ARGENTINA: PERFORMANCE-BASED ONTRACTS APPROACH IMPROVING ROADS

    A World Bank study, published in March 2010, highlights the results achieved by the Contrato de Recuperación y Mantenimiento (CREMA) performance-based contracting scheme to rehabilitate and maintain Argentina's roads.

    The program, developed with funding from the International Bank for Reconsutruction and Development (IBRD), is part of an effort to manage unprecedented growth in traffic levels of about 10 percent per year.  In addition to an increase, the composition of Argentina's traffic has changed and trucks now make up 45 percent of all vehicles on the road.

    The first two phases of the CREMA scheme covered approximately 14,000 kilometers of road and achieved impressive improvements to road conditions, with a shift from 70 percent considered in 'good' condition in 1998 to 85 percent in 2005.

    Key results achieved include:

    • Increased public infrastructure investment levels;
    • Reduction in delays in the completion of roadworks; and
    • Improved road safety conditions.