AN ACT TO ESTABLISH A NATIONAL ROAD FUND FOR ROAD

MAINTENANCE IN THE REPUBLIC OF LIBERIA

The National Road Fund Act 1

 ARRANGEMENT OF SECTIONS

CHAPTER ONE ....................................................................................................... 4

SECTION 1. PRELIMINARY PROVISIONS ......................................................................................... 4
1.1 SHORT TITLE ............................................................................................................................................ 4
1.2 THE PURPOSE OF THIS ACT IS TO ESTABLISH: ....................................................................... 4
1.3. DEFINITIONS ............................................................................................................................................ 4
CHAPTER TWO ...................................................................................................... 7
SECTION 2. ESTABLISHMENT, OBJECTIVES AND USE OF THE FUND ...................................... 7
2.1 ESTABLISHMENT OF THE NATIONAL ROAD FUND............................................................... 7
2.2 USE OF THE FUND................................................................................................................................. 7
2.3 OBJECTIVES OF THE ROAD FUND ................................................................................................. 7
2.4 GOVERNANCE AND MANAGEMENT OF THE FUND .............................................................. 7
CHAPTER THREE .................................................................................................... 9
SECTION 3. THE GOVERNANCE STRUCTURE ...................................................................................... 9
3.1 THE INTER-MINISTERIAL STEERING COMMITTEE .............................................................. 9
3.2 COMPOSITION OF THE INTER-MINISTERIAL STEERING COMMITTEE ....................... 9
3.3 FUNCTIONS OF THE INTER-MINISTERIAL STEERING COMMITTEE ............................. 9
3.4 PROCEDURES OF THE INTER-MINISTERIAL STEERING COMMITTEE ....................... 10
3.5 THE OFFICE OF THE ROAD FUND ................................................................................................ 11
3.6 OVERSIGHT RESPONSIBILITY FOR THE OFFICE OF THE ROAD FUND ...................... 11
3.7 ANNUAL REPORT OF THE FUND...................................................................................................12
3.8 SUBMISSION OF REPORT TO THE PRESIDENT OF LIBERIA ............................................12
3.9 SUBMISSION OF REPORT TO THE NATIONAL LEGISLATURE ........................................12
CHAPTER FOUR ................................................................................................... 13
SECTION 4. OFFICIALS OF THE OFFICE OF THE ROAD FUND AND ADMINISTRATIVE
MATTERS .......................................................................................................................................................... 13
4.1 OFFICIALS OF THE OFFICE OF THE ROAD FUND ..................................................................13
4.2 FUNCTIONS OF THE NATIONAL ROAD FUND MANAGER .................................................13
4.3 APPOINTMENT OF THE FUND MANAGEMENT TEAM ....................................................... 14
4.4 FUNCTIONS, DUTIES OF THE NATIONAL ROAD FUND MANAGER............................... 15
4.5 APPOINTMENTS OF STAFF TO THE OFFICE OF THE ROAD FUND ............................... 16
CHAPTER FIVE ..................................................................................................... 17
SECTION 5. PROVISIONS FOR IDENTIFYING AND COLLECTING REVENUES FOR THE
ROAD FUND ..................................................................................................................................................... 17
5.1 ESTABLISHMENT OF SOURCES OF FUNDING .........................................................................17
5.2 THE ROAD USER CHARGING SYSTEM ......................................................................................... 17
5.3 TRANSFER OF FUNDS TO THE ROAD FUND ACCOUNT ..................................................... 18
CHAPTER SIX ....................................................................................................... 18
SECTION 6. PROVISIONS FOR EXPENDITURE OF THE ROAD FUND ...................................... 18
6.1 USE OF FUNDS........................................................................................................................................18
6.2 ANNUAL ROAD MAINTENANCE EXPENDITURE PROGRAMS ..........................................19
6.3 DISBURSEMENT OF FUNDS .............................................................................................................20

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 6.4 BANK ACCOUNT OF THE FUND AND WITHDRAWAL PROCEDURES ........................... 21
6.5 GENERAL PROVISIONS FOR FINANCIAL MANAGEMENT AND AUDIT OF THE
FUND 21
CHAPTER SEVEN .................................................................................................. 23
SECTION 7. MISCELLANEOUS ................................................................................................................. 23
7.1 THE WIDER GOVERNANCE FRAMEWORK ...............................................................................23
7.2 TRANSFER OF ASSETS........................................................................................................................ 24
7.3 COMMENCEMENT OF THE ACT .....................................................................................................24

The National Road Fund Act 3

AN ACT TO ESTABLISH A NATIONAL ROAD FUND FOR ROAD
MAINTENANCE IN THE REPUBLIC OF LIBERIA
It is enacted by the Senate and House of Representatives of the Republic of Liberia
in Legislature assembled:

CHAPTER ONE

SECTION 1. PRELIMINARY PROVISIONS

1.1 SHORT TITLE

1. This law may be cited as the National Road Fund Act of 2016.

1.2 THE PURPOSE OF THIS ACT IS TO ESTABLISH:

1. A National Road Fund for the purpose of financing road and bridge
maintenance works and directly associated planning, programming and
management activities;
2. The governance and oversight of the Road Fund including the approval of the
Annual Road Maintenance Expenditure Program submitted by agencies
authorized to undertake road and bridge works in Liberia; and
3. An administrative structure that is capable of undertaking the core functions
associated with collecting, managing and disbursing funds to and on behalf of
agencies authorized to undertake road and bridge works in Liberia.

