ROAD DEVELOPMENT AUTHORITY TABLE OF CONTENS
I. REPORTFROM THE GENERALMANAGER
1. Organisational and Financial Performance with respect to Budgetary Provision 1
2. Major Achievements 6
2.1 Upgrading of Pointe aux Sables 7 2.2 Construction of Cap Malheureux Bypass 8 2.3 Reconstruction of Sainte Marie Bridge on B9 at Baie Jacotet 9 2.4 Construction of La Croisette New Link Road 10 2.5 Improvement of Bend at Nouvelle Decouverte 10 2.6 Construction of Flyover at Hillcrest 12 2.7 A1 -A3 Road 13 . 2.8 Mega Projects Under the Road Decongestion Program 14
3. Achievements under Maintenance and Rehabilitation of Roads 17
3.1 Rehabilitation of Joli Bois Bridge at Mare Tabac 18 3.2 Construction of Bus Stands at Jan Palach, Curepipe in Relation to Metro 19 3.3 Construction of Box Culvert at Cottage 20 3.4 The following list some further on-going projects being implemented by the Authority under the Maintenance Section 21 3.5 Empowering of SMES 21
4. Other Achievements 22
4.1 Collaboration with Other Ministries and Government Bodies 22 4.2 Collaboration between the Public and Private Sectors 23 4.3 Capacity Building and Empowerment 24 4.4 Risk Management 26 4.5 Citizens Oriented Initiatives - Complaints Management 26 4.6 Quality Assurance 26 4.7 Asset Management 30
5. Looking Forward 33
II. CORPORATEGOVERNANCE 37
Ill. FINANCIAL STATEMENTS 57 REPORT FROM GENERAL MANAGER
1. ORGANISATIONAL AND FINANCIAL PERFORMANCE WITH RESPECT TO BUDGETARY PROVISION
" No one can whistle a symphony. It takes a whole orchestra to play it." H.E. Luccock
The expansion of the road network in the country coupled with its maintenance to the standards of safety and mobility in comfort remain one of the priorities of the Government.
The Government Programme 2020-24, in line with Vision 2030, lays emphasis among others on 'Inclusiveness at the Heart of the Nation' and in this spirit, the Government is investing significantly to further modernise the road network across the counh-y. This time, the construction of a new motorway M4 to link the airport to the Forbach round-about on M2. through the eastern coastline, is one of the mega forthcoming projects amongst so many others, Undoubtedly, these projects go in line with Government vision. Increased road quality and c01mectivity, no doubt, enhance contribution towards economic growth and development while bringing along social benefits to the population.
The Authority has pursued with the materialisation of challenging megaprojects namely the Road Decongestion Project (RDP) which was launched in the preceding years while ensuring the continuation of other major projects. With the coming into use of roads being implemented under the RDP together with other road projects in sh·ategic areas, through the provision of bypasses and quick win action such as slip lanes, the problem of traffic congestion costing billions of rupees to the Mauritian Economy would be resolved significantly. The RDP project together with other measures adopted to address congestion are elaborated further down in the report.
Additionally, roads are being upgraded, rehabilitated and widened to further address traffic congestion under the RDA's maintenance programme for its exisling roads in a view to maintaining the standards of safety, mobility and comfort.
As regard to budgetary prov1s1on for the Financial Year, the RDA was availed a sum of Rs 3,150.7 M with a total sum of Rs 1962.1 M, spent in the implementation of the different projects (including Road Decongestion Programme, NEF Projects and Maintenance & Rehabilitation of existing roads). This amount of money represents about 62% of the amount which was budgeted and the gap in the amount spent was mainly due to the effects of Covid- 19 lockdown. Had the country not been affected by Covid, an approximate sum of Rs 2903.3 M, representing around 92% of the total amount budgeted would have been spent, when taking into consideration the trend in which road construction was being undertaken. ll Page It is also worth noting that a significant amount of the allocated budget was already committed for spending in the following budget periods. Moreover, savings in the overall costs of some projects were made as their supervision were done by in-house technical staff instead of depending on Consultants/Consulting Finns.
The chart below illustrates the Budgetary Expenditure for the last Financial Year.
