From Tolls to Tech: ADB Calls for Bold Measures to Fix Asia’s Road Maintenance Gap

The Asian Development Bank warns that Asia and the Pacific underfund road maintenance by around 40%, threatening connectivity as networks expand and costs soar. It calls for systemic reforms, ranging from road user charges and public–private partnerships to stronger transparency and citizen engagement, to secure sustainable infrastructure.

The Asian Development Bank (ADB), working with its Financial Management Division and a team of specialists, has released a stark new brief on the future of road infrastructure in Asia and the Pacific, warning that the region’s most important transport network is facing a chronic and worsening crisis of underfunding. The research, published as ADB Brief No. 350: Sustainable Funding for Road Maintenance, highlights findings from more than 60 ADB-financed road projects and makes clear that the financial sustainability of the region’s vast road systems is slipping, with project sustainability rates dropping to just 56 percent in 2024. Despite roads carrying nearly three-quarters of all passenger and freight traffic, the brief reveals that developing member countries in Asia are underfunding road maintenance by an average of 40 percent, leaving gaps that range from $8 million to nearly $2 billion annually, depending on the country.

A Strain on Expanding Road Networks

The ADB frames the problem not as one of neglect, but of systemic fiscal pressures. Governments across the region must constantly weigh limited budgets against competing priorities such as healthcare, education, and social programs. In this climate, road operation and maintenance, known in technical circles as O&M, often falls by the wayside. The challenge is not unique to low- or middle-income nations; even wealthy countries like Australia, the United Kingdom, and the United States face billions in deferred maintenance. But in Asia, where the road network is expanding at 3.4 percent per year and where rural access remains uneven, 25 percent of villagers still lack all-season roads, the consequences are particularly severe. By 2030, the region is expected to add another eight million kilometers of road, at an estimated cost of $550 billion annually for both new investments and ongoing maintenance. Without systemic reform, the financial strain will overwhelm governments and jeopardize economic growth.

Maintenance as the Cheapest Investment

Economists and engineers have long argued that timely maintenance is the cheapest form of infrastructure investment. According to World Bank research cited in the brief, every additional dollar spent on maintenance saves about $1.50 in new investments, while neglect can drive up vehicle operating costs by 15 percent because of increased fuel use and more frequent replacement of parts. Yet despite such evidence, maintenance remains persistently underfunded. ADB argues that the solution lies not simply in securing more money, but in using existing funds more transparently and effectively through stronger public financial management systems. In countries where road user groups and watchdog organizations are vocal, such as in parts of Europe and North America, governments are forced to prioritize road upkeep. In much of Asia, by contrast, poor transparency means that road quality declines quietly, with little political accountability.

Seven Pathways to Sustainable Roads

The brief identifies seven measures that have been most frequently adopted in ADB projects to address road maintenance funding, offering both lessons and warnings. Road user charges, such as tolls and fuel levies, are the most obvious revenue source, but they face political resistance and equity concerns. New Zealand’s distance-based system, which applies to all vehicles, including electric cars, is held up as a model of how charges can be modernized. Dedicated road maintenance funds, meanwhile, have proven useful in countries like the Lao People’s Democratic Republic and Mongolia, where fuel levies feed directly into accounts earmarked for repairs. However, international lenders caution that such funds can weaken overall fiscal transparency if managed off-budget.

Technology is another bright spot. Road asset management systems, which gather and analyze data on road conditions, allow governments to prioritize spending where it delivers the greatest economic benefit. Tools like drones, artificial intelligence, and geographic information systems are increasingly used to predict wear and schedule repairs, though the brief notes that too often such systems collapse once donor funding ends, as domestic agencies lack the resources to keep them running. Performance-based road maintenance contracts, in which private contractors are paid for achieving specific quality benchmarks rather than simply for hours worked or asphalt laid, have shown promising results. In Bangladesh, such contracts not only reduced costs but also improved road safety. Still, these contracts often last only three to five years, well short of the typical 10- to 20-year life cycle of a road.

Communities and the Private Sector Step In

Community-based maintenance offers another solution in remote areas, engaging residents directly in upkeep. This has proven cost-effective and fosters social cohesion, but it requires training, leadership, and a sense of collective ownership to succeed. In India, one ADB-supported rural connectivity project demonstrated how empowering communities with technical knowledge and involving them from the design stage led to lasting improvements. Public–private partnerships (PPPs) represent a larger-scale approach, drawing on private sector capital and expertise. Projects in Vietnam and India are cited as successful cases where PPPs reduced the government’s financial burden while ensuring long-term sustainability. But PPPs also bring risks: contracts are complex, long-term commitments can run into decades, and political or economic instability can derail agreements.

Transparency and Citizen Power

Finally, the ADB emphasizes that transparency and citizen engagement may be the most powerful tools of all. In countries like the United States, Japan, and Australia, detailed annual reports on road conditions and spending are published, while mobile apps empower citizens to report potholes or broken streetlights directly to local authorities. Advocacy groups use these disclosures to push governments into action. Developing countries, the brief argues, must adopt similar models, encouraging the routine publication of road budgets, independent audits, and mechanisms for communities to hold leaders accountable.

A Call for Systemic Reform

The ADB concludes that while individual measures can provide relief, the region’s road maintenance challenge cannot be solved through isolated interventions alone. With road networks set to expand dramatically, there is a need for sector-wide reforms, including robust institutions, transparent financing mechanisms, improved use of technology, and a culture of citizen participation. “Underfunding of road operation and maintenance is likely to persist and even worsen,” the report cautions. Yet with systemic change, Asia and the Pacific could safeguard their roads, reduce long-term costs, and strengthen the foundations for sustainable economic growth.