1.3. DEFINITIONS

1. In this Act, except, as the context may otherwise require, the following words
shall have the meaning(s) as set forth below:
a. “Administration Costs” means the routine costs associated with the
running of the NRF including the acquisition of real and personal
properties on behalf of the NRF.
b. “Annual Road Maintenance Expenditure Program” means the
program of works to be paid for by the NRF in any one fiscal year as
approved by the Inter-Ministerial Road Fund Steering Committee.
c. “Emergency work” is work that must be done urgently, until such time
that a permanent solution can be found, to stabilize a section of road or
road facilities for essential use, which has become unusable due to an
accident, unforeseen weather event, or neglect. Emergency work does
not include works covered by defects liability.
d. “Fiscal Year” means the financial year of the Fund, which shall be
consistent with the financial year of the Government of Liberia.

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e. “Foreign Vehicle” means a vehicle that carries the registration and
bears the license plate of another country, entering or seeking to enter
the Republic of Liberia and travel within the National Road Network.
f. “Fund” or “NRF” means the National Road Fund established under
this Act.
g. “Fund Account” means the bank account established for the collection
and disbursement of monies on behalf of the Fund consistent with the
requirements of this Act.
h. “The Fund Management Team” means the administrative and
technical personnel appointed to the Office of the Road Fund under the
management of the National Road Fund Manager
i. “Inter-Ministerial Steering Committee” or “IMSC” means the
committee established in this Act to provide leadership for road
maintenance funding and approve annual road maintenance programs to
be financed by the Road Fund
j. “Maintainable” means roads that can be maintained in a serviceable
condition through the application of routine and periodic maintenance.
k. “Maintenance” means the preservation of roads, including repair of
road surfaces, road sides, structures and road furniture necessary for the
safe and efficient utilisation of roads. Maintenance does not include
Emergency work.
l. “Minister with policy responsibility for finance” means the Minister
of Finance and Development Planning or any successor ministry to
which the Public Finance Management Unit reports
m. “Minister with policy responsibility for road infrastructure” means
the Minister of Public Works or any successor minister
n. “MFDP” means the Ministry of Finance and Development Planning.
o. “National Road Fund Manager” means the person designated to run
the day-to-day management of the Fund and the head of the Office of
the Road Fund.
p. “National Road Network” means the public road network of the
Republic of Liberia.
q. “Office of the Road Fund” means the administration for the road fund
under the control of the National Road Fund Manager
r. “Periodic Maintenance” means works such as resealing, overlays and
re-gravelling or re-shaping undertaken on a planned, periodic basis
where the period exceeds more than one year.
s. “PFMU” means the Project Financial Management Unit already
established under the control of the Ministry of Finance and
Development Planning and any successor entity
t. “Responsible Agencies” means a ministry or agencies or any
government body responsible for road construction and maintenance.
u. “Road User” means a person who operates a motor vehicle or utilizes
road transportation services on a public road
v. “Road User Charge” means any charge, fee, or levy imposed for the
use of Public Roads.

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w. “Road User Charging System” means the system to be developed and
established through which, types, rates, and imposition of road user
charges are determined
x. “Routine Maintenance” means minor works such as grass cutting and
pothole patching and re-grading undertaken to maintain the day-to-day
serviceability of a road at intervals throughout the year.
y. “Unmaintainable” means roads where the road condition has
deteriorated to an extent such that routine and periodic maintenance
activities would give no significant benefit for road users.
z. “Withdrawal Procedure” means the rules established by the act that
must be followed before monies are withdrawn from the NRF account.

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CHAPTER TWO
SECTION 2. ESTABLISHMENT, OBJECTIVES AND USE OF THE FUND

2.1 ESTABLISHMENT OF THE NATIONAL ROAD FUND

1. There is hereby established the National Road Fund (NRF) which shall
comprise monies raised through:
a. Appropriations approved by the Government
b. Grants and loans arranged by Government to undertake specific works
c. Road user charges as defined in this act

2.2 USE OF THE FUND

1. All funds of the NRF shall be held in the Fund Account from which
disbursement shall be made solely for the purpose of financing the approved
Annual Road Maintenance Expenditure Program and directly related costs as
hereby required in this Act.
2. The method for determining the use of funds and their disbursement on a year-
by-year basis shall be set in regulations.