Comparision of Expendit ure Pre and Post Covid 19
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0 Pre- Covid Post Covid
• Budget Provided • Expenditure
Chart 1: Expenditure for FY 19/20
The Authority is always on the lookout for the implementation of its projects within the required time frame. However due to a number of external factors which are independent of the Authority, some projects are usually delayed. Factors include the following amongst others:
* E::rternnl dependencies: ✓ Land acquisition ✓ Interface with other Meh·o Design ✓ Procurement and/ or Policy Decisions ✓ Reloca ti.on of Services ✓ COVID 19 Confinement
* Chnnge in scope of works: ✓ Unanticipated additional works
* Resource constraints: ✓ Delayed in manning sections through recruihnent
* CoJ11ple::rGeotec/111icn.l Is sue ✓ Landslides, caves, marshy land, ground water
21P age Though the Covid-19 Lockdown period had a profound impact on the activities of the RDA, all projects which were earmarked in its three-year delivery plan have been initiated and same were ongoing. These have been enabled through the active and vigorous work initiated during the lockdown period and immediately after deconfinement. Additional details on action taken to mitigate the effects of Covid 19 are detailed further in part 4 in the report.
The failed embankment on Motorway M3 at Ripailles was successfully repaired and is now being used safely by public. The repair works of that part of the road was much lengthy because of the geotechnical complexities of the site, where the assistance of a number of local and international experts were resorted to in view of providing a permanent and reliable solution to the stabilisation of the failed embarkment for its successful repairs.
The Authority has also viewed road safety as matter of great concern. Over and above measures highlighted, it has worked closely with other stakeholders namely Police, TMRSU and Local Authorities to pursue its action through the road maintenance programme by improving of geomeh·y of roads, construction of footpaths, provision of reLTo-reflective road markings, provision of street lighting, installation of handrails and guard rails, use of diamond grade traffic panels etc. The improvement of the bend at Nouvelle Decouverte, for instance, is among the other works undertaken by the Authority to address road safety in that particular region. Additionally, RDA has started the rehabilitation of footbridges with a view to enable safe use of same by the public. It is also looking forward to have all footbridges rehabilitated in collaboration with the private sector with a view to further enl1ancing its use by pedestrians .
With a view to mitigating the impacts of recurrent flooding and flash floods, as a result of the effects of climate change, the Authority undertook several improvements works including the upgrading of bridges and culverts, provision of drain, amongst others. In addition to the routine works made in the maintenance programme for addressing such risks and disaster, throughout the island, RDA will pursue the implementation of similar works in forthcoming budgetary periods. Upgrading of a number of bridges along with improvement works related to flooding are further developed in the report.
As a privileged parh1er and enabler in the development of Smart Cities which aim at extending the overall road network, the Authority has been collaborating with different stakeholders in the private sector. The first collaborative work was undertaken with Omnicane with the development of the smart city in the region around the airport. Similar enabling works have been continued with the project in the north namely the construction of the La Croisette Link Road to enable the development of smart city in that area. The consh·uction cost of the La Croisette Link Road was shared equally by the Government of Mauritius and the Mon Choisy Smart City Co. Ltd. The Authority will be pursuing with extension of road network to further enable the development of sn1art city in the region of Moka/Cote D'Or & Flic en Flac in the coming years.
3IP age In addition to numerous works carried out in connection with enabling works for the metro project, the RDA is also pursuing its collaboration for the metro project and is actively involved in the implementation of Urban Terminals forming part of the forthcoming integrated multi model transport system, which is shaping in the counh-y.
The Authority is moving forward to bring ilmovative approaches in road construction. It is on the process of revisii1g its road specifications to include ilmovative solutions and new techniques . The replacement of guard rails by jersey barriers has proved to be effective il1 many parts along motorways given that they are maintenance free and less prone to accidents. RDA is pursuing the implementation of such barriers. The concept of providil1g bus lanes and bicycle lanes ii1 forthcoming projects is .beil1g considered to enhance safety and reduce congestion. The RDA is also intending to make use of vibrating road markings which are more adapted to vibration causil1g less damages and hence having a longer life span. Moreover, the Authority is progressively movil1g forward to have round abouts replaced by flyovers to further reduce road congestion.
