a common calibration procedure.)
The SRD has prepared tender documents and expects to hold a tender in early 2004 for the collection of
road inventory, condition, and GIS data on approximately 5,000 km. of Regional roads during the year
SRD hopes to be able to continue collecting inventory and condition data on 5,000 km. of the network per
year on a regular basis. If this were achieved, it would mean that data in the Roads database would never
be more than three years old.

- A typical design study consists of there components: a feasibility study, the preliminary geometric design of the
project, and the preliminary pavement design
- The standard set of tender documents for design studies now requires the collection of:
Origin-Destination studies for larger projects and, especially, new construction
Pavement strength testing (usually deflection testing using a Falling Weight Deflectometer)
Roughness measurement (in units of International Roughness Index (IRI))
Skid resistance at point locations (using pendulum type testing equipment)
Core sampling of existing pavements
Excavation to subgrade, when warranted
- A policy has recently been established to pass the data collected and test results obtained from design studies to
the Information Center for inclusion in their databases
- Comments on selected planning information
Origin-Destination (O-D) Studies
O-D studies used to determine road user flow patterns and needs
Normally used for new construction project planning but occasionally for significant reconstruction or
rehabilitation projects. As an example, at this writing, there is an O-D study being conducted as part of a
feasibility study regarding the Belgrade By-pass.
Current standard tender documents call for O-D studies for most larger projects. This is a recent addition,
however, to the standard information collected
Skid resistance measurements
Measurements used to identify potentially dangerous pavement conditions and plan resurfacing works
There is no equipment in Serbia for measuring continuous skid resistance. A few devices are available to
measure resistance at a single point in response to the identification of a potential problem or during a
specific project study
Accident statistics
Statistics used to identify location of problem areas and help determine if an engineering solution may
solve the problem.
Statistics contribute to the identification of potential works
Statistics are currently recorded and maintained by police
Despite official requests for accident statistics, SRD has been unable to directly obtain them
As a result, project planning in the SRD has not included the use of accident statistics

Summary statistics have been obtained from the Faculty of Transport and Traffic Engineering of the
University of Belgrade
Members of that Faculty have provided analysis of accident information for the SRD and have presented
several analyses in public forums
Additional problems:
= Police tend to attribute all accidents to excessive speed, thereby reducing the utility of the statistics
= Police use a different location referencing system than the SRD for specifying the location of an
accident

Comments on Traffic Volume and Roughness Measurement
- Traffic and roughness are two of the most influential technical criteria in project planning
Traffic volume affects the benefits side of the benefit/ cost equation (more traffic traveling on an improved
section yields greater benefits)
Roughness affects the cost side of the equation (rougher pavement means greater vehicle operating costs)
- Traffic volume measurements are currently made using a network of traffic counters in the country
There are 140 traffic count stations installed, however, only about 100 stations are regularly recorded
Some traffic counters are more than 15 years old and require frequent maintenance or intervention
Only about 40 of these counters have vehicle classification capabilities and are considered reliable (i.e.
they provide consistent readings and are in service a high percentage of the time)
Counts made principally on the Motorways and Main roads
Coverage on the Regional roads is very sparse
- The change in traffic volume on roads in Serbia has been very erratic over the past dozen years (See Appendix C
Traffic Evaluation.)
Some traffic count location (particularly at the locations near border crossings) have yet to regain the volume
they recorded in 1990
Some locations have already exceeded 1990 levels (particularly around major cities)
The erratic nature of the traffic volume makes forecasting growth accurately extremely difficult
In spite of this difficulty, experts at the Faculty of Transport and Traffic Engineering of the University of
Belgrade have made forecasts that are proving to be reasonably accurate
- Roughness measurements are made by several of the four roads institutes (described in Chapter III Institutional
Arrangements)

The institutes use several different type of measuring devices
Although these devices are internally consistent and are calibrated regularly, there is no assurance that the
measurements of one device are comparable to those of another device

Environmental Considerations (See also Chapter IX Environmental Impact.)
- Requirements
Current requirements spelled out in 1992 Environmental Law and its supporting by-laws and regulations
A new Environmental Law is before the legislature and expected to be passed soon but is expected to be
about 80% similar to the existing law
The Ministry of Environmental Protection (MoEP) is in the process of elaborating a set of directives that spell
out the information requirements for submissions for projects
Planning process requires an environmental analysis during design stage
Environmental analysis must be prepared by licensed specialist(s)
New project costs include a fee equal to 1% of their value to be paid to the (MoEP)
MoEP must review and approve environmental aspects of all designs. Review may recommend mitigating
and/or corrective measures.
MoEP usually hires consultant to perform this review.
Environmental analysis is required for construction, reconstruction and rehabilitation projects but is not required
for routine and periodic maintenance
- Current process and results
SRD has only recently (October 2003) added an Environmental Engineer to its staff
In practice, although mitigating measures may be recommended, they often are not included in the design
Furthermore, those measures that are included in the design are often not performed because the budget for
the project is too restricted to fund them
It is hoped that the new Road Law will change this situation since it will set up a dedicated funding source for
the Directorate and allow the Directorate to exercise independent control over its funds

CURRENT PLANS AND PROGRAMS
2003 Investments
- Figure V-2 presents a chart of the 2003 plan for studies and designs for a total of 600 million dinars

- Figure V-3 presents a chart of the 2003 plan for road rehabilitation for a total of 4,380.2 million dinars. This money
is to be spent for rehabilitation of:
18 road sections
5 bridges
29 Black Spots
- Figure V-4 presents a chart of the 2003 plan for road construction for a total of 4,193.0 million dinars, which
includes expropriation of land for planned projects and purchase and installation of a system for road toll collection
- Table V-2 presents a list of Rehabilitation projects and the funding for them, as given in the Program of Works for
2003
- Table V-3 presents a list of Construction projects and their cost, as given in the Program of Works for 2003

-

Figure V-2: 2003 Planned Studies and Designs Figure V-3: 2003 Planned Road Rehabilitation

Figure V-4: 2003 Planned Road Construction
2003 Planned Studies and Designs
(Million Dinars)
339.0
204.6
56.4
Motorways and semi-
motorways
Arterial roads
Regional roads
2003 Planned Road Construction
(Million Dinars)
3,933.0
60.0
200.0
Construction
Expropriation
Technical System for
Toll Collection
2003 Planned Road Rehabilitation
(Million Dinars)
645.4
3,734.8
1,942.4
1,792.4
3,734.8
From Directorate Income
From Foreign Credits
European Investment
Bank
European Bank f or
Reconstruction and
Development

Table V-2: Rehabilitation Projects Planned for 2003

Amount No. SECTION
(In EURO million) (In YUM million)
EUROPEAN INVESTMENT BANK - EIB (FIRST LOAN)
a) From Directorate's regular income (accounting for drawn EIB-granted funds)
1. M-22 Lipovaka uma V.Motanica 0.331 20.0
2. M-22 iburkovac - Mataruka Banja 0.76 45.9
3. M-22 Ue Biljanovac 1.52 91.8
4. M-5 Vrnjci airi 0.959 58.0
5. M-5 itluk - Kruevac Pojate 3.606 217.9
6. M-1 Grdelica - Predejane Dep 2.154 130.2
7. M-19 abac Loznica 1.35 81.6
Sum: 10.68 645.4
b) Drawing of the remaining funds from the First Loan granted by EIB
8. Bridge repairs 2.0 127.4
M-25.1 Golubac - Veliko Gradite,
bridge over Mlava River

M-5 Kremna - Dubci - Poega - Preljina -
Zajear, bridge over Zapadna Morava
River, Ovar Banja (spa)

M-5 Mrajevci - Kraljevo,
bridge over Zapadna Morava River, Adrani

M-1.12 Ni - Pirot - Dimitrovgrad,
bridge 'Niava 4'

M-5 Stala - Kruevac,
bridge over Juna Morava River

Sum: 12.68 772.8

Table V-2: Rehabilitation Projects Planned for 2003 (continued)

Amount Lot
No.
SECTION LENGTH
(Km.) (in EURO million) (in YUM million)
EIB (SECOND LOAN)
1. M-22 antavir - Novi Sad 62.4 3.7 235.7
2. M-1 Croatian border Belgrade 104.1 8.146 518.9
3. M-1 Poarevac Batoina 50.9 7.089 451.6
4. M-1.9 Panevo Romanian border 37.0 2.571 163.8
5. M-21 Rzav - Gostin Montenegro 94.1 2.826 180.0
6. Black spots (29) 4.16 265.0
Sum: 348.5 28.49 1,815.0
EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT - EBRD LOAN
7. M-1 Batoina Doljevac 149.8 5.79 368.8
8. M-1 Peenjevce FYROM border 92.5 3.63 231.2
9. M-22 tavica Nevade 19.6 6.39 407.0
10. M-22;
M-5
Stepojevac - Preljina itluk 98.0 3.51 223.6
11. M-1.12 Nika Banja Bulgarian border 66.8 6.0 382.2
12. M-22 Mataruka Banja Ribarie 63.4 2.82 179.6
Sum: 490.1 28.14 1,792.4

TOTAL: 838.6 56.63 4,380.2


Table V-3: Construction Projects Planned for 2003

No.
SECTION Amount
(in YUM
Million)
MOTORWAYS AND SEMI-MOTORWAYS
1. E-75 Connection of E-75 with M-22, Subotica southern branch 100.0
2. E-75 Belgrade - Novi Sad, second carriageway 650.5
3.
E-70 /
E-75
Dobanovci - Bubanj Potok
(note: work execution with deferred payment)
480.0
(400.0)
Ostrunica bridge 300.0
Lipak tunnel 80.0
Ostrunica Dobanovci 100.0

(400.0)
4. E-80 Komren Prosek 100.0
5. E-75 Peenjevce - Grabovnica 100.0

(1,652.5)
6. E-75 Levosoje FYROM border 100.0

(300.0)
ARTERIAL ROADS
7. M-1.9 Belgrade - Panevo 50.0
TOTAL: 3,933.0
(out of which: Work execution with deferred payment) (2,352.5)


II. ANALYSIS

ANALYSIS

DISCUSSION OF ISSUES
An Analysis of the Processes and Plans of the Department Identified Several Issues:
- There is no Strategic Transportation Plan for the Republic of Serbia
- There is no formally adopted Strategic (long-term) planning by the Government. As noted earlier, the SRDs
Advisory Council produced a document that currently guides SRDs planning.
- There is no systematic Mid-term planning process
- There are areas for improvement in the current planning process, including:
Investigation and design
Staffing
Better coordination and cooperation between Departments in the use of information from other Departments
Project identification methods
Timing of program preparation
- There is a need for environmental support in planning and supervising projects

There Is No Strategic (Long-Term) Planning Process. Description of Plan:
- Analyzes a large part or the whole of the network in terms of corridors and/or representative sections
- Can compare a large number of projects against one another
- Requires minimal amount and level of detail of engineering and design information
- Has a long time frame; typically 20 to 30 years
- Forecasts benefits of candidate investments (user costs) and compares them to construction and ongoing
maintenance and operating costs
- Concept enjoys broad support from stakeholders and SRD Managing Council
- Requires information that can be collected quickly and without large expense
- Provides a coherent plan of investments to accomplish agreed upon network development objectives
- Provides guidance on the relative merits of section and corridor improvement strategies
- Helps managers decide what opportunities to invest in and when to do so
- Several software applications (including HDM-4 Strategic Analysis module) available to facilitate the process

There Is No Systematic Mid-Term Planning Process. Description of Plan:
- Usually analyzes large part of or entire network
- Has a medium time frame, typically 3 to 8 years
ANALYSIS

- Compares generalized maintenance, rehabilitation, and improvement strategies to a base case and (optionally) one
another
- Identifies projects or specific sections on the network for inclusion in annual plans
- Compares forecast user benefits to capital and operating costs
- Level of detail may reach that of specific projects
- Helps managers identify project level opportunities for inclusion in near-term funding plans
- May include investigative and preparatory activities necessary for envisioned projects
- HDM-4 Program Analysis module can facilitate the process

- The system needs to be revised and updated to reflect actual conditions. Once updated it needs to be maintained.
- The road classification system needs to be revised to reflect the current borders of the Republic and the revised
classification system being defined by the new Road Law and its supporting by-laws and regulations
As mentioned elsewhere, over the past dozen years local jurisdictions have successfully sought to have what
are properly Local roads reclassified as Regional or even Main roads in order to relieve the local jurisdictions of
financial responsibility
Therefore, the reclassification of roads according to strict technical criteria will be politically charged

Planning Information
- Current sources of information are either directed towards specific projects or not used consistently
- In order to systematically analyze the entire network, similar information, of appropriate quality, must be available
for large portions of the network and employed during the program analysis stage of the planning process
- The maintenance and updating of the Roads database inventory and condition data through contracts during the
next few years should increase utility of the information, the reliability of the data, and the confidence of its users
- Collecting and using Origin-Destination studies for new construction projects, continuous skid resistance
measurements on a large portion of the network, and accident statistics for all roads would provide more technical
support for proposed projects
- The use of different location referencing systems by the police and the SRD complicates the effective use of any
accident statistics obtained

Traffic Count and Roughness Measurement Processes Need to Be Improved
- The number and reliability of traffic counters should be increased
ANALYSIS

Older and unreliable traffic counters should replaced with new units
Traffic count locations on the Regional road network should be increased
- SRD should establish a roughness measurement calibration procedure and certification process
All roughness measurement devices used for SRD studies should be calibrated and certified to enable valid
comparison between measurements from different devices
Once established, this process could be contracted to an outside firm or institute
SRD should have its own roughness measurement device to conduct small studies and verify and control
studies done by others

Potential Improvement Areas in Current Planning Process
- Insufficient investigation/design capacity in the country
Only four firms have the staff, experience, and equipment to perform the total project cycle of activities
Activities: field investigations and testing, preparation of feasibility studies, preparation of design and
tender documentation, supervision of construction and maintenance works, testing of materials
Four firms: Highway Institute, Institute for Testing Materials, Road Center of Vojvodina, and Institute of
Transportation
Other smaller, less capable firms exist that can perform some of these functions notably the design of works,
conduct of surveys, and field and laboratory investigations
These smaller firms sometimes sub-contract with the four larger firms for portions of the works
This situation leads to the same firm often preparing the design, supervising the works, and testing the
materials
In times of high demand, there is not enough capacity to produce quality work. The recent crush of demand of
project preparation for the rehabilitation works financed by the EBRD and EIB is an example of the problem.
- Insufficient staff in the Department: only two people to handle preparation of tender documentation and Terms of
Reference and conduct bid evaluations and design reviews
During the recent project preparation for the rehabilitation works financed by the EBRD and EIB, the workload
was beyond the capacity of the Department and the quality of the documents prepared suffered
SRD salaries currently restricted by government regulations
Salaries for SRD professionals not competitive with private sector salaries for similar positions.
- Sharing of information between Departments
Although SRD Department heads meet regularly, their discussions focus on policy issues and do not promote
the exchange of decision-making information
ANALYSIS

Although the Information Center has several databases of road information, the Department does not regularly
make use of the information in those databases
Some potential user have doubts about the quality of information in the databases because it has not been
regularly and systematically updated but, in many cases, the information is available and is used for
preliminary planning studies
The data gathered during studies conducted for project planning and evaluation (pre- and full feasibility
studies, traffic counts) is not systematically sent to the Information Center to update the database contents
- Allowing project planning process to be budget-driven rather than needs driven
The number of projects and, sometimes, their size and scoop are tailored to the allocated budget
The planning process should proceed systematically from a Strategic Plan that identifies general development
goals and corridors to a Mid-term Plan that identifies projects for development in specific years to an annual
program the serves as a budget request with justification
- Too often deciding to implement projects based on non-technical criteria
No planning process can be (nor should be) totally immune from influences outside of the economic and
technical justification for projects
However, the inclusion of projects of dubious or un-studied merit as committed projects in the annual program
is counter to optimization of the governments scarce resources
- Timing of planning process
Currently the preparation of the annual works program for the next year begins in September of the current
year
Annual program is not finalized until May
Construction season begins in May or June
There is insufficient time to adequately prepare the design and ender documents and conduct the bidding
process so that potential contractors have a reasonable time to prepare their bids and negotiate contracts
The current time frame can result in poor quality documents and/or lost construction season time

Environmental Capacity of the Department Only Beginning to be Developed
- SRD has recently (as of late October 2003) engaged an environmental specialist for the future Environmental
Section
Existing and new laws and regulations require specialized knowledge and training
Currently, environmental aspects of projects are either adequately treated or addressed by contracted
consulting firms
ANALYSIS

- Inadequate inclusion of environmental issues in planning (and design and supervision) process


III. RECOMMENDATIONS

RECOMMENDATIONS

RECOMMENDATIONS FOR IMPROVEMENT
The Areas for Improvement Presented in the Analysis Section Lead Directly to a Set of Recommendations

The road network under jurisdiction of SRD should be reclassified using the definitions proposed in the New Road Law

Implement Systematic Planning Process Consisting Three Types of Plans: Strategic, Rolling Mid-Term And Annual
- Strategic Plan (described in Analysis section)
Benefits:
Serves as input to MoTT Strategic Plan as required by law
Helps guide and coordinate development decisions within SRD and between other government agencies
Integral part of systematic planning process
Provides support for funding requests either of State funds or international financing institutions
May provide multi-year, budget constrained investment strategy
Several software applications available to facilitate the process
Costs:
Level of input information may lead to over-simplification of results
Does not necessarily identify specific projects, rather, identifies corridors or sections of the network to be
improved
If Strategic Plan adopted, Senior Managers might be constrained in responding to requests based on non-
technical criteria
- Rolling Mid-term plan (described in Analysis section)
Benefits:
Fulfills requirement for planning under terms of new and existing Road Laws
Helps forecast budgetary needs for future years
May provide multi-year, budget constrained investment strategy
Alerts potential contractors to upcoming work, allowing them to prepare for the bidding process
Allows gradual building of support and approval of projects
Simplifies preparation of Annual program since nearest year projects become, with few exceptions, works
included in next fiscal years Annual program
Projects postponed or not funded in one year re-appear in following years plan
Costs
Once implemented, should be revised and updated each year
RECOMMENDATIONS

Required level of input detail demands moderate yearly data collection expense
Specific project pre-feasibility and feasibility studies still required for ultimate investment decision
If Mid-term Plan adopted, Senior Managers might be constrained in responding to requests based on non-
technical criteria
- Annual program of works and budget
Description
Specific list of work (may include investigative studies, project preparation activities, the fiscal years
portion of multi-year projects, and new construction, reconstruction, and rehabilitation projects) to be
carried out during the fiscal year
Annual works based on approved Mid-term Plan projects for nearest year
Includes the costs of these works as well as descriptions and, possibly, justifications
Maintenance works and costs, as well as general administration and support works and expenses, would
added to formulate the Directorates entire annual program and budget
Prepared first as a funding request based on estimated funding availability
Presented to Directorate and government decision-makers for discussion
Modified to match available funds when funds allocated or committed to and distributed within the
Directorate
Benefits
Implements specific analyzed and agreed upon works from Mid-term Plan.
Identifies and funds investigative and preparatory activities for projects in future years
Provides basis for discussion with decision-makers about project merits and costs
Costs
Requires significant, on-going data collection to provide justification for projects
May require adjustment if allocated funding does not match proposed costs
- Purchase and begin using planning and project management software
Increase the use of the HDM-4 application for Strategic, Program, and Project Analysis
Consider acquisition of other dedicated strategic and program planning software
Acquire and implement the use of project management software (Microsoft Project or similar) to plan and
monitor the work of study and design consultants
RECOMMENDATIONS


- Prepare and execute a contract to revise and update the system and then maintain it. Particular attention must be
given to assuring that the road sections have homogeneous characteristics
- The work on producing the supporting by-laws and regulations for the road classification definitions in the new Road
Law should be accelerated and finalized
- Once the Road Law is passed and signed into law, the MoTT should be encouraged to quickly revise the road
classification system

Improve the Use of Available Planning Information and Promote Efforts to Obtain Additional Information
- Assure that information from recent designs is used to update the databases in the Information Center
- Assure that as built project documentation is used to update the databases in the Information Center
- Continue, on a yearly basis, the program to collect inventory and condition data for the network. This can be
accomplished by regular contracts for data collection services. This effort must be coordinated with the data
collection efforts planned and performed by the Information Center.
- Systematically and regularly incorporate Origin-Destination study information into the program planning process
- Cooperate with the Information Center regarding updating existing and acquiring additional information needed for
improvement of planning process
- Propose and pursue the development of an inter agency committee with the police (Ministry of Internal Affairs) to:
Agree on and use a common location referencing system
Better identify the causes of accidents, particularly those having potential engineering causes
Promote the sharing of accident statistics

Purchase Traffic Count and Roughness Calibration and Measurement Equipment to Improve the Planning Process
- Purchase portable traffic counters as part of procurement phase of this project (See Chapter XI Procurement
Recommendations.)
- Purchase replacement and addition counters as part of other assistance projects currently under discussion
- Purchase a roughness calibration unit as part of the procurement phase of this project (See Chapter XI
Procurement.)
- Purchase roughness measurement equipment for use by the SRD as part of the procurement phase of this project
(See Chapter XI Procurement.)
RECOMMENDATIONS

- Establish a roughness measurement equipment calibration and certification process and demand that all equipment
used for SRD studies be calibrated regularly

Address the Improvement Areas
- Investigative and design capacity: Encourage the development and growth of additional capacity
Package work in contracts small enough that smaller firms can bid on and win contracts to gain experience and
a track record of successful performance
Publicize upcoming work and invite firms to information sessions to generate interest and explain bidding
procedures
- Staffing: It is hoped that the new Road Law will assure sufficient funding to pay and will permit the SRD to offer
more competitive salaries that will attract quality candidates
- Information Sharing: Department personnel need to become more aware of the contents of the Information
Centers databases and expand the use of that information in the planning process. Department personnel can:
Help the Information Center identify additional data necessary for improving the planning process
Establish a policy to regularly pass along information collected during investigations and project preparation
studies to update the database information.
- Needs Driven Budget: The implementation of the systematic planning process with its three types of plans should
adequately address this issue
- Non-technical Criteria used in Decisions: The implementation of the systematic planning process with its three
types of plans should adequately address this issue
- Planning Process Timing: The implementation of the systematic planning process with its three types of plans
should adequately address this issue

Create an Environmental Section within the Department
- Gradually add the necessary staff to build an adequate environmental section within the Department
- Section will assure adequate consideration of environmental issues in the planning stages and supervise the
performance of remedial and mitigating measures for projects
- An Environmental Engineer has recently been engaged
- Expansion of section will be gradual as demand and expertise increases
- Eventual section staff outlined in Chapter III Institutional Arrangements and Chapter IX Environmental Impact
Technical Assistance to Serbia Road Directorate Phase 1 Report VI-1 Booz Allen Hamilton

CHAPTER VI

ROAD DESIGN

CURRENT PROCESSES AND ANALYSIS


I. INTRODUCTION AND DESIGN STANDARDS VI-3
I. CURRENT WORKLOAD AND ANALYSIS VI-8
II. RECOMMENDATIONS VI-14


I. INTRODUCTION AND DESIGN STANDARDS

INTRODUCTION AND DESIGN STANDARDS


Road Design Management, Performance, and/or Supervision Done by Department of Planning and Development
- See Chapter III - Institutional Arrangements for the institutional analysis of the Department
- Department manages design functions for all Directorate roads, including Motorways and Main and Regional roads
- Department responsible for the following design activities:
Preparation of limited designs for small projects
Preparation of terms of reference for design and design supervision contracts (both preliminary and final
design)
Preparation of bid documents for design and design supervision contracts
Receipt and technical evaluation of design and design supervision contract proposals
Monitoring and supervision of design and design supervision contract performance and products

Table III-1 (in Chapter III Institutional Analysis) presents the Departments current staff
- Chapter V Road Planning presents the actual deployment of the Departments staff
- For design work and the supervision of design, the Department can count on the services of only two engineers and
a technician



DESIGN STANDARDS
Current Standards
- The JUS (Yugoslav Standards) is officially recognized, published, and used by all designers (both private and
quasi-government)
- Establishment and maintenance of standards was the responsibility of the Federal Department of Standards
With the dissolution of the Federal Republic, that body has no defined new status
It is currently unclear whether any government body has the responsibility for maintaining the standards
- Parts of the JUS were developed in 1981 and even earlier
- Based on German standards at that time but adapted to Serbian conditions
- Sections of the standards have been updated occasionally since original development. Most recent updates are
from 1997.
- Existing standards are not completely in agreement with prevailing European Union (EU) standards
- Use of EU standards in new construction projects is a condition for entry into the Union
- Most design firms adhere to the current set of standards but also use more recent European or American standards
for some parts of their designs, particularly pavement design. The practice, however, is not uniform or regulated.

