Engel E., Fischer R., Galetovic A. (2009).
On the efficient provision of roads. GDN Working Paper Series, No. 12.
The main problem with road provision in developing countries is lack of maintenance, which leads to increased transportation costs. Other important problems are the inefficient choice of projects and excessive costs of construction. To a large extent, these problems are due to a poor institutional design of the public works authority that exacerbates a host of agency problems.