2.3 OBJECTIVES OF THE ROAD FUND

1. To ensure that road assets are sustained and that sufficient funds for both
periodic and routine maintenance are allocated to for this purpose.
2. To ensure that each of the categories of national, sub-national and feeder roads
have a sufficient share of the total budget such that these roads can operate as
an integrated network.
3. To defray the costs of loans approved by Government to extend the length of
maintainable roads.
4. To ensure that the needs of the road user and those impacted by roads are
considered in terms of safety, security and environment.

2.4 GOVERNANCE AND MANAGEMENT OF THE FUND

1. Policy oversight for the Fund shall be provided by an Inter-Ministerial Steering

Committee, chaired by the Minister with policy responsibility for road
infrastructure.
2. The Fund shall be governed by the Minister with policy responsibility for
Finance
3. Authorities approved by government to collect user charges shall transfer funds
to the Fund Account as defined in this Act
4. Responsible Agencies approved by government to undertake road maintenance
works shall submit annual work programs to the Office of the Road Fund
established in this Act for onward submission to the IMSC for approval and
funding

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5. Day-to-day management and administration of the Fund shall be done under the
direction of the National Road Fund Manager, appointed by the Minister of
Finance and Development Planning and approved by the IMSC.
6. Agencies responsible for undertaking works approved in the Annual Road
Maintenance Expenditure Program shall be responsible for ensuring that all
works are completed in line with time, cost and quality requirements set out in
the approved program, certifying the works and submitting payment requests to
the Office of the Road Fund for validation and payment.
7. The Fund, management, governance and oversight arrangements shall be
audited by the General Auditing Commission in accordance with its mandate.

The National Road Fund Act 8

CHAPTER THREE
SECTION 3. THE GOVERNANCE STRUCTURE

3.1 THE INTER-MINISTERIAL STEERING COMMITTEE

1. There is hereby established an Inter-Ministerial Steering Committee to:

a. Facilitate, support and provide cooperation from all sectors with
responsibility for road maintenance
b. Ensure coordination and guidance to the Office of the Road Fund and
c. Facilitate the establishment of all provisions of this Act.
d. Ensure all policies, procedures, are provided to allow the provisions of
this Act to be achieved fully.
e. Approve the Annual Roads Maintenance Program

3.2 COMPOSITION OF THE INTER-MINISTERIAL STEERING

COMMITTEE

1. The Committee shall have five (5) members, shall be chaired by the Minister of
Public Works, and shall include:
a. the Minister of Finance & Development Planning
b. the Minister of Transport
c. the Minister of Commerce
d. the Minister of Internal Affairs

3.3 FUNCTIONS OF THE INTER-MINISTERIAL STEERING

COMMITTEE

1. The Inter-Ministerial Steering Committee shall:

a. Ensure coordination of policy objectives affecting the road sector
b. Provide policy guidance and leadership to the Office of the Road Fund.
c. Provide leadership and oversight for transitional arrangements provided
herein in furtherance of this Act
d. Develop a strategic framework and objectives for the use of monies
collected and held in the Fund Account; ensuring that investments in
road maintenance meet the development objectives set out in
Government policies and strategies, including value for money
e. Prepare a business plan setting out priorities for investments in road and
bridge infrastructure to fit into government’s medium-term planning
obligations including forecasts of funding required from the Fund for
maintenance purposes as described in this Act
f. Set rules and criteria, by which road investment programs, submitted to
the Road Fund for approval, can be evaluated and investments in road
and bridge infrastructure prioritized to meet policy objectives

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 g. Review, approve and allocate funding for the Annual Road Maintenance
Expenditure Program, compiled from programs submitted by
Responsible Agencies authorized to receive funding from the Fund to
undertake road and bridge maintenance activities in Liberia
h. Establish policies and procedures to ensure that maintenance priorities
are determined by a data and performance-driven planning and
programming process.
i. Evaluate policy recommendations received from the Office of the Road
Fund and, where necessary for the implementation of measures set out
in this Act, ensure the formulation of policies and procedures for the
effective administration of this Act, including but not limited to, the:
i. Calculation and imposition of road user charges.
ii. Collection of road user charges and their transfer to the Fund
from other agencies.
iii. Management and control of the Fund Account.
iv. Procedures to be followed in connection with the filing of
complaints against the Road Fund; and