Design References and Support
- Guidelines for the design of rural roads, published in the official gazette of SFRJ, No. 63/80, contains the basic
technical support for road design
- The Traffic Safety Law, last revised in 2002, is also an important reference for road designers
- Department has two design methodology manuals
Prepared in cooperation with the Department for Roads, Railways and Airports of the Civil Engineering Faculty
of Belgrade University
One manual for new roads: Road Design Methodology prepared in 1993
One manual for reconstruction: Rural Road Reconstruction Design Methodology prepared in 2001
Methodologies described are obligatory for every state road project financed by the SRD
One opinion of the reconstruction design methodology holds that it is unrealistic, too theoretical, and doesnt
take into account the geographic and climatic differences between areas of the country

- In 2003, BECOM (Societe Francaise dIngenierie) with World Bank financing, prepared and published Guidelines on
Technical Criteria for Highway Design
Not a complete guideline for road design
Not intended to replace the above methodologies
Purpose: support and encourage the application of new technologies and modern road construction materials
for new pavements and particularly for pavement rehabilitation
- Department does not use a systematic method or tools to monitor and control design work
The Department Head sometimes uses a project management software application to plan and monitor design
projects and construction works but other Department staff do not have access to such tools
It was admitted that the Department relies on a trusting relationship with its contractors to accomplish their
work in a professional manner
In practice, design project may be regularly two to three (and occasionally up to six) months behind schedule
- Recent revisions and improvements to the standard set of terms of reference and tender documents should
promote better organization in the process

Comments on Standards and Application:
- Review of recent plans and designs shows that design standards have been appropriately followed and applied
- Pavement design standard uses an axle load assumption of 10-tonne axle riding on tandem wheels (current
European standard is 11.5-tonne axle riding on single wheel). In practice, designers use the more recent European
axle load assumption but the practice is not uniform.
- A field review of over 900 kilometers of roads was conducted to inspect the design, construction, maintenance, and
condition of selected roads on the existing network
- Field review included:
Motorways, Main roads and Regional roads
Varied terrain conditions from the flat plains of the north to the mountainous areas of the central west of the
country
Roads carrying varying traffic volumes ranging from 500 AADT on Regional roads through Main roads with
2,000 to 10,000 AADT to Motorways having 4,000 to 20,000 AADT
- Review revealed examples of substandard design (or construction) on many sections. Specifically:
Motorways:

Insufficient (occasionally practically non-existent) acceleration and deceleration lanes for entrances and
exits particularly in urban areas
Poor traffic signalization
Extensive rutting of the pavement (See separate report on Corridor X rutting in Appendix B.)
Main Roads:
Substandard pavement widths on existing (older construction) roads: widths vary between 5.5 and 7.0
meters. Current minimum design width is 7.0 meters and good design (accepted European practice)
should specify at least 7.2 meter width. (According to the Guidelines document, pavement width is a
function of traffic volume and terrain characteristics. Older designs, for the most part, follow the
Guidelines.)
Substandard shoulder width and material: Widths vary between undefined (essentially zero) and 1.0
meter. Materials range from natural soil (covered with vegetation) to gravel and, in a few cases, paved.
Minimum shoulder width (accepted European practice) should be 1.5 meters and minimum material
should be cement-stabilized soil but, preferably, bituminous paved. (Guidelines document specifies
minimum shoulder widths, depending on width of traffic lane, as varying from 1.0 to 1.5 meters.)
Poor signalization
Uncontrolled traffic access. Structures, private roads and driveways encroach on the road reserve without
adequate sight distance or safety design
Regional Roads:
Pavement condition deteriorated. Original construction was in 1960s using a surface treatment process
employing course aggregate first layer and a river gravel (un-crushed) for the second layer. Such a
pavement is difficult to maintain.
Substandard pavement widths: Width varies from approximately 5.0 to 6.0 meters. Although this width is
substandard, current traffic volumes (rarely exceeding 1,500 AADT) do not warrant widening except on a
few, high-volume sections. (Guidelines document specifies a minimum lane width of 2.75 meters with a
0.20 meter border effectively a 6.0 meter minimum carriageway width.)


II. CURRENT WORKLOAD AND ANALYSIS

CURRENT WORKLOAD AND ANALYSIS


CURRENT SITUATION
Current Workload
- Department is currently preparing a rehabilitation and reconstruction program for approximately 1,000 kilometers of
Main and Regional roads
- Department has prepared or is preparing the terms of reference to contract consultant services:
Economic evaluation
Final design
Construction specifications and tender documents
- Execution of program is planned in 2004-2005
- Table VI-1 presents the most current list of projects in the program

Table VI-1: Rehabilitation and Reconstruction Projects

Projects for Rehabilitation and Reconstruction on Main and Regional Roads
Road Number Location (End Points) Length Project Type Status
Central Serbia
M-4 Mali Zvornik - Loznica 14.300 Reconstruction Tender in preparations
M-4 Loznica - Oseina 41.363 Rehabilitation Tender in preparations
M-4 Oseina - Valjevo 32.884 Rehabilitation Tender in preparations
M-4 Iverak - Lajkovac1 18.117 Rehabilitation Tender in preparations
M-4 Lajkovac1 - Lazarevac 7.400 Reconstruction Tender in preparations
M-4 Lazarevac2 - Aranelovac 33.235 Reconstruction Tender in preparations
M-4 Aranelovac - Natalinci 24.728 Reconstruction Tender in preparations
M-4 Natalinci - Svilajnac 36.914 Reconstruction Tender in preparations
M-5 Parain - Straa 24.080 Rehabilitation Tender in progress
M-5 Straa - Boljevac 23.112 Rehabilitation Tender in progress
M-5 Boljevac - Selite 18.418 Rehabilitation Tender in progress
M-5 Selite - Lubnica 16.875 Rehabilitation Tender in progress
M-5 Zajear - Vrka uka 9.947 Rehabilitation Tender in progress
M-8 Sjenica - Novi Pazar 59.164 Reconstruction Tender in preparations
M-9 Leskovac - Babunica - Pirot 68.000 Reconstruction Tender in preparations
M-21 Dumaa - Koceljevlja 33.985 Rehabilitation Tender finished

Projects for Rehabilitation and Reconstruction on Main and Regional Roads
Road Number Location (End Points) Length Project Type Status
M-21 Koceljevlja - Valjevo 27.825 Rehabilitation Tender finished
M-21 Valjevo - Kaona 26.439 Reconstruction Tender in preparations
M-21 Kaona - Kosjeri 16.983 Reconstruction Tender in preparations
M-21 Kosjeri - Poega 24.369 Rehabilitation Tender finished
M-24 Petlja Autoput - Poarevac 15.583 Rehabilitation Tender in preparations
M-24 Poarevac - Kuevo 53.936 Rehabilitation Tender in preparations
M-24 Kuevo - Majdanpek 49.722 Rehabilitation Tender in preparations
M-24 Majdanpek - Negotin 71.250 Rehabilitation Tender in preparations
M-25.1 Poarevac - Beranje 13.249 Rehabilitation Tender in preparations
M-25.1 Beranje - Veliko Gradite 25.573 Rehabilitation Tender in preparations
M-25 Meroine - Prokuplje1 21.155 Rehabilitation Tender in preparations
M-25 Prokuplje1 - Kurumlija 30.978 Rehabilitation Tender in preparations
M-25 Kurumlija - gr.APKM(Merdare) 28.216 Rehabilitation Tender in preparations
R-105 Salakovac - Za Raanac 26.077 Rehabilitation Tender in preparations
R-126 Topola - Za Rudnik 13.386 Rehabilitation Tender in preparations
R-126 Za Rudnik - Rudnik 11.657 Reconstruction Tender in preparations
R-231 Nova Varo - Uvac 21.043 Rehabilitation Tender in preparations
Vojvodina
M-1.9 Banatski Karlovac - Vrac 23.360 Rehabilitation Tender in preparations
M-1.9 Vrac - Vatin 7.600 Rehabilitation Tender in preparations
M-21 Iriki Venac- Ruma(Petlja) 23.536 Rehabilitation Tender in preparations
M-22.1 Lovenac - Feketi 4.000 Rehabilitation Tender in preparations
M-22.1 Sirig - Novi Sad 14.300 Rehabilitation Tender in preparations
R-110.1 Samo - uklapanje sa R-123 2.500 Reconstruction Tender in preparations
R-123 Jarkovac - Dobrice 10.360 Rehabilitation Tender in preparations
R-112 Novi Kneevac - oka 11.000 Rehabilitation Tender in preparations
R-112 oka - Crna Bara 9.000 Rehabilitation Tender in preparations
R-119.1 Tornjo - Duanovo 5.500 Rehabilitation Tender in preparations
R-119.1 antavir - Autoput E-75 - S.ednik 9.800 Reconstruction Tender in preparations
R-125 Lokve - Alibunar 8.800 Rehabilitation Tender in preparations


ANALYSIS
Description of Design Process
- Planning section of Department develops projects for execution
- Department staff prepare the terms of reference and tender documents to contract the consulting engineering
services
- Design process consists of a series of logical activities. Figure VI-1 presents these activities.

Figure VI-1: Design Process

- Department staff monitor and control work of design firms but often contract for design supervision services thus
decreasing the need for Department supervision
- Department still must provide control and monitoring of design supervision contracts
- Ministry of Construction must approve designs and issue construction permit

Department Design Section Analysis
- Existing staff have good academic backgrounds and experience
- Additional staff expertise required (to bolster and supplement existing staff capabilities) in:
Road design
Soil mechanics
Pavement, bridge and tunnel design
Traffic engineering
Hydrology and hydraulics
Surveying
Economics
Environmental protection
Spatial Planning Urban Planning
General Design,
Planning and
Route Location
Construction Specifications
and Tender Documents
Final
Design
Preliminary Design
and Feasibility Study

- Amount of additional staff should be coordinated with projected yearly work load
- Yearly workload projections require the development of a medium-term plan for design and construction projects
- Judging from current projected volume of work, this staff investment is warranted
- If projected volume of work is not maintained, this investment could become a liability
- Existing Department facilities and processes to monitor and control projects are insufficient
Lack of systematic process to monitor and control the design preparation process
Lack of physical space and computing equipment for staff
Design contracts specify drawings to be prepared in AutoCad format, however, SRD does not have registered
copies of AutoCad for all existing design reviewers
Lack of room and/or table to open large plan sets completely
Inadequate record keeping and reporting
- Department doe not have the staff to prepare small design projects. For example, preparation of incidental or
additional drawings for ongoing projects.
Need arises literally dozens of times per month
Current solution is to contract with a design firm for such work
This solution requires administrative support (preparation of contracts), bid process management, and
supervision time that drains Directorate resources
A more effective solution would be to have a design engineer and two design technicians who could perform
these small works

Analysis of Outside Design Firms
- Department contracts almost all design functions to semi-private or private institutes and/or companies.
- Four principal institutes plus about a dozen smaller firms are capable of performing part or all of the design works.
Four principal semi-private institutes:
Highway Institute
Institute for Testing Materials
Institute for Roads
Road Center of Vojvodina
These four institutes are detailed in Chapter III Institutional Arrangements
These four institutes are capable of executing the entire design process (including investigations, preliminary
design, final design, and preparation of tender documents) for approximately:

Rehabilitation = 900 kilometers per year
New construction and reconstruction = 150 kilometers per year
Four institutes are in process of becoming private companies. The uncertainties of the privatization process
have engendered an amount of insecurity and instability in the institutes work forces
Although the firms have continued to acquire new equipment, some laboratory and investigative equipment is
now old and/or obsolete
The uncertainty of and erratic nature of funding for projects has caused problems in staff retention for the
institutes. An example from one institute:
During 1998 2001, total fees for engineering work were approximately 1,780,000 per year.
In 2002 as a result of the EIB/EBDR rehabilitation projects, equivalent work was 5,565,000.
Firms have excess theoretical capacity but have experienced a loss of experienced personnel during past 12
years. Therefore, they may not have the resident staff to take on more complex projects.
The dozen smaller firms must rent or sub contract (often from one of the four lager firms) the investigation or
design equipment to complete their work
There are several large private firms that are capable of the entire design process but these firms have recently
been focused on international work
- The collection of firms performed the design and document preparation work for the rehabilitation projects being
financed by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development
(EBRD)
Total length of 2003 EIB and EBRD rehabilitation projects was approximately 840 kilometers
The firms struggled to produce the required design documentation in the short time frame demanded by the
project schedule (for bid in March and April of 2003)
There were some quality problems in the documents that were produced (and amendments and corrections to
the documents continued to be made throughout the summer of 2003



RECOMMENDATIONS

The analysis of current processes and plans conducted in the preceding section lead to recommendations for
improvement in the areas of Design Standards and Process, Department Design Section, and Outside Design Firms and
Institutions

Design Standards and Process
- Revise and update current standards to be in agreement with prevailing European standards
- Update Road Design Methodology manual to reflect latest standards and practices
- Consider promoting the use of Guidelines on Technical Criteria for Highway Design
- Revise pavement design standard to use more recent 11.5-tonne axle load assumption
- Insist that all new designs use appropriate EU roadway and shoulder width designs and adopt a minimum
carriageway width
- Recommended actions to address substandard conditions
Motorways:
Current rehabilitation project should address most riding surface problems but will not address the
acceleration/deceleration lane problems
Therefore, where possible, acceleration/deceleration lanes should be lengthened to bring them into line
with current European design and safety practices
Main Roads:
After appropriate analysis, perform a program of selective widening of substandard roads to 7.2-meter
width coupled with necessary alignment corrections to provide traffic safety. Also analyze and perform
selective project to increase substandard curve radii (according to the increased highway speeds).
Priority should be given to those roads with high traffic volumes
Perform a program of widening substandard shoulders to 1.5-meter width. Priority should be given to
those roads with high traffic volumes.
Fund and execute a program of signalization improvement as part of the routine and periodic maintenance
program for the roads. The program should address both horizontal (road surface) and vertical (roadside)
signalization to bring the network up to current European standards.
Using the tenets of the new Road Law and the regulations being or to be developed to support it, embark
on a program of removing illegal access and encroachment and establish a permitting process to control
future access issues
RECOMMENDATIONS

Regional Roads:
A program is currently under discussion to apply approximately 1,000 kilometers per year of double
surface treatment to the Regional Road network. This treatment would have the beneficial effect of
sealing the existing pavement and providing a better riding surface (more skid resistant). Such a
treatment could significantly prolong the life of the regional network. This work can be done relatively
inexpensively and performed as part of the existing periodic maintenance program.
Fund and implement this program
Expand and continue this program in future years to treat the majority of Regional roads that are not being
renewed or rehabilitated under other programs. Make this type of work part of the normal periodic
maintenance cycle of works
- Implement a rolling Mid-term Plan (see Chapter V Road Planning) to provide continuity and stability in the design
process

Design Section of Department
- Gradually, as workload and staff budget permit, improve staff capabilities by training existing staff or hiring
personnel with expertise in:
Road design
Soil mechanics
Pavement, bridge and tunnel design
Traffic engineering
Hydrology and hydraulics
Surveying
Economics
Environmental protection
Spatial Planning Urban Planning
- Gradually reorganize Department as described in Chapter III Institutional Arrangements
- Institute a systematic design project monitoring and control process. Begin by establishing the milestone events in
the process and developing checklists to record achievement of those milestones. Improve this process using
simple software tools or project management applications.
- Improve physical facilities by acquiring additional office space and computing equipment. See Chapter X
Management Information Systems Analysis for computer hardware recommendations.
RECOMMENDATIONS

- Purchase sufficient copies of AutoCad to enable the Headquarters and the regional offices (currently Vojvodina;
eventually others, according to the eventual SRD organization structure) to have registered copies of the application
in order to be capable of reviewing design drawings furnished by outside firms and institutes

Outside Firms and Institutes
- Several pertinent recommendations have already been presented in Chapter V Road Planning, such as:
Encouraging the development and growth of additional design capacity by appropriate packaging of works and
publishing upcoming work
Implementing a Strategic, Rolling Mid-Term, and Annual planning process to provide advance notice to design
firms of the volume and nature of upcoming work, thus allowing them to acquire the staff and equipment
needed in advance and have a reasonable degree of confidence that an investment can be recovered
Develop strategies for further research and development in the Road sector, including a program of support for
existing research capacities in the institutes and faculties, particularly in SRDs transition period from
government agency to public enterprize
- Accelerate the process of privatization of the institutes to resolve the uncertainty and instability of the current
situation. This will allow their managements to make decisions on staffing and equipment and consolidate their
companies according to a firm business plan.

Technical Assistance to Serbia Road Directorate Phase 1 Report VII-1 Booz Allen Hamilton

CHAPTER VII

CONSTRUCTION AND MAINTENANCE

CURRENT PROCESSES AND ANALYSIS


I. CURRENT SITUATION VII-3
I. ANALYSIS VII -17
II. RECOMMENDATIONS VII -26


I. CURRENT SITUATION

CURRENT SITUATION

ORGANIZATION
Most Construction and Maintenance Works are Managed Together and Are Not Currently Separated in the SRD

Construction and Maintenance Works are Managed by Several Departments
- The country is divided geographically into three regions:
Vojvodina (from approximately Belgrade north)
Central Serbia (from approximately Belgrade south)
Kosovo and Metohija (This region is managed by international institutions.)
- Construction and maintenance in Serbia is managed geographically by dividing the country into 20 areas
Five areas in Vojvodina are managed by the Regional Center North, based in Novi Sad
Fourteen areas in Central Serbia (including one in Kosovo) are managed by the Department of Arterial and
Regional Roads, based in Belgrade
Works on the Belgrade Nis Motorway (the 20
th
area) are managed by the Highways Department, also based
in Belgrade
SRD has plans to create a third regional center in the south (and possibly others in the west and east) to
manage operations in that part of the country
The current set of rehabilitation projects financed by the EIB and the EBRD is managed by a specially created
Project Implementation Unit
- Each of the 20 areas has a resident Road Enterprise that has a general contract with SRD to perform
maintenance works. These contracts are revised and renewed each year. The resident Road Enterprises also
perform construction works under separate particular contracts, through a regular bidding procedure. Many of
these Enterprises have separate departments for maintenance and construction.

The Department for Arterial and Regional Roads is the largest of the managing departments
- Table VII-1 presents the staff information for the Arterial and Regional Roads Department. The staff for the
Regional Center South currently operates out of Belgrade and is included in Table VII-1. The Departments staff
consists of office staff and field staff
- Office staff includes the department head, one of the group chiefs as an assistant, and the officer
- Field personnel are those people with the responsibility to supervise and monitor the works being carried out by
contractors and the 14 Road Enterprises in Central Serbia. Currently, there are:
CURRENT SITUATION

Three construction supervisors
Nine maintenance supervisors
Two supervisors without specific responsibilities
- The Department does not have enough supervisors to monitor all the Road Enterprises. SRD contracts (usually
with one of the four institutes) for the supervision of the remaining Enterprises and the testing of construction and
maintenance materials and products. Currently there are eight contracted testing supervisors and 12 contracted
works supervisors

Table VII-1: Staff of Department for Arterial and Regional Roads and of the Regional Center South

Position Number Qualification Level * Average Monthly Salary
(Net)
Staff of Department for Arterial and Regional Roads Dinars Euros
Department Head 1 VII/1 19,699 298
Chief of Group 2 VII/1 18,333 278
Supervisor for Road Construction 3 VII/1 18,403 279
Supervisor for Road Maintenance and Protection 9 VII/1 17,668 268
Supervisor for Road Maintenance and Protection released
without allotted duties
2 VII/1 12,168 184
Clerk for Road Construction 2 IV 10,550 160
Road Maintenance and Protection Technician 1 IV 10,325 156
Officer of Writing Room and Archives 1 IV 10,246 155

Staff of Regional Center - South
Bridge Expert and Supervisor 1 VII/1 17,805 270
Economic Transactions Expert 1 VII/1 14,003 212
Cashier 1 IV 10,883 165
Typist 1 IV 10,559 160
Superintendent 1 III 7,407 112

*: VII/1 = University level; VI = Two-year College level; IV = Secondary level; III = Three-year secondary level (Skilled Labor); I & II = Primary level
CURRENT SITUATION

[Note: Regional Center South was in Pristina - Kosovo and Metohija. Since 1999, this area is under the jurisdiction of the International Community. The
SRD Organizational scheme has not been formally changed but, in practice, only two persons from the Regional Center South are now in Belgrade working
in the Department for Material and Regional Roads.]

The Regional Center North Manages Construction and Maintenance Works in Vojvodina
- The Centers staff manages all operations in Vojvodina, except Motorway construction. Chapter III Institutional
Arrangements details the range of the Centers functions. The Centers technical staff does not concentrate
exclusively on construction and maintenance to the exclusion of other types of work Everybody does Everything,
was how the Chief of Technical Section described it.
- Table VII-2 presents the technical staff information for the North Region Center
- As in the Central Serbia region, the Center contracts all of the materials testing and some of the construction and
maintenance supervision tasks

Table VII-2: Construction and Maintenance Staff of Regional Center North

Dinars Euros
Head of Department 1 VI/1 20,435 310
Chief of Technical Section 1 VII/1 19,452 294
Road Maintenance Engineer 1 VII/1 19,193 291
Engineer for Safety and Protection of Roads 2 VII/1 17,407 264
Bridge engineer 1 VII/1 16,942 257
Road Construction Engineer 2 VII/1 17,672 268
Road Maintenance Engineer 1 VI 19,001 288
Clerk for Supervision of Road Maintenance 5 IV 12,528 190

CURRENT SITUATION

The Department for Motorways Manages Construction and Maintenance on the Motorways
- Chapter III Institutional Arrangements presents the functions of the department. Essentially the department plans
the maintenance actions on the motorways and supervises the maintenance and smaller construction works.
- SRD personnel perform the planning functions but supervision and control are performed through contracts with
one or more of the institutes
- Several Road Enterprises perform the smaller construction projects and the maintenance works on the motorway;
larger projects are performed by individual contracts
- The position of Head of Department is currently vacant but is performed by the Director of the SRD
- Table VII-3 presents the staff information for the Motorways Department

Table VII-3: Staff of the Department for Motorways

Dinars Euros
Head of Department (position vacant, SRD Director performs
duties)
VII/1
Analyst of Administrative Database
1
1 VII/1 17,872 271
Expert Associate for Motorway Construction 3 VII/1 18,088 274
Expert Associate for Investments
2
2 VII/1 18,683 283
Expert Associate for Motorway Maintenance and Protection 2 VII/1 18,005 273
System Engineer
1
1 VII/1 13,684 207

1 = Administratively a member of the Department of Information and Document control
2 = Administratively members of the Department of Planning and Development

The Project Implementation Unit (PIU) Manages the Rehabilitation Works being Financed by the EIB and EBRD
- Set up uniquely for these projects and will be disbanded once they are completed
- Performs many of the tasks that would normally be performed by the Department of Main and Regional roads
- Manages the final design preparation, tendering process, and construction supervision
- Funded by the European Agency for Reconstruction (EAR) and led by an international consultant and supported by
local staff
- Figure VII-1 presents the organization chart for the PIU
CURRENT SITUATION


Figure VII-1: Project Implementation Unit Organization Chart
European Agency for Reconstruction and Development
Project Director
Project Manager
International Short-Term
Experts

Training
Contract Management &
Procurement
Roads
Financial Administration &
Accounting
National Short-Term
Experts

Roads
Asphalt Paving
Bridges
Geotechnical
National Expert Monitors

Four Monitors
CURRENT SITUATION

CONDITION OF EXISTING ROAD NETWORK

The main roads can be divided into two general groups: those built or reconstructed in the eighties and later and those
constructed (or reconstructed) in earlier decades. Those roads from the eighties and later (the smaller part of the
network) are generally in acceptable condition and need only periodic maintenance. Those from earlier decades, which
were constructed using inadequate technologies and/or materials and having had inadequate maintenance, are not
suitable for todays traffic volumes.
The regional roads are in bad condition. Before 1978 the regional roads were under local control. When the state took
over, to prevent further deterioration they were patched and covered with asphalt gravel. Depending on traffic volume, a
weaker structure, such as asphalt gravel, was accepted. Original construction for these roads was a single layer of
asphalt concrete that used river gravel as the aggregate. The asphalt concrete layer was laid down on the existing
alignment only minor geometric improvements were made. The condition is so bad that some roads would be better
scarified and left in gravel. Many roads need an emergency maintenance program to save the basic road formation.
Many of these roads carry less than 500 AADT. One possibility is a Double Bituminous Surface Treatment program that
could do as much as 1,000 km/year.

WORKS PERFORMANCE
The SRD Does Not Perform Construction and Maintenance Works Using Its Own Forces; Rather, It Manages the Work
Done by Quasi-State Road Enterprises, and National, and International Contractors
- Projects financed using funds from international finance institutions (IFIs) are sometimes performed by international
contractors often in consortium with national contractors
- Projects financed using State funds are usually performed by one of the Road Enterprises or by a national
contractor. Sometimes, particularly in the case of Motorway construction, works are performed by consortiums of
international and local contractors.

