Roads Department of Georgia – Secondary Roads Asset Management Project|2018

The Government of Georgia, represented by the Roads Department of Georgia (RD), has started a resultsbased Secondary Road Asset Management Project (SRAMP or “the Project”) which will be implemented until 31 December 2021. The Project is financed by the Government and the World Bank through an International Bank for Reconstruction and Development (IBRD) loan (Loan # 8599-GE). The objectives of the Project 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 28 March 2016, RD shall ensure independent monitoring and evaluation of the project by carrying out an independent performance audit. The State Audit Office of Georgia (SAO) has been requested to conduct the Independent Project Performance Audit (Independent Audit) for the period of July 6, 2016 to December 31, 2017.

Audit Finding 1

The SAO has identified no documented evidence of the top management’s involvement in updating the Five-Year Rolling Program and the annual plan. As explained by the RD, the members of the top management are involved in preparation process, however their decisions are not being documented. As a result, preparation process lacks transparency. In addition, the audit team was unable to observe and assess the management’s awareness of top priorities, criteria and amendments included in the rolling program and the annual plan.

Audit Finding 2

Useful life of roads varies according to several factors, including: type of works done, traffic intensity and regional climate. The SAO established, that the assessment of expected useful life of secondary roads is not being performed by the RD during the annual planning process. As a result, RD doesn’t have an opportunity to justify that it identifies the best option between a maintenance, periodic maintenance and rehabilitation.

Recommendation for the Audit Finding 1

In order to emphasize significance of the Five-Year Rolling Program/Annual Plan and to increase transparency of an amendment process the SAO recommends that both documents and subsequent amendments be formally approved by the RD’s top management.

Recommendation for the Audit Finding 2

In order to increase 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 consequent to the type of work. Estimation can be done based on the past experiences, types of work, AADT and regional climate. The expected outcomes of the different types of works need to be compared and the most effective and efficient type of work should be selected (maintenance, periodic maintenance, rehabilitation).