3.4 PROCEDURES OF THE INTER-MINISTERIAL STEERING

COMMITTEE

1. Regular meetings:
a. Regular meetings shall be held every 3 months or more frequently if
business requires, as determined by the IMSC.
b. All meetings shall be convened by the chairperson giving members at
least fourteen days’ notice, including minutes of previous meeting, the
agenda and papers relevant to the agenda items.
c. The chairperson shall compile the agenda for each meeting from matters
raised by the Inter-ministerial Steering Committee, or matters pertaining
to the functions of the Fund and the road sector as may affect the
objectives of the Road Fund.
d. Meetings shall be presided over by the Chairperson or, in his or her
absence, a Co-Chairperson elected by members in attendance at the
meeting
e. Meetings shall require a quorum of four members.
f. Decisions shall be decided by a majority vote of members present at a
meeting.
g. The IMSC may at any time co-opt any person or persons, in the form of
committees, to act as an adviser at any of its meetings, but no person so
co-opted shall be entitled to vote.
h. The Chairperson shall cause a record of the proceedings of every
meeting to be kept. Said record shall be circulated amongst members
and other interested parties, as agreed by the IMSC, no later than
fourteen days subsequent to said meeting
2. Extra ordinary meetings
a. The chairperson may convene an Extraordinary meeting of the IMSC
when at least one-third of the members request of him or her in writing
to do so.

The National Road Fund Act 10

 b. Extraordinary meetings shall be held within seven days of said request,
and shall be convened at a time and venue to be determined by the
chairperson
3. The validity of any proceeding of the IMSC shall not be affected by vacancy in
its membership, subject only to quorum requirements.
4. Procedures and operating manuals
a. Within six months of the effective date of this Act, the IMSC shall cause
to be prepared and published detailed procedures covering all functions
and tasks required of the Road Fund including, but not limited to:
i. Bylaws; and
ii. Procedures for the Fund management and administration that are
consistent with this Act including, but not limited to:

1. Short and medium-term planning of the road network, its

maintenance and funding
2. Preparing, submitting and approving the annual work
plans and programs of responsible agencies authorized to
carry out road maintenance works
3. Performance monitoring, evaluation and reporting

3.5 THE OFFICE OF THE ROAD FUND

1. There is hereby established an Office of the Road Fund, which shall be

responsible for the day-to-day management and administration of the Road
Fund and headed by the National Road Fund Manager.

3.6 OVERSIGHT RESPONSIBILITY FOR THE OFFICE OF THE ROAD

FUND

1. The Minister of Finance and Development Planning shall have oversight

responsibility for the Office of the Road Fund and shall:
a. Set, monitor and report on annual Performance Agreements for the Road
Fund Manager
b. Ensure the accountability and efficient use of financial resources and
assets belonging to the Fund by causing operating procedures to be
developed and contracting the services of an external auditor to audit the
accounts and practices of the Fund.
c. Approve and monitor procedures prepared and submitted by the Road
Fund Manager for the collection, management and disbursement of
monies under the Fund consistent with the Public Financial
Management Act.

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3.7 ANNUAL REPORT OF THE FUND

1. Within two months after the end of each fiscal year, the Minister of finance and
Development Planning shall, submit an annual report to the Inter-Ministerial
Steering Group, on the activities of the Fund, including the activities of the
Office of the Road Fund during the previous year. The report shall contain:
a. Particulars of projects and programs relating to the management of the
road user charging system.
b. A report of its achievements in relation to its performance agreement
and business plan and recommendations for improvement in the
succeeding year
c. An independently audited statement of the accounts of the Fund
d. Such other matters as the President of Liberia may deem necessary.

3.8 SUBMISSION OF REPORT TO THE PRESIDENT OF LIBERIA

1. Within three months after the end of each fiscal year, and after incorporating
comments from the Inter-Ministerial Steering Committee, the of Finance and
Development Planning shall submit to the President of the Republic of Liberia,
the Annual Report on behalf of the Fund, including the independent audited
statement of accounts of the Fund and the report of the General Auditing
Commission (if published).

3.9 SUBMISSION OF REPORT TO THE NATIONAL LEGISLATURE

1. The President shall submit to the National Legislature the annual reports of the
Fund along with:
a. The financial statements and the auditor's report.
b. The relevant performance statement and any amendment thereof.
c. The business plan and amendment thereto, along with the Report of the
Authorities approved by government to undertake road maintenance
works.

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CHAPTER FOUR
SECTION 4. OFFICIALS OF THE OFFICE OF THE ROAD FUND AND
ADMINISTRATIVE MATTERS

4.1 OFFICIALS OF THE OFFICE OF THE ROAD FUND

1. The Fund shall be headed by a National Road Fund Manager who shall be
selected through open advertisement by the Minister of Finance and
Development Planning and approved by the Inter-Ministerial Steering
Committee before appointment by the Minister of Finance and Development
Planning.

