Draft National Road Maintenance Fund Administration Bill
for the Hashemite Kingdom of Jordan  

On the strength of Article 31 of the Constitution,

Upon the consultation of the Parliament,

Upon the recommendation of the Minister...........

On the strength of the accord given by the Council of Ministers, and

In recognition of the need to implement a system of road user charges to provide the financial resources needed to maintain the road network and enhance its safety and efficiency,
 

A BILL
 
entitled
 
An Act to make provision for the establishment of the National Road Maintenance Fund Administration (the Administration) and for purposes connected therewith and incidental thereto. Enacted by the Parliament of Jordan as follows:
PART 1—Definitions
1. This Act may be cited as the National Road Maintenance Fund Administration Act, 199 .

2. In this Act, unless the context otherwise requires—

"Administration" means the National Road Maintenance Fund Administration; "Board" means the Board of Directors of the National Road Maintenance Fund Administration; "Secretary" means the Executive Secretary of the National Road Maintenance Fund Administration;

"Minister" is the minister responsible for.......
 

PART II—Establishment of Administration
3. There is hereby established a body to be known as the National Road Maintenance Fund Administration of Jordan which shall— (a) be a body corporate with perpetual succession;

(b) have a common seal;

(c) be capable of—

(i) acquiring, holding and disposing of real and personal property;

(ii) suing and being sued in its corporate name; and

(iii) doing or performing all such acts and things as a body corporate may legally do or perform.

4. The purpose of the Administration shall be to provide funds for — (a) routine, recurrent and resurfacing maintenance works on all classified roads;

(b) its own administration; and

(c) the implementation of selected road safety projects.

Once all the requirements for (a) (b) and (c) have been met, the other items against which expenditure can be approved are: (d) the rehabilitation and improvement of all classified roads;

(e) the maintenance of unclassified roads, tracks and trails;

(f) the repayment of road sector loans;

(g) the improvement of urban road transport systems; and

(h) commitments to investors holding bonds or shares issued by the Administration.

5. The Administration is further to ensure that all such revenues owed to it are collected and utilised in a proper manner and advise the Minister on all matters pertaining to the financing of roads.

Part III—Road Maintenance Fund Revenues
6. The Administration shall open one or more local bank accounts, to be known as the "road maintenance fund," into which shall be paid, and separately accounted for, all revenues from the following road user charges which shall be known as the "road tariff:" (a) a road maintenance levy added to the price of gasoline and diesel;

(b) international transit fees;

(c) annual supplementary fees imposed on heavy vehicles;

(d) tolls imposed on specific stretches of roads or structures;

(e) fines imposed on overloaded vehicles;

7. Since the above charges constitute the road tariff, no one shall be exempted from paying them.

8. The Administration may also receive funds from-

(a) grants, subsidies, bequests, donations, gifts, subscriptions from Government or any other person;

(b) the sale of any property, real or personal, by or on behalf of the Administration;

(c) sums that may be donated or loaned by any foreign government, international agency or other external body of persons, corporate or unincorporated; and

(d) any other sums that may be appropriated by Parliament for purposes of the Administration.

9. The Administration shall arrange to have the road tariff collected under contract and the proceeds shall be directly deposited into the Administration’s bank accounts. Contracts will be entered into with the oil companies, the Department of Customs, the Ministries of Transport and Interior, and/or with private contractors as necessary.

10. The level of the charges which constitute the road tariff shall be set by the Administration within a Framework Agreement to be agreed each year with the Ministry of Finance. These charges shall be included in the annual budget, or in a supplementary budget and published in the Gazette as a regulation. The Framework Agreement shall cover the general financial policies of the Administration, the maximum annual increase in the road tariff, the size of the Administration’s administrative budget, and any matters which might have an impact on the Government’s fiscal and macroeconomic policies.

12. In the case of diesel, the Administration shall take steps to ensure that non-transport users of diesel are not unduly penalized by the introduction of the road maintenance levy. Such steps are to be proved annually through independent audits.

Part IV—Board Of Directors
13. The operations of the Administration shall be managed and controlled by a Board of Directors.

14. The Board shall not be subject to the direction or control of any person or authority but shall be under the jurisdiction of the Ministry of.......... as its parent ministry.

15. The Board shall consist of twelve members as follows-

(a) five ex-officio members, being nominees of each of the following Ministries: (i) Ministry of Finance,

(ii) Ministry of Public Works and Housing,

(iii) Ministry of Transport,

(iv) Ministry of Planning,

(v) Ministry of Interior

(b) five non-governmental members, being nominees elected from the following constituencies: (vi) Federation of Jordanian Chambers of Commerce;

(vii) industry;

(viii) the trucking industry;

(ix) the engineering profession;

(x) the agricultural community; and

(c) two other members from the private sector, being nominees of the Board.
16. All ex officio members shall not be officers holding office below the level of Director or equivalent and shall be appointed by their respective ministers.