The Road Enterprises Have General Contracts with the SRD for the Performance of Maintenance
- The country is divided into 20 geographic areas. One of these areas is the Belgrade-Nis Motorway.
- In the past, small construction works and all maintenance to be done in each of the areas were performed by the
Road Enterprise that is contracted for the area
CURRENT SITUATION

- More recently, construction and rehabilitation works have been contracted for using a standard competitive bidding
process
- Each Enterprise has a separate contract with a unique unit price list for works that is updated yearly by the SRD
- At times, because of a lack of separation in the budgeting process, it is difficult to distinguish between funding for
construction and maintenance works
- The Enterprises also perform works on a contract basis for local authorities and private organizations, as their
schedules permit and funding is available
- The capacity of the Enterprises and the quality of their work varies
Several Enterprises are large, efficient, quality organizations with extensive, modern equipment fleets and
competent staff that perform international quality work
Several of these larger Enterprises have successfully entered into consortiums with international contractors to
perform parts of larger, internationally bid projects in Serbia
Other Enterprises are medium to small organizations using an aging equipment fleet and a mediocre staff
- The Enterprises are in the process of being privatized. It is uncertain when this process will be completed and what
effect it will have on their operations. A likely scenario is that the larger, efficiently run Enterprises will prosper and
grow while the smaller Enterprises will fail or be absorbed into the larger ones.

CONSTRUCTION AND MAINTENANCE PROJECTS FUNDING
2002 Funding:
- Planned state-funded budget for Construction and Maintenance was about 6.5 billion dinars, of which approximately
5.033 billion dinars was allocated
- Total planned budget (including loans, grants, etc.) was 13.55 billion dinars, of which 11.352 billion was allocated
- At years end, the total expenditures were 14.486 billion dinars. The difference was covered by additional credits.
The 2003 planned state-funded budget was about 8 billion dinars and the total planned budget was 20.306 billion dinars
Table V-2 (in Chapter VI Road Planning) Presents the List of Rehabilitation Projects Planned for the 2003 Fiscal Year
and Financed by the IFIs as Noted
Table V-3 (in Chapter VI Road Planning) Presents Construction Projects for the 2003 Fiscal Year. These Projects are
Financed by State Funds.
CURRENT SITUATION

Table VII-4 Presents the Maintenance Budget and Program for the 2003 Fiscal Year, as given in the Program of Works
for 2003. The Program for 2003 Envisages YUM 5,384.1 million for the Road MaintenanceTable VII-4: Maintenance
Budget for 2003 Fiscal Year

Road Class
Budget
(Million Dinar)
Motorways and Semi-motorways 835.0
Arterial Roads 2,057.3
Regional Roads 2,491.8
Total: 5,384.1

Table VII-5 Presents the Breakdown of the Maintenance Expenditures for the Year

Table VII-5: Details of Maintenance Budget for 2003 Fiscal Year

MOTORWAYS & SEMI-
MOTORWAYS ARTERIAL AND REGIONAL ROADS

Serbia
proper Vojvodina Sum Serbia proper Vojvodina Sum TOTAL
a)
Procurement of materials and
equipment
75.6 48.0 123.6 335.3 48.0 383.3 506.9
b)
Winter maintenance 120.0 38.4 158.4 600.0 66.0 666.0 824.4
v)
Regular maintenance 254.4 273.6 528.0 2,333.8 1,041.0 3,374.8 3,902.8

SUM: 450.0 360.0 810.0 3,269.1 1,155.0 4,424.1 5,234.1

- Arterial roads (40%) 1,307.6 (60%) 693.0

- Regional roads (60%) 1,961.5 (40%) 462.0
g)
Other maintenance-related items 13.9 11.1 25.0 91.7 33.3 125.0 150.0

- Arterial roads (40%) 36.7 (60%) 20.0

- Regional roads (60%) 55.0 (40%) 13.3
TOTAL: 463.9 371.1 835.0 3,360.8 1,188.3 4,549.1 5,384.1
CURRENT SITUATION


CURRENT SITUATION

CURRENT PROCESSES
Work Standards
- Construction, Reconstruction, and rehabilitation work is performed according to the contract specifications or
specific instructions tailored to the project or situation in the project location. Therefore, the set of general and
special specifications the included in the contract documents (or the project managers specific instructions for
smaller works that do not have individual contracts) plus the national construction and material quality standards
serve as the standards for these types of works.
- Formal written maintenance work standards do not exist
- One interviewee provided an extensive set of bid items with a short work description and a unit cost that is used to
help plan and assign work, report accomplishment, and compute payments. The same set of bid items applies to
both main and regional roads.
- A difference in work performance between the main (arterial) roads and the regional roads is in the level of service
provided. Main roads receive more extensive and more frequent attention.
- The Department for Arterial and Regional Roads, working with an international consultant, has prepared the tender
documents for a maintenance-by-contract pilot project. These documents contain an extensive set of maintenance
work standards describing the work to be performed by the contractor. The pilot project and the work standards are
analyzed below.

Program Planning and Budget Preparation
- For large construction, reconstruction, and rehabilitation projects, particularly those financed by IFIs, planning, work
determination, cost estimation, and budget preparation is performed by the Department of Planning and
Development, as described in Chapter V Road Planning
- For smaller construction, reconstruction, and rehabilitation projects and all maintenance works, the process is not
as formal
Process is similar for Vojvodina, Central Serbia, and Motorways, although some details may vary
Develop yearly program based on
Quantity and type of work performed in previous years
Experience of planner
Field inspections of current situations
The two most important technical considerations are traffic volume and roughness
The roads database (in the Information Center) is NOT used except for specific programs
CURRENT SITUATION

Officially, 10% of Arterial and Regional Road budget is designated for works on roads classed as Local.
Interviewees commented that the percentage actually spent on the local network rises considerably during
election years.
Non-technical criteria are sometimes used to promote projects to a higher priority
The construction and maintenance work program is presented to upper management, discussed, and
adjusted, then presented as part of the SRD budget proposal
Proposed programs are normally reduced (one estimate was that only 25% of the requested funding was
actually allocated) and managers must adjust the program to the budget allocation
For Main and Regional roads, Belgrade SRD headquarters sends out the policy regarding what to do
according to the area of the country
Contracts for the smaller construction works and routine maintenance performed by the Road Enterprises are
prepared on the basis of unit prices
Multi-year construction and maintenance work programs are not currently prepared
The current years program is not usually finalized until April or May (even though the fiscal year begins in
January)
In the SRD, there are two professionals that manage the bridge program for Central Serbia and one in
Vojvodina
Bridges are defined as spans greater than five meters.
The bridge professionals prepare the work program, prepare the tenders, supervise the works, and
inspect the progress
SRD often hires consultants to prepare the documents, supervise, and inspect the work
Bridges are included in the routine construction and maintenance planning and work assignment process
Cleaning and winter maintenance (snow removal, small interventions and repairs, etc.) are the only
routine maintenance works performed on bridges by the Road Enterprises. Specialized bridge companies
do any more extensive work.
There are two large bridge companies that are capable of dong extensive bridge works (Mostogradna and
Ratko Mitrovic) and three or four smaller companies that can do smaller works

Construction and Maintenance Work Assignment
- Again, a similar process takes place in Vojvodina, Central Serbia, and Motorways although details may vary
- The general process is a monthly cycle:
CURRENT SITUATION

Field supervisors (and sometimes department heads) conduct field inspections, usually together with the heads
of the Road Enterprises, to identify problem situations and discuss works priorities
The department heads discuss past progress and upcoming priorities with their superiors and field supervisors
to determine most recent requirements and available funding on a monthly basis
Department heads and fields supervisors meet monthly with heads of the Road Enterprises to discuss general
assignments and volume of works
The police frequently make requests for (what they deem to be critical) corrective and/or maintenance work to
address a safety problem (such as missing or damaged signs, reduced visibility, deteriorated or missing
pavement markings). When possible, these requests are included in the work assignment process
Volume of work to be performed is determined by the monthly budget allocation, which may be substantially
different (usually less) than what was allocated for that month in the annual budget
Department heads and field supervisors assign the type and volume of work to be performed to the heads of
the Road Enterprises, either at the monthly meetings or individually
Work assignments usually consist of simply the type of work to do (currently only patching, ditch cleaning, and
vegetation control) and the amount of money the enterprise can spend
The location of the work is sometimes specified by the road and section on the road but often is left to the head
of the enterprise to determine (in consultation with the SRD supervisor and based on the works priority)
Assignments are sometimes but not consistently written down
- Once a rehabilitation or construction project starts, the scope of work is sometimes expanded but budget allocations
are not increased resulting in work being paid from other funds
- For the past 2 3 years, SRD has had a strong maintenance program on Regional roads that concentrated on
patching, vegetation control, and drainage maintenance and that has markedly improve the condition of the
network. Anecdotal evidence (informal discussions with motorists and travelers who regularly drive the Regional
roads outside the cities) indicates that this program has been successful.
- Taxes (of approximately 20%) must be paid on maintenance work but not on rehabilitation and construction work
performed under a permit issued by the Ministry in charge

Work Supervision and Control
- Field tests and materials testing are performed by the institutes (usually IMS and IP in Central Serbia and CPV in
Vojvodina)
- The general supervision process follows a monthly cycle:
CURRENT SITUATION

During the month, the field supervisors (and frequently the department heads) inspect the works being
performed
The SRD (or consultant) field supervisor controls the work checks quality and verifies quantities
Most field supervisors are resident at the headquarters locations of the Road Enterprises and are at job sites
on a frequent basis
The department heads meet monthly with the SRD field supervisors to be appraised of the work progress
The department heads, field supervisors and the heads of the Road Enterprises meet monthly (at the same
meeting mentioned above for work assignments) to discuss progress and problems in work performance
In preparation for the monthly meetings, the heads of the Road Enterprises prepare a report
The report may be written but is often verbal
The report gives the quantities of work accomplished and the problems encountered
Neither the Road Enterprises nor the SRD compare quantities of work accomplished to work planned
The contractor reports quantities accomplished on the (written) invoice submitted for payment
In Vojvodina, field supervisors prepare a monthly report regarding the activities of the units they supervise
Payment to Road Enterprises is made after satisfactory completion of the works, certification by the field
supervisor, preliminary approval by the department head, and final approval by the Director
- Payment for some projects is sometimes deferred until the following year through the credit agreement between the
SRD and the contractor. (The contractor agrees to do the work in order to occupy his personnel and equipment in
the expectation of being paid under the next fiscal years allocation. Note that Table V-3 shows a total of 2,353
million dinars of work to be executed using deferred payment.)
- Once work has been approved, the payment process is reasonably straight forward and without problems:
Monthly certificate signed by the supervisor of the work
Certificate approved by Director
Payment made to appropriate financial institution
- For a variety of reasons (additional needs, contractor initiative, poor communications, emergencies and others) and
using General Contracts, the maintenance work that the enterprises perform often includes some rehabilitation/
reconstruction/ construction work

CURRENT PLANS
The SRD recently signed contracts for a set of rehabilitation projects totaling approximately 800 kilometers.
- The projects are being funded by loans from the EIB and the EBRD
CURRENT SITUATION

- The location and summary of these projects are presented in Chapter V Road Planning
- At the conclusion of the two-year project period, almost the entire motorway system will have been rehabilitated
along with several other sections of important arterial roads

The SRD Is Preparing to Invite Tenders for a Pilot Maintenance-By-Contract Project
- The project will test the concept of having the winning contractor perform all routine and winter maintenance on a
network of roads entrusted to its care using a performance-based type of contract
- The project is funded by the International Development Agency (World Bank)
- The network of project roads covers approximately 660 kilometers in Macva District and 500 km in Colubara District
(western central Serbia) on both main and regional roads
- The bidding is to occur in March of 2004 and the term of the project is for three years, with a possible extension to
five years
- Booz Allen reviewed a draft set of the documents dated September 2003

In 2004, the SRD intends to start a double surface treatment (or some other appropriate technology) program for about
1,000 km per year of mostly regional roads


II. ANALYSIS

ANALYSIS


ORGANIZATION
The Proposed New Road Law Addresses Some Organizational and Operational Issues but Needs Additional Elaboration
and/or Clarification
- The Law gives the outlines of the new Roads Authority organization but SRD needs to develop and implement the
details of a revised organization. Preliminary discussions have been held to develop the organization structure.
- The Law provides a definition of some road classes but supporting by-laws and regulations are called for in the Law
There is a general definition for Main roads (National Roads, Class I), Regional roads (National Roads, Class
II), and Local roads (Municipal Roads) but these definitions need to amplified and further defined
SRD has already begun work has already begun on developing some of the supporting regulations but some
must be developed under the guidance of the MoTT
- The Law defines several areas adjacent to the road (Road Protection Zone, Right of Way, and Controlled
Development Zone) within which access is restricted.
Access to these zones is controlled by a permit process administered by the (to-be-created) Roads Authority
Currently, such access is not well controlled:
People tear down the fences and build without any permits
The MoTT is supposed to enforce the existing regulations but they only have 10 inspectors for the whole
country
- The Law stipulates that utility re-location costs shall be borne by the manager of the utility

Having Both Construction and Maintenance Together Dilutes Staff Direction
- Different skills are required to manage construction supervision and control compared to maintenance planning,
direction, supervision and evaluation
- Separating the two functions into different departments would allow each department to concentrate on and
become more proficient in the skills needed to manage its function
- Separating the functions would also allow better identification and understanding of the costs of managing the two
functions.

Staff and Physical Facilities to Manage the Works Are Not Sufficient
- The Headquarters staff of the Department for Arterial and Regional Roads in Belgrade consists of only two
professionals plus their support staff
ANALYSIS

The field personnel for this department are not sufficient to assign one supervisor for each Road Enterprise in
Central Serbia. Contracting the supervision of the remaining enterprises makes up for the difference.
This department urgently needs additional engineers and technicians to help perform the large workload
In addition, this department supervises both construction and maintenance plus some bridge work using the
same group of people
According to the Head of the Department, the SRD does not have sufficient staff to manage the Construction
Supervision of the expected work volume in the 5-year Recovery Plan
- The staff in the Regional Center North, according to the Chief of the Technical Department, needs additional
engineers to help plan and supervise the maintenance workload and to replace some of the professionals who are
nearing retirement age
- The staff of the Department for Motorways, according to a manager of one of the motorway sections, needs another
engineer and a technician
- The PIU is adequately staffed, since it has the funding to attract the number and quality of personnel needed
- The supervision and inspection capacity will need to be increased to assume the workload currently performed by
the PIU staff when the PIU disbands (in roughly 2005)
- In addition, most current supervision and inspection staff require training to polish existing skills and acquire other
appropriate ones
- The Department manages all activities in Central Serbia from the Belgrade headquarters
This situation means extensive travel for managers to reach work location in the south of the country
It also means that managers are physically removed from contact with the conditions in the work areas
The Serbia Road Directorate intends to establish regional centers to manager works in the southern part of
the country (Nis and Uzice were mentioned as possible sites)
- Given the reported condition of the bridges on the national road network, the bridge work analysis, planning, and
supervision capacity should be increased
ANALYSIS

WORKS PERFORMANCE
The Use of a Formal Set of Maintenance Work Standards Would Improve Maintenance Work Management
- Maintenance Work Standards (sometimes known as Performance Standards or Quality Standards) provide a
systematic basis for:
Developing a systematic process of managing maintenance
Establishing relatively uniform practices throughout the country
Estimating work quantity and cost
Preparing performance-based budgets
Narrowly defining the work to be done, thereby minimizing work performed outside the scope of the work task
Assigning work to performing units
Providing a uniform quality control process
Assessing crew or contractor performance during inspections
Reporting work performed
Comparing actual performance to planned actions
- Elements of a Work Standard include:
Title and description
Identification of the road feature to which the standard applies
Identification of the unit in which accomplishment is measured
The organizations policy for work performance
Designation of the type, number, and amount of time worked per day for labor resources
Designation of the type, number, and amount of time worked per day for equipment resources
Designation of the type and quantity used per day for material resources
- Such standards could be used by:
The SRD for planning and budgeting, work assignment, and work control
Performing units (Road Enterprises or other contractors) for work estimation, training of new personnel, work
assignment and reporting accomplishment to the Serbia Road Directorate
- Establishing such standards would also help the SRD manage the anticipated maintenance-by-contract projects

Having Road Enterprises Perform Both Construction and Maintenance Is Inefficient
- Different sets of management skills, personnel, and equipment are required for the two. Specifically:
ANALYSIS

Construction works are, by definition, of finite duration and usually sporadic in nature whereas maintenance
works are continuous and long-term
Although some construction skills are also used in maintenance, a significant number of skills needed for
maintenance are substantially different from construction skills
The volume and/or magnitude of works in maintenance is substantially less (or at least more geographically
scattered) than in construction
While an enterprise performs mainly maintenance, the larger (usually more expensive) specialized equipment
needed for construction often sits idle
- If each of the Road Enterprises would specialize in one type of work, the could reduce equipment idle time and
develop a more specialized work force
- Specializing it one type of work would allow the enterprises to compete more energetically and efficiently for
contracts and, possibly, develop a larger capacity
- The uncertain pace and timing of the current privatization process makes it difficult for the enterprises to develop
concrete long-range plans (such as to specialize in maintenance) at this time

The SRDs Program Planning and Budget Preparation Should Be More Systematic
- Preparing separate programs and budgets for construction works and maintenance works clearly identifies the
amounts spent on these types of work. Separate preparation:
Allows managers to discuss planned projects with the appropriate contractors
Facilitates more accurate financial planning of the works
Facilitates later comparison of actual accomplishment to the planned program for better supervision and
control
- The development and annual updating of a Mid-term Plan of Works contributes to more efficient planning. Use of a
Mid-Term Plan:
Allows ample time to conduct the studies required to justify and support the project
Establishes a historical record of project development
Helps build management and political support for projects
Gives contractors advanced notice of upcoming work
Facilitates the development of annual programs
- The planning process should make use of the information in the databases maintained in the Information Center
ANALYSIS

The Information already maintains some of the traffic volume and condition data that works planners regularly
use
Planned improvements to the quality and coverage of road information database will make this a valuable
planning resource
Greater use of the data provides support for the information Center planned improvements
Coordination between works planners and the Information Center staff can help identify the location and type
of required road data
- For maintenance works, the development of a Maintenance Management System (MMS) would provide a
systematic process for program development. A MMS:
Is a performance-based program development tool. The program is the result of the identification of specific
work required rather than a general estimation based on work performed in the past.
Uses a set of Work standards to describe the work activities to be performed
Is described in terms of specific quantities of particular activities, rather than the amount of money to be spent
Provides systematic justification for funding requests
Allows adjustment of the original work program if the allocated budget is different from the requested budget
Facilitates short-term scheduling and work assignment
Provides a basis for reporting and controlling the work performed
Promotes comparison of work accomplishment to work planned
- The Serbia Road Directorate is not systematically collecting, recording, and analyzing the effects of maintenance
actions
More systematic and extensive measurement of road condition parameters (roughness, cracking, and
potholing) allows comparison of before and after construction and maintenance works conditions
Condition measurements should be combined with work performance data such as type of work and cost
Such before and after measurements coupled with the work performance data provide a basis for economic
analysis and justification for different courses of action

Local Capacity for Works Execution
- Besides the 20 Road Enterprises, roughly 15 other small to medium sized national firms are capable to performing
parts of the anticipated Recovery Plan works
- There are, in addition, 3 or 4 large national firms that work internationally and could bid on and perform larger
construction works
ANALYSIS

- Sufficient capacity exists in Road Enterprises and local firms to perform the Recovery Plan, if, as has been the
case, larger projects are bid internationally

Work Assignment
- The current work assignment process is reasonable but should be more systematic
- The use of work standards as part of a MMS, as cited above, by Serbia Road Directorate work supervisors would
introduce the stated advantages for work estimation and assignment
- The use of work standards, as part of a MMS, by the maintenance Road Enterprises would promote planning and
reporting efficiency
- The establishment of a stable, dedicated funding source (as envisioned in the proposed Road Law) should provide
increased and secure funding for maintenance works and, thereby, support for Road Enterprises dedicated to
maintenance and small construction or improvement works
- Work assignments by SRD supervisors should always include the geographic extent and the total (not to exceed)
quantity of the work. Doing so:
Promotes more accurate control of the location of the works
Helps prevent cost overruns
- Contracts with the maintenance contractors should include prescribed penalties that are enforced for exceeding the
work assignments as another measure to prevent cost overruns

Work Supervision and Control
- Establishing a more systematic and uniform supervision and inspection process, based on the detailed work
standards and performed by the appropriate number of professionals, would allow more efficient control and
evaluation of the work being performed
The use of work standards (in the context of a MMS):
Provides a baseline for evaluating the quality of the work performed
Provides a uniform basis for reporting
Facilitates comparison of work performed to work planned
Facilitates systematic evaluation of contractor performance, both to previous performance of the same
contractor and to the performance of other contractors working under similar conditions
Establishment of a set of consist, uniform reports from contractors:
Promotes more efficient evaluation of contractor performance
ANALYSIS

Facilitates summarization of reported performance to higher management levels
Allows systematic comparison of contractor performance
- The division of work into separation departments for Construction and maintenance will require additional
supervisors and /or inspectors and separate reporting processes to monitor each type of work
- The occasional practice of work by deferred payment is risky for both the contractor and the SRD
The contractor risks long delays in payments and, possibly, failure of payment
The SRD risks using up substantial portions of a limited budget simply to pay for works from a previous year
The dedicated and sufficient funding envisioned under the proposed Road Law should make this practice
unnecessary

Maintenance-By-Contract Pilot Project
- The consultant reviewed a draft set of the bid documents dated September 2003. The documents have been
updated since this version.
- The pilot project is a performance-based contract. As defined in the contract documents, this means that payment
is made based on the output (achievement of specified levels of quality) of the works rather than the inputs
(quantities and volumes of materials and efforts). This is a positive step in the development of more efficient
operations.
In this type of contract, the contractor is responsible for designing, planning, estimating, assigning, and
performing the work necessary to achieve the required quality level
The SRD is responsible solely for measuring the parameters necessary to certify that the quality level has been
achieved
- Although the intent of the project is laudable, we believe the contract is more complex that it needs to be
This is a pilot project. The purpose of a pilot project is to test whether a concept or process is workable and
beneficial. A pilot project should also identify in what manner the specifications and parameters of any future
operational projects should be adjusted.
Examples of the complexity of the contract include:
The division of the road network into six classes for routine maintenance and six (different) road classes
for winter maintenance. Yet the contract specifications also present a cross-reference table that equates
some of the routine maintenance classes to some of the winter maintenance classes.
In the Liquidated Damages section, the assignment of different numbers of demerit points by class of road
and type of work
ANALYSIS

The number of different routine and bridge maintenance specifications (activities). There are almost 100
specification listed. Our review indicates that this number could be reduced to approximately 70.
The assignment of work performance time limits for each routine maintenance activity for each road class
The specification of winter maintenance quality levels for some road classes using temperature.
Temperature is extremely variable along the length of a road and by time of day.
We believe that the complexity of the pilot project will have several negative effects:
The contract will be difficult to administer (supervise and control)
The bid prices are likely to be high as bidders try to ensure they are protected and can make a profit
Disagreements over which of the specifications applies to a particular situation are likely to generate
disputes between the contractor and the SRD
- If this pilot project is successful, the more widespread introduction of similar maintenance contracts will necessitate
significant changes in the culture of both the SRD and the maintenance contractors
Work assignment will be left to the contractor
The importance of work standards (for planning, assigning, quantifying, reporting, and evaluating work) will
increase
The role of the SRD will change from one of detailed planning and inspection to one of strategic planning and
condition monitoring



RECOMMENDATIONS

The findings and analyses presented in the first two section of this chapter lead to a series of specific recommendations
that, if followed, will improve the construction and maintenance operations of the Serbia Road Directorate
- Many of recommendations must be implemented over time or in phases or require the implementation of other
recommendations
- One group of recommendations is aimed at the operations and practices of the SRD itself while several other
recommendations are aimed at organizations and practices outside of the SRD

SRD ORGANIZATION
Continue and Complete Work on the By-Laws and Regulations that Support and Define the Clauses in the Proposed
Road Law
- Coordinate work on these supporting items with the MoTT and Ministry of Finance
- The staff working on these supporting items must remain informed about the progress of the Law through
parliament and the changes made to the Law

Develop and Submit to MoTT a Recommended List of Road Classification Changes
- Identify those road currently classified as Main or Regional that should be assigned to a different class or devolved
to local community control
- Use the functional classification criteria developed to support the Road Law to support and justify the recommended
reclassifications

Establish Additional Regional Centers (South and, possibly East and West) for construction and maintenance works
supervision and control according to the increase in workload volume and number of personnel dictate