4.2 FUNCTIONS OF THE NATIONAL ROAD FUND MANAGER

1. The National Road Fund Manager shall exercise powers delegated by the
Minister of Finance and Development Planning, and approved by the Inter
Ministerial Steering Committee (IMSC), which shall be set out in a performance
agreement, to:
a. Prepare short (1 year), medium (2-5 years) - term plans and programs
that advise the IMSC on:
i. Levels of funding required for effective road and bridge
maintenance in Liberia
ii. Potential sources and levels of charge to be applied suitable for
the Liberian environment
iii. Potential sources of alternative funding suitable for road and
bridge maintenance works, including grants and loans from
development partners and the private sector
iv. The amount of funding to be applied and the manner, in which
the funding shall be allocated on a year-by-year basis
v. Areas for improving operating procedures associated with
planning, programming and delivering road and bridge
maintenance works
b. Administer under clearly expressed conditions, monies and resources
allocated, granted, donated, or appropriated for the Fund.
c. Establish savings and checking accounts with banking institutions for
the management of the Fund.
d. Establish and apply procedures for the approval of road maintenance
programs submitted by responsible agencies for the purpose of carrying
out road and bridge maintenance works
e. Establish and apply procedures for the disbursement of funds as
approved by the IMSC in compliance with the Public Finance
Management Act of 2009 and obligations of the PFMU as approved by
the Minister of Finance and Development Planning
f. Establish and apply appropriate measures for effective performance
monitoring and compliance of this act

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 g. Acquire and develop properties deemed necessary for the performance
of the functions of the Office of the Road Fund; disposing said properties
as the administration may deem necessary, provided however, that the
decision for the disposal of properties meets the approval of the Minister
of Finance and Development Planning.
h. Prepare an annual report on the Fund expenditure, consistent with
agreed annual performance targets and present to the Inter-Ministerial
Steering Committee within 2 months of the end of each fiscal year. The
report shall include and incorporate the audited accounts of the Fund
and recommendations emanating therefrom.
i. Advise the Inter-Ministerial Steering Committee on measures that can
be taken to improve the effectiveness and efficiency of road sector
investments including, but not limited to: changes to policy, laws and
regulations; levels and sources of road user charges; institutional
arrangements; and operating procedures affecting road sector planning,
programming, financing and management.
j. Conclude agreements and contractual relations with real and corporate
persons, bodies, or authorities, for the performance of services on behalf
or in favor of the Fund.

4.3 APPOINTMENT OF THE FUND MANAGEMENT TEAM

1. Any person appointed to the post of Manager of the National Road Fund shall:
a. Be registered as a member of a professional body which requires its
members to be qualified in skills and competencies appropriate to the
management of a public institution involved in planning, financing.
b. Have at least 5 years appropriate experience;
c. Be a Liberian citizen; and
d. Not have been convicted, whether in the Republic or elsewhere, of
theft, fraud, forgery or perjury.
2. The appointment of the Manager of the National Road Fund, is subject to
a. Disclosure of interests by way of any relationships, ownerships, and
participation in companies, partnerships, or corporations, that are directly
or indirectly interested in a contract or business with the Fund and which
may cause a conflict of interests in the performance of his or her duties.
b. Placing of a performance contract
3. The appointment of the National Road Fund Manager shall be for a period of
five years during which performance shall be monitored in line with their
performance contract. Subject to satisfactory performance, appointees may be
considered for an extension of contract.
4. Performance contracts shall be used as the basis of an annual performance
review and shall be updated annually.
5. A person who knowingly fails to comply with requirement to disclose
potential conflicts of interest as stated above in 4.3.2.a shall be dismissed and
may be prosecuted in accordance with law.

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4.4 FUNCTIONS, DUTIES OF THE NATIONAL ROAD FUND MANAGER

1. The National Road Fund Manager shall undertake the role of Secretary to the
Inter-Ministerial Steering Committee.
2. The functions and duties of the Manager are to:
a. Supervise the financial operations of the Fund by:
i. Keeping accounting records to represent the state of affairs in
respect of each account held for the Fund.
ii. Monitoring the flow of funds to and from the Fund to ensure
adequate liquidity to support road operations; and
iii. Preparing the annual financial statements of the Fund for approval
of the Minister and submission to the IMSC
b. Disburse funds to entities as mandated by the IMSC
c. Review, at such intervals as the manager deems necessary, the utilization
of funds by any roads authority to verify that funds have been utilized for
their stated purpose;
d. Advise the IMSC on the introduction of user charges, recommend an
equitable and transparent charging methodology and propose a formula
for the adjustment of charges;
e. Advise the IMSC on the need for new charging instruments and the
optimal level of fuel levies;
f. Manage the staff of the Office;
g. Acquire and develop properties deemed necessary for the performance of
the functions of the Office; disposing of said properties as the
administration may deem necessary, provided however, that the decision
for the disposal of properties meets the approval of the Minister of
Finance and Development Planning.
h. Prepare the financial plan and updates thereof as will be set out in the
performance agreement
i. Liaise with the executing entities carrying out works proposed for, or
included in, the Annual Road Maintenance Expenditure Program.
regarding any matter affecting the entities; and
j. Report regularly to the of Finance and Development Planning on the
management of funds in compliance with the Public Finance Act 2009
and advise the IMSC, upon request, with regard to any matter related to
the management and administration of the Fund.
3. For the purpose of subsection 2 above, the National Road Fund Manager has
the power to:
a. Open a bank account with a registered financial institution in the name of
the Fund and deposit or withdraw monies from such account subject to
regulations approved by the Minister of Finance and Development
Planning;
b. Invest money not immediately required for the purpose of the Fund as
directed by the Minister of Finance and Development Planning;
c. Appoint staff to the Office of the Road Fund;
d. Enter into contracts on behalf of the Office of the Road Fund;
e. Engage consultants and auditors;
f. Appoint agents and attorneys; and
g. Perform any act incidental to the effective performance of his or her
functions and duties.

