Secondary Road Asset Management Project SRAMP Audit Report

The Government of Georgia (the GOG), represented by the RD, started a results-based Secondary Road Asset Management Project in 2016 which will be completed by June 30, 2023. The Project is financed by the GOG and the WB through a loan (Loan #8599-GE) of the International Bank for Reconstruction and Development (the IBRD).
The objectives of the SRAMP are: (i) to improve road users’ access to social services and markets through the Project Roads in a sustainable manner; and (ii) to enhance road asset management for the Secondary Roads Network in Georgia. Pursuant to the Loan Agreement dated March 28, 2016, the RD shall ensure independent monitoring and evaluation of the project by carrying out an inde¬pendent performance audit. The WB thus requested the SAOG to conduct the Independent Project Performance Audit for the period of January 1, 2021 to December 31, 2021.

The Audit Team reviewed the preliminary and the final reports provided by the technical, environ-mental and social experts to identify progress in rehabilitation and improvement of the secondary road assets through the Design-Build contracts and the Project road rehabilitation contracts in Guria region.
In addition, the Audit Team examined the compensation payments under the RAP’s and the road safety integration in the asset management process. The Team also reviewed, the consistence of up¬dated Five-Year Rolling Program, and the 6th year plan with the “Handbook for the preparation of Multi-Year Rolling Plan for the road asset preservation and improvements,” the detailed design and bidding documents for the climate resilience measures in Racha, as well as the progress in implemen¬tation of the SAOG’s previous recommendations.

According to the IFR’s, during 2021 year, total expenses incurred amounted to USD 7,201,839. The Audit Team assessed the progress of the Disbursement Linked Indicators (DLI) targets and recom¬mended that the loan amount of USD 4,620,942 in 2021 is disbursed.

Status of the recommedation

Audit Finding 1 (2017)

Useful life of roads depends on several circumstances, including: type of works done, traffic intensity, and regional climate. The SAOG established that the assessment of expected useful life of the sec¬ondary roads is not being performed by the RD during the annual planning process. As a result, the RD does not have an opportunity to justify the best identified option between the maintenance, the periodic maintenance and the rehabilitation.

Recommendation 1 for the audit finding 1 (2017)

In order to increase the effectiveness of the secondary road asset management, the RD should design and implement mechanisms which will allow the estimation of a road’s useful life based on the type of work. The estimation can be based on the past experiences, the types of work, the AADT and the regional climate. The expected outcomes need to be compared with each other and the most effective and efficient type of work should be selected.

Management response on audit finding 1 (2017)

According to the Georgian legislation, there are no national technical regulations and standards on construction of roads, bridges, highways and road tunnels. In 2021, the Committee for the Sectoral Economy and the Economic Policy conducted a thematic study for identifying the problems related to the introduction of uniform standards in construction sector. The RD requested the mentioned information from the Committee and expressed its readiness to participate in development and im¬plementation of construction standards.