Worse roads on the way in Norway / News / The Foreigner

Worse roads on the way in Norway. Results of the 2008-2009 World Economic Forum’s Global Competitiveness Report show Norwegian roads are amongst the worst in Europe. Norwegian road subsidy has been appalling for 30 years, according to SP’s (Centre Party) former Minister of Transport, Liv Signe Navarsete. On 13 March 2009, the government launched its new National Transport Plan designed, amongst other things, to fund road maintenance, upgrades, and construction totalling 200 million kroner. Further subsidies of 259 million kroner were also granted in the recently revised national budget.

roads, transport, national, administration, mesta, liv, signe, navarsete, plan, revised, budget, repairs, maintenance, holes, costs, world, economic, forum, global, competitivness, report



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Worse roads on the way in Norway

Published on Wednesday, 16th June, 2010 at 15:22 under the news category, by Michael Sandelson   .
Last Updated on 14th May 2011 at 20:05.

Results of the 2008-2009 World Economic Forum’s Global Competitiveness Report show Norwegian roads are amongst the worst in Europe. Norwegian road subsidy has been appalling for 30 years, according to SP’s (Centre Party) former Minister of Transport, Liv Signe Navarsete.

Pothole in the road
Pothole in the road
Photo: comedy_nose/Flickr


Eaten up

On 13 March 2009, the government launched its new National Transport Plan designed, amongst other things, to fund road maintenance, upgrades, and construction totalling 200 million kroner.

Further subsidies of 259 million kroner were also granted in the recently revised national budget.

However, the Public Roads Authority (Statens vegvesen/NPRA) claims it doesn’t have enough money to repair Norwegian roads, and that they’ll only get worse.

Road and transport director at the NPRA, Lars Erik Hauer, maintains the money has now been eaten away by increased operating costs, meaning maintenance will suffer. He expects road standards on main roads (riksvei/Rv) and motorways (europavei/E) to decrease noticeably in the next three years.

“They’ll get worse, because we can’t slow the rate of decline, it’ll get worse. Primarily, we need quite a bit of money just to stop it. We then aim to cut it and, when that’s been achieved, need enough money to maintain the standard,” he tells Aftenposten.

Figures from the NPRA show road operating costs have risen by 80 percent in the last five years.

Lack of competition

According to Aftenposten, this occurred after the authority’s maintenance section was established as a separate, state-owned company called Mesta.

In 2009, Mesta had more than half of all road-maintenance contracts, effectively dominating the market.

Harald Rafdal, the group’s managing director, denies price increases are linked to the lack of competition.

“Increased scope of the contracts is the main cause of the cost increase. The decline in the road network is due to lack of funding for maintenance in the state budget,” he writes in an email.




Published on Wednesday, 16th June, 2010 at 15:22 under the news category, by Michael Sandelson   .
Last updated on 14th May 2011 at 20:05.

This post has the following tags: roads, transport, national, administration, mesta, liv, signe, navarsete, plan, revised, budget, repairs, maintenance, holes, costs, world, economic, forum, global, competitivness, report.





  
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