In line with its asset management strategy and as part of its policy on climate change, resilient il1frash·ucture and sustainable development, the RDA is envisaging to inh·oduce the use of recycled asphalt in road mail1tenance works as from January 2021. Additionally, the RDA is progressively working on guidelil1es ,md regulations to enable the display of ilmovative LED Digital Screen Advertising to keep abreast with updated teclmology.
The Authority has also inh'oduced a performance-based control of its conh·actors under the new framework agreement for maintenance and minor works. In an initial stage, this control is beii1g applied to contractors undertaking vegetation control along motorways. The performance-based control ensures for continued mail1tenance standards .
With the view to pursuing with the construction of new roads, while mai11taining the existing road networks, the Authority has made a three-year budget forecast in view to enable its activities. The Authority endeavours to complete the road projects made in its 3 years delivery plan, which is worth around 10 billion and looks forward towards the support of the Board and Parent Mi11istry to achieve its objectives.
41 Page , 3;•50 ,/ / ,, / ~ :,x,c. / ,/ ,, / / :,05, 36<>0 _,/ / __.,, 3,5,$-0 _,,/ / / 3=90:i _,,/ l-" 50 /_,, / J ,1ao Cho rt 2: Projecting the 3- Year Budget Forecast SI P age 2. MAJOR ACHIEVEMENT During the financial year under review, in line with its delivery plan, the Authority completed a number of projects as listed below. While most of these projects were scheduled to be completed within their expected completion date, some, however got delayed due to the Covid-19 Lockdown. Project Project Value Completion (Rs M) Date De Caen Flyover, Port Louis 377.0 25/0'2/19 Repair of Embankment failure on Terre Rouge Verdun 326.1 15/08/19 ------Upgrading of---- Pointe Aux Sables R~ad at Petit Verger 114.6 23/1.'2/19 Repairs to Terre Rouge Verdun D4 138.0 18/09/19 ·- Sainte Marie Bridge at Bel Ombre 64.2 25/04/20 Jolie Bois Bridge, Mare Tabac 18.5 30/11/20----- Cap Malheureux Bypass 207.5 01/03/20 Improvement of Bend at Nouvelle Decouverte 83.2 Substantially Completed - -· - Ta ble 1: Project Co 111pleted Ongoing/Launched Projects The construction of roads, depending on its size and complexities, usually spans over more than one financial year. As at 30 June 2020, the following projects were still being pursued. Some of them should have been completed but were delayed as a result of the Covid-19 lockdown period. Project Project Expected Progress as Value (Rs M) completion at 30 June as at 30 2020 because June 2020 of Covid 19 Reconstruction of Jumbo Phoenix Roundabout and 4263 75% 50% A1-M1 Bridge A1-A3 Link road 294.8 90% 67% Hillcrest Flyover at Quatre Bornes 318 50% 41% La Croisette New Link Road 94 100% 99% Realignment of B15 Road with the Reconstruction of 81 18% 5% Choisy Bridge at Poste de Flacq Upgrading of Palmerstone, Vacoas 394 15% 5% - B28 Road (Lot 3) from deux Freres to Beau Champ - 109 18% 5% Phase 1 Ta ble 2: 0 11goi11g/La1111cl1ed Projects GI Pa ge 2.1 Upgrading of Pointe aux Sables The upgrading of the Pointe aux Sables Road (B31) at Petit Verger was much required given that it passes through a highly residential area in the suburbs of Port Louis and there was pressing need to improve the safety of the public. The road was completed and opened to public on 23 December 2020. The upgrading of the road has addressed the following issues amongst others. (i) Improved geometry and safety through a widened road. (ii) Street lighting for safety of users. (iii) Footpath and improved drainage. Photos of t!,e Pointe aux Sables Upgraded Road wit!, Improved Geo111etry and Road Widtl, 71 P age 2.2 Construction of Cap Malheureux Bypass With the construction of the Cap Mallieureux Bypass, which forms part of the Northern Coastal District, the problem related to road congestion and safety in that part of the island have been resolved to a major extent. Additionally, this link road at the stretch of 2.2 km, ideally provides the opportunities for associated development since it links Chemin Vingt Pieds and Mont Choisy Cap Mallieureux Road (B13) at Anse La Raie. This new link road link road acts as a multiplying effect to further expand the tourism industry and property development, amongst others, in this part of the island, besides providing a fast, comfortable and safe link to the Motorway. Pl,otos of tl,e Cap M nll,eureux Bypass Bl P age 2.3 Recoustructiou of Sainte Marie Bridge 011 B9 at Baie Jacotet The objective of the reconstruction of the bridge is to mitigate the recurrent flooding problem. With its reconstruction, the bridge was brought to the rideable standard level of the RDA with a wider