PROCLAMATION NO. 66/1997
A PROCLAMATION TO PROVIDE FOR THE
ESTABLISHMENT OF ROAD FUND
WHEREAS, the development, maintenance and rehabilitation of roads are essential for an accelerated socio-economic development of the country;
WHEREAS, the maintenance of roads requires adequate and sustainable flow of fund;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as the “Road Fund Establishment Proclamation No. 66/1997.”
In this Proclamation, unless the context requires otherwise:
1) “Road” means highway, rural road and urban road and includes bridge;
2) “Road safety Measures” include carrying out of works necessary for the prevention of accident in the use of roads and the placement of traffic control posts and devices on roads;
3) “Road User” means owner of a motor vehicle or a beneficiary of road transport;
4) “Motor Vehicle” means a vehicle moving by mechanical or electrical power classified as truck, public service vehicle, private motor car, truck tractor or motorcycle;
5) “Government” means the Government of the Federal Democratic Republic of Ethiopia;
6) “Region” means any region referred to in Article 47 of the Constitution of the Federal Democratic Republic of Ethiopia and includes, for purposes of the implementation of this Proclamation, the Administration of Addis Ababa and of Dire Dawa;
7) “Road Agency” means a Federal, Regional or Municipal organ responsible for the development, maintenance and administration of roads;
8) “Board” means the Road Fund Board established under Article 8 (1) (a) of this Proclamation;
9) “Person” means a natural or a juridical Person.
The Road Fund (hereinafter “the Fund”) is hereby established as a permanent financial resource to be deposited in a special account to be opened by the Ministry of Finance.
4. Objectives of the Fund
The objectives of the Fund shall be to finance the maintenance of roads and roads safety measures.
5. Sources of the Fund
1) The Fund shall be collected from the following sources:
(a) budget allocated by the Government.
(b) road maintenance fuel levy;
(c) annual vehicle licence renewal fee based on axle load;
(d) overloading fine;
(e) any other road tariff levied as may be necessary.
2) The provisions of sub-Article 1 (c) of this Article shall apply to all motor vehicles using roads.
6. Collection of Fund
1) The rate of revenue to be collected under Article 5 (1) (b), (c), (d) and (e) of this Proclamation shall be determined by the council of Ministers.
2) The budget allocated by the Government shall be deposited in the account of the Fund at the beginning of every month.
3) The road maintenance fuel levy shall be collected by the Ethiopian Petroleum Enterprise and shall be deposited in the account of the Fund at the end of every month.
4) The annual vehicle licence renewal fee, imposed on the basis of axle load, shall be collected by the Transport and Communication Bureau or any other appropriate organ of each Region and shall be deposited in the account of the Fund until the end of every month.
5) The overloading fine shall be collected by the organ authorized to enforce vehicle overloading control Regulations and shall be deposited in the account of the Fund until the end of every month.
6) The revenue from any other tariff, to be levied as may be necessary, shall be collected by the organ designated by the Council of Ministers and shall be deposited in the account of the Fund within the time limit specified by the Council.
7) Any organ which has deposited money in the account of the Fund in accordance with this Article and the Ministry of Finance shall report to the Board within fifteen days after the end of every month.
Disbursement of the fund shall only be made for the works performed and for goods and services procured as set out in the approved annual programme and according to the procedures established by the Board.
8. Organs of Fund
1) the Fund shall have:
(a) a Board constituting members representing the Government, Regions and road users;
(b) an autonomous office having its own juridical personality.
2) The Board shall be accountable to the Prime Minister.
9. Members of the Board
1) The number of members of the Board and procedures governing the manner of their representation shall be determined by the Government.
2) The Chairman of the Board shall be designated by the Government.
3) The term of office for any member of the Board shall be two years; provided, however, that he may be reassigned for additional terms of office by the organ which nominated him.
4) Any organ which has assigned a member of the Board may, at any time and for reason, recall and replace him by another.
5) In the case of reduction in the number of members of the Board due to the death or resignation of a member or due to any other reasons, the vacant post shall be filled within three months.
6) The competence of the Board shall not be affected by such reduction in the number of its members.
7) Any member of the Board shall not engaged in any activity that may be directly or indirectly conflicting with his capacity as a Board member. When the member encounters a conflict of interest, either direct or indirect, he shall disclose such conflict to the Board and withdraw from all meetings of the Board at which such matters are discussed.