17. The members of the Board shall, at the first meeting of the Board, elect a Chairperson and Vice-Chairperson from among their members. The Chairperson is to be endorsed by the Minister.

18. The first meeting of the Board shall be convened by the Minister.

19. Members of the Board shall not, by virtue only of their appointments to the Board, be deemed to be officers in the public service.

21. The names of all members of the Board as first constituted and every change in membership thereafter shall be published in the Gazette by the Minister.

22. A member of the Board, other than an ex officio member, shall hold office for a period of three years from the date of his or her appointment and shall be eligible for reappointment for one further term at the expiration of that period.

23. The Board shall meet at such place and at such times as the Chairperson may determine and shall meet at least once per month.

24. Members of the Board shall be paid from the road maintenance fund such allowances as the Board may, subject to the approval of the Minister, determine and the Board may make provision for the reimbursement of any reasonable expenses incurred by a member of the Board in connection with the business of the Board.

Part V—Secretariat
25. The Board will be assisted by a Secretariat headed by an Executive Secretary. The Secretariat shall be responsible for the day-to-day management of the Administration and for implementation of the decisions of the Board.

26. The Executive Secretary shall be appointed by the Board and shall perform such functions as the Board may direct or delegate to him or her. The Executive Secretary will also act as secretary to the Board.

27. A firm of chartered accountants, or a bank, may be appointed to act as Secretariat or to assist the Secretariat.

28. The terms and conditions of employment of the Secretariat shall be decided by the Board based on a comparison of best practice in other similar organizations.

Part VI—Annual Road Program
29. An Annual Road Program(s) shall be prepared at least three months before the start of the new fiscal year in such form and containing such details as may be prescribed by the Board. The Program(s) shall be prepared by the road agencies responsible for maintaining the road network, or by agents designated for this purpose by the Board.

30. The Board shall review the Annual Expenditure Program and decide on -

(a) the affordability of the overall program(s); and (b) the appropriateness of the amounts allocated for each class of road.

31. The Board shall transmit to the Minister of Public Works and Housing and the Directors of other road agencies together with the Minister of Finance the approved Annual Road Program(s).

32. Pursuant to Clause 10, the Board may recommend a rise in the level of the road tariff to the Minister to ensure it generates sufficient revenues to finance the approved Annual Road Program(s), and shall provide an estimate of the additional income to the road maintenance fund from such increases.

Part VII—Accounts
33. The Board shall cause to be kept proper books and other records of account in respect of receipts and expenditures of the road maintenance fund in accordance with acceptable principles of accounting.

34. The accounts of the road maintenance fund shall be audited annually by independent professional auditors nominated by the Board and approved by the Auditor General’s Office. The expenses of the audit shall be paid out of the road maintenance fund.

35. The auditors shall complete their audit of the accounts within three months of the end of each financial year and shall include in their report assessments relating to the achievement of the objectives of the Administration, compliance with the policies, procedures and criteria established by the Board, and the effectiveness of the management of the road maintenance fund.

36. The Board shall , as soon as practicable, but not later than six months after the end of the financial year of the Administration, submit to the Minister an annual report on all the financial transactions of the road maintenance fund and on the work, activities and operations of the Administration.

37. All sums received for the purposes of the Administration shall be paid into a banking account and no amount shall be withdrawn therefrom except under the authority of the Board and by means of cheques signed by such persons as are authorized in that behalf by the Board.

38. Any part of the road maintenance fund not immediately required for the purposes of the Administration may, on the recommendation of the Board, be invested in such manner as the Board may, in its discretion, determine.

Part VIII—Financial Regulations

39. The Minister shall, by notice published in the Gazette, make regulations stipulating the detailed procedures to be followed by the Board regarding the works to be financed through the road maintenance fund, procedures to be followed in preparing the Annual Road Program, procedures for allocating funds between the different road agencies, arrangements for disbursing funds for road works, and the detailed financial management procedures to be followed by the Board. 



Draft Regulations for the Management of the Road Maintenance Fund  
REGULATION No. XX Of 199..
National Road Maintenance Fund Administration Regulations 199..

In exercise of the powers conferred on me by ......, I

[Name]

Minister of ........... make the following Regulations:

Citation and Commencement

1. These regulations may be cited as the National Road Maintenance Fund Administration Regulations 199.. and shall come into operation on the date of publication in the Gazette.