Reorganize the Construction and Maintenance Functions of the Existing Department of Arterial and Regional Roads, the
Regional Center North, and the Regional Center South into Two Separate Departments: Department of Maintenance
of Main and Regional Roads and Department of Construction as Described in Chapter III Institutional Arrangements
- This change separates the construction and maintenance functions and allows staff specialization and focused
management
RECOMMENDATIONS

- Unifying the management of each function would promote the application of a single set of methods, forms and
criteria
- Unifying the management would also make it easier to re-allocate staff, if needed, to cover temporary absences or
vacancies and to provide training and support to new personnel

Increase the Number and Qualifications of Construction and Maintenance Personnel
- The timing of staff increases must be coordinated with the anticipated workload and available budget
- Identify the personnel requirements and timing to supervise the expected construction workload in the five-year
Recovery Plan plus concurrent SRD programs
- Identify the personnel requirements and timing to appropriately staff the functions of the regional centers
- Identify the personnel requirements and timing to supervise and control the maintenance works under the agreed
upon performance scenario (Road Enterprises or maintenance-by-contract)
- Identify the personnel impact of the phasing out of the PIU and develop the appropriate response
- Develop an immediate and an on-going train needs assessment to enhance the qualifications of the existing and
additional personnel. Currently identified training needs (see also the needs identified in Chapter III Institutional
Arrangements) include:
Using project management applications (Microsoft Project, Primavera)
Using office productivity software (Microsoft Office)
Increasing English language proficiency
Interpreting and using results from new technologies such as Falling Weight Deflectometer, Roughness
measurements, skid resistance measurements
Understanding and using data from the SRDs Integrated Road Information System
- Expand the physical office space, office equipment, and support personnel to complement the increase in
operational personnel

WORKS PERFORMANCE
Implement Systematic Management of Maintenance
- Establish uniform processes and procedures for the entire country for all aspects of the management cycle:
planning, organizing, directing and controlling
- Develop a set of maintenance work standards to aid work planning, estimation, assignment, and control
- Consider implementing or developing a Road Maintenance Management System
RECOMMENDATIONS


Improve monitoring
- Develop and implement work standards for both broadly defined construction tasks and specifically defined
maintenance tasks (see above)
- Prepare programs for construction and maintenance works based on the defined tasks
- Insist that the Road Enterprises and other contractors plan and report their work in a manner that either uses the
defined tasks or can easily be converted to those tasks
- Prepare or insist that the Road Enterprises and contractors prepare reports that compare actual accomplishment to
planned accomplishment in terms of the type and quantity of the defined tasks
- Objectively evaluate (and, possibly, base payment on) performance using the reports described above

In Coordination with the Information Center, Develop and Begin Collecting a Set of Road Data to Assess the
Effectiveness of Road Maintenance Actions
- Some data may already be collected by the Center
- Examples of data that would be needed include:
Type and quantity of work performed per road section, broken into categories such as road surface, drainage,
vegetation control, signalization, etc.
Cost of maintenance actions per road section, collected and presented in the same categories used to plan
and perform the works (e.g. the set of work standards)
Road condition measurements such as roughness, cracking, potholing, and skid resistance
Road structural strength measurements
- Data collection should be scheduled to allow evaluation of complete programs of action over a pre-determined time
period (say a calendar month or a summer maintenance season)

Assuming a Successful Result of the Pilot Maintenance-By Contract, Gradually Expand the Use of this Type of
Maintenance Performance to Additional (Eventually All) Areas of the Country
- Revise the bid documents and specifications according to the lessons learned during the pilot project
- Implement first in the areas that are currently maintained by the stronger, more competent Road Enterprises to
maximize the chances of success and to build a cadre of trained and experienced supervisors and managers within
the SRD and examples of successful private contractors

RECOMMENDATIONS

OUTSIDE THE SRD
Support and Promote the Passage of the Proposed Road Law

Encourage the Road Enterprises to Specialize in a Single Function (either Construction or Maintenance)
- This change can be supported by preparing separate contracts for the two types of work
- Such specialization will promote more efficient use of staff and equipment
- At present and under the current uncertain works funding, it would be difficult to support separate maintenance and
construction organizations. (The existing Road Enterprises often need to search for and perform work for
organizations outside the SRD in order to remain fully occupied.) However, under the funding provisions in the new
road law, funding should become more stable and should be sufficient to support an appropriate level of
maintenance. At that time, separating the construction and maintenance functions should be considered

Encourage the Use of a Road Maintenance Management System in the Road Enterprises
- Coordinate the development and implementation of such a system with the parallel development of a system in the
SRD
- The SRD can begin by demanding the use of a uniform set of work standards in future contracts

Technical Assistance to Serbia Road Directorate Phase 1 Report VIII-1 Booz Allen Hamilton

CHAPTER VIII

ENVIRONMENTAL ISSUES


APPLICABLE LAWS AND REGULATIONS
Current Serbian Environmental Laws and Regulations affecting the functions of the SRD are divided between the Federal
and the Republic levels, according to the Competent Authority that applies the Regulation
- Federal (State Union of Serbia and Montenegro) level laws and regulations:
Law on the Basic Principals of Environmental Protection (Official Journal of FRY No. 24/98). This law sets up
the basic principals for sustainable development, integrated pollution control, "polluter pays" principle, user
liability and public participation.
- Republic (of Serbia) level laws and regulations:
The Law on Environmental Protection (Official Gazette of RS No. 66/91, 83/92, 67/93, 48/94, 53/95) regulates
the system of protection and development of the environment, including spatial planning, environmental impact
assessment and construction.
Regulation on Environmental Impact Assessment (EIA) of Facilities and Operations (Official Journal of the
Republic of Serbia, No. 61/92).
Regulation on Conditions and Criteria for Environmental Impact Assessment of Facilities and Operations
(Official Journal of the Republic of Serbia, No. 42/2001) regulates the requirements that should be fulfilled by
the organization that prepare EIAs for facilities listed in the Regulation on EIA of facilities and operations
Regulation on the limit values, methods for the emission measuring, criteria for establishing the measuring
locations and data evidence (Official Journal of the Republic of Serbia, No. 54/92). This regulation defines the
maximum allowed concentration level of pollutants in the air
Regulation on the limit values, methods for the source emission measuring, periods of measurements and data
evidence (Official Journal of the Republic of Serbia, No. 30/97, 35/97). This regulation defines the maximum
allowed quantity and concentration level of adverse and hazardous substances at the source of pollution
Ordinance on establishing the program for the air quality control in 2002 and 2003; Program for the air quality
control in 2002 and 2003 (Official Journal of the Republic of Serbia, No. 17/2002)
Regulation on the allowable noise level in the environment (Official Journal of the Republic of Serbia, No.
54/92)


Assessment of SRD Compliance with Current Laws and Regulations
- SRD contracts semi-private institutes or professors from the Belgrade University for the preparation of the
environmental impact assessment studies for road construction/reconstruction activities
- Principally two semi-private institutes prepare EIA studies for SRD:
Highway Institute (HI) Group for Environmental Impacts of Roads
Institute for Roads (CIP)
- EIA Studies prepared by these sources are in accordance with the Law on Environmental Protection, Regulation on
Environmental Impact Assessment of facilities and operations and Regulation on the allowable noise level in the
environment
- Figure VIII-1 presents the general scheme of the EIA process applied in these studies.


Study on the Road
Network
Strategic
Environmental
Assessment
Preliminary
Environmental
Impact Assessment
Detail
Environmental
Impact Assessment
Detail Environment
Protection Design
General Design
Study on
Environment
Protection
Preliminary Design
Study on Impacts
on Environment
and Mitigation
Measures
Detail Design
Spatial Plan of the
Republic of Serbia
Regional Spatial
Plans
Pre-feasibility
Study
Road Spatial Plan
Feasibility Study
Road Regulation
Plan
Technical documentation for construction and construction
Information System
PLANNING
DESIGNING
ENVIRONMENT
PROTECTION
Monitoring

Figure VIII-1: Scheme of the EIA Process Currently Applied in EIA Studies

Other Laws and Regulations Related to Environmental Issues
- Federal level laws and regulations
Law on Transportation of Hazardous Substances (Official Journal of SFRY No. 27/90. 45/90, Official Journal of
FRY No. 24/94, 28/96, 21/99). This law stipulates the conditions for transport of hazardous substances,
transport safety measures, permits for export, import and transit, and inspections on borders
Law on Standardization (Official Journal FRY no. 30/96). The law sets standard requirements and technical
regulations for the protection of human life, health and the environment

Proposed Laws and Regulations Relevant for the Functions of the SRD
- Law on the System of Environment Protection gives the connection of the system law and regulations that are in
accordance with EU environmental regulations
- Regulation on the Strategic Environmental Assessment based on EU SEA Directive (Directive 2001/42/EC of the
European Parliament and of the Council on the Assessment of the Effects of Certain Plans and Programs on the
Environment)
- Regulation on the Environmental Impact Assessment - based on EU EIA Directive (Directive 97/11/EC on the
Assessment of the Effects of Certain Public and Private Projects on the Environment)

COMPARISON OF STANDARDS
Ambient Air Quality Standards
- Comparison of the maximum allowed concentrations of the air pollutants between Serbian and European
regulations is presented in Table VIII-1.

Table VIII-1: Comparison of Standards Regarding the Ambient Air Quality
Air pollutant
Measurement
Unit
Period of
measurement
Serbia*
EU Directive
99/30/EC
National Ambient
Quality Standard
(USA)**
Comment
24 h 150 125 365
Sulphur dioxide
g/m
3

1 h 350 350 NA
For EU-hourly limit value should be
reduced in equal annual percentage
in order to reach 0 % by 1
st
January
2005. Proposed 24 h value should not
be exceeded more than 3 times per
calendar year.
USA standard value should not be
exceeded more than once per year.
24 h 50 Soot
g/m
3

1 h 150
NA NA

24 h 85 NA
1 h 150 200
NA
Nitrogen dioxide
g/m
3

year NA 40 100
EU directive also refers to NO
x
, while
Serbian regulation does not.
For EU-hourly limit value should be
reduced in equal annual percentage
in order to reach 0 % by 1
st
January
2010
24 h 85 NA Ozone
g/m
3

1 h 150
NA
235

24 h 5 NA Carbon monoxide
mg/m
3

1 h 10
NA
40
USA standard value should not be
exceeded more than once per year.
g/m
2
/day 1 month 250 NA Lead
g/m
3
year NA 0.5
Maximum quarterly
average 1.5 g/m
3

Serbian regulations provide the limit
values for lead in total depositing
matters and in suspended matters.
Value presented in the table refers to
the former matters.
* Pollutant limit values refer to the residential areas
**Source: U.S. Environmental Protection Agency, 1992

- Differences between the standards include:
Period of measurement
Limit values
The Serbian regulation does not provide limit values for particulate matter PM
10
(diameter less then 10 m)
The Serbian regulation does not provide limit values for oxides of nitrogen (NO
x
)
- Calculations of the pollutant concentrations are made with Serbian-developed models, which are based on the
German models (e.g. Merkblat uber Luftverunreinigungen an Strassen MLuS-90), but without appropriate
adaptation with local climate effects (winds, temperatures, humidity, etc). An important parameter used in the
calculations is so-called PGDS (average annual daily traffic).
- Differences between the Serbian standard for ambient air quality and EU Directive occur for sulphur-dioxide
(Serbian standard for 24 h sampling is less stringent than EU) and for nitrogen-dioxide (Serbian standard for 1 h
sampling is more stringent than EU).
- Compared to the USA ambient air quality standard, the Serbian standard provides higher limit values but the events
exceeding these limit values are allowed less frequently.

European Source Emission Standards for Mobile Sources that should be taken into Consideration in Air Protection
Activities are:
- Light duty motor vehicle emissions (Directive 70/220/EEC)
- Diesel emissions (soot) (Directive 72/306/EEC)
- Diesel engine emissions (Directive 88/77/EEC)

Noise Level Standards have been scoped in Different Ways in All of the European Countries. This indicates the need to
introduce a general, broadly accepted methodology for assessment, mapping, review and reporting on environmental
noise. Standards currently in force regarding the noise management are:
- Directive 2002/49/EEC of the European Parliament and of the Council relating to the assessment and management
of environmental noise. Among other things, the Directive defines:
Noise assessment methods (For road traffic noise, the French national computation method NMPB-Routes-96
is recommended as interim computation method.)
Noise indicators
Responsibilities of the Member States regarding the data collection, review and reporting
Preparation of the Action Plans

- Directive 70/157/EEC of the Council on the approximation of the laws of the Member States relating to the
permissible sound level and the exhaust system of motor vehicles, defining the permissible sound levels with
respect to the vehicle engine power and weight. This Directive refers to the source emission values.
- Current local Regulation on the allowable noise level in the environment, which refers to the noise emission.
Allowed noise levels according to this Regulation are presented in Table VIII-2.
- Methodology usually used for noise level calculation derives from the German regulation Richtlinien fur den
Larmschutz an Strassen RLS-90.


Table VIII-2: Serbian Permissible Noise Levels in Dwellings
Permissible noise level dB (A)
No Dwellings
Day Night
1 Residential building with windows closed
a) from the noise sources within the building 35 30
b) from the noise sources outside the building 40 35
2 Public facilities with windows closed
2.1 Hospitals, clinics, ambulance facilities
a) patients rooms 35 30
b) doctors rooms 40 40
c) operation facilities without medical devices and equipment 35 35
2.2 Rooms in the facilities for children recreation and rest, bedrooms in the facilities for old people
2.3 Classrooms, movies halls, reading-rooms 40 40
2.4 Theatre and concert halls 30 30
2.5 Hotel rooms
3 In settlement zones (outside the building)
Permissible noise levels are
defined in standard JUS
U.J6.205 (acoustical zoning)



Vibration Standards
- Since there is no Serbian regulation regarding the vibrations, analyses are usually based on international
standards:
ISO 2631 Evaluation of human exposure to whole-body vibration
DIN 4150 Structural vibration (Human exposure to vibration in buildings and Effects of vibration on
structures)

Comparison with European EIA Procedure
- This section will present the main differences between the Serbian and the European EIA procedure. These
differences are primarily in the process of determining whether the full comprehensive EIA is required or not.
- European procedure starts with "screening" process, which results in the decision that the EIA is necessary or not.
This is performed in accordance with the project lists presented in Annexes 1 and 2 of the EU Directive on EIA.
Annex 2 especially provides the possibility of case-by-case examination. This screening step is not provided for in
the Serbian regulation on EIA.
- The screening step is a very important process for roads activities, in order to determine the requirements for EIA
for construction, reconstruction and rehabilitation and for the requirements of the activities on lower-level roads (i.e.
forest roads).
- Serbian regulation provides two levels of environmental assessment preliminary and detailed
Preliminary environmental assessment is prepared at more general level, based on the technical and
technological concept of the facility and available data
Detail environmental assessment is prepared at project-specific level, for an exact location, the environmental
situation on the location, and the results of different measurements
- Current Serbian practice does not provide an opportunity for interested organizations and the general public to
comment on the project and its environmental effects before a decision is made on the construction concept
- The proposed Law on the System of Environment Protection should change the two-level EIA approach. According
to this Law, an EIA is an integral part of the technical documentation required for obtaining the permit for
construction. The Law on Planning and Construction provides for the preparation of an EIA at the level of
preparation of the feasibility study for the facility construction.
- An EIA is a process by which essential information about the environment is fed into the decision-making process.
It is not a decision-making procedure in itself. It is strictly a tool to be used during the decision-making purpose.

GUIDELINES FOR ENVIRONMENTAL REVIEW
The SRD has expressed its wish to develop sectoral guidelines for the purpose of clarifying procedures for certain types
of EIA. This Guideline provides details on an appropriate approach to the execution of a proper EIA for construction,
reconstruction and rehabilitation of motorways and state highways. It is hoped that the Guideline will aid in ensuring that
EIA reports for these kinds of projects are complete, well written and useful to decision-makers and that the process is
efficient and sound.
- The proposed Guidelines are based on the EU Directive 97/11/EC on the Assessment of the Effects of Certain
Public and Private Projects on the Environment. Stages of Environmental Impact Assessment process are:
Screening
Scoping
EIA Statement
Implementation and Monitoring
- The EU document entitled Guidance on EIA: Screening (June 2001) is suggested as an excellent reference for
screening that should be undertaken for any proposed project.
Figure VIII-2 Presents the Proposed Scheme of the EIA Process
Screening on a Case-By-Case Basis for Road Reconstruction and Rehabilitation Projects Could Be Conducted by Using
the Checklist Presented in Table VIII-3.


SCREENING
EIA is obligatory:
Construction of new main roads
Reconstruction of roads to provide four
or more lanes (continous section of 10
or more km)
Screening case-by-case:
Construction of new regional roads
(>2km)
Reconstruction and rehabilitation of
roads to provide four or more lanes
(continous section less than 10 km)
EIA is obligatory
EIA is not necessary:
prepare
"Environmental Protection"
brief description of likely environmental
impact of a planned activity
description of environmental components
which may be affected by a planned activity
description of technical characteristics,
materials used, land use
assessment of predicted emissions (noise,
air, water, soil, vibrations)
assessment of waste and other materials
formation, use and recycle
description of mitigation measures
forecast of likely extreme measures
(accidents), their prevention and elimination
measures
SCOPING
EIA REPORT
IMPLEMENTATION OF EIA SOLUTIONS
Monitoring
Implementation of
mitigation measures
Planned activity is admissible
in the chosen place
Planned activity is
inadmissible in the chosen
place
DECISION MAKING
Ministry of Environment
Environmental Agency
EIA subjects and
EIA subjects and
APPROVAL PUBLIC PARTICIPATION
Investor informs public
on EIA obligations
MoE gives public
opportunity to get
acquainted with the
conclusion of
screening
Public presentation of
EIA Report
Public information

Figure VIII-1: Proposed Scheme of the EIA Process
THIS PAGE INTENTIONALLY LEFT BLANK


Table VIII-3: Proposed Checklist for the Case-By-Case Screening Process for Roads Construction, Reconstruction and
Rehabilitation Projects

Environmental Item Main Check Items
Air Quality - Is there a possibility that air pollutants emitted from vehicle traffic will affect ambient air quality?
- Does ambient air quality comply with the Republic ambient air quality standards?
- Where industrial areas already exist near the road route, is there a possibility that the project will make air
pollution worse?
Water Quality - Is there a possibility that soil run-off from the bare land resulting from earth moving activities, such as
cutting and filling will cause water quality degradation downstream waters?
- Is there a possibility that surface runoff from roads (deicing salts, lead, etc.) will contaminate water sources
(e.g. ground water)?
- Do effluents from various appurtenant facilities (stations, parking/service areas) comply with the Republic's
effluent standards and ambient water quality standards?
- Is there a possibility that the effluents will cause areas that do comply with the Republic ambient water
quality standards to become out of compliance?
Noise and Vibrations - Do noise and vibrations from vehicle traffic comply with Republic standards?
Protected Areas - Is the project site located in protected areas designated by the country's laws or international treaties and
conventions?
- Is there a possibility that the project will affect the protected areas?
Ecosystem - Does the project encompass primeval forests or ecologically valuable habitats?
- Does the project site encompass the protected habitats of endangered species designated by the country's
laws or international treaties and conventions?
- If significant ecological impacts are anticipated, are adequate protection measures being taken to reduce
the impacts on the ecosystem?
- Are adequate protection measures being taken to prevent impacts, such as disruption of migration routes,
habitat fragmentation and traffic accident of wildlife and livestock?
- Is there a possibility that installation of roads will cause impacts, such as destruction of forests, reduction of

Environmental Item Main Check Items
wetland areas and disturbance of ecosystems due to introduction of non-native invasive species and pests?
- Are adequate measures for prevention of such disturbances taken?
- In cases where the project site is located in undeveloped areas, is there a possibility that the new
development will result in extensive loss of natural environments?
Hydrology - Is there a possibility that the alteration of topographic features and installation of structures, such as
tunnels, will adversely affect surface water and groundwater flows?
Topography and Geology - Are there sections on the route that could cause slope failures or landslides?
- Are adequate prevention measures being considered to prevent this?
- Is there a possibility that civil works will cause slope failures or landslides?
- Is there a possibility that soil runoff will re-silt cut and fill areas, waste soil disposal sites, and borrow sites?
- Are adequate prevention measures being considered to prevent this?
Heritage - Is there a possibility that the project will damage the archeological, historical, cultural and religious heritage
sites? Are adequate measures being considered to protect these sites in accordance with the Republic
laws?
Landscape - Is there a possibility that the project will adversely affect the local landscape?

Interpretation of Results
- If there is only one Yes answer to the questions in Table VIII-3 that is likely to result in a significant effect, an EIA
may be required
- The greater the number of Yes answers and the greater the significance of the effects identified, the more likely it
is that an EIA is required
- Questionable answers, indicating uncertainty about the occurrence or significance of effects, should also point
towards a positive screening decision (i.e. that EIA is required) because the EIA process will help to clarify the
uncertainty.


The EU document entitled Guidance on EIA: Scoping (June 2001) is suggested as an excellent reference for scoping
that should be undertaken for any proposed project. Comprehensive Scoping Checklists from this document are
presented in Appendix E European Commission EIA Scoping Checklists.
Depending on the EIA regulation in the country, the Scoping process could be conducted either by the competent
authority (Ministry of Environment, Environmental Agency) or project Investor.
Scoping is primarily focused on identifying the impacts to be assessed and which of these are most important, taking into
the consideration following issues:
- What effects could this project have on the environment?
- Which of these effects is likely to be significant and therefore needs particular attention in the environmental
studies?
- Which alternatives and mitigating measures should be considered in developing the proposals for the project?
The prepared EIA should be submitted to the competent authority for approval and afterwards used as an integral part of
the technical documentation required for the obtaining of the permit for construction and use of the facility.

DESCRIPTION OF THE ENVIRONMENTAL SECTION
The Environmental Section within the SRD should be incorporated in the Development and Planning Department (see
revised organization structure presented in Chapter III Institutional Arrangements)
Functions of Environmental Section fall into three broad categories:
- Policy development and implementation
- Technical analysis (Professionals employed within Environmental Section will be engaged in the technical
supervision of the EIA projects and will provide coordination for consulting services of EIA contractors)
- Managerial
Environmental skills have the primary role in these functions
The prime role of the Environmental Section would be to:
- Ensure the application of EIA and other environmental regulations,
- Conduct EIA studies on road projects
- Implement the environmental management plan
- Contribute to overall management of EIA process
- Initiate preparation and enactment of the appropriate legislative provisions (regulations, codes, manuals)

- Propose initiatives to gather relevant information and establish a comprehensive data base to improve the quality of
the EIA projects and to enable access to the data base for all interested contractors engaged in road project
preparation
Having in mind roles described below for the Section and its personnel, the following organization is suggested:
- A senior advisor for senior management, with limited operational responsibility
- Establishing a small-scale coordinating unit responsible for defining programs, monitoring, evaluating and
communication, since the most of work would be contracted out to consultants.
The development of the Section is planned in two phases. Personnel required for the phases area as follows:
- Phase 1:
Head of the Environmental Section - Civil Engineer for Roads (with environmental orientation) /Manager with
significant Roads experience (1)
Employ only a minimal number of qualified professionals and supplement in-house capabilities with external
experts in the appropriate fields (Spatial planers, Chemical engineers, etc.), engaged according to project
requirements
- Phase 2 develop a permanent staff consisting of:
Environmental Engineers Spatial Planner (2)
Environmental Engineers (educated at the Faculty for Chemical Engineering, environmental orientation) (2,
one in physics, one in geology)
Civil Engineer for Roads (with environmental orientation) (1)
Section personnel who manage the environmental aspects of road planning, construction and maintenance should
perform following activities:
- Manage the Section
The Section should be headed by a senior person with environmental background, good management skills
and an ability to work with all engineers on the road projects
The Section Head should be a member of senior management team of the SRD
The Environmental Engineer heading the section will manage the overall EIA process
Draft Terms of Reference
Assemble teams for EIA
Ensure internal coordination in the SRD
Cooperate on issues of planning, regulations, priorities
Organize public participation
- Developing policy and legal directives

The Environmental Specialist for this part of management would be responsible for conducting, coordinating
and managing the EIA process for roads.
The Specialist will have a major role to keep in line the requirements of SRD in dialogs with environmental
agency, Ministry for Transport and Ministry for Environment during the preparation of new regulations.
- Conducting EIA studies
An Environmental Specialist should lead this work, having the abilities for planning, engineering and economic
skills.
For small projects with limited environmental problems, this in-house expert should be able to carry out the
entire study independently, perhaps with advice and assistance from other specialists.
For larger projects environmental studies should be carried out by consultants on contract, combination of in-
house coordination with other specialized agencies, or subcontracts to consultants or universities.
- Implementing the environmental management plan
An Environmental Specialist should ensure that community and environmental issues are incorporated in the
project formulation in the planning process
He should identify the potential needs for outside experts
He should help in preparing the contract specifications, enabling the environmentally acceptable facility
operation and maintenance.
He should be able to perform supervision of the construction activities and realization of mitigation plans.

