Performance-based Road Rehabilitation and Maintenance Contracts (CREMA) in Argentina: A review of fifteen years of experience (1996-2010)

Maria Marcela Silva and Gerard Liautaud
World Bank
Transport Papers - 36
September 2011

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1. The National Road Network of Argentina
2. Origins and Definition of the CREMA contracts
3. Evolution in the Procurement and the Design Standards of the CREMA
4. The Market’s Response to the CREMA System
5. Impact of the CREMA on the Condition of the National Road Network
6. Cost Effectiveness of the CREMA System
7. Bank's Strategy and Role in the Road Sector in Argentina
8. Lessons Learned

ANNEX 1: Penalties for Non-Compliance with Mandated Requirements CREMA Contracts (2009)
ANNEX 2: Cost Structure of the CREMA
ANNEX 3: CREMA in the Provinces of Argentina
ANNEX 4: Typical Examples of Contractual Requirements and Specifications for a Homogeneous Road Section
ANNEX 5: Summary Findings of Technical Audits Carried out Between 2009 and 2009
ANNEX 6: Photos of CREMA Works, 2007 - 2008
APPENDIX 1: Terms of Reference - Technical Audits for CREMA contracts in Argentina

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Performance-Based Maintenance Contracts for Subnational Roads: Experience from Latin America

TRB
2009

Medina Flintsch, Alejandra
Email: ale@vtti.vt.edu
Virginia Polytechnic Institute and State University, Blacksburg
Flintsch, Gerardo W
Email: GFlintsch@vtti.vt.edu
Virginia Polytechnic Institute and State University, Blacksburg
Bennett, Christopher R
Email: cbennett2@worldbank.org
World Bank
Crispino, Maurizio
Email: maurizio.crispino@polimi.it
Politecnico di Milano

Transportation Research Board Annual Meeting 2009 Paper #09-1121

The outsourcing of road maintenance to micro- and small enterprises under performance-based contracts (PBCs) has been recognized as an effective approach to rural road maintenance in many developing countries. This approach links payments for the management and/or maintenance of pavements with the contractor successfully meeting or exceeding certain clearly defined minimum performance standards. A review of projects undertaken by the World Bank found that, if structured correctly, these projects can effectively maintain pavements, while at the same time, contributing to improved social welfare and local economic conditions. However, to be successful it is important that the legal and practical elements of the projects be properly structured. The paper presents the findings in terms of the lessons learned from PBCs with micro-enterprises, and the challenges faced to ensure success. It gives specific recommendations in legal, administrative, and technical areas on steps that can be taken by agencies to facilitate PBCs using small or micro-enterprises.

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Maintenance Management

Transportation Research Board
July 2009



TRB’s Transportation Research Circular E-C135 Maintenance Management includes papers presented at the 12th American Association of State Highway and Transportation Officials–TRB Maintenance Management Conference held in Annapolis, Maryland, July 19-23, 2009. The objective of this series of conferences is to provide a forum every 3 to 4 years for the exchange of new ideas and developments in the maintenance and operations management of transportation facilities.

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Performance-Based Contracting for Maintenance

Transportation Research Board
June 2009



TRB’s National Cooperative Highway Research Program (NCHRP) Synthesis 389: Performance-Based Contracting for Maintenance explores experience with performance-based maintenance contracting in places where it has been adopted, including such issues as whether it has the potential to reduce costs and improve maintenance levels of service.

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