2014 - World Bank - Review of Performance Based Contracting in the Road Sector - Phase 1

World Bank Report TP-42A.

Performance Based Contracts (PBC’s) are not new to the transport sector, with many variants in use in different countries for close to two decades. International lending institutions – such as the World Bank – have played a significant role in pushing PBCs into developing nations as part of loan assistance packages.

However, there has been a tendency for a “one-size-fits-all” approach to the implementation, with the result being a variation in the success of any implemented PBCs, as well as a significant proportion of the proposed PBCs not making it to the contract award stage. To address these issues, the World Bank has commissioned a Review of Performance Based Contracting in the Road Sector (contract number 7158253) led by Opus International Consultants Limited.

The project is in two phases:

• Phase 1: Being about reviewing projects to determine what makes projects succeed; and
• Phase 2: Being the development of better guidance on the selection of the appropriate PBC for given situations.

This report presetns the results of Phase 1 wherein experiences in a range of sites are reviewed.