carriageway and improved geometry. Safety has also been enhanced for road users (both vehicles and pedestrians) with provision of handrails, cat's eyes, footpath and traffic signs, amongst others. Photos of the Sai11te M arie Bridge 0 11 B9 at Baie Jacotct 9I P age 2.4 Construction of La Croisette New Liuk Road The construction of the La Croisette New Link Road is another concrete example of the RDA for its unflinching support for its contribution to enhance economic growth. Grand Baie being an area with various tourist attractions and access thereto would be eased through the construction of a stretch of road of 1.5 km from La Croisette to Grand Baie and joining La Croisette roundabout on M2 to B13 Road. The construction costs of this new link road were borne equally by the Government of Mauritius and the Mon Choisy Smart City Co. Ltd as an example of public- private collaboration. To mark this collaboration, the road will be named Le Boulevard de Mon Choisy. In addition to the usual road furniture provided during constructing of roads which include guardrails, traffic signs, cat's eyes and street lighting amongst others, the RDA has provided a parkway along the road. I -/ I Photo of the La Croiscttc New Li11k Road 2.5 Improvement of Beud at Nouvelle Decouverte The primary objective for the improvement of Bend at Nouvelle Decouverte is to address major safety issue for both vehicles and pedestrians as the bend was too narrow and acute and devoid of footpath. The realignment of the dangerous bend, over-stretch of 600 m to a 7.0 wide carriageway with provision of footpath and drains, was completed by the RDA to increase level of service of the road and enhance safety of public. 10I P age Plrotos of tire I111prove111e11t Bend at Nouve lle Deco11verte 111 P a ge 2.6 Construction of Flyover at Hillcrest Presently the entrance and exit to the region of Quatre Bornes for traffic from North and East is much difficult during peak time. With the eventual coming into use of the flyover of Hillcrest, the problem of traffic congestion in the region will be substantially addressed. Additionally, this flyover will interface with Metro in the region with a view to providing a proper and efficient transport network. As at 30 June2020, the project, at the cost of 318 M, reached around 41 % completion and works were ongoing. Progress work P!totos of t!te Flyover at Hillcrest 12 I P a ge 2. 7 A1 -A3 Road The A1-A3 Link Road is one of the major projects, amongst others, aiming at road decongestion. With upcoming development in the region, this link will provide a rapid link connection between the West and Port Louis/North and vice versa. The road will start from its intersection with Al Road at Coromandel with tie-in with RDA roundabout thereat, and will end with a signalised junction on A3 road at Gros Cailloux. With connection of this road to the A1-M1 bridge, traffic from the west can easily access the motorway Ml, to the east, hence allowing for enhanced road connectivity. The A1-A3 Link Road is expected to cross the Metro Express alignment, which has been designed to run in dedicated mode with no interference with other surrounding infrastructures. A bridge has been designed and already constructed under the Metro Express project. The project at the sum of the sum of Rs 256,333,308.00 (VAT excl.) was initiated on 28 December 2018, with expected completion date being 6th June 2020. However, the project got delayed due to ensuing effects of the Covid-19 pandemic. Photos of Progressio11 Work s alo11g A1-A3 Link Road 13I Page 2.8 Mega Projects Under the Road Decougestion Program As previously highlighted, the problem of road congestion costs billion of rupees annually and impacts negatively on the overall economy of the country. As part of the overall Road Decongestion Program, the Authority launched a multibillion mega project in 2018 comprising two legs of road construction. • A1-M1 Link The first leg of the RDP involves the construction of an unprecedent bridge at the length of 350m spanning over the Grand River North West Valley, connecting the Motorway Ml at Soreze to Al Road at Coromandel. This bridge together with its dual link road is expected to direct traffic from Ml directly to the western coast and vice-versa. The completion of the Al/Ml leg is now expected to be in April 22 because of the Covid-19 lockdown period. 