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 4. The National Road Fund Manager may in writing delegate any power (referred
to in subsections 2 and 3 above) to an employee of the Office, but is not
thereby relieved of a duty or responsibility assigned to him or her in terms of
this Act.

4.5 APPOINTMENTS OF STAFF TO THE OFFICE OF THE ROAD FUND

1. The National Road Fund Manager may in consultation with the IMSC and
subject to the approval of the Minister of Finance and Development Planning,
appoint such person or persons as staff as he or she deems fit for the proper
discharge of the functions of the Fund and its Office.
2. Any appointment in terms of this section:
a. Must be in accordance with the provisions of the financial plan which has
been approved by the IMSC; and
b. Is subject to such remuneration and conditions of service as the Minister
of Finance and Development Planning may approve, upon
recommendation of the National Road Fund Manager.
c. Shall be subject to a contract of employment that shall state clearly the
levels of performance required of the employee as the basis for annual
performance evaluations to be undertaken.
3. For the purpose of subsection 1., the National Road Fund Manager may
request a Minister to designate personnel of a Ministry/Department to be
transferred to the Office of the Road Fund and, where this occurs:
a. The member of staff transferred shall report to, and be managed as an
employee of, the Office of the Road Fund
b. Such transfer must be subject to the same conditions of service and
without loss of any benefits.

The National Road Fund Act 16

CHAPTER FIVE
SECTION 5. PROVISIONS FOR IDENTIFYING AND COLLECTING
REVENUES FOR THE ROAD FUND

5.1 ESTABLISHMENT OF SOURCES OF FUNDING

1. It is hereby established that the Road Fund shall receive contributions from:
a. Monies collected from road user charges.
b. Monies appropriated by the National Legislature of Liberia.
c. Grants and loans arranged by Government to undertake specific
programs, projects or works
d. Monies received in respect of a loan obtained on behalf of the Road fund
e. Monies paid into the Fund from proceeds acquired through the sale of
assets
f. Capital gains derived from interests or dividends earned on investments.

5.2 THE ROAD USER CHARGING SYSTEM

1. A Road User Charging System shall be established which shall raise funds for
the Road Fund,
2. Sources of road use charges, authorized through this act, include:
a. Charges on motor vehicles traveling within the Road Network of the
Republic of Liberia, whether foreign or national, based upon the
vehicle’s mass, length, width, height, loading, number of axles, distance
covered or a combination of all of the factors mentioned herein.
b. Entry fees levied on all foreign motor vehicles entering the territory of
the Republic of Liberia.
c. Registration and license fees of motor vehicles and drivers
d. A levy on every gallon of petroleum product imported into the country
3. The Inter-Ministerial Steering Committee shall, subject to the approval of the
National Legislature, determine levels and sources of road user charges with the
objective of raising sufficient funds to providing for the objectives set out in
section 2.3 above.
4. In the determination of the rates of road user charges, the Inter-Ministerial
Steering Committee shall ensure, determine, and establish:
a. The raising of adequate revenue for the Fund to cover the amount of
resources required for its objectives, and in consideration of the policy
objectives for the road network and other monies accruing to the Fund.
b. That the rates and combination of charges affecting different classes of
motor vehicles are equitable in relation to their use of the road network
and the benefits derived therefrom.
c. That the rates and combinations of such charges shall promote efficiency
in the use of resources, including roads, motor vehicles, and fuels.
d. The amount or rate of the road user charge imposed
e. The times and manner, in which the road user charge shall be paid.

The National Road Fund Act 17

 f. The persons and vehicles that shall be eligible for the payment of the
road user charges.
g. The agent or official responsible for the collection of the road user
charges.
h. The penalties payable in the event of the violation of provisions under
this Act in connection with the road user charging system.
i. The circumstances and the manner, in which, exemption from the
payment of road user charges may be granted.
j. Applicable measures for persons who are eligible, but refuse to pay the
road user charges
k. Any other provision, which the Office of the Road Fund may deem
necessary for the efficient administration of the imposition, payment, or
collection of the road user charges or the efficient application of this
section.

