A framework for analyzing financial performance of the transport sector

Ian G. Heggie and Michael Quick

No 356, Policy Research Working Paper Series from The World Bank

Abstract: This report presents a methodological framework for reviewing the financial performance of government agencies responsible for transport. The framework is applied in a detailed case study in Tanzania (the transport infrastructure of which is seriously run down) and on desk studies in 14 other countries. The report presents the following findings: (a) a weak revenue administration in Tanzania with only half of the airport user fees and road user charges collected; (b) an unduly complicated structure of user charges; (c) poorly controlled expenses; (d) out of line fuel prices compared with adjoining countries; (e) transport enterprises operating without clear financial objectives; and (f) financial affairs of enterprises being supervised by a ministry that lacked the expertise and authority to do so effectively. This paper outlines the steps recommended to strengthen financial performance and describes how their methodology can be used to prepare multiyear forward programs that can be linked to the net cash flow to/from the government.

Keywords: Banks&Banking Reform; Public Sector Economics&Finance; National Governance; Municipal Financial Management; Roads&Highways (search for similar items in EconPapers)
Date: 1990-02-28
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