RECOMMENDATIONS
Establish the Environmental Section
Cooperate with the Ministry for Protection of Natural Resources and Environment (MPNRE) and MoTT
Build an Environmental Library for the Section (containing standards, laws and regulations, guidelines, handbooks for the
preparation of the environmental studies)
Enable and support the both-direction access and upgrading of the databases in the MPNRE, MoTT and SRD.

References
Guidelines of EIA Procedures of Road Projects in Lithuania, Environmental Protection Division, Transport and Road Research Institute

European Commission 2001. Guidance on EIA Screening
European Commission 2001. Guidance on EIA Scoping
"Guidelines EIA for use of uncultivated land or semi-natural areas for intensive agricultural purposes", Department for Environment, Food and
Rural Affairs, England

Technical Assistance to Serbia Road Directorate Phase 1 Report IX-1 Booz Allen Hamilton

CHAPTER IX

MANAGEMENT INFORMATION SYSTEM ANALYSIS



I. INTRODUCTION IX -3
II. CURRENT SITUATION IN THE INFORMATION
AND DOCUMENT CENTER DEPARTMENT
IX -6
III. EXISTING SITUATION AND CURRENT
COMPUTING REQUIREMENTS OF OTHER SRD
DEPARTMENTS
IX 26
IV. COMMENTS ON DEPARTMENT ANALYSIS AND
EXISTING SITUATION IN OTHER
DEPARTMENTS
IX 34
V. RECOMMENDED IMPROVEMENTS IX 41
VI. HARDWARE, SOFTWARE, AND EQUIPMENT
REQUIREMENTS
IX 50


I. INTRODUCTION

INTRODUCTION

Some fifteen years ago, the institutes and faculties that help manage the Serbia Road Directorate (SRD) concluded, by
analyzing numerous elements - particularly the data and processes related to the road life cycle - that the development of
an integrated information system was necessary. The SRD supported the proposal for the development of an Integrated
Road Information System (IRIS). The preliminary design of the IRIS was completed in 1992, while the detailed design
and the implementation of road, bridge and traffic databases (the basic subsystems of IRIS) were finished and
implemented as the first phase during 1992 and 1993. At the same time, methods for fast road inventory and condition
data collection were established and implemented. More recently, additional business and technical subsystems and
applications have been developed and many of them have been implemented. The first campaign of road data collection
was realized from 1993 to 1996. Today the IRIS in the SRD is a very important resource.

The IRIS general solution envisages the main subsystems and modules of the information system that are coordinated
with the work organization in the SRD. The following four subsystems have been defined:
- Information base for business and financial activities
- Information and technical base for the road network management system
- Development of the information center and communications
- Road toll system

Of these four subsystems, only the road toll system was developed independently but with significant coordination from
the Information Center with a view to ensuring the transfer of data necessary for the business and technical subsystem of
the Directorate. All the remaining subsystems are integrated into a single information system that will provide support to
both technical and financial services. The subsystems will support the SRD in drafting plans and monitoring their
implementation by helping control the state of the road network and recording the SRDs physical and financial activities.

The IRIS stores the alphanumeric and some graphic data on 16,000 kilometers of roads (information such as road
inventory, pavement condition, facilities, etc.), nearly 2,600 bridges, 13 years of traffic flow data from more than 140
traffic counters, much financial and administrative data, maps, and other road data etc. This information is available to
the user from a single, user-friendly interface. Connections with other Windows applications and other commercial
software products ensure a high presentation quality.

Presently, the overall system is being reengineered. The upgraded system will fulfill the expectations of system users
and implement actual methods and technologies (i.e. HDM 4, new data acquisition devices, etc.). The reengineering
INTRODUCTION

began in 2000 with a detailed analysis of Road Management System Processes, paying special attention to the users
expectations and requests. A valuable model of RMS Processes was created and, through development of the
appropriate integrated Data Basses, the revised Information System will be completed in next few months.

From Road Network Management System point of view, the Road, Bridge and Traffic Databases are of main interest. In
next sections these modules are described, together with the newly developed model of RMS Processes.

II. CURRENT SITUATION IN THE INFORMATION AND DOCUMENT
CENTER DEPARTMENT

ANALYSIS OF INFORMATION AND DOCUMENT CENTER DEPARTMENT

SYSTEMS, DATABASES, HARDWARE, SOFTWARE, AND NETWORKS
The SRD is developing an Integrated Road Information System (IRIS)
- The system will have a common data dictionary and be composed of several subsystems:
Pavement Management Subsystem that accesses the Road Database and the Traffic Database
Maintenance Management Subsystem that accesses the Road Database, the Traffic Database, Bridge
Database, Landslide Database, Tunnel Database, and other management information
Bridge Management Subsystem that accesses the Bridge Database
Traffic Counting Subsystem that accesses the Traffic Database
Geographic Information System that will display the information from the other subsystems
The IIRS will be available via the internet (worldwide web) and be used, among other things, to produce annual
statistical reports
- The databases that form part of the IRIS are described below

Traffic Database Description
- The Traffic Database is the most developed module of the IRIS. The Traffic Database processes, stores, and
reports information on traffic volumes and vehicle classifications
- There are approximately 140 traffic count location (currently 117 traffic counters), of which 90% are on the Main
roads. Of these, 59 counters have vehicle classification capability while the rest have only count capability.
- Serbia Put has about 40 people and is an umbrella association for about 20 state road organizations. Serbia Put
does the collection of traffic data in Central Serbia. Serbia Put owns some of the counters and maintains and
repairs all the traffic counters in Central Serbia. Once collected, Serbia Put gives the raw data to IMS.
- CPV performs similar functions for the 28 counters in Vojvodina
- IMS receives and processes the data and develops the statistics to produce the report under SRD management.
IMS publishes annual Traffic Count Report.
- SRD sometimes makes manual counts to verify or calibrate the automatic counts or to collect information for
specific projects
- The annual traffic report produced by IMS contains information on traffic volume and classification for the road
sections. The report includes data on AADT, the hourly traffic throughout the year, and the registered monthly,
weekly and daily oscillation.

- In addition to the annual report, the traffic database is also used to answer questions concerning road network
management, project studies, organization of big manifestations, etc.
- The Traffic Database operates on a PC platform using INFORMIX SQL RDBMS as the database engine and few
Windows applications for graphical presentation production
- The Traffic Database consists of ten tables grouped in five menus:
GENERAL DATA
Counters - location, type
Counters - maintenance/history data
Road sections - reference data
TRAFFIC COUNTING DATA
Traffic counters data in original form (number of vehicles for every hour of the year).
Traffic flow structure data (in original form - from traffic counters)
TRAFFIC FLOW DATA
Traffic data (flow, structure) for road sections
PAY TOLL DATA
Data from Pay toll stations on traffic flow with classification by vehicle type
MISCELANIOUS
Different data on vehicle types, vehicle registration, taxes, fuel prices etc.
- The annual report on traffic is a large document with 400-500 pages containing tabular, textual and graphic
presentations. Figures IX-1, IX-2, and IX-3 are examples of the graphic presentations.



Figure IX-1: Average Monthly Daily Traffic Per Counter


Figure IX-2: Annual Traffic Flow Distribution Per Hour


Figure IX-3: AMDT By Year



Road Database Description
- History
From 1991 to 1997 the IMS was responsible for the development of the database; collection of data was
shared between the HI and IMS depending on the available equipment
IMS had a vehicle that did video recording of 16,000 km. of the network (including Kosovo). The video
was used to develop the road inventory and identify surface distress.
HI measured roughness (IRI), skid resistance, deflection (combination of Benkelman beam, vehicle for
continuous measurement, and falling weight deflectometer)
Since 1997, HI has performed all work but problems started to appear (the work didnt get done)
SRD broke the contract with HI in 2001
Since 2000, no road data has been collected as part of a systematic program. SRD has collected road
database information for potential project location through the feasibility studies. These feasibility studies
covered approximately 1,200 km. of roads (mainly the toll roads on the Corridor X).
- The consulting organizations (IMS, HI, CIP, and CPV) are acquiring equipment to perform the data collection
IMS has purchased a bump integrator
CPV has purchase a ROMDAS integrated road measurement system. The ROMDAS components include:
Two bump integrators, one per axle (one each wheel path)
Rutting measurement via ultrasonic in sensors mounted on a bar front of vehicle
Geometric characteristics using gyroscope and GPS (3-5 meter accuracy)
Video capability (for road and roadside)
Point and linear location of road hardware (signs, guardrail, culverts, etc.)
The ROMDAS equipment is easily capable of collecting data on 5,000 km. of road per year.
- Road data from the database is used by organizations performing studies and to develop potential projects and
programs
- Numerous standard database reports, queries, and graphical presentations have been developed for use in
planning maintenance and general road network management purposes. Some of the requests for information
coming from routine work and network management could not be answered without database experts.
- Road database contains 42 tables in nine logical groups:
Data on reference system locations
Inventory data

Pavement condition data
Data about maintenance and road organizations
Road traffic data
Vehicle costs
Data on bridges
Data from road data dictionary
Detailed data (mainly from field measurements and recordings)
The database also contains visual data - videotapes.

Bridge Database Description
- The Bridge Database has been designed and its development is planned as a component of the Integrated Road
Information System
- A bridge database has existed for approximately ten years but will be replaced by the new version
- During ten-year operation of the first version of the database, users expressed and defined additional functions,
features, and capabilities that have been incorporated into the design of the new version, specifically, the following
capabilities:
Organize, store, and display drawings and images
Provide more precise data on distresses
Be more flexible for methodologies changes and upgrades
Add a module for bridge bearing capacity assessment
Make the system more user friendly
- The design of the new version of the Bridge Management software for Client/Server database has been completed
by FTN Novi Sad and data transfer is currently in process
- The new database will contain selected information on every bridge on the national road network (main and regional
roads), excluding the largest bridges, which are under separate management system
- Information in the database is organized in two main groups:
Data on location, history, construction, structure details, inventory and other general data, which are not
subject to frequent changes
Data on assessment of bridge condition

- The adopted bridge condition assessment inspection methodology will assess 28 bridge elements regarding
general condition and distresses recording, with damage type identification and identification of the type and
quantity of necessary works
- The bridge inspection results will be transferred to the database, where procedures will be included for the
calculation of Bridge Rating Number, using pre-defined weightings for the impact of each bridge element on the
overall bridge condition
- The bridges in the worst condition will rise to the top of the rating list, with the maximum number of points. This list
will be used to establish the priorities in work programs. Other indicators can to point to necessity of urgent
measures.
- The structure of Bridge Database is presented through a menu structure consisting of the following options:
BRIDGE INVENTORY DATA
Bridge identification data
History
Bridge structure data
Remarks and additional data
Attribute definitions
BRIDGE INSPECTION DATA
Bridge condition
Bridge rating
Definitions of bridge elements condition
REPORTS
Bridge inventory report
Bridge condition report
Rating list
SYSTEM
Listing the contains of active system directory
List of SQL command files
List of files with screen forms definitions
Systems date and time
SQL INTERPRETER
Activation of SQL Query Language Interpreter

INSTRUCTIONS FOR USE
Allows the search for particular sections of users manual
- Data acquisition and quality of data
Data collection is performed by the Highway Institute
There are approximately 2,500 bridges on the network
It took about ten years to complete the first cycle of inspections of all bridges
In 2003, SRD started a second cycle of bridge inspections (approximately 600 bridges)
There is a bridge inspection manual to guide the inspectors
The Highway Institute conducts the inspections and furnishes the information to SRD
The people from the HI are not especially well trained
The Information Department stores the data but does not scrutinize or verify it
Personnel in the Department for Arterial and Regional Roads Bridge section currently use the data to
prepare an annual plan for maintenance and repair of bridges. The first draft of the maintenance and
repair plan is based on the database plus the site engineers inspections plus the experience of the Bridge
Section personnel.

Tunnel Database Description
- The Tunnel Database design has been completed. The development of the database is planned as a component of
the Integrated Road Information System
- The design is based on three basic documents:
Methodology for tunnel and galleries development in R. of Serbia (Highway Institute, 1999.)
Tunnels and galleries database glossary (Highway Institute, 1999.)
Design documentations for Tunnels Data Base - Model of Process and ER Model with data dictionary (Faculty
of Technical Sciences, Novi Sad, 2003).
- Tunnel database software will be compatible with road and bridge databases forming the IRIS.
- The database will contain selected information on every tunnel on national network (main and regional roads).
- Information in the database is organized in two main groups:
Data on location, history, construction, structure details, inventory and other general data, which are not
subject to frequent changes
Data on assessment of tunnel condition

- The adopted tunnel condition assessment inspection methodology will assess 31 tunnel elements regarding general
condition and distresses recording, with damage type identification and identification of the type and quantity of
necessary works
- The tunnel inspection results will be transferred to the database, where procedures will be included for the
calculation of Tunnel Rating Number, using pre-defined weightings for the impact of each tunnel element on the
overall tunnel condition
- The tunnels in the worst condition will rise to the top of the rating list, with the maximum number of points. This list
will be used to establish the priorities in work programs. Other indicators can to point to necessity of urgent
measures.
- The structure of Tunnel Database is presented through a menu structure consisting of the following options:
TUNNEL INVENTORY DATA
Tunnel identification data
History
Tunnel structure data
Traffic data
Data on the terrain geology
Data on installations
Data on climate conditions
Remarks and additional data
Attribute definitions
ELEMENTS FOR TUNNEL INSPECTION AND RATING
Appearances of tunnel elements
Condition of tunnel accompanying elements
Traffic parameters of tunnel
Lateral openings
Traffic data
Installations in the tunnel
Tunnel condition
Tunnel rating
REPORTS
Tunnel inventory report

Tunnel condition report
Rating list
INSTRUCTIONS FOR USE
Allows the search for particular sections of users manual
- Data acquisition and quality of data
Data collection is performed by the Highway Institute, but not on regular bases.
There are 87 tunnels on the magisterial and regional road network of Serbia (including Kosovo and
Metohija)
Only the general data for these tunnels up to now are defined but not in appropriate formats (there is not
organized database).
There is a tunnel inspection manual to guide the inspectors produced by Highway Institute (1999).
The Highway Institute conducts the inspections and furnishes the information to SRD but there is no
organized database.
The people from the HI are not especially well trained

Landslide Database Description
- The Landslide Database will contain information on the Geotechnical aspects of landslide management
- The Highway Institute completed the first draft of a design for the Landslides database in 1999. This design is
being discussed. Once the design is adopted, it will be used as the basis for a final design and the application
development.

Other Databases and Data Quality
- Axle load data
Data collected by Serbia Put and CPV under a yearly contract with SRD
Serbia Put has four teams of axle load (scales) measurement. (Two near Belgrade; one around Nis; one
around Kraljevo)
CPV has one team to perform axle load measurements in Vojvodina
There are two fixed scales on the Motorway:
Bubanj potok: pay toll station on E-75 highway on the south of Belgrade
Nis: pay toll station on E-75 highway on the north of Nis
Figure IX-4 presents a map showing the scale locations

Data processing is done by Serbia Put and CPV and sent to the Information Department in the form of a
monthly report.
The Information Department stores the data it is not published
Not much use is currently being made of the data. It is available but no one asks for it.
The Ministry of Transport and Communications has Traffic Inspectors that should help with overweight vehicle
enforcement. The Police also are involved in enforcement. However, there is no coordination between
Ministry of Transport, Police and SRD. The three entities need to be better coordinated.
Problems:
Since there are only two organizations performing the axle load function, they try to gouge the SRD.
Serbia Put and CPV own the data and have tried to increase their prices when the negotiation period
comes around.
The fine for overweight trucks is too small. It is only 500 to 1000 dinars per occurrence. It is not a
deterrent. Also, the scales dont operate enough to make enforcement efficient. The trucks routinely
know when the scales will close or where they are and wait until after closing or go around them.
- Axle Load Data Quality
Existing practice is to record and save only the data on overloaded vehicles
Such practices are not helpful for vehicle load assessments. For these types of assessments an increased
number of control points is needed along with additional weighing equipment (i.e. scales).



Figure IX-4: Axle Load Control Points


General Database Comments
- The databases are housed on PCs in the Information Department
- The database engine currently is Informix SQL for all databases
- The Bridge Database has been redesigned in MS Access XP with client - server architecture; actually works on
data transfer
- Works are in progress to migrate the Traffic and the Roads databases to MS Access, also. Some progress along
those lines has been made.
- Axle loading data is stored in an MS Excel spreadsheet
- Backup for all systems is done to CD but only when there has been a significant change in the data. No regular
schedule of backups exists.
- There is a need to set up a client/server network

Decision Models and Database Applications
- The SRD uses the Highway Development and Management (HDM) analysis tool to help evaluate and plan projects
The HDM is a software application originally developed by the World Bank that analyzes possible courses of
action for specific projects and for road networks
The current version of the HDM (HDM-4) evolved from earlier versions (HDM-3) and is a widely recognized
and accepted tool for project evaluation
In Serbia, a study done in 1993 using the HDM-3 model was upgraded by a more recent study (2002) using
information from the Road Database. With the help of faculty members from the University of Belgrade, the
local deterioration parameters and other local conditions were analyzed and adjusted. The later phases of this
project expect to use the HDM-4 to develop a five-year plan of road improvements. The appropriate system for
data transfer between Information System and HDM-4 will be completed in near future.
- Numerous standard database Reports, Queries, Graphical applications have been developed for usage in planning,
maintenance, and generally for road network management purposes
- There is a continual demand for additional studies (both within and outside of the SRD) for planning, maintenance
and other system betterments using the Road Database.


Petrol station and commercial objects DB
- The application has been built in MS Access for objects on the roads (petrol stations, stores, motels, advertising
etc.)
- Data recording is the responsibility of the inspectorate for public roads.
- The road inspectors record information on a form that is then entered in the database. On the basis of that
information, an invoice is issued for the amount of the compensation that each of the users has to pay.
- It is necessary to solve the following demands as a software solution:
Define the interface with the accounting system to obtain receipts about the monthly payments for each of the
objects (to deliver warnings or to enforce payment)
Record administrative actions regarding the object (complaints lodged or administrative dispute started) and
the result of the action
Define the reports that need to be created in MS ACCESS to replace the current reports written separately in
MS Word
Establish the database on the server and define who may use the data and who is responsible to record and
update it
Establish an interface with the Road database to use the same reference system
Record information about the amount of the compensation that should be paid for the use of the commercial
objects
Establish the graphical presentation of the objects
Include information about the object owners in the database

Document archiving function
- RDS has a classical document archive (hard copies, with very limited physical space)
- Currently, there is no appropriate software support. There exists an old application (written in dBase III +) that is
not very functional.

The Documentation Center Has the Following Hardware:
- Five Pentium 4 machines running at 1.5GHz
One each for the Road, Traffic and Bridges databases
One for network administration

One for an Internet Server
- One Pentium 3 machine running at 1.2GHz for the Pump database, which is realized in MS Access
- One Pentium 200 MMX for storage of project documentation, which is realized in DBase III Plus
- One Pentium 200 MMX with a 21" monitor for scanning and picture editing

Existing Network
- Figure IX-5 presents a diagram of the existing network
- The installed network has a star topology.
- One connection-knot includes the network switches that connect the computers on the network
- The cable system complies with structural cabling standards ISO/IEC 11801, EN 50173, EIA/ TIA 568A)
Capacity range is up to 100 MZ
Interface toward the users is the wall-connector RJ45
UTP cables
- Ethernet/ Fast Ethernet Switch
- Only one connection-knot is defined because the physical shelf is taken as a logical shelf
- Computers on the network:
Compaq Prolaint 3000 (NT)
IBM VP 486/66 (Novell)
486/66 (Unix)
486/133 (Comm)



Figure IX-5: Diagram of Existing SRD Network


ORGANIZATION AND STAFF OF THE DEPARTMENT
Figure IX-6 presents the current organization structure of the Information and Documentation Center Department

COUNCIL
(technical, law and finance
questions)
CABINET OF GENERAL
MANAGER
GENERAL
MANAGER
STEERING COMMITTEE
IISP - INTEGRATED
INFORMATION ROAD
SYSTEM
TIS - TECHNICAL INFORMATION SYSTEM
ROAD&PAVEMENT
MANAGEMENT
SYSTEM
TRAFFIC&SAFETY
MANAGEMENT
SYSTEM
BRIDGE
MANAGEMENT
SYSTEM
ARCHIVE
Radovic Neboja, B.Sc. (C.E.), M.Sc. (Eng)
Head of Road Information Centre
Gordana Suboti cki, B.Sc.
(C.E.)
Rajko Brankovic, B.Sc.
(T.E.)
Momcilo Veljovic, B.Sc.
(C.E.)
Andreja Popovic C.Tech.
Branko Jevremovic
C.Tech.
COMPUTER
NETWORK
MAINTETANCE
MAINTENANCE OF
COMMERCIAL
OBJECTS DATABASE
Zoran Neic, M.Tech.
Zoran Dankovic, I.E.

Figure IX-6: Information and Documentation Center Department Organization Chart

Table IX-1 presents the staff of the Department and their functions

Table IX-1: Information and Documentation Center Department Staff

Full Name Profession Position Year
s
with
SRD
Description Main Duties and Responsibilities
Radovi Neboja Graduated civil
engineer, Master of
Science
Head of Information Center 2 Management of Information Center (Run the Department)
Momilo Veljovi Graduated civil
engineer
Administrator of Bridge and
Tunnels Databases
7 Maintenance and Development of Bridge and Tunnels
Database
Development of Bridge Management System
Gordana Subotiki Graduated civil
engineer
Administrator of Road Database 1.5 Maintenance and Development of Road Database
Development of Road (pavement) Management System
Procurement of Works and Services
Rajko Brankovi Graduated
transport and traffic
engineer
Administrator of Traffic
Database
1.5 Maintenance and Development of Traffic Database
Development of Transport and Traffic Management System
Zoran Dankovi Engineer of
information
technologies
Programmer - computer network
analyst
11 Maintenance (administration) of computers network
Procurement and installation of hardware and software
Zoran Nei Mechanical
technician
Administrator of Commercial
Objects Database
10 Maintenance and Development of Commercial Objects
Database
Bane Jevremovi Civil technician Archives jobs 10 Recording and maintenance of design documentations
Andreja Popovi Civil technician Documents updating and
operating jobs of Information
Center
7 Updating of Bridge and Tunnels Database


III. EXISTING SITUATION AND CURRENT COMPUTING REQUIREMENTS
OF OTHER SRD DEPARTMENTS

OTHER SRD DEPARTMENTS

FINANCIAL, ECONOMIC, AND COMMERCIAL DEPARTMENT
Existing Computer Equipment:
- 13 Pentium 200 MMX with software in Oracle 8 performing the following works:
Salary paying-desk
Finance book-keeping
Monitoring of the contract, budget and investments
Transfer-finance department
- 3 Pentium 3 running at 1.2 GHz which use MS Word and Excel software for preparing findings and correspondence
- Equipment quality
At present, no additional equipment is needed
Regular replacement of older hardware components should be performed as part of a normal upgrade strategy

The Department has some important functions that are not supported by appropriate software
- According to the Head of the Department, the following functions have priority for software procurement or
development:
Servicing of the external credit (credit from abroad)
Accounting of annuities
Accounting of the interest
Contract monitoring
- Currently, no activities have been started to address these concerns

GENERAL AND LEGAL WORK DEPARTMENT
The Department use its computers (running MS Office applications) for text processing, tabular work, and presentation
- The Department does not have formal software support for its users
- Existing Computer Equipment runs MS Word and Excel to perform the following tasks:
1 (486/66) for Book keeping archive.
1 Pentium 3 - 750, for Typist bureau
1 Pentium 3 - 1.2GHz for Typist bureau
1 Pentium 1 - 233 MMX for Issue of the permission for the free passing
2 Pentium 3 - 1.2GHz for Regulations INDOC. (Evidence about the court documents and about the movement
of the different documents)
- Equipment quality
All computers with work speed under 750 MHz (3 units) should be replaced

The Department, according to the Head of the Department, requires software to support its pref4omance of the following
tasks:
- Connection with the petrol station and commercial objects database
- Storage, searching, and retrieval of documents
- Monitoring of contracts from initiation to completion
- Monitoring of the public procurement from initiation to completion


DEPARTMENT OF ARTERIAL AND REGIONAL ROADS
The Department uses 12 PC computers running MS Word and Excel to perform the following functions:
- 2 Pentium 166 - Contract records
- 1 Pentium 200 MMX - Bridge management (administration)
- 1 Pentium 2 750 - Chief of Department
- 1 Pentium 2 800 - Implementation unit
- 1 Pentium 3 1.2GHz - Highway and regional road maintenance, winter service plan, construction permission
- 2 Pentium 1 200 MMX - Highways and regional roads
- 1 Pentium 200 MMX - Records of the procurement activities
- 2 Pentium 2 750 - Road construction and maintenance,
- 1 Pentium 3 1.2GHz - Tender documentation

Equipment quality: All computers with work speed under 750 MHz (9 units) should be replaced

The Department, according to the Head of the Department, requires software to support its performance of the following
tasks:
- Storage, searching, and retrieval of documents
- Monitoring of contracts from initiation to completion
- Monitoring of the public procurement from initiation to completion
- Road Maintenance Management System
- Project Management System (MS Project software or similar)
- Connection to databases of Documentation Information Center (Roads, Traffic, Bridge, Tunnels, etc.)


