Increasing essential resources

Maintaining Madagascar’s national roads requires an estimated $250 million per year, according to a recent report on climate and development in Madagascar by the World Bank.

However, inaction could lead to even higher costs. The report stresses that the lack of regular maintenance would increase rehabilitation expenses and that failing to upgrade roads according to climate-resilient design standards would further escalate ongoing and periodic maintenance costs.

The Road Fund is responsible for managing the financing of construction, rehabilitation, and regular maintenance projects, as well as overseeing road assets, including regular upkeep and emergency repairs. The Road Fund’s budget consists of donor grants, fuel, and lubricant taxes dedicated to road maintenance, and contributions from various taxes and levies. These sources primarily fund the Fund’s investment and maintenance operations.

The World Bank report supports strengthening the Road Fund to secure the necessary resources for maintaining essential road infrastructure. This would involve a financing approach that diversifies and increases dedicated revenue streams.