Reforming the Financing System for the Road Sector in the People's Republic of China

This report recommends the creation of a National Roads and Funding Administration and a central road trust fund with dedicated revenues; changes to roles and responsibilities of different levels of government for the various administrative categories in the road sector; formal cost-sharing arrangements between the central and the provincial and local governments; changes in the way central government funding for ordinary roads is planned, programmed, and allocated; and improved use of road asset and performance management information when deciding on funding needs and allocations. This report also includes options for increasing the funding available for ordinary roads, enabling the use of debt for capital investment in the road sector.