DEPARTMENT OF PLANNING AND DESIGN
The Department uses 6 PC computers loaded with MS Word and Excel to perform the following functions:
- 1 Pentium 3 - 1.2GHz for price list maintenance
- 1 Pentium 2 - 500 for recording traffic density
- 1 Pentium 2 - 750 for project and tender planning and development
- 1 Pentium 2 - 750 for the Directors adviser
- 1 Pentium 3 - 1.2GHz for permits
- 1 Pentium 3 - 1.2GHz for planning production

Equipment quality: All computers with clock speed under 750 MHz should be replaced (3 units)

The planning process does not have specially developed software, but occasionally uses the data from the existing
Road, Bridge, Traffic, and HDM-4 databases

The Department, according to the Head of the Department, requires the following software:
- GIS SOFTWARE, ARCINFO version. 8.3 with modules
- LCPC ECOWIN software
- APSDS and CIRCLY software
- AUTOCAD 2002 software with civil engineering and transportation modules
- Procurement of licensed software, Windows XP, Office 2002
- ORACLE version. 8.0, with modules

Petrol station and commercial objects database
- Database built in the Access 2.0 for the objects on the motorway (gas stations, stores, motels, advertising, etc.)
- Data recording into the databases is done by of the inspectors of public roads
- Inspectors fill out a form that is then recorded in the database. On the basis of the information on the form, an
invoice is issued for the amount of the compensation that each user owes

Commercial Objects database issues:
- The transversal connection with bookkeeping needs to be defined to:

Record the monthly payment for each of the objects (in order to deliver a warning or to collect an overdue
payment)
Separate the monthly payment from the annual permit fee
- The database needs to record whether a complaint or an administrative dispute has been lodged and what the
result of the action is
- The reports that need to be created in MS Access need to be defined to replace the current reports, which are
currently produced in MS Word
- The database should be on the server
- The user access rules and privileges must be defined
- The database should use the same reference system as the Road database
- The database should have the ability to display objects graphically or to link to a GIS to display them
- The database needs to include information about the object owners.


TOLL COLLECTION DEPARTMENT
The Department is responsible for collecting the tolls levied for use of the motorways. This function includes:
- Collecting and delivering daily receipts, cards and documentation
- Accounting of the daily receipts and cashier works

Payment is done automatically using an open system and a closed system of payment
- The closed system has three subsystems: input, output, and central
The input subsystem, through the card distributors, input detectors and computers, records every input of the
traffic users
The output subsystem, through the card-readers, output-detectors and automatic vehicle classifiers, closes the
payment-system.
All data recorded in these two subsystems is collected in the central subsystem (the HOST computer)
- The open system has two subsystems: enter and central
- Approximately half of the pay-toll stations have a direct electronic connection to the HOST database. The rest of
the stations record their transactions on zip diskettes and that data (along with paper documentation) is manually
carried to a different location to be loaded into the HOST
- Data and documentation from the payment sections are electronically transferred to the AOP service, for further
processing
- In addition to the electronic data transfer to the AOP, paper documentation is also transferred and the operators
manually enter the data from the working stations into the central computer
- Data is process daily and summarized monthly, periodically, and annually
- Reports are prepared in the AOP that contain the information that enables the display of the results by the bill
collectors, payment stations, sections, and summary.

Department equipment
- In the motorway toll payment section there are 23 personal computers, 6 with laser printers, 3 with dot-matrix
printers, and 1 inkjet printer
- Equipment quality:
Over 70% of the equipment is over seven years old and obsolete
This equipment does not satisfy the need for effective and efficient execution of work requests and duties

The service of AOP, as well as other services in the department, do not have a computer, or they do not have
adequate accompanied devices
The Directorate and the Toll Collection Department have digital connections with a capacity of 2 Mb/sec
The Department has a COMPAQ-server to which are connected 14 working stations with different
performances, most of them PENTIUM-I

Accounting Services Equipment:
- 13 Pentium 200 MMX with software in Oracle 8 which supports the following tasks:
Salary payment
Finance bookkeeping
Monitoring of the contract, budget, and investments
Transfer to the finance department
- 3 Pentium 3 1.2 GHz which use MS Word and Excel software


IV. COMMENTS ON DEPARTMENT ANALYSIS AND EXISTING
SITUATION IN OTHER DEPARTMENTS

COMMENTS ON DEPARTMENT ANALYSIS AND EXISTING SITUATION IN OTHER DEPARTMENTS

SYSTEMS, DATABASES, HARDWARE, SOFTWARE, AND NETWORKS
Traffic Counter Analysis
- Many of traffic counters are old and unreliable and require frequent maintenance and/or repairs
- An analysis of traffic counter condition and needs and the recommendation for their procurement are contained in
Chapter X - Procurement

Analysis of the quality of data
- Tables IX-2 to IX-4 present an analysis of the existing data

Table IX-2: Description of the Inventory Data on the Road Network

Type of Data Collection Method Quality of Data for HDM-4
Application
Data Date
Road direction, section, link Administratively, through the production
of the reference system; ground
confirmation, if necessary
Satisfactory. Minor corrections
and/or supplements needed
1997
Transverse road profile Video-record data processing Satisfactory 1997
Geometric characteristics of the road
(curvature, grade, etc.)
Gyroscope or GPS device Not satisfactory. Data must be
recorded in accordance with the
reference system
1990
Structure of the roadway
(construction)
Research works, analysis of the project
documentation
Not satisfactory -
Climate characteristics (average
monthly rainfalls, depth of frost, etc.)
Administratively from meteorology-
stations data collection
Not satisfactory -
History of the construction and
maintenance of the roadway
Administratively Not satisfactory 1990


Table IX-3: Description of the Variable Data on the Road Network

Type of Data Collection Method Quality of Data for HDM-4
Application
Data Date
Size of the annual traffic network Automatic traffic counters Satisfactory 2000.
Data about the traffic accidents Administratively, in cooperation with the
police
Not satisfactory -
Roadway surface damage (crack,
potholes, raveling)
Video-record data processing, visual
estimation of the damage on the terrain
Satisfactory regarding data
quantity but not satisfactory
regarding data accuracy
1997.
Rut depth Beam with ultrasound (laser) sensors, 1,2
m length
Not satisfactory -
Deflection measuring FWD, Benkelman beam.
FWD data was procured at the end of
1999.
Not satisfactory. The data is not
accurate enough and does not
comply with the reference system
1992 -
2000.
Roughness measuring (IRI) Bump integrator Not satisfactory. The data is not
accurate enough and does not
comply with the reference system
1992 -
2000.
Skid resistance SCRIM device Not satisfactory. Collected
information is point data obtained
using a falling pendulum (SRT).
Modern methods use continuous
measurement with a SCRIM
device
1992-
2000.


Table IX-4: Information Groups Quality Assessment (Compared to World Bank Data requirements - DOC1100/1997)

Element Aspects IQL Level Comment
Road
inventory
Network/location II
Geometry III
Furniture/appurtenances II
Environs II
Pavement Pavement structure I - IV For lot of sections estimation needed
Pavement condition II - III Needs updating on regular basses
Structures Structure inventory II
Structure condition II - III Needs updating on regular basses
Traffic Volume I, IV Main roads with automatic counters (I); Regional
roads mostly not covered with counters (IV)
Loadings IV
Accidents III (II) Police has all accident data but not exists regular
cooperation with SRD
Finance Costs II
Budget II
Revenue II
Activity Projects II
Interventions II
Commitments II
Resources Personnel II
Materials II
Equipment II


Decision Models and Database Applications
- There is not a regular, systematic process of road data collection due to equipment and manpower shortages. This
results in outdated and unreliable data
- The pavement structural data used is historical data because the Department doesnt have the means to gather
new data on a network level or to verify the existing data
- The model is updated with data culled from the design studies that have been done for specific projects
- SRD doesnt have its own equipment for road data collection
- There is no equipment anywhere in the country for the continuous measurement of pavement structure and skid
resistance.
- The SRD needs to establish regular collection of road condition data
- The Department (and the Directorate) doesnt have a defined policy regarding using private road information
collection services
- The staff of the consulting institutes are not properly trained to collect road condition data
- Close examination of the outputs from data collected by the consulting institutes indicates that some of the
equipment was not properly calibrated
- There is no test section to use to develop a road deterioration model for the country
- Data entry is primarily manual, except for the data collected by the ROMDAS. (ROMDAS produces output that can
be directly loaded into HDM-4)

The Department needs application software to perform the following activities:
- Project documentation management
- Contract monitoring
- Definition of the price-list
- Archiving of the documentation
- Directing with the flow of the documentation


STAFF TRAINING NEEDS
Training needs:
- Computer training: Project Management, MS Office, AutoCad
- English Language
- Other training: Quality control, Contract preparation and management, Document Management System,
Procurement, General Management Training (like obtaining permits)
- HDM - 4 Training for SRD and Consultants staff
- Functional modeling -BPwin
- Information modeling - ERwin
- Database: SQL Server, Oracle, Ms Access


DEVELOPMENT, INTEGRATION, AND EXPANSION PLANS
Timetable
- All necessary equipment procurement/development and implementation have to be involved in SRD plans.
- Assessment is that all main activities have to be completed in next 3 years.

Additional systems

Expected problems
- Development financing;
- Employment of appropriate professionals;
- General acceptance of new technologies and methods by Institutions/Agencies and Managers in different levels.


V. RECOMMENDED IMPROVEMENTS

STRATEGIC PLAN FOR SYSTEMS DEVELOPMENT AND IMPROVEMENT
Development of the Integrated Road Information System (IRIS)
- The system has been designed and the development process has been started
- The development process should be continued and advanced
- To date, the IRIS has not been implemented in the Road Network Management System for the following reasons:
Poor acceptance and understanding by personnel involved of the function and benefits of the IRIS, possibly
because there is insufficient understanding of the contemporary methods of directing and working with
computer databases
Insufficient definition of the goals of the IRIS in relation to the needs of the SRD
Data collection without a developed system, for example the bridge, landslide, and tunnels databases
Unprofessional behavior in fulfilling the data collecting contracting obligations
Aspiration of some of the subcontractors (institutions) to build a monopoly in their field of engagement
Inadequate coordination of development of some models IRIS,
Lack of personnel for implementation and maintenance of the IRIS.

SRD should evaluate the costs and benefits of outsourcing portions of its computer support and/or IT work
- Establish guidelines for what types of work could be outsourced (for example: specialized work of short duration)
- Evaluate and prequalify local firms that perform different types of IT work
- Regularly evaluate the Departments planned IT workload and determine if portions of the expected workload
match the established guidelines for outsourcing and the capabilities of local firms
- Outsource that portion of the workload that provides a favorable cost/benefit ratio

The strategic plan for systems development must address the function and process of the SRD shown in Figure IX-7

0
SRD
PROCESSES
1
MANAGEMENT
2
ROAD
NETWORK
DEVELOPMENT
3
MAINTANCE,
PROTECTION
AND
EXPLOATATION
MANAGEMENT
4
COMMERCIAL
ACTIVITY
1.1
DECISION
AND PLANING
DECISION
PLANING
MONITORING
PLAN
REALISATION
PUBLIC
REALATIONONS
1.2
LEGAL AND
HUMAN
RESOURCES
ACTIVITY
LEGAL
ACTIVITIES
PROCESS AND
OGANISATION
MANAGMENT
ACTIVITIES
HUMAN
RESOURCES
ACTIVITIES
1.3
QUALITY
MANAGEMENT
MANAGMENT
DOCUMENT QMS
INERNAL OUDITING
QMS
MANAGMENT
INCOPATIBILITY
IMPLEMENTATION OF
CORECTIVE
MEASURES
IMPLEMENTATION OF
PREVENTIVE
MEASURES
TRENNING AND
EDUCATION
EMPLOYS
TECHNICAL
STANDARDS
1.4
FINANCIAL AND
ACCOUNTING
ACTIVITY
FINANCE
MAHNAGMENT
FINANCE
OPERATIVE
ACCOUTING
ACTIVITIES
1.5
REGIONAL
CENTRES
ACTIVITIES
1.6
LOGISTIC
SUPPORT
STOCK
MANAMENT
ARCHIVES
ACTIVITY
ROLLING
STOCK
MANAGMENT
SECURITY
MAINTAINING
MANAGMENT
INFORMATIONS
SYSTEMS
COOK AND
HYGIENA
ACTIVITY
2.1
PLANNING AND
DEVELPOMENT
ROUD
NETWORK
ACTIVITIES
TECHNICAL
STANDARDS
ACTIVITIES ROAD
TRAFFIC AND
SAFETY
ACTIVITIES
ENVINROMENTAL
ACTIVITIES ROAD
FEATURE
INVENTORY
2.2
MANAGMENT
MAGISTRAL AND
HIGHWAY
PAVEMENT
MANAGMENT
SYSTEM
OBJECT AND
BRIDGE
MANAGEMENT
ROAD SIDE
MANAGEMENT
TRAFIC
MANAGEMENT
SYSTEM
LAND
MANAGMENT
LAND
SURVEYING
2.3
MENAGMENT
OF CAPITAL
INVESTMENTS
PRODUCTION
PROJECT
DOCUMENTATION
ACQUICITION
PERMITS AND
AGREEMENTS
PRODUCTION
TENDER
DOCUMENTATION
INVESTMENTS
PROJECT
MANAGMENT
2.4
ACTIVITIES
INFORMATION AND
DOCUMENATION
CENTER
RECORD
PAVEMENT
RECORD ROAD
RECORD BRIDGES
RECORD ANOTHER
OBJECTS
RECORD ROAD
REAL ESTATE
RECORD USERS
3.1
PLANNING
MAINTANCE
3.2
MANAGMENT
MAINTAINCE
WORKS
3.3
ANALASIS
MAINTANCE
WORKS
4.1
PROCUREMENT
GOODS AND
SERVICES
PROCUREMENT
PREPARATION
PROCUREMENT
CONTRACTING
PROCUREMENT
REALISATION
PROCUREMENT
ANALYSE
4.2
TOLL
COLLECTION
4.3
ISSUSING
PERMITS
4.4
CONTRACTIN

Figure IX-7: Functions and Processes of the SRD

The information system project should be made in the CASE tools and has to support:
- Functional Modeling by using of the standard IDEF0 (CASE tools BPwin)
- Information Modeling by using of the standard IDEF1X (CASE tools ERwin)
- Application Modeling, i.e. building up of the physical databases (MS Access, SQL Server, Oracle) and building up
of the users applications
- Implementation (Implementation, testing and maintenance of the projected software)

Current Development Status of IRIS components
- Reengineering of the overall system is in progress
- Design of the Bridge database is completed
- Bridge database design will be used as a model for the other databases
- Data collection of the information to populate the IRIS is a problem
The necessary data has been identified
The method and budget for collecting it is still under consideration

Requirements of the Central Database of the IRIS
- Contain the base data about the road network of Serbia in accordance with the reference system (This
information will be common to all the databases in all subsystems)
- Contain precise (valid) aggregate data generated from the other subsystems
- Use the same program tools as the subsystems (use a relational system of directing the data)
- Be connected with the subsystems described below

Requirements for the Road Database:
- Define the road network reference system
- Record the reference data about the standard elements, factors of significance, instructions for judgment about
the elements and estimation of the damage.
- Provide guidance and support for judgments about the elements of system and estimation of the damage
(catalogue of elements and damages)
- Record the inventory data and the graphical supplements (drawings, photographs)
- Record data about the elements of the right of way that are under the jurisdiction of the SRD
- Record data about the road inspections (condition of the roads)

- Record data about performed works
- Record the maintenance activity performed
- Generate reports about the road inventory data
- Generate reports about the road section condition
- Generate reports about the necessary works on the road
- Define the work price-list
- Generate reports about the necessary works volume for the regular maintenance on the road on the sections of
interest

Requirements of the Pavement Management subsystem
- Use as its base the Road Database and the Traffic Database and HDM-4 application
- Provide the following functions:
Store the collected data
Analyze the data using the HDM-4 model
Application of well-defined trigger values for the performance of improvement and maintenance intervention
actions
Optimize the pavement management solution using suitable criterion
Prepare rehabilitation and reconstruction programs
- Provide information to help determine:
Optimal maintenance of the pavement
Analysis of the consequences of a limited budget
Selection of the best strategy of maintenance for any section of the pavement

Requirements of the Maintenance Management subsystem
- Use as the base all the databases inside the IRIS, as well as the databases inside the business system of the
SRD (e.g. the price-list of the building works, standards, etc.)
- Store information about:
Results of inspections by maintenance supervisors
Cost estimates of the proposed measures and maintenance actions
Executive plans
- Aide the user to plan and estimate the cost of the work needed

- Aide the user to direct the work by scheduling the resources which are necessary for fulfilling the maintenance
strategy (the labor, equipment, and material)
- Provide a means for reporting the location, type, and quantity work accomplished and the resources used to
perform it
- Aide the user in evaluating the performance of the work s
- Provide feedback information for the contributing subsystems and the central system

Requirements of the Bridge Management subsystem
- Use the Bridge Database as the base
- Provide information necessary for the planning of the building activities, reconstruction and maintenance of the
bridges.
- Determine how to identify the bridges which need urgent intervention
- Determine the best strategy for the maintenance of the bridges
Storage of collected data
Analysis of the data using appropriate models for directing the maintenance of the bridges
Optimization of the solution using the appropriate criteria
Preparation of the renewal programs
Record the reference data about the standard elements, factors of significance, instructions for judgment
about the elements and estimation of the damage.
Connect to the road network reference system
Record the inventory data and graphical supplements (drawings, photographs)
Record the data about the bridge inspections (condition of the bridges)
Record data about performed works
Record the activity about the interventional maintenance
Generate reports about the bridges inventory data
Generate reports about the bridges condition
Generate reports about the necessary works on the bridges
Generate bridges rating-list (priority)
Generate reports about the necessary works volume for the regular maintenance on the bridges

Requirements of the Traffic subsystem
- Use the Traffic Database as the base
- Provide information about the overall traffic volumes and the individual volumes and characteristics of the
vehicles traveling the road network
Storage of the collected traffic data
Storage of the collected terrain data
Analysis of the data
Production of the monthly and annual statistic reports

Requirements for the Tunnel Database:
- Record the reference data about the standard elements, factors of significance, instructions for judgment about
the elements and estimation of the damage.
- Connect to the road network reference system
- Record the inventory data and graphical supplements (drawings, photographs)
- Record data about the tunnel inspections (condition of the tunnels)
- Record the maintenance activity performed
- Generate reports about the tunnel inventory data
- Generate reports about the tunnel condition
- Generate reports about the necessary works on the tunnels
- Generate tunnel rating-list (priority)
- Generate reports about the necessary works volume for the regular maintenance on the tunnels

Requirements of the Landslides Database:
- Connect to the road network reference system
- Record the reference data about the standard elements, soil, parameters for the judgment about the condition
etc.
- Guidelines and support for judgments about the elements and estimation of the disturbance and the risk
- Record the inventory data and graphical supplements (drawings, photographs)
- Record the data about the landslide inspections (condition of the location)

- Record the intervention activities performed
- Generate reports about the landslide inventory data
- Generate reports about the landslide condition
- Generate reports about the necessary works on the landslides
- Generate the work price-list

Requirements of the Geographical Information System:
- Use as a base the Road Database, Traffic Database, Bridge Database, Landslide Database, and the Tunnel
Database
- Provide visual presentation of data on an image of the road network and the production of charts of different
themes

The subsystems have to be developed to the level that ensures the production of:
- Short-term (interventional) work programs (up to 1 year) based on the inspectional reports and the applicable plan
of operational that ensure the undisturbed and safe traffic flow on the road network. (Interventions in the case of
rockslides, slippery sections and other phenomenon might occasionally close the traffic flow.)
- Mid-term work programs (3-5 years) based on a defined strategy of road network development and the analysis
of the collected data about the condition of the road network that ensure adequate maintenance of the road
network
- Long-term (strategic) work programs (10-15 years) based on data from the short-term and mid-term programs
and a well-thought out strategy of road network development that contribute to the development and
advancement of the road network

Document Archiving System:
- Existing system is cumbersome and difficult to use
- Existing system does not have the appropriate informatics support
- There is no document history record (Does not comply with ISO 9000:2001)
- There are no details and definitions of rules regarding the design of the system
- The system needs to be developed as part of the IRIS

STAFF REQUIRED TO IMPLEMENT STRATEGIC PLAN
The Department needs to create a group of five to seven university-level specialists who would be engaged in
development and maintenance of IRIS
- One specialist would manage each subsystem
- The specialists need to be experts in the field of developing and maintaining databases
- Qualifications of the specialist for each database are:
Pavement Management subsystem and Maintenance Management subsystem:
Graduate civil engineer with knowledge in the field of working with databases and using the HDM-4
application
Bridge Management subsystem:
Graduate structural engineer with knowledge in the field of working with databases
Traffic subsystem:
Graduate transportation engineer with knowledge in the field of working with databases
Geographical Information System and WEB presentation:
Graduate information systems engineer (or a Graduate mathematician)

In addition, the development of the application itself (independent of the development and management of the software
tools) will require a programmer with a thorough knowledge of the programming language Visual Basic Application.
This person can also fulfill the duty of administrator of the databases.