5.3 TRANSFER OF FUNDS TO THE ROAD FUND ACCOUNT

1. All transfers to the Road Fund shall be made into the Road Fund Account
designated by the Minister of Finance and Development Planning and
established in this Act.
2. Where funds are to be transferred from or through the MFDP, the Minister of
Finance and Development Planning shall agree on a schedule of transfers with
the National Road Fund Manager prior to the commencement of each fiscal
year,
3. All agencies, other than the MFDP, mandated to collect user charges identified
in this Act, shall:
a. Set up mechanisms for the transfer of funds to the Road Fund Account
b. Prepare annually and at least 4 months in advance of each fiscal year, a
forecast of funds that will be made available to the Road Fund, including
an analysis of factors, which may affect the flow of funds as planned.
c. Prior to the commencement of each fiscal year, agree with the National
Road Fund Manager a schedule of transfers to be made throughout the
fiscal year
4. All transfers to the Road Fund Account shall be accompanied by a statement of
account, providing details of the amount transferred, a breakdown of sources if
applicable, the basis of the allocation and evidence of receipts on which the
allocation has been based.

CHAPTER SIX
SECTION 6. PROVISIONS FOR EXPENDITURE OF THE ROAD FUND

6.1 USE OF FUNDS

1. Monies collected for the Road Fund shall be used for:

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 a. Routine and periodic maintenance of roads, bridges and directly
associated facilities
b. Emergency works (to a maximum of 7% of annual expenditure on road
maintenance by the Fund)
c. Costs directly associated with the running of the Office of the Road
Fund (to a maximum of 1.5% of annual expenditure on road
maintenance by the Fund in pursuit of its responsibilities identified in
this Act). This may include, but not be limited to:
i. Underwriting administrative expenditures on behalf of the
Fund, including the management of the road use charging
system.
ii. Payments towards capital, interests, incidental costs, or charges
on loans obtained by the Fund (used only for the purposes of
road maintenance).
d. Rehabilitation and improvement works including paving of roads to a
maximum of 40% of its annual revenues only through servicing of
loans approved by Government where:
i. The works are applied to roads or bridges previously identified
by Government as of strategic importance to the socio-
economic development and security of the country and
currently deemed to be unmaintainable;
ii. The works shall be designed to bring a clearly defined section
of road or a bridge into a maintainable state
iii. The loans shall include a provision to maintain the road for a
minimum of five years.
2. The Office of the Road Fund shall not expend monies from the Fund, except in
accordance with the Annual Road Maintenance Expenditure Program approved
by the IMSC.
3. Where monies have been accrued to the Fund through appropriations by the
National Legislation, grants, and donations, which have been made for a
specific purpose, disbursements shall only be made in line with the conditions
appurtenant to said appropriations, grants, or donations.
4. The Office of the Road Fund shall, subsequent to consultations with and
procedures established by the IMSC propose in its annual plan, the types and
maximum amounts of expenditure to be allocated to different categories of
work
5. Notwithstanding this Act or any other law, the assets of the Fund shall not be
subject to attachment or sale in execution.

6.2 ANNUAL ROAD MAINTENANCE EXPENDITURE PROGRAMS

1. An Annual Road Maintenance Expenditure program shall be:

a. Developed by each Responsible Agency authorized to plan, program
and implement road maintenance

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 b. Submitted in such a form and contain such details as the IMSC shall
determine, from time to time, at least 4 months prior to the beginning of
the fiscal year to which it pertains
2. The IMSC shall approve the total Annual Road Maintenance Expenditure
Program to be financed from the Fund, which shall be made up of the programs
submitted by each Responsible Agency, taking into consideration the following
criteria:
a. Compliance with priorities for maintenance of different categories and
conditions of roads as may be defined in road asset management plans
approved by the IMSC or adopted by Government.
b. The relevant importance of the road network to achieving Government’s
development policy objectives throughout Liberia
c. Other policy objectives as may arise affecting the planning, financing
and implementation of road maintenance works in Liberia
d. Costs and affordability of the overall program
e. Compliance with road standards defined and approved by the Ministry
responsible for infrastructure and adopted by the IMSC
3. The approved Annual Road Maintenance Expenditure Program shall include:
a. The overall budget allocated to the program
b. The amount of monies, which shall be paid directly to the Fund by virtue
of an appropriation of the National Legislature, grants, and donations as
regards projects or programs, for which expenditure has been assigned
from the Fund
c. A description of each project or program to be continued from the
previous fiscal year.
d. A description of each new project or program to be undertaken.
e. The estimated amount to be expended in respect of each project or
program based upon measured outputs or milestones as appropriate to
the form of contract used for the works
f. An estimate of expenditure that may be required for future programs to
complete work already commenced or approved to commence in the
current program.
g. The estimated value of assets, equipment, human resources, and other
resources, which shall be made available for use in connection with
projects or programs.
h. Other items of the administrative expenditure, which are directly related
to road maintenance activities but which are not included in the
expenditure relating to projects or programs.

