The Center for Economic Strategies (CEC), after conducting study, claims that Ukraine overpays for road repairs 2 times more than neighboring Slovakia.
This situation happened because travel expenses in Ukraine are distributed on the basis of political influence avoiding transparent and objective criteria.
To economists, two main factors have a significant political influence.
“Firstly, the amount of money spent on road repairs (the size of subventions) does not correlate with the intensity of road use. Secondly, competition for tenders for contract work is artificially limited, even despite the use of Prozorro system. This is due to the exclusion of participants according to formal criteria,” the CEC said.
Slovakia also had the possibility of political influence on the distribution of travel expenses from the budget, but such cases there are rare.
In addition to the political factor, the short planning period also affects the low efficiency of using taxpayer funds.
“Ukraine has a common practice to plan for 5 years, and In Slovakia – for at least 20 years,” the report said.
To increase the efficiency of use of funds spending on road repairs in Ukraine and eliminate the political influence on their distribution, it is recommended to introduce measurable target criteria to track travel efficiency; to focus on the World Bank’s IRI (International Roughness Index); to introduce automated data collection on traffic intensity.
As The Journalist reported, Ukravtodor will overhaul Kyiv-Odesa road using cement-concrete technology.
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