The development and implementation of the IRIS, the training and transfer of knowledge needed for the maintenance
of the IRIS, and the presentation of the information on the Internet should be performed by the specialized team of
experts

Toll Collection Department
- One WINDOWS network administrator
- One ORACLE administrator


VI. HARDWARE, SOFTWARE, AND EQUIPMENT REQUIREMENTS

HARDWARE, SOFTWARE, AND EQUIPMENT REQUIREMENTS

Table IX-5 presents the hardware and peripheral equipment requirements for the SRD (excluding the Toll Collection
Department)
Table IX-6 presents the hardware and peripheral equipment requirements for the Toll Collection Department

Table IX-5: Hardware and Equipment Requirements for SRD (without Toll Collection Department)

Item Quantity Usage Minimal Specifications
Approximate
Unit Cost (US$)
Sever 2 Network Server
- One for main
office
- One for Toll Road
Department
Brand name of first-class reliability and high level of performance
Dual processor Intel (Xeon) 2.8GHz, cache 512KB
ECC DDR RAM 1GB
PCI Wide Ultra SCSI Adapter
Internal storage ServeRAID-5i Controller
5 HDD 73.4GB 15K-rpm Ultra320 SCSI Hot-Swap SL HDD
Internal tape storage: DLT 40/80GB SCSI
Server adapter Intel PRO/1000 XT
FDD 1.44"
CD ROM 52X
DVD R/RW, 4/2, 4/2/1X (DVD burning)
Server covers
17" Monitor LCD
OS "MS Windows Server 2003 standard " with 5 client license
15,000
Personal
Computer
7 Work station in the
network
Components should be of high quality, reliable, and from renowned
producers
CPU Intel 2.8 GHz minimal 512KB cache memory
RAM 512 MB DDR 333MHz
Motherboard with the necessary slot for the video card (min
533Hhz)
ATX power supply, high quality electric source min 300W (P4), with
horizontal switches, a larger number of USB 2.0 electrical
connections, two of them from the front side of the power supply
HDD 80 GB 7200 rpm
1,100
Approximate
Unit Cost (US$)
Video card 64MB (G-Force FX series)
FDD 1.44"
DVD ROM
CD RW 52/24/52X
LAN adapter 10/100 Mbps
Keyboard YU order PS2
Mouse with 2 or more tasters + scroll PS2 optical
Sound card (possible integrated)
Loudspeakers 120W
17" Monitor LCD

Notebook
Computers
5 Field Data
Collection and
Analysis
Brand name, first-class reliability and high-level of performance
CPU Intel 1.6 GHz CENTRINO
RAM 512 MB DDR
HDD 60 GB
Video card 32MB
Internal FDD 1.44"
CD/DVD (combo CD R/W, DVD R)
LAN adapter
Modem 56 kbs
Mouse with 2 or more tasters + scroll PS2 optical cable
Monitor 15" TFT
Video out
USB 2.0 (min 2)
RS232 (serial port)
CASE bag
OS MS Windows XP PRO

2,000
Approximate
Unit Cost (US$)
Laser Printer 4 Network printer HP LaserJet
A4 paper size
Laser printer A4, black/white
45 ppm
64 MB (expandable)
Parallel port
Ethernet 10/100 Base (RJ45)
Duplex printing
Additional cassettes for paper
5,000
Color Laser
Printer
1 Network printer A3 paper size capacity
24 ppm
96 MB (with the possibility of widening)
Parallel port
Duplex printing
8,000
Magnetic
Optical Disk
5 Backup and large
volume data
transfer
External devices
USB 2.0 connection
Minimal capacity 2.3 GB
400
Scanner 3 Acquisition of
hardcopy images
A4
20 ppm c/b and color
Automatic document feeder
800
MODEM 2 External
communications
Speed = 2 Mbps 500
Network
Router
1 Network connection
and traffic
management
CISCO brand
Serial port
WIC-2T
Necessary cables
2,500

Table IX-6: Hardware and Equipment Requirements for Toll Collection Department

Approximate
Unit Cost (US$)
Cluster
Server
1 Network Server
with Oracle server
4 processor Intel (Xeon) 2.8GHz, cache 512KB
ECC DDR RAM 3GB
6 HDD 80 GB 15K-rpm Ultra320 SCSI Hot-Swap SL HDD hot
sweep
FDD 1.44"
CD ROM 52X
Server covers
17" Monitor LCD
Oracle DBMS
15000
Personal
Computer
1 Domain controller
in the network
producers
533Hhz)
HDD 80 GB 7200 rpm
1100
Line matrix
printer
1 Matrix printer
connect on Server
Max character per sec, A3 1000
Approximate
Unit Cost (US$)
Laser Printer 1 Network printer HP LaserJet
A4 paper size
Laser printer A4, black/white
45 ppm
64 MB (expandable)
Parallel port
Duplex printing
3,000
Laser Printer 1 Network printer A3 paper size capacity
24 ppm
96 MB (with the possibility of widening)
Parallel port
Duplex printing
5,000
Personal
Computer
30 Work station in the
network
producers
533Hhz)
HDD 80 GB 7200 rpm
FDD 1.44"
DVD ROM
CD RW 52/24/52X
LAN adapter 10/100 Mbps
Keyboard YU order PS2
Mouse with 2 or more tasters + scroll PS2 optical
1,200
Approximate
Unit Cost (US$)
Sound card (possible integrated)
Loudspeakers 120W
17" Monitor LCD
OS MS Windows XP PRO
MS OFFICE 2003
Laser Printer 6 Personal printer HP LaserJet black/white
A4 paper size
12 ppm 600 dpi
16 MB (expandable)
Parallel port
2,000
UPS 1 UPS for network
server
1200 W
6 connections
1000
Sever 2 Network Server
- One for main
office
- One for Toll Road
Department
Dual processor Intel (Xeon) 2.8GHz, cache 512KB
ECC DDR RAM 1GB
5 HDD 73.4GB 15K-rpm Ultra320 SCSI Hot-Swap SL HDD
FDD 1.44"
CD ROM 52X
Server covers
17" Monitor LCD
15,000
SOFTWARE REQUIREMENTS
Table IX-7 presents some of the software requirements for the SRD
Table IX-8 presents the costs for software acquisition

Table IX-7: Software Requirements

Department Application Software and Development Needs
Information Center,
Road Database (new
version)
Software development for tunnel database
Completion of design documentation and software development for landslide database
Transfer of data from old versions of database to new ones
Development of IRIS (integration of existing databases through developing additional functions in
system)
Procurement of GIS software and development connections with existing databases and
applications
Documentation Center Project documentation management software
Contract monitoring software
Definition of the price-list
Archiving of the documentation
Directing with the flow of the documentation
Financial Economic and
Commercial Department
Servicing of the external credit (credit from abroad)
Accounting for the annuities
Accounting for the interest
Contract monitoring software
General and Legal Work
Department
Record court documents and the movement of the different documents
Connection with the petrol station and commercial objects database
Scanning of the archive documentations
Monitoring of the contracts from the beginning up to the end of realization
Monitoring of the public procurement from the beginning up to the end of realization
It will be necessary to develop the appropriate software when the new data acquisition equipment is put in place (For example: new
traffic counters and GPS system)

Table IX-8: Software Acquisition Costs

Software procurement
N
0
.
Descri pt i on Qt y
Approx. pri ce
() Tot al ()
1 BPWIN and ERWIN - PLATIN 1 10000.00 10000.00
2 GIS SOFTWARE, ARCINFO
ver. 8.3 with modulus
1 85000.00
85000.00
3 LCPC ECOWIN software 5 5000.00 25000.00
4 APSDS and CIRCLY software 5 5000.00 25000.00
5 Estimated price for
procurement of numbers of
civil engineering software
lower prices
1 25000.00
25000.00
6 AUTOCAD 2002 software 5 7800.00 39000.00
7 Procurement of licensed
software, Windows XP, Office
2002
40 1000.00
40000.00
8 ORACLE ver. 8.0, with module 1 20000.00 20000.00
9 Document/Project managemen 50 3000.00 150000.00
Total 419000.00
41900.00
460900.00
Contingency (10%)
TOTAL SOFTWARE PROCUREMENT

Technical Assistance to Serbia Road Directorate Phase 1 Report X-1 Booz Allen Hamilton

CHAPTER X

PROCUREMENT

PROCUREMENT

INTRODUCTION
Procurement Objectives: To identify a set of services, equipment and computer hardware and software required by the
SRD to strengthen its institutional capacity, improve its road information data collecting capabilities, upgrade its
information storage and manipulation capacity, and help prepare the Road Recovery Plan during the third phase of this
project

Requirements Development
- Phase 1 tasks involved analysis of all Departments of the SRD
Studied current processes and existing equipment
Conducted inventory of existing hardware and software
- Analysis led to projections and recommendation
Additional staff required
Services, equipment, hardware and software required
- Consultations held with SRD staff and IFI missions
SRD had previously begun to define procurement requirements
IFIs (principally World Bank and SIDA) in process of developing project definition for additional Technical
Assistance to SRD involving purchase of services and equipment
Procurement recommendations here have been coordinated with SRD requirements and potential IFI
assistance

Quantity and Cost Estimation
- Estimations are preliminary at this point
- Based on:
Vendor inquiries
Past procurements
Internet research
Engineering estimations
- Final procurement decisions (quantity, vendors) will be result of cost quotation solicitations during Phase 2 of this
project
PROCUREMENT

SRD PROCUREMENT NEEDS
Requirements from Phase 1 Analysis
- General management and administrative support (See Chapter III Institutional Arrangements and Chapter IV
Road Financing.):
Basic computer skills training
Office productivity applications and training
English language training
Human resources management training
Contract administration training
Budget preparation and control training
Financial auditing procedures according to international standards
- Road Planning and Design (See Chapters V Road Planning and Chapter VI Road Design.):
Strategic (long-term) and Program (mid-term) planning applications and training
Tentatively, additional copies or licenses for HDM-4 application
Other third party applications may compliment or substitute for HDM-4
Planning information collection and analysis services to continue, augment, and/or update existing information
or collect and process new information (to be coordinated with the Information and Documentation Center
Department)
Inventory and condition collection
Origin-Destination survey conduction, as needed
Skid resistance measurement
Additional portable and fixed traffic counters
Traffic data collection and analysis services
Roughness measurement and roughness measurement equipment calibration equipment
Roughness measurement services
Roughness measurement equipment calibration services
Additional vehicle weight measurement equipment (scales) portable (weigh-in-motion) and fixed
Training in using the Integrated Road Information System (IRIS)
Project management training
Design standard revision and updating services
Compliance with international environmental regulations
PROCUREMENT

- Construction and Maintenance functions (See Chapter VII Road Construction and Chapter VIII Environmental
Issues.)
Contract administration training
Mid-term and annual work program preparation and supervision training
Document management application and training
Training in using the IRIS
Office productivity applications and training
Project management applications and training
Road Maintenance Management System application and training
English language training

Analysis of Hardware and Software Requirements (See Chapter IX Management Information Systems Analysis.)
- Extensive analysis conducted of SRD current and projected information processing needs
- Analysis concentrated on the information Center but also examined all other Directorate functions and departments
- Administrative and other department computing needs (See Chapter IX Management Information System
Analysis):
Additional desktop computers to support existing and expected additional staff
Project documentation management application
Contract administration and monitoring applications
- Development and Planning Department needs (See Chapter V Road Planning and Chapter VI Road Design)
Additional desktop and laptop computers to support existing and expected additional staff
AutoCad software application
Project management application
Document management application
HDM-4 training and application
Office productivity applications
Geographic Information System application
- Information and Documentation Center Department and data processing needs (See Chapter IX Management
Information System Analysis):
Additional desktop and laptop computers to support existing and expected additional staff
HDM-4 application
PROCUREMENT

Computer software functional modeling application (e.g. BPwin)
Computer software information modeling application (e.g. ERwin)
Database software (e.g. MS Access, Oracle, SQL Server) and database administration training
Database query application
Geographic Information System application and usage

Funding Sources
- Discussions held with IFIs (particularly the World Bank and SIDA) to develop a plan for funding the procurement
needs
- Funding expected to come from the following sources:
The Phase 2 budget of this project
The World Bank under terms of the proposed loan
The SIDA under terms of its proposed Twining Agreement
The general budget of the SRD
Some needs are currently unfunded
- Table X-1 presents a summary of the needs and their expected funding sources
- Appendix D presents a detailed breakdown of the needs and their expected funding sources
This presentation was used in the discussions with the World Bank pre-appraisal mission in October 2003
The final list of needs and expected funding sources is still under discussion

PROCUREMENT

Table X-1: Summary of Procurement Needs and Potential Funding Sources

Item Cost () Potential Sources:
Overall
Needs
Phase 2 of
Project SIDA WB RDS
Staff
Management & Administration 82,644 - - - 82,644
Information Center 134,634 - - - 134,634
Planning & Development Department 90,512 - - - 90,512
Construction & Maintenance 218,322 - - - 218,322
Staff Total (per year): 526,112 - - - 526,112
Equipment
Hardware 102,400 - 102,400 - -
Software Procurement 460,900 79,000 381,900 - -
Data Collection 1,898,640 96,000 476,640 1,326,000 -
Equipment Total: 2,461,940 175,000 960,940 1,326,000 -
Services
Road inventory and condition 1,350,000 - - - 1,350,000
Structural strength measurement 2,080,000 - - - 2,080,000
Traffic counters installation 315,000 - - 315,000 -
Traffic counters maintenance 270,000 - - 270,000 -
Bridge Inspection 375,000 - - 375,000 -
Services Total: 4,390,000 - - 960,000 3,430,000
Consultancy Services
Database & network design (SW) 76,000 - 76,000 - -
Test sections for callibration (IRI) 10,000 - 10,000 - -
Investigation and definition of National
Vehicle Fleet caracteristics 20,000 - 20,000 - -
IS Reference data definition 50,000 - 50,000 - -
Maintenance Mngmnt System Study 80,000 - 80,000 - -
Consultancy services Total: 236,000 - 236,000 - -
Education/training
Using SW 37,000 - 37,000 - -
Technical education 170,000 - 170,000 - -
Technical excursions 300,000 - 96,000 204,000 -
Miscellaneous 100,000 - - - 100,000
Education Total: 607,000 - 303,000 204,000 100,000
International cooperation
PIARC and IRF membership and work
in Tehnical Commitees 25,000 - - 10,000 15,000
GRAND TOTAL: 8,246,052 175,000 1,499,940 2,500,000 4,071,112
SRD Investment Summary
PROCUREMENT

PHASE 2 PROCUREMENT RECOMMENDATIONS RATIONALE
Traffic Counters
- Directorate currently obtains traffic count information from 117 count stations
- Of the 117 count locations, 58 are simple traffic count and 59 are count and traffic vehicle classification locations
- Additionally, traffic count and classification information is collected at 21 toll collection locations on the Belgrade-Nis
motorway
- Table X-2 presents a breakdown of the counter and classification locations

Table X-2: Breakdown of Traffic Counter Information

Central Serbia Vojvodina

Main
Roads
Regional
Roads
Total Main
Roads
Regional
Roads
Total
Network Length (Km.)
1
3,238 7,972 11,210 1,524 1,674 3,198
Simple Count Locations 23 8 31 26 1 27
Count & Classification Locations 54 5 59 0 0 0
Total Locations 77 13 90 26 1 27
Average Kilometers per Location 42.1 613.2 124.6 58.6 1,674 118.4

1
= According to the Road Database and the existing reference system

- There are some significant problems with the existing count and classification equipment
The units are old: a large number date from about 1985 and the most recent are from the mid-1990s
Many are considered unreliable:
More than half the units require frequent maintenance per month due to mechanical or electrical problems
An expert from the Faculty of Transport and Traffic Engineering who works with the traffic count
information continuously reported that only 50 of the counters are operational at a high enough
percentage of time to produce reliable results
The network coverage is insufficient, particularly on the Regional road network
Current counter maintenance and servicing cost is 2,000/counter/year (includes maintenance, repairs, and
data collection)
PROCUREMENT

- For these reasons, we recommend the purchase of a significant number of additional count and classification units
- Numerous factors were considered in proposing the type of count and classification units to recommend
Power:
Only about 50% of the existing locations have continuous 240 V/ 50 Hz (mains) power available; the rest
of the location use battery power
Even at locations that have mains power, the service connection may not have been officially sanctioned
and, therefore, is subject to being disconnected
Since the most appropriate count station locations are outside of municipal areas, mains power is not
likely to be available, particularly on the Regional Road network
The use of solar panels as a power supply was tried in the early 1990s but most of the panels were stolen
Battery duration must be long enough to last between routing servicing visits
Data retrieval:
Most existing units have a data card that must be removed and taken to a central location to be read
Current technology allows the use a serial or a Universal Serial Bus (USB) interface with a laptop
computer in the field to retrieve data
Other current data retrieval options include:
= Dial up modem interface This type interface has two problems: telephone lines are not likely to be
available at desirable count locations and the cost of a connection and service would be prohibitively
expensive
= Radio link This type connection has advantages and costs: a government license would be needed
to operate the radio but counts can be obtained on demand and field servicing visits would be
reduced
= Cellular phone modem This type connection has similar advantages to a radio link but the cost
would be significant
Installation:
Modern counters can be installed in or under the road (such as the existing loop systems), on the road
surface (such as the existing pneumatic tube types and other more modern technologies), alongside the
road, and overhead of the traffic lane
Current SRD installation costs for a loop system are significant but the technology is well understood
Side-of-road and overhead installations do not disrupt traffic flows and are usually simple enough to be
considered as portable systems
PROCUREMENT

- Fixed verses portable units
There are advantages and disadvantages to both types of counter/classification units
Fixed units:
Provide long-term traffic counts at same location
If loop detectors used, is familiar technology
Require an investment to change location
Portable units:
Usually, do not require closing or interrupting traffic flow
Able to change location easily
More subject to theft and vandalism
Uses technologies that are not currently used in Serbia
May have higher initial cost
- Recommendation:
Purchase a mix of additional fixed and portable traffic counter/classifier units to upgrade the traffic count and
classification information collection capabilities of the SRD
Only counter and classifiers units (no counter only units)
Units should be easily serviced in the field
= Long duration batteries or solar panel power
= Serial or USB interface for download and calibration/adjustment
Approximately 180 fixed counter/classifier units to replace and supplement existing counters
Approximately 20 portable counter classifier units to use for project data gathering and temporary count
locations
Final number of units will depend on unit prices from vendors and the total available budget for the
procurement

Computer Software
- Current Directorate bid documents specify that design drawings be supplied electronically in AutoCad format, as
well as be supplied in paper format
- AutoCad is considered a worldwide standard for the production, archiving, and display of design documents
- Directorate currently has only one licensed copy of AutoCad at the headquarters in Belgrade and no licensed
copies at the regional center in Vojvodina
PROCUREMENT

- Directorate expects to open an additional regional center according to the final organization structure
- Directorate must be able to electronically review the designs prepared at its request and the regional centers must
have the capability to review design documents at their centers, rather than depending on Belgrade
- Recommendation:
Purchase five copies of the latest version of the base AutoCad design application for installation in the
Department of Planning and Development and the Information Center at Belgrade headquarters and the
regional center in Novi Sad
Purchase additional road design and GIS interface modules and capabilities for the base AutoCad application
Purchase version upgrade contracts for the applications specified above
Provide training in the basic functions of the software to SRD staff responsible for using it

Additional recommended items to consider procuring depending on available budget (Procurement of these items should
be coordinated with other potential funding sources: SIDA and World Bank.)
- Roughness calibration unit
- Two bump integrators and the connections and software necessary to collect and process the roughness
measurements of the bump integrator units
- Laptop computers to use with bump integrator units and traffic counters
Technical Assistance to Serbia Road Directorate Phase 1 Report XI-1 Booz Allen Hamilton

CHAPTER XI

PREPARATION FOR RECOVERY PLAN


INTRODUCTION
The current report is the conclusion of Phase 1 of the project. Phases 2 and 3 will conclude the project.

Phase 2 will be the procurement and usage of the equipment recommended in Chapter X Procurement. This will
include:
- Procurement and installation of priority system software and hardware upgrades
- Procurement and installation of priority roads data collection equipment
- Entry of newly collected data from existing and procured equipment in the upgraded system

Phase 3 will include:
- Assisting the SRD in analyzing the road information and preparing the draft Road Recovery Plan
- Presenting the draft for discussion and comment in a Stakeholders Workshop
- Finalizing the Five-Year Recovery Plan
- Preparing the project Final Report

The analysis of the road information:
- Will include the collection or development of costs for road maintenance on the different classes of roads and under
different traffic volumes
- Will, to the extent possible, make use of data collected using the equipment procured under Phase 2 of the project
- Will use existing road information or best assumptions for data that has not been recently collected

The Recovery Plan:
- Will be an appropriate plan for the operation, maintenance, renewal, and development of the national road network
over the five-year period beginning in 2005. The consultants work in Phase 3 will concentrate on developing a
prioritized set of roads for improvement and periodic and routine maintenance. Other components of the plan may
come from other sources, including works already planned by the SRD, currently under study, and/or financed by
international donors or lenders.
- Will use the HDM-4 to model road network. Figure XI-1 shows a schematic of the information flow for the HDM-4
modeling tool.

- Will be an Investment Plan for high priority sections of the road network and may include rehabilitation, surface
treatment, reconstruction, periodic maintenance, and by-passes
- Will present list of rehabilitation and maintenance projects (with costs) for each year
- Will use existing work descriptions and evaluations to address bridge or tunnel work needed on road sections
produced by the HDM-4 analysis
- Will include financial issues (needs, potential sources, estimated costs), institutional issues (recommended changes
to current operations), and management issues (contracting and other out-sourcing alternatives to managing the
work in-house)
- Will not consider Local Roads
- Will be completed in July 2004 and be based on best available data

Figure XI-2 presents an example of the format and content of the Recovery Plan
- Projects will be defined by giving the road name, the start and end points along the road, the type of work, the cost
of the project, and for those projects analyzed using the HDM-4 the Internal Rate of Return (IRR)
- Bridges and tunnels within the limits of a project will be evaluated according to priority criteria and only those
structures requiring critical repairs will appear on the list
- A separate list of high priority bridge and tunnel projects will be presented for those structures that are critical but
not within the limits of a project appearing on the recovery plan list

The project Final Report:
- Will summarize the results of the Stakeholder Workshop
- Will present the finalized Five-Year Recovery Plan
- Will include all written project deliverables from previous phases
- Will include an Executive Summary of the key findings, recommendations, and the Recovery Plan that can be
presented to politicians, other government agencies, and the public



RECOVERY PLAN MODELLING TOOL
COMPUTER
MODEL
(HDM)
I
N
P
U
T
S
I
N
P
U
T
S
TRAFFIC
Fleet data,volume, composition
TRAFFIC
Fleet data,volume, composition
ROAD CONDITION
IRI, potholes, cracking
ROAD CONDITION
IRI, potholes, cracking
COSTS
Maintenance, construction
COSTS
Maintenance, construction
RD CHARACTERISTICS
age, elevation, curvature
RD CHARACTERISTICS
age, elevation, curvature
OTHERS
environment, social
OTHERS
environment, social
DETERIORATION
DETERIORATION
ECONOMIC ANALYSIS
ECONOMIC ANALYSIS
IMPLEMENTATION
ALTERNATIVES
IMPLEMENTATION
ALTERNATIVES
RD CONDITION
INVENTORY
RD CONDITION
INVENTORY
R
E
C
O
V
E
R
Y
P
L
A
N
R
E
C
O
V
E
R
Y
P
L
A
N

Figure XI-1: Information Flow for the HDM-4 Model

Start Year 2005 Safety Total IRR
Project Work Improvement Cost () (%)
R 247 Km 1.4 to 13.2 Rehab Yes 1,770,000 46.3
Bridge over Borska Reka Replace Deck No 75,000 n/a
M 5 Km 42.3 to 46.9 Chip Seal Yes 69,000 31.7
M 21 Km 22.9 to 26.3 Overlay No 272,000 23.4
R 117 Km 9.3 to 13.2 Overlay No 312,000 21.3
Bridge over Kladnica Reka Strengthen Piers No 45,000 n/a
Others, etc.
R 111 Km 3.2 to 4.9 Chip seal No 25,500 35.0
R 241 Km 2.8 to 9.9 Overlay Yes 568,000 22.9
Bridge over Kutinska Reka Replc Piers&Deck No 540,000 n/a
M 22 Km 45.6 to 49.8 Overlay No 336,000 19.4
Bridge over Pestan Reka Replace Railling Yes 25,000 n/a
Others, etc.
R 212 Km 0.2 to 1.2 Overlay Yes 80,000 29.4
Bridge over Gruza Reka Complete replacem No 945,000 n/a
R 144 Km 18.9 to 19.1 Rehab No 30,000 20.6
M 9 Km 34.5 to 54.3 Chip Seal No 297,000 16.3
Bridge over Vlasina Reka Spot Deck Repairs No 24000 n/a
Others, etc.

Figure XI-2: Example of Recovery Plan Format and Content

PREPARING FOR THE RECOVERY PLAN
The Recovery Plan will analyze in detail most of the road network under the care of the SRD (approximately 14,500 km.).
Such an undertaking requires significant preparation much of it in road data collection. Rather than wait until Phase 2
and Phase 3 start, the consultant and the SRD are already beginning the those preparations.