6.3 DISBURSEMENT OF FUNDS

1. Disbursements from the Fund Account shall only be made in accordance with
the approved Annual Road Maintenance Expenditure Program.
2. Payments of interim accounts and stage payments shall be conditional upon
adequate evidence being presented by the implementing agency to demonstrate
that progress on the works has been made in line with expectations.

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6.4 BANK ACCOUNT OF THE FUND AND WITHDRAWAL
PROCEDURES

1. A Fund Account for the exclusive use of the Fund shall be opened at the Central
Bank from which all disbursements are made and revenues deposited.
2. There may be one or more accounts maintained at commercial banks on behalf
of the Fund for the Fund administration, opened by the National Road Fund
Manager, as approved by the Minister responsible for Finance and Development
Planning.
3. All revenues or other monies for the benefit of the Fund shall be paid into the
Fund Account.
4. Monies may be withdrawn from the Fund Account upon presentation to the
bank of the withdrawal instrument, approved by the Minister responsible for
Finance and Development Planning, bearing signatures as stipulated below.
5. In the case of financial transactions, these shall be authenticated by the
signatures as follows:
a. National Road Fund Manager and one of the following:
i. Comptroller and Accountant General
ii. Head of PFMU or
iii. Chief Accountant of PFMU

6.5 GENERAL PROVISIONS FOR FINANCIAL MANAGEMENT AND

AUDIT OF THE FUND

1. The fiscal year of the Fund shall be consistent with the fiscal period of the
Government of Liberia.
2. The National Road Fund Manager shall prepare and provide to the Minister
responsible for Finance and Development Planning, an annual statement of
accounts including:
a. The estimated value of road assets in Liberia
b. The amount to be expended on the annual road maintenance program
and forecasts for the next 2 successive years
c. The estimated monies at the disposal of the Fund, including all
reserves (after expenditure of the current program)
d. Recommended measures to avoid substantial increases in the rates of
road user charges
e. Monies accruing to the Ministry of Public Works from other sources in
connection with projects or programs to the extent that it may affect
the making of an allocation by the Fund
f. The value of any assets held in the form of equipment, human
resources and other relevant resources which are or will in all
probability be at its disposal.
3. The Office of the Road Fund shall maintain accounts which shall be made
available for the purposes of audit by:
a. Independent auditors reporting to the IMSC and
b. The General Auditing Commission as mandated by Government

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The National Road Fund Act 22
CHAPTER SEVEN
SECTION 7. MISCELLANEOUS

7.1 THE WIDER GOVERNANCE FRAMEWORK

1. The Ministry of Transport is currently the Ministry with oversight responsibility

for planning and creating an integrated transport sector including ownership of
the transport master plan
2. The MFDP is currently the Ministry with oversight responsibility for the
management of public finances as determined by the Public Finance Act of 2009
3. The Ministry of Public Works is currently the Ministry with oversight
responsibility for the Roads Sector including the management of capital projects
for the construction and rehabilitation of roads throughout Liberia that are
critical to Liberia’s socio-economic development as set out in Government’s
development policies and strategies.
4. The Ministry of Public works, within the resources currently available to it, and
in the absence of other specially mandated agencies, manages the national road
network by planning, designing, constructing, and maintaining roads aiming,
where possible, to:
a. Comply with national, regional, and international regimes and protocols
concerning the use and maintenance of roads.
b. Set standards and quality control mechanisms for materials required for
the proper construction and maintenance of roads.
c. Operate a road management system for planning and programming
purposes
d. Procure and outsource design and construction services including
maintenance works
e. Supervise the work contracted out.
f. Prevent excessive damage to roads by road users.
g. Improve road safety
h. Improve the environmental performance of all roads within the national
road network.
5. The Ministry of Public Works submits an annual report to the President of the
Republic of Liberia, concerning its activities during the course of that year, the
state of road assets available to the country, the acquisition of goods and
outsourcing of services on behalf of the Ministry and an assessment of
achievements in the road sector.
6. The Fund, created in this Act, shall be expected to support the Ministry of
Transport and the Ministry of Public Works, in their efforts to improve the
overall effectiveness of Liberia’s road and transport sector as described above.

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7.2 TRANSFER OF ASSETS

1. The value of assets and liabilities transferred to the Fund shall be determined by
the Inter-Ministerial Steering Committee.
2. No stamp duties, registration fees, sales tax, additional sales levy or any other
duty, fee, or levy payable in terms of any law for the acquisition or transfer of
assets or rights shall be payable in respect of the transfer of assets or rights by
the Republic to the Administration.

7.3 COMMENCEMENT OF THE ACT

1. This Act is hereinafter known as the National Road Fund Act of 2016, and shall
come into force upon its ratification by the National Legislature, approval into
law by the President, and publication into Handbills.

ANY LAW TO THE CONTRARY NOTWITHSTANDING

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