Mozambique2

10-year Contract Pilot

CLIENT: Administration Nacional de Estradas (ANE)

Challenge

After 15 years’ civil war, Mozambique’s road infrastructure was badly degraded, slowing its economic and social recovery. Pilot 10-year Output and Performance-based Road Contracts (OPRC) were sought for reconstructing 123km of the N1 highway in the Inhambane Province.

Opus’ contract involved developing the OPRC strategy, reviewing the current information and collecting additional data, and preparing the conceptual designs, bid documents, finance and cost recovery models and price estimates.  Opus also provided training and awareness workshops and supported the procurement process.

Solution

Opus, with Arup South Africa’s support, undertook generic technical studies, surveyed, investigated and collected data to assess the pavement condition and identified and mitigated project risks. This enabled Opus to design pavement strengthening strategies.

Opus then developed financial payment and recovery models, developed conceptual designs, Levels of Service (LOS) and bid documents for the OPRC contract and provided the Client with advice about procurement and evaluation criteria.

In addition, Opus organised training workshops about the highway and the pilot OPRC for the Client. In this contract form, robust asset management and risk sharing is integral, with the Client assuming the higher risk and the Contractor the lower.

Value

The pilot OPRC is expected to cost ANE about USD7M less than the contracts formerly used to undertake similar work on this highway.

Opus’ pavement design criteria require the Contractor to account for traffic overloading, which in comparison with the traditional models will extend the pavement’s expected life by 50%. This is likely to save ANE a further USD9.8M.

Although the Contractor will be responsible for the improvement and resurfacing works’ quality and maintenance, the LOS and penalties for failing to meet these will encourage them to ensure their work is up to standard. The LOS have also been devised to inspire the Contractor to undertake low-cost improvements early in the contract for the road users’ benefit.