14 I Page Progress works of the Al -Ml Bridge • Constmctiou of new Flyovers in the regiou of Dowlut/Plweuix/fumbo The second leg comprises the construction of new flyovers in the region of Dowlut/Phoenix/Jumbo , which would decongest traffic along Motorway Ml in the region and will be integrated with the Metro Express track to form a multi-model integrated system for the transport user. In addition to the above, the new road layout would provide easy access to the Sodnac Link Road, hence ensuring for further decongestion in the region. It is worth noting that for the first time, spans of 45 metres are being provided at the flyovers at Pont Fer enhancing the environment at the location. As at 30 June 2020, works were being pursued. However, that due to the effects of Covid-19 lockdown, the expected completion date which was originally scheduled on 19th November 2020, is now extended till February 2021. 15 I Page ~ t'-- ~ Progress work Photos of the Ro1111da/Jo11ta t Pout Fer Pl1oe11ix 16 I P age 3. ACHIVEMENTS LTNDER MAlNTENANCE AND REHABILITATION OF ROADS Roads are among the most important public assets in a country. They are crucial contributors to growth and economic development bringing along important social benefits to the population. While the RDA has embarked on new road projects, its endeavours to maintain its existing road network. Over the last year, a total amount of around Rs 575 M was spent on the maintenance and rehabilitation of the road network falling under the purview of the Authority whilst an initial budget of Rs 600 M was provided. Over and above th e routine and periodic maintenance done through its direct labour, the RDA has undertaken the following maintenance projects with a view to upgrading and rehabilitating roads for enhanced usage of same and bridges to mitigate the problem of flooding, amongst others, under its Framework Agreement for Road Maintenance and Minor Works. It is worth noting that works carried out by the Maintenance Division usually arise from the routine inspection of roads, complaints by the public, requests from the Ministry of National Infrash·uchu e and other Ministries/Deparhnents and the National Task Force falling und er the aegis of the Prime Minister's Office. The table. below, summarises works carried out under the maintenanc e division for the whole island. SN Routine and Periodic Maintenance Activities Amount of funds spent (MUR Million) 1. Routine Maintenance 25 2. Periodic Resurfacing and strengthening of 253 Maintenance damaged stretch of main roads 3. (Works Orders) Rehabilitation of Bridges and culverts 70 4. Improvement of Safety and Provision of new safety features (Traffic signs, 55 Guardrails, Road marking etc.) 5. Improvement of existing roads 7 (geometric alignment and shoulders) 6. Implementation of new traffic schemes 3 7. Construction of footpath and drains 150 8. Construction of retaining walls and 12 construction of new roads Total 575 Table 3: Works carried out 1111.derMai11te11a11ce Divisiou 17 I P age Tabl e 4: Projects/Work s i111ple111e11ted District-W ise. 3.1 Rehabilitatiou of Joli Bois Bridge at Mare Tabac The project comprised of mainly the design and construction of a box culvert, and upgrading/ widening of existing road over an approximate length of 500m. The project was awarded to the Framework Agreement Contractor, Transinvest Co. Ltd for a sum of Rs 18,582,694.96 (VAT Incl.) and was completed on 30th November 2019. Befor e Co11sln1ctio11 Afte r Coustm ctiou 18 I Page Completed Joli Bois Bridge at M are Tabac 3.2 Constructiou of Bus Stauds at Jan Palach, Curepipe in Relatiou to Metro In addition to the maintenance of roads, the RDA is often requested by the Ministry of National Infrastructure to undertake works along non classifieds roads through its approved contractors under its Framework Agreement. The Authority completed the construction of bus stands at Jan Palach, Curepipe in relation to the Metro Express Project. These works comprised the demolition of existing on-site structures and provision of safety measures such as traffic signs, line markings, drain works, handrails and street lighting, amongst others. The project was completed, at a sum of Rs 24,765,484.56 (VAT Incl.), on 31th July 2019. 19 I Page Before Co11structio11 After Co11structio11 3.3 Construction of Box Culvert at Cottage Due to the frequent flooding problems in the village of Cottage, the RDA was requested to construct a box culvert along B42 Road which forms part of a global solution addressing land drainage in the area. The construction of a twin box culvert was completed on 19 December 2019 to address the problem of flooding in the region. 20 I P age 3.4 The following list some further 011-going projects being implemented by the Authority under the Maintenance Section. • Construction of an access road at Monneron St, Port Louis in the context of Victoria Urban Terminal. • Provision of Jersey Barriers along Motorways. • Construction of bridge at Engrais Martial, Eau-Coulee in the context of Metro. • Construction of Austin Bridge at Floreal in context of Metro. • Construction of Culvert at Riche Terre along B33. • Upgrading of Culvert at Bambous. • Construction and upgrading of drains along main roads. • Resurfacing, Milling and resurfacing of roads along main roads and Motorways. 