Interpretation

2. In these regulations, unless the context otherwise requires -

"Administration" means the National Road Maintenance Fund Administration;

"Board" means the Board of Directors of the National Road Maintenance Fund Administration;

"Appointed member" means a member of the Board of Directors;

"Secretary" means the Executive Secretary of the National Road Maintenance Fund Administration;

"Minister" means the minister responsible for............................

Purpose of the National Road Maintenance Fund Administration

3. The purpose of the Administration is to finance as its first charge-

(a) routine, recurrent and resurfacing maintenance of the classified road network under the jurisdiction of the Ministry of Public Works and Housing;

(b) its own administration; and

(c) selected road safety improvements.

Only after the meeting of this first charge, other works to be financed by the Administration are - (d) on a cost share basis, maintenance of the classified road network under the jurisdiction of municipalities and villages;

(e) a limited amount of road rehabilitation and minor works.

4. Major new works will continue to be financed through the government’s development budget.

Cost Share Arrangements

5. The detailed basis of the cost-sharing arrangements will be decided by the Board, published and revised from time to time.

6. Village and municipalities will be expected to contribute their share of the costs using revenues from rates and other local taxes.

Disbursements from the Road maintenance fund

7. Funds will only be disbursed for goods and services forming part of approved Annual Road Program(s) according to procedures to be established by the Board.

8. Work undertaken by contractors with a value over $ ... must be certified by a registered engineer and payment will then be made directly to the contractor.

9. Work undertaken by small-scale contractors, or by force account, will be subject to similar controls to be agreed between the Board and the Minister of Public Works and Housing.

National Road Maintenance Fund Administration

10. The Administration will manage the road maintenance fund and advise the Minister on all matters pertaining to the financing of roads. Among other things, the Administration will:

(a) Improve arrangements for collecting all the fees and charges assigned to the road maintenance fund to minimize avoidance and evasion;

(b Institute an integrated and coordinated approach to the planning of road works by establishing the form and content of the Annual Road Program;

(c) Establish and publish the criteria used to divide road maintenance fund revenues between the different road agencies entitled to draw on the road maintenance fund;

(d) Review and approve the Annual Road Program prepared by the various implementing agencies;

(e) Negotiate an annual Framework Agreement with the Ministry of Finance establishing the procedures to be followed when adjusting the road tariff during the year concerned;

(f) Establish procedures for disbursing funds for works forming part of the approved Annual Road Program;

Board of Directors

11. The Board shall consist of twelve members as follows-

(a) five ex-officio members, who shall be (i) As a representative of the Ministry of Finance..........................................................................

(ii) As a representative of the Ministry of Public Works and Housing.......................................................

(iii) As a representative of the Ministry of Transport.......................................................................

(iv) As a representative of the Ministry of Planning.........................................................................

(v) As a representative of the Ministry of Interior...........................................................................

(b) five non-governmental members, being nominees elected by their constituencies, who shall be: (vi) As a represenative of the Federation of Jordanian Chambers of Commerce................................................

(vii) As a representative of industry.............................

(viii) As a representative of the trucking industry..........................................................................

(ix) As a representative of the engineering profession......................................................................

(x) As a represenative of the agricultural community.....................................................................

(c) two other members from the private sector, being nominees of the Board.
12. Elected and appointed members: (a) shall hold office for not more than 3 years from the date of appointment;

(b) may be re-appointed for one further term at the conclusion of his term of office;

(c) may resign by writing under his hand addressed to the Minister.

 
13. A member shall vacate his office as a member: (a) if he has been absent from 3 consecutive meetings of the Board without the permission of the chairperson;

(b) if he is, in the opinion of the Minister, unable or unfit to discharge the functions of a member of the Board.

14. Where a member has resigned under regulation 12 (c), or has vacated his office, that vacancy will be filled with a new appointment in accordance with the Act and the person so appointed shall hold office for the unexpired term of his predecessor.

Disclosure of Interest

15. If a member of the Board acquires any pecuniary interest, direct or indirect, in any contract, proposed contract or in any other matter in which private interests conflict the duties as a member and which is the subject of consideration by the Board, shall, as soon as is aware of the interest in the contract or proposed contract or any other matter, disclose such facts to the Board.

Meetings of the Board

17. The Board shall meet at such times and at such places as the Chairperson may decide. The Board shall meet at least once per month for regular Board meetings.

18. The Chairperson shall at the written request of not less than four members of the Board convene a special meeting of the Board to transact any extraordinary business on a date specified in the request. A written notice shall be addressed and sent to the members at least three days prior to the date of the meeting.

19. The Chairperson or Vice-Chairperson shall preside at each meeting of the Board. When the Chairperson and Vice-Chairperson are both absent, the members present shall appoint a Chairperson to preside at the meeting.