10. Powers and Duties of the Board
The Board shall have the powers and duties to:
1) administer the Fund;
2) issue directives to define collection and disbursement procedures of the Fund;
3) ensure the timely collection and deposit of accrued revenues of the Fund;
4) review, before approval, the annual road maintenance programmes of the road Agencies, advise towards the integrated and coordinated designing of the programmes;
5) submit to the Government yearly proposals regarding works to be financed by the Fund; and, upon approval, allocated the Fund on the basis of the programmes.
6) ensure transparency and accountability in the disbursement of the Fund;
7) receive and review management reports of the Road Agencies and supervise the preparation of consolidated reports regarding utilization of the Fund;
8) initiate financial and technical audits of road maintenance and road safety measure activities, review audit reports and ensure that the necessary actions are taken according to the recommendations thereof;
9) recommend to the Government additional sources and level of tariffs required to finance road maintenance programmes;
10) advise the Government on policy matters related to the fund and the maintenance of roads;
11) case the consolidation and publication of audited annual accounts of the Fund;
12) establish advisory committees when it finds it necessary, and supervise and coordinate their activities.
11. Meetings of the Board
1) The Board shall held its regular meetings once every three months; provided, however, that extraordinary meetings of the Board may be held at any time when called by the chairman.
2) The presence of the majority of the members at any meeting of the Board shall constitute a quorum.
3) Any decision of the Board shall be passed by a majority of votes of members present at a meeting; in case of a tie, the chairman shall have a casting vote.
4) The Board may, without prejudice to the provisions of this Article, adopt its own rules of procedures.
12. Office of the Fund
1) The Office of the Fund shall have its head office in Addis Ababa.
2) The Office shall have a Head to be appointed by the Government upon the recommendation of the Board and the necessary staff.
13. Powers and Duties of the Office
The Office shall have the powers and duties to:
1) follow up and ensure the proper implementation of decisions and directives of the Board;
2) maintain the accounts and records of the Fund;
3) keep all records of the affairs and meetings of the Board;
4) follow up the timely collection and deposit of accrued revenues of the Fund;
5) prepare and submit to the Board annual financial reports of the Fund;
6) initiate public relation actions and regular publications on the revenues and utilization of the Fund, importance of road maintenance, consequences of omitted maintenance, users’ savings from good quality road and the like and disseminate the publications thereof;
7) own property, enter into contracts, sue and be sued in its own name.
14. Powers and Duties of the Head of the Office
1) The Head of the Office shall, subject to the general directives of the Board, plan as well as direct and administer the activities of the Office.
2) Without limiting the generality of sub-Article (1) of this Article, the Head of the office shall:
(a) exercise the powers and duties of the Office specified under Article 13 of this Proclamation;
(b) employ and administer the employees of the Office in accordance with directives to be issued by the Board following the basic principles of the federal civil service laws;
(c) prepare and submit to the Board the annual budget and work programme of the office; implement same upon approval;
(d) Effect expenditure in accordance with the approved budget and work programme of the office;
(e) Represent the Office in all its dealings with third parties;
(f) Prepare and submit to the Board, annually and whenever required, activity reports of the Office;
(g) Perform such other duties as may be given to him by the Board.
3) The Head of the Office may delegate part of his powers and duties to the employees of the Office to the extent necessary for the efficient performance of the activities of the Office.
4) In case of delegation to an official to act on behalf of the Head of the Office, for more than thirty (30) days, prior approval by the Board is required.
1) The budget of the Office shall be allocated by the Government.
2) The fiscal year of the Fund shall commence on the 1st of Hamle and shall end on the 30th of Sene.
1) Without prejudice to the powers conferred by law to the Auditor general, the accounts of the Fund shall be audited annually by external auditors designated by the Board.
2) The auditing shall be carried out in accordance with internationally accepted auditing principles and procedures; and the audit reports shall be submitted to the Board and the Ministry of Finance for their comments.
3) Technical audits shall be carried out annually on selected activities.
17. Inapplicable Laws
No law shall, in so far it is inconsistent with this Proclamation, have force of effect in respect of matters provided for by this Proclamation.
18. Effective Date
This Proclamation shall enter into force as of the 6th day of March, 1997.
Done at Addis Ababa, this 6th day of March, 1997.
NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA