African Organisation of English-speaking Supreme Audit Institutions

Performance Audit Report on Roadworks

Road sector is an important sector in the economy. Road construction uses 13% of the national budget. The road construction sector in Tanzania has problems with delays, cost overrun and quality. The purpose of the conducted performance audit study is to assess whether.

The Ministry of Infrastructure Development (MoID) and Tanzania National Roads Agency (TANROADS) have a major influence on the road construction industry as sponsors, regulators and procurers of road projects.

The major findings of the audit are as follows:

Extension of time is common in most road projects.

Inadequate design results into cost overrun,

Quality control system needs to be improved

The Controller and Auditor General conclude that the road works system in Tanzania is not managed efficiently and timely and recommended that:

  • The Ministry of Infrastructure Development and TANROADS need to improve the process of the start-up activities, such as fulfilment of loan conditions and procurement processes.
  • TANROADS need to have a budget covering the whole project period and strong budgetary control throughout the project. For each project it is important that clear roles and responsibilities among various parties are set regarding time, cost and quality issues. Moreover, measures need to be taken to enhance TANROADS capacity in identifying and managing risks.
  • Files must be kept in better order and MoID/TANROADS should establish register to record the performance of contractors and consultants for each road project.
  • MoID/TANROADS should, therefore, take proactive steps to reduce time and cost overruns by continuing its efforts to improve coordination with utility companies (eg. TANESCO, DAWASCO) and other parties who are involved in the road construction sites.
  • MoID/TANROADS should recruit and keep their own independent strategic competent professionals who will act with full professionalism and integrity for monitoring and inspections even if MoID/TANROADS will continue engaging specialists or consultants for the actual follow-up of implementation of various kinds of work.
  • Government should ensure that MoID/TANROADS have the leadership and capacity required to manage its functions. We recommend that the Government and the Ministries concerned to set up a commission which will be responsible for finding solutions to these shortcomings as this will be cost effective to make TANROADS properly equipped with human resources for its tasks.
  • MoID/TANROADS should have a discussion on how far it should go in supervising contractors. There are risks with too much involvement by TANROADS. It may undermine and confuse the contractors’ implementation responsibilities on one hand and the oversight role of TANROADS on the other hand.
  • MoID/TANROADS should specify the responsibilities for the consultants they use. If for instance a consultancy firm is engaged for design work, it’s advisable to clarify in the contract that the firm is financially responsible for mal practice.
  • The Government should review the possibility of making vital road constructions documents be made available to the public. Designs and final inspections could perhaps be made available or disclosed as soon as they are approved by the parties involved.
  • The Government should give TANROADS clear instructions on how to manage consultants. This include the setting up of a commission to review and strengthen MoID/TANROADS’ integrity and professionalism and its performance of strategic functions, and examine transparency and accountability issues
  • The Government and TANROADS should deliberately take steps on the pre-contract stages of projects implementation to ensure that the designs are improved to reflect the reality on the ground and avoid unnecessary alterations during the implementation stage. The Ministry of Infrastructure Development and TANROADS need to institute a mechanism to review the designs and estimates of the project as they are prepared by the consultants before they are implemented.
  • TANROADS should significantly improve project management and quality control system in order to avoid delays, cost overruns, to avoid being forced to conduct repair works and maintenance services soon roads are opened to the traffic.

For the full report please download the PDF below

Date Published: 
2010
Country: 
TZ Tanzania
Sectors: 
General
Report File: 
Section: 
Performance Audit