20. The quorum necessary for the transaction of the business shall be five members present at any meeting of the Board.

21. The Board decisions shall be taken by the majority vote and, when the votes are equal, the Chairperson has a casting vote, with dissenting members having the right to have their views recorded in the minutes.

22. The minutes of every meeting of the Board shall be recorded in a register by the Secretary of the Board and signed by the Chairperson of the meeting and the Secretary.

23. The Board may co-opt non-voting observers at any of its meetings, as and when required.

24. The Board shall appoint such study groups or committees as may be necessary for the proper discharge of the functions of the Board consisting of some members and such other persons with prescribed qualifications, and define the objectives of such groups or committees.

25. Members of the Board and such other persons appointed to study groups or committees shall be paid such remuneration as may be determined by the Board and approved by Minister.

26. The Board may co-opt any person to advise it during its deliberations.

27. Subject to this regulation, the board shall regulate its own procedures.

Functions of the Board of Directors

28. The functions of the Board are to:

(a) administer and manage the road maintenance fund;

(b) coordinate and ensure total and timely accountability of all funding allocated to the road maintenance fund;

(c) improve arrangements for collecting road user charges to minimize avoidance and evasion;

(d) recommend adjustments to the Minister to the level of the road tariff from time to time to ensure that sufficient funds are allocated for maintenance;

(e) institute an integrated and coordinated approach to planning of road works in Jordan by establishing the form and content of the Annual Road Program;

(f) provide guidance and establish procedures to be followed in the preparation of the Annual Road Program by the various road agencies;

(g) establish the allocation criteria to divide moneys between the various categories of roads;

(h) review and approve the Annual Road Program(s);

(i) establish procedures for disbursing funds for the Annual Road Program(s);

(j) ensure transparency and accountability in the disbursement of the funds by, among other things, publishing an annual report; and

(k) prepare and publish an annual report.

Executive Secretary

29. The Board shall recruit and appoint a suitable candidate to be Secretary of the Administration.

30. The Secretary shall be the chief executive and accounting officer of the Administration.

31. The Secretary shall perform such duties as are conferred on him by or under these regulations.

32. The Secretary shall attend meetings of the board but shall have no vote at such meetings.

Secretariat of the Administration

33. The Administration shall have a Secretariat which shall consist of:

(a) the Secretary of the Board;

(b) up to four qualified officers in engineering, accounting , planning and financial management;

34. The Administration may grant pensions, gratuities or retiring benefits to the officers and employees of the Secretariat and require them to contribute to any pension, provident fund or superannuation scheme.

35. If an officer holding a pensionable office in the public service is seconded to the Secretariat, the period during which he serves with the Secretariat shall, for the purpose of computation of time and amount of pension payable to him in respect of his service as a public officer, be deemed to be service in a pensionable office.

Functions of Secretariat

36. The Secretariat shall be responsible for the management of the road maintenance fund in accordance with the decisions of the Board.

37. Without prejudice to the generality of these regulations, the Secretariat shall be responsible to:

(a) keep proper accounts and records in respect of the road maintenance fund;

(b) maintain a bank account in which shall be recorded all receipts into and all disbursement from the road maintenance fund;

(c) prepare and submit for audit in respect of each financial year a balance sheet, a statement of income and expenditure, and a statement of cash flow in such forms and manners as the Board may prescribe;

(d) prepare the Annual Report in such form and with such content as may be prescribed by the Board; and

(e) arrange the business for meetings of the Board.

Allocation of Road Maintenance Fund Revenues

38. The Annual Road Program shall allocate the revenues of the road maintenance fund to various categories of roads for the year, following the allocation criteria prescribed by the Board and such criteria may be based on the condition of the road network, the type of maintenance required (whether routine, recurrent or resurfacing), the length of the road network, and the volume of traffic.

Withdrawal Procedures

39. Funds shall be withdrawn from the road maintenance fund on presentation of a cheque signed by two authorized signatories: either one member of the Board and the Secretary, or one member of the Board and a designated member of the Secretariat.

Annual Report and Accounts

40. As soon as possible after the close of the financial year but not later than 3 months thereafter, the Board shall submit to the Minister an annual report and audited accounts for the Administration comprising,

(a) a report on the activities of the Administration during the preceding year;

(b) a profit and loss account for the period of the financial year, and

(c) a balance sheet showing the assets and liabilities of the Administration at the close of the financial year.

41. A copy of the annual report and audited accounts of the Administration shall be submitted by the Minister to the Legislature at the earliest opportunity.

Power of the Minister in relation to the Board of Directors

42. The Minister may give to the Board general or specific directions in writing as to the performance of its functions and the Board shall give effect to such directions providing always that such directions are within the powers conferred on the Minister under the Act.

Minister for................................