Core Functions of the Road Fund Administration
- Determination of the amount of funding for road projects and programmes
- Determination of the manner in which such amount of funding shall be allocated
- Preparation of a business plan
- Imposition of road user charges to levy the determined amount of funding
- Collection of road user charges
- Management of the Road Fund
- Determination of funding conditions and monitoring the compliance of recipients of funds with the funding conditions.
Determination of the amount of funding for road projects and programmes
- Approve which authorities other than Roads Authority (RA)are eligible to receive funding from the Fund
- Determine the level of funding to ensure achievement of an economically efficient road sector
- Ensure compliance by RA with minimum standards and measures prescribed under section 16(5) of the RA Act
- Consideration of monies accruing to RA from other sources
- Consideration of resources available to RA and approved authorities for the execution of projects
- Rules and principles to be applied for the most effective achievement of an economically efficient road sector and compliance with the RA Act section 16(5) standards and measures
- Stakeholder consultations, as determined by the Minister, on the above rules and principles.
Determination of the manner in which such amount of funding shall be allocated
- Five-year budget of RA, compliant with RFA Act section 19(2) rules and principles
- Budgets of other approved authorities, compliant with RFA Act section 19(2) rules and principles
- Consultations with RA and other approved authorities on preparation and submission of budgets
- Evaluation of projects and programmes
- Consideration of other sources of funds
- Consideration of resources available to undertake projects and programmes
- With due regard to Rules and Principles, funds available to the RFA, and avoidance of substantial increase in the rates of road user charges, determine amount and manner of allocation of funding to be made available on five-year budgets
- Determine instalments and conditions for paying funding to RA and approved authorities.
Preparation of a business plan
- After the determinations of the amount and manner of funding have been applied to the five-year budget of RA and the budgets of other approved authorities, a five-year rolling-forward business plan is prepared. The business plan shows the projects and programmes to be funded, how and when they are to be funded, the sources of funding, and how the amount to be raised through road user charges will affect the rates at which such charges will be levied.
- Stakeholder consultations are held on the business plan, at which opportunity stakeholders can express themselves on the projects and programmes to be funded and the consequent levels of road user charges, after which the business plan is finalised and adopted by the RFA board, by 31 January of each year.
Imposition of road user charges to levy the determined amount of funding
- Types of road user charges:
o Licence fees
o Fuel levies
o Mass-distance charges
o Cross-border charges
o Abnormal load fees
o Overloading fines
- Determine rates:
o To raise the amount of funding as previously determined
o To maintain equitability, efficiency and non-discrimination
- Determine parties liable for payment of road user charges
- Determine parties responsible for collection of road user charges
- Determine exemptions from and refunds of road user charges
- Determine provisions for efficient administration of imposition, payment and collection of road user charges
- Publish types and rates of charges, and the above determinations, in Government Gazette.
Collection of road user charges
Collect road user charges as imposed through the various identified collection agents.
Management of the Road Fund
- Financial:
o Bank accounts
o Investments
o Loans
o Accounting: separately for Fund and Administration; specify Government allocations and donor grants and loans
o Auditing: internal and external
- Utilisation of funds:
o National road network management, RA
o Local authorities: development of major urban arterials and traffic-related maintenance of any urban road
o Traffic law enforcement and adjudication, and overload control
o National Road Safety Council
o Contribution towards traffic information system
o Contribution towards operating cost of vehicle and driver testing centres
o Road research
o Servicing of loans relating to the national road network, incurred by the Government before commencement of the Act
o Servicing of loans relating to the national road network, incurred by the RFA
o Reserve fund for stabilising road user charges and ensuring the Fund’s liquidity
o Insurance and compensation for damages
o RFA administrative expenditure
o Road user charging system expenditure
Determination of funding conditions and monitoring the compliance of recipients of funds with the funding conditions
- Consult with RA regarding their compilation and review of the Procedures Agreement
o Legal requirements as per RA Act section 17(1)
o Additional requirements of RFA
- Monitor compliance by RA with the provisions of the Procedures Agreement
o Assess efficiency in utilisation of funds, including management and financial systems
o Principles applied in budgeting for administrative expenditure
o Tender procedures
- Determine conditions of funding for other Approved Authorities
- Monitor compliance by other approved authorities with the conditions under which funding has been made available:
o Budget and cash flow
o Other conditions.
Road Fund Administration