There are three general steps in the preparation process:
- Develop a strategy to guide the preparation
- Define what information is needed
- Develop a plan for identifying the sources of or collecting the information

Road Recovery Plan Strategy
- Focus/Objectives:
Analyze the entire Serbian road network to determine where selected investments will produce effective
returns
Build an analysis model that the SRD can continue to use and improve after the project is completed
Produce a priority listing of projects for the next five years (starting 2005) to be considered for more detailed
study or for execution
- Approach:
Identify important corridors in Serbia. Basis for identification and selection includes:
European Union designated corridors
REBIS Study identified corridors
Historic traffic patterns
Serbian development priorities
Regional road priorities
Collect data on existing projects and compare existing projects to identified corridors
Determine sections of priority corridors not currently being improved or planned for improvement
Assume use of HDM-4 for Program Level analysis. This assumption determines the data requirements.
Identify the existing road data. Evaluate data quantity and determine data gaps
Determine need for updated or additional data
Formulate plans to obtain required data:

Revised and expanded traffic growth forecasts being prepared
One-day traffic counts and summary inventory and condition data gathering on selected Regional roads
planned. Will be used to update these sections and extrapolate to other sections.
Existing studies identified and will be used to update some sections and to extrapolate conditions to other
sections
Additional capacity analyses of selected regional roads will likely be necessary
Further financial analysis to more precisely determine unit costs for improvement and maintenance unit
costs will be necessary
An analysis of the effect of improvements and maintenance on traffic safety may be included to help
support the proposed projects
Divide unknown sections of network into classes and assume a set of characteristics for these unknown
sections. Classes tentatively identified (conforming to the classifications found in Guidelines for the Design of
Rural Roads) are:
High volume Main roads with AADT > 7,000
Important Main and Regional roads with AADT = 3,000 to 7,000
Roads with AADT = 1,000 to 3,000
Roads with AADT < 1,000
Build model of network in HDM-4 using Program Level Analysis
Use existing model for Main roads developed by N. Radovic as starting point
Refine, update, and expand model to cover entire network
Model Main roads using project data as of end of current rehabilitation works
Model Regional roads using known and newly collected data. Extrapolate or infer characteristics and
conditions on unknown sections
Use two base cases, depending on road classes determined above:
= Minimal routine maintenance (patch 75% of potholes, perform essential but minimal drainage
maintenance, and cut vegetation)
= Normal routine maintenance (patch 95% of potholes and alligator cracking, seal most cracks,
maintain drainage and signalization, and cut vegetation)
Apply and analyze several different investment works, depending on classes determined above (normal
routine maintenance is a part of all investment strategies once the investment has been made):

= Extensive routine maintenance (patch all potholes, alligator cracking, and severely raveled areas;
seal all longitudinal and transverse cracks; maintain drainage and signalization; and cut vegetation)
= Conduct periodic maintenance consisting of preparation for and application of chip seal
= Rehabilitation, consisting of preparation for and application of an asphalt concrete overlay. This may
include limited deeper surface repairs to failed sections
= Reconstruction, consisting of milling or removing the existing pavement, deep surface repair of
moderately extensive sections, repaving with asphalt concrete, and limited geometric improvements
= By-pass construction around a few selected cities when traffic volume on the through-city sections
reach a threshold level of approximately 7,000 AADT (Perhaps less, depending on the sections
existing capacity volume relationship (level of service). If necessary, rapid traffic counts may be
conducted to obtain current information.)
Make preliminary runs, analyze them, and refine inputs, assumptions, and investments
Add appropriate exogenous benefits, if any
Update model as new and better data becomes available
Rerun model. Develop list of projects. Compare projects to identified corridors and other project drivers
- Results:
The Recovery Plan list
Will consist of the road projects identified through the HDM-4 analysis plus external priority projects. The
external projects may include projects for roads, bridges, tunnels, landslides, etc. that may be identified in
existing analyses or in separate studies or assessments performed by the SRD.
Will be optimized for yearly programs for the five-year period
Will include a separate list of priority projects identified by existing studies, current programs, and/or
contracts that are not addressed through the Recovery Plan list
Candidate projects on this list would be the subject of further detailed analysis (pre-feasibility, feasibility,
preliminary design, final design, etc.) and eventual requests for funding (either internally or externally)
Extensive Routine Maintenance project and Periodic Maintenance project could be undertaken without
extensive additional analysis
SRD will continue to refine and update the model and produce project lists for future development

Definition of the Information Needed

- The above strategy assumes the use of the Program Level Analysis of the HDM-4 application. This assumption
defines the information needed since the HDM-4 has a specific set of informational requirements.
- The required HDM information includes the basic set up information plus specific information, including:
The definition of the Road Network for the study area (in this case, the Main and Regional roads system of
Serbia. The network is composed of sections. For each section, the set of information includes:
Description and its basic characteristics
Geometric characteristics
Pavement characteristics
Condition characteristics
The logical grouping of the sections for analysis of the groups rather than the individual sections
The definition of the Vehicle Fleet(s) that uses the network. The fleet is composed of one or more vehicle
classes. For each class, the set of information includes:
Description
Physical characteristics
Economic characteristics
The definition of the Traffic on the network. Vehicle class defines traffic. For each class, the set of information
includes:
Current volume on each section (or group)
Projected volume growth by year for each section
The definition of the Work Standards to be performed on the road sections. There are two types of Work
Standards: Maintenance and Improvement. For each Standard in each type, the set of information includes
the actions, cost and timing of the work.
- The analysis using the HDM-4 consists of combining the above information in a structured manner to model two or
more alternative courses of action that might be considered for the sections or grouping of sections.

Plan for Identifying or Collecting the Information
- Identify and assess the quality of pertinent information currently stored in the:
Roads Database
Traffic Database
Previously developed HDM-4 analyses

- Make as much use as possible of existing high-quality data; replace poor quality or missing data with newly
collected or extrapolated
- Identify candidate roads for information collection
Coordinate selection with important corridor criteria mentioned in Recovery Plan Strategy
Main roads:
(Short-term) Exclude current project roads
(Final Recovery Plan) Include entire Main system
Include by pass projects around selected cities
Regional roads:
List of important segments (maybe only selected sections of longer segments)
Studied and designed roads (for existing characteristics and condition information)
Sections on which traffic counts exist
Representative sections in poor condition
Extrapolate information collected to rest of regional roads network
Coordinate selection with other authorities (e.g. MoTT, Regional authorities, etc.)
- Develop traffic count methodology
- Develop traffic forecasts for the tentatively-identified four classes of roads above
- Determine other required information that can be easily collected
Roughness estimation
Pavement details: width, condition
Geometry and profile estimation
- Conduct capacity analyses of selected regional roads to help determine improvement needs
- Analyze (using the HDM-4) the effects on traffic safety of improvement and maintenance strategies
- Finalize list of roads on which information to be collected
- Identify traffic count locations
Main roads
Regional roads
- Decide on data collection method (Area engineers, Local consultants, Students, combination, etc.)
- Train data collectors
- Prepare data collection schedule
- Perform and report collection

- Enter/Update information for subject roads in databases


CONCLUSIONS
The volume of information to be collected is large; therefore, the steps in the preparation process need to begin as early
as possible

With the above in mind, the SRD and Booz Allen have already begun some of the work:
- An existing HDM model contains a substantial amount of the basic information for Serbia including climatic
conditions, deterioration calibration, and definition of the Main road network. This model will be used as a starting
point. Work on the analysis will entail refining and updating the existing information and supplementing it with
additional information.
- The SRD, with recommendations from Booz Allen, has engaged a member of the Faculty of Transport and Traffic
Engineering to:
Revise and update the set of traffic volumes and growth projection for the study period
Devise an efficient strategy for short-duration traffic counting to obtain representative current traffic volumes on
a variety of roads that will be extrapolated to similar groups of roads on the network
Provide and train a group of engineering students to perform the short-duration counts
Provide an analysis of information on traffic accidents

The preparatory actions currently being taken will speed the work of Phase 2 and Phase 3 and help ensure an efficient
work effort during those phases

CHAPTER XII

CONCLUSIONS AND ACTION PLAN

RECOMMENDATIONS

Technical Assistance to Serbia Road Directorate Phase 1 Report XII-2 Booz Allen Hamilton

INTRODUCTION
The work in this phase of the project has examined the current and proposed organization, processes, and practices of
the SRD
- Interviews were conducted with many people both within and outside of the Directorate (Appendix A presents a list
of the people interviewed)
- Booz Allen conducted a Stakeholders Workshop to obtain input from additional parties with an interest in the
development of the road network
- Special attention has been paid to the proposed Road Law that will significantly change the character and operation
of the Directorate

This report has detailed the results of the examinations and Booz Allens recommendations for improving the SRD
- Most chapters of the report contain recommendations pertaining to the area of focus of the chapter
- Many recommendations, if implemented, would mean significant changes in the SRD
- Significant changes to an organization cannot be implemented quickly or without thought
- In making significant institutional changes, an organization must proceed in a logical, progressive manner to grow
into the changed organization and give its employees time to absorb and adjust to the changes
- The SRD will have to spend time to develop it capacity both physical (facilities, hardware, software, and
equipment) and personnel (hiring the people, training them, and establishing the working relationships between
them) gradually in order to perform the functions described below. The significant growth in the breadth and
depth of the SRDs functions is not something that can be accomplished in one to two years. It is a process that will
demand patience and a long-term commitment.
- Having a structured plan for change for the organization (similar to what is outlined below) that is communicated to
the organizations employees allows them to understand what is happening and share in the goals and objectives of
the change

This chapter summarizes the recommendations from other chapters and proposes a phased plan for their implementation
- The implementation plan envisions three phases:
Immediate or short-term changes in the next one to two years, including most organizational changes
Mid-term changes in three to five years
Longer range changes in six to ten years
RECOMMENDATIONS


- Within the phases, each recommendation carries a relative priority. (1 being highest)
- Many of the recommended changes imply or require support in the form of:
Management information resources (computer hardware, software and peripherals)
Data collection and supervision resources
Additional staff
Training for existing or new staff
- The Function-Resource Matrix presented below:
Presents the summary of the recommendations in each phase
Describes the recommendations, capacities, functions, or responsibilities that the revise SRD organization will
have
Associates the organizations revised capacity with the resources needed to support it
- This type of presentation provides an overview of the relationship between the organizations functions and its
needs that can be used to help identify future budget or technical assistance requests

There are many recommendations in the following tables. It is well to remember that these are recommendations for improvement.
In comparison to many road organizations in the region, the Serbian Road Directorate functions well. Many of the
recommendations that follow present steps to be taken to develop the organization under a new charter envisioned in the proposed
Road Law. The volume of recommendations should not be taken as an indication that the SRD currently functions poorly.
RECOMMENDATIONS


FUNCTION-RESOURCE MATRICES
Phase 1 One to Two Years

Function-Resource Matrix for Phase 1 (One to Two Years)
Recommendation/Capacity/
Function/Responsibility Priority
Management Information
Resources
Data Collection, Supervision,
Consulting Resources Additional Staff Training
In coordination with MOTT, devote key
staff to promoting the Road Law and
facilitating its passage
1
N/A N/A N/A N/A
Establish a revised SRD as the public
company Road Authority described in
the proposed Road Law and defined by
the Articles of Incorporation passed by
the Government
1
Described below Described below Described below Described below
Continue and complete development of
the by-laws and regulations to support
and define the clauses in the proposed
Road Law.
1
N/A Legal consulting services Existing legal and
technical staff,
supplemented, if
necessary, by
appropriate short-term
consultants
N/A
Closely manage Motorways, Main roads
with AADT>3,500, and priority Regional
roads (10-15% of Regional network);
lightly manage remainder of network
1
In coordination with the MOTT, conduct
a study (as described in Chapter IV) on
dedicating a portion of the fuel tax to the
new road agency.
1
N/A N/A N/A N/A
Upgrade and standardize road, bridge,
tunnel, landslide, and traffic databases
(coordinate with future GIS
specifications and requirements)
1
Database, application, and
communication server computers,
backup equipment, networking
equipment;
Client and stand-alone computers,
printers, plotter
Described below Database and network
administrators and
technicians
Internal training on
using revised
databases
RECOMMENDATIONS


Resources
Develop a Strategic (long-range) road
network improvement plan in
coordination with Strategic
Transportation Plan of MoTT
1
N/A Data acquisition services;
Strategic planning consulting
services
N/A Elements and process
of strategic planning
Establish and perform a systematic
program to collect or update primary
road inventory and condition information
for Regional roads (approximately 9.500
km.) using consulting services. Data to
include:
Traffic counts
Roughness and rutting
Primary inventory data

1
Laptop computers for field data
acquisition and entry;
GPS units (hand held and vehicle
mounted)
Traffic counter/ classifiers;
Bump integrator;
equipment;
Condition and inventory data
acquisition services;
Structural strength measurement
services;
equipment and/or services
Additional data
acquisition supervision
staff
interpretation of road
condition data
Conduct a comprehensive study of road
maintenance costs (as described in
Chapter III) to reliably determine the
actual cost of maintaining Serbias
roads.
1
N/A N/A N/A N/A
Organize the newly established public
company according to the chart
presented in Chapter III Institutional
Arrangements
2
Networked and stand-alone
computers and printers;
Office productivity software
Organizational consulting
services;
Technical assistance projects
Additional
headquarters and
regional technical and
support staff as
described below
Basic computer skills;
Office productivity
applications;
Organizational change
management and
leadership
Establish a high level task force to
champion and monitor the progress of
the implementation of the
recommendations for change in the
organization
2
N/A N/A N/A N/A
RECOMMENDATIONS


Resources
Prepare and submit to MoTT
recommendations for the reclassification
of roads according to the newly adopted
criteria
2
N/A Road reclassification revision
consulting services
Existing road
management staff,
supplemented, if
necessary, by
consultants
road classification
criteria
Organize the Department of
Administration and Legal Affairs to
administer the Directorates human
resources, develop and review
contracts, help manage land acquisition,
and prosecute litigation
2
Additional desktop computers for
administrative and office
productivity applications
N/A Additional
administrative, legal,
and geodetic
engineering staff
Human resources
management;
Contract development
and administration
Organize the Department of Financial
and Commercial Affairs to manage the
permit process, help prepare and
monitor Directorate budgets, and
perform accounting, financial, auditing,
and procurement functions
2
Additional desktop computers for
financial, accounting, and office
productivity applications
N/A Additional
administrative,
procurement, and
financial staff
Budget preparation;
Financial auditing
procedures;
International financing
institution accounting
practices and
requirements
Organize the Department of Integrated
Information System to establish and
administer the Directorates network,
integrate its technical and business
computing environments, manage its
databases and document storage,
develop its software, and coordinate
data collection
2
Design and specify the Integrated Road
Information System (IRIS);
Establish systematic procedures and
documentation for the entry and
updating of information in the system
2
CASE applications;
Database application (MS Access,
Oracle, etc.);
SQL query tools and ad hoc report
generators
Database, network, and software
design and maintenance
consulting services
Additional information
management
engineers and
technicians
Software applications;
HDM-4 application
RECOMMENDATIONS


Resources
Establish standards and a certification
process for roughness calibration
measurements
2
Certification database Roughness calibration equipment
Certification testing and
administration services
N/A (existing staff) Roughness calibration
program to inspect bridges and tunnels
on the entire network. (Three year
program beginning with Motorways and
Main roads.)
2
N/A Field measurement equipment;
Bridge and tunnel inspection
services;
Bridge snooper truck
Laboratory testing services
Operators/inspectors
for bridge snooper
truck
interpretation of bridge
and tunnel condition
data;
Operation and
maintenance of
snooper truck
Organize the Department of Planning
and Design to coordinate design
procurement, review and update
technical standards, formulate road
improvement and maintenance plans
and programs, conduct and/or supervise
studies, perform and/or supervise road
design works, monitor environmental
compliance, and coordinate data
collection
2
Additional desktop computers and
workstations for planning and
design applications;
Computer Aided Design/Drafting
application;
Office productivity applications
Design standards revision
consulting services
Additional planning
and design supervision
staff
Contract
administration and
monitoring;
Economic evaluation
of projects;
HDM application;
Computer aided
design/drafting
Employ Environmental professional to
begin advising on environmental issues
2
N/A Environmental data collection and
monitoring equipment
Environmental
Engineer
N/A
Construction to coordinate construction
procurement, supervise work on bridges
and tunnels, and supervise construction
on the Main and Regional road network
2
Desktop computers and work
stations for in-office planning and
supervision monitoring
Supervision vehicles;
Limited field testing equipment for
materials and constructed works;
Additional construction
(particularly bridge and
tunnel) planning
engineers and
technicians
Works supervision
and contract
monitoring
Identify and address safety problems
(Planning and Development
Department); Develop black spot
database (Information Department, in
coordination with Police)
2
Expand existing databases to
include black spot information
Coordinate data acquisition with
police
N/A Traffic safety;
Interpretation of
accident statistics
RECOMMENDATIONS


Resources
Maintenance & Management of Main
and Regional Roads to coordinate
maintenance procurement and
supervise maintenance work on the
Main and Regional road network
2
materials and maintenance works;
Additional
maintenance planning
and supervision
engineers and
technicians
Contract monitoring
Maintenance & Management of
Motorways to perform and/or supervise
toll collection, coordinate motorway
procurement and supervise
maintenance work on the motorways
2
Network connections for toll
stations
materials and maintenance works;
Additional
maintenance planning
and supervision
engineers and
technicians
Contract monitoring
Participate actively in international road
organizations (IRF, PIARC, etc.) to
improve skills, learn of recent trends
and developments, and establish and
continue contacts with professionals in
other countries
3
N/A N/A N/A Seminars and
continuing education
offered at conferences

N/A = Additional resources not required (can be performed with already described resources)
RECOMMENDATIONS


Phase 2 Three to Five Years

Function-Resource Matrix for Phase 2 (Three to Five Years)
Resources
and Consulting Resources Additional Staff Training
Continue the work of the Champion
task force in leading and supporting the
organizational changes
1
N/A N/A N/A N/A
Effectively manage entire road network
1
Develop and continue a Rolling Mid-
term (five year) Plan derived from the
approved Strategic Plan and in
accordance with the Five Year Road
Recovery Plan
1
N/A Data acquisition services;
Mid-term planning consulting
services
N/A Elements and process
of mid-term planning
Build and implement Integrated Road
Information System (IRIS)
1
Additional networking and
database support resources
Database and network design
services
IRIS administrator Internal training in use
of IRIS
program to collect or update primary
road inventory and condition information
for Motorways and Main roads
(approximately 4,800 km.) using
consulting services. Data to include:
Traffic counts
Roughness and rutting
Primary inventory data

1
acquisition and entry;
GPS units (hand held and vehicle
mounted)
Traffic counter/ classifiers;
Bump integrator;
equipment;
Condition and inventory data
Structural strength measurement
services;
equipment and/or services
Additional data
acquisition supervision
staff
interpretation of road
condition data
Perform a formal training needs
assessment to determine the complete
training needs of the revised
organization
1
N/A Training needs assessment
consulting services
N/A N/A
Develop and implement document
management system 1
Document management server and
application software (headquarters
location only)
Document management system
design and implementation
services
Document
management system
administrator
Document
management and
archiving
RECOMMENDATIONS


Resources
Through the use of focused contracts,
encourage the Road Enterprises to
specialize in either construction or
maintenance
1
N/A N/A N/A N/A
Establish a systematic, regular, and
continuing program to collect condition
and inventory information on all roads
on a three-year cycle using some in-
house resources but relying mainly on
consulting services
1
N/A Continuing structural strength
measurement services;
Continuing laboratory testing
services

N/A N/A
Maintain and update existing data in
databases
1
N/A Continuing road data acquisition
services
N/A N/A
Establish and perform a program to
collect additional or update inventory
data on the entire network (geometric,
formation, const/maintenance history,
etc.). Multi-year program as resources
are available
2
N/A Continuing structural strength
services

N/A N/A
Establish Public Relations and Training
sections in the Deputy Directors office
2
N/A Public relations consulting services Mid-level professionals
and support staff for
Deputy Directors office

Training development
and administration

Establish Wide Area Network (WAN) to
link Regional Centers and HQ
2
Wide Area Network to connect
regional Centers;
Client and stand-alone computers,
printers for Regional Centers
services
N/A Network administration
certification

Continue to communicate with and
incorporate into the planning process
the suggestion of road stakeholders
2
N/A Continuing public relations
consulting services
N/A N/A
Selectively update or replace computer
hardware and software as improved
products become available
2
Selected hardware and/or software N/A N/A Operation and
maintenance of
improved products
RECOMMENDATIONS


Resources
Propose appropriate amendments and
supporting by-laws and regulations to
clarify the law and support the Road
Authoritys position
2
N/A Legal consulting services, if
necessary
N/A N/A
Establish or acquire GIS base maps
and develop inventory and condition
layers
2
GIS application software and
plotter
GIS design and implementation
services
GIS Engineer and
administrator
GIS development and
operation

Establish and staff Southern Regional
Center in Nis
2
Additional laptop computers for
Regional Centers and expanding
staff;
Additional application software for
HQ and Regional Centers and
expanding staff;
Database and application server
computers, backup equipment,
networking and communication
equipment for Regional Centers
N/A Basic engineering,
technical and support
staff for new Regional
Centers
Contract administration
and supervision in
construction and
maintenance;
Quality control and
assurance

Develop and execute a systematic
process for formulating the annual
works program based on the current
Mid-term Plan and incorporating the
approved improvement and
rehabilitation works
2
(MS Project)
Data acquisition services;
Annual planning consulting
services
Additional planning
and development
engineers and
technicians
annual planning
process; Project
management
Establish Procurement Coordination
function and sections in each operating
department and a Contract
Development and Review section within
Department of Administration and Legal
Affairs
2
Acquire or develop contract
management system
N/A Procurement support
person in each
operating department
Contract preparation,
management and
supervision;
English language
Establish additional fixed weigh stations
and portable weigh-in-motion teams 2
Expand existing databases to
store vehicle weight information
Fixed scales and portable WIM
equipment
Weigh station staff and
portable scale teams
Scale and WIM
operation and
maintenance
RECOMMENDATIONS


Resources
Establish and/or update systematic
procedures, documentation and
technical specifications for design
procurement, road planning, and
compliance monitoring to conform to
prevailing European standards
2
N/A Program planning and
administration consulting services
N/A Internal training on
compliance with
European standards
Establish Structures section (Bridge and
Tunnels) in Department of Construction 2
acquisition and entry and
supervision
N/A Additional Bridge and
Tunnel Management
Engineer
N/A
Develop and implement systematic
planning and supervision process for
routine and periodic maintenance using
performance-based work standards
2
N/A Supervision vehicles;
Rehabilitation and maintenance
supervision services;
Additional field
supervision and
inspection engineers
Maintenance planning
and supervision;
Interpretation of road
inventory and
condition data
Continue to refine the planning process
(Strategic, Mid-Term, Improvement &
Rehabilitation, and Annual)
2
N/A N/A N/A N/A
Complete program (third year) to
inspect all bridges and tunnels on
network
2
N/A Continuing bridge inspection
services
N/A N/A
Establish fully-staffed Environmental
section within Planning and
Development Department
2
Additional desktop and laptop
computers and peripherals for
expanded staff
Basic environmental testing and
monitoring equipment
Additional
environmental staff
Compliance with
environmental laws
and regulations
Develop and implement traditional
maintenance management system
(MMS)
2
Maintenance Management System
application
Continuing rehabilitation and
maintenance supervision services
MMS administrator Operation and use of
MMS
Based on results of the Pilot
Maintenance-By-Contract project,
gradually expand program to contract
the maintenance on approximately 50%
of the road network
2
N/A Additional work monitoring services
(or additional in-house monitoring
staff)
Additional works
monitoring staff (or
additional monitoring
services)
Refresher training in
contract management
RECOMMENDATIONS


Resources
Encourage the development and growth
of private design capacity and the
acceleration of the institute privatization
process
3
N/A Design consulting services N/A Design contract
management
Expand project and program
investigation and design supervision
capabilities;
Improve consultant management
capabilities for project supervision
3
N/A N/A N/A Refresher training on
contract management
Encourage the development and growth
of private design capacity and the
acceleration of the institute privatization
process
3
N/A Design consulting services N/A Design contract
management
Revise and standardize Road Network
Referencing system
3
N/A Condition and inventory data
Reference system revision
consulting services
Existing road
management staff,
supplemented, if
necessary, by
consultants
revised referencing
system
Establish remote climatic condition
monitoring for selected sites
3
Connectivity resources for RWIS
stations
Remote Weather Information
Monitoring System (RWIS)
N/A RWIS installation and
maintenance


RECOMMENDATIONS


Phase 3 Six to Ten Years

Function-Resource Matrix for Phase 3 (Six to Ten Years)
Function/Responsibility
Priority Management Information
Resources
Improve management of entire network
1
Upgrade and/or replace application
software
Described below Described below Described below
Establish and implement program of
periodic updating (three to five year
cycle) of inventory and condition data
for entire network
1
Replacement desktop computers
for office processing and
replacement laptop computers for
field data collection
Replacement/upgrade roughness
calibration equipment;
Replacement/upgrade traffic
counter/classifiers;
Replacement/upgrade WIM
scales;
Replacement/upgrade RWIS
stations;
Continuing condition and
inventory data acquisition
services;
Continuing structural strength
services
N/A Refresher/upgrade
training in:
Roughness
calibration
WIM operation
GIS operation
Network
administration
Basic computer
skills
Office
productivity
applications
Contract
administration

Establish and implement program of
periodic updating (three to five year
cycle) of bridge and tunnel inspection
information on entire network 1
Continuing bridge inspection
services
N/A Refresher/upgrade
training in:
Interpretation of
bridge and
tunnel
information

Refine and strengthen IRIS
1
Replace and/or upgrade database,
application, and communication
servers, network equipment, client
workstations, and printers
services
N/A Refresher training on
IRIS use
RECOMMENDATIONS


Function-Resource Matrix for Phase 3 (Six to Ten Years)
Function/Responsibility
Priority Management Information
Resources
Gradually expand maintenance-by-
contract program to contract the
maintenance on the entire road
network
1
N/A Additional work monitoring
services (or additional in-house
monitoring staff)
Additional works
monitoring staff (or
additional monitoring
services)
Refresher training in
contract management
Maintain and update existing data in
databases
2
N/A Continuing road data acquisition
services
N/A N/A
Selectively update or replace computer
hardware and software as improved
products become available
2
Selected hardware and/or software N/A N/A Operation and
maintenance of
improved products
If necessary, propose appropriate
amendments and supporting by-laws
and regulations to further clarify the
law and support the Road Authoritys
position
2
N/A Legal consulting services, if
necessary
N/A N/A
Establish and populate additional GIS
layers (drainage, right-of-way, signs,
accesses, etc.)
2
Expanded storage and backup
capacity
Continuing GIS design and
implementation services
Additional GIS
technicians
Operation and
maintenance of new
GIS layers
Revise and update the document
management system
2
Improved software, if available N/A N/A N/A
If necessary, revise the Road
Referencing system and road
classification system to reflect the
current situation and condition
2
N/A N/A N/A N/A
Strengthen and expand capacity of
Environmental section
2
Continuing environmental testing
services
Additional environmental
technicians and
professionals
N/A
Refine and strengthen MMS
capabilities
2
Expanded networking capability to
include maintenance contractors
MMS support services N/A N/A


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PHASE 1 FINAL REPORT

EBRD Roads Technical Assistance Project in Serbia

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