3.5 Empowering of SMES In line with Government's objective aiming at boosting their activities and participating actively in further economic activities, RDA has provided opportunities to SMES to undertake minor routine works around the island. During the past financial year, RDA has reviewed its procurement process to further engage SMES through the revamped framework agreement. In a first instance, RDA has been successful in engaging SMEs for Vegetation Control along the central verge of Motorways for the districts of Plaines Wilhems and Grand Port. It is now looking forward to extend the engagement of SMEs throughout other districts, with a view to undertaking a wider scope of maintenance works throughout the RDA road network. The new framework is based on a performance basis. This model of contract ensures continued maintenance standards along the motorways. The performance of contractors is being closely monitored and should there be repeated poor performance on their behalf, the new framework allows for such contractors to be excluded from being awarded any further works. 21 I P age 4. OTHER ACHIEVEMENTS 4.1 Collaboratiou with Other Ministries and Govemment Bodies ❖ Collaboration for Road Construction When matters come to road construction, the Road Development Authority remains as one of the most important stakeholders in the country, given that it has the mechanism for construction of road in a timely and efficient manner taking into account the required competencies in terms of qualified staff for supervision of road construction in addition to available contractors to undertake such works. During the past financial period, the Road Development Authority has undertaken a number of major maintenance and safety enhancement works on behalf of other stakeholders which include the Traffic Management and Road Safety Unit, Local Authorities and Central Water Authority, amongst others. These projects are listed in part 3.4 above. ❖ Provision of Advisorv Services In line with its primary objective, the Road Development Authority has maintained the provision of advisory services to different Ministry and Departments with regard to road and transport issues. RDA is also a representative on a number of Boards and Committees including Morcellement Board, EIA Committee, Land Drainage, Traffic Impact Assessment (TIA), Natural Disaster & Risk Management Committee, amongst others, wherein recommendations in regard to a number of matters related to road infrastructure are given. ❖ Collaboration with Service Providers With a view to ease the daily life of citizens, RDA has maintained its full collaboration with other service providers and undertakers. It has issued a total of 446 wayleaves/ clearances to utility providers (CWA, CEB, Wastewater Management Authority, Mauritius Telecom etc.) as part of the overall development of the island. As there were cases of poor reinstatement by some service providers RDA has taken appropriate measures to address the problem while collaborating fully with them. Additionally, the provision of dedicated culverts has been provided in some areas to ease the job of utility providers and at the same time exclude the unnecessary excavation of road for providing such services. 22 I Page ❖ Development Clearances With regards to infrastructural developments mainly morcellements and other property developments, the RDA has continued its support towards such type of development and has during the past year examined a number of EIAs and provided clearances to them through the Morcellement Board. The RDA has also adopted the new methodology for the granting clearances for morcellement digitally, enabled by the EDB, through the interactive portal of the Ministry of Housing and Land Use Planning. The number of permits/clearances issued by RDA during the past Financial Year is summarised in the table below: Type of Permit Number Issued/Examined Building and Land Use Permit 515 (BLUP) Environment Impact Assessment 98 EIA Morcellement 365 Totnl 978 Table 5: N11111ber of Permits Issued The Road Development Authority has pursued its collaboration in the implementation of the National Safe-City Project whereby it has provided necessary way leaves in a timely manner to enable the placing of cameras taking into consideration the existing road infrastructure. It is worth noting that since the introduction of the project, the RDA has successfully provided a total of 862 way leaves to enable the implementation of the project. 4.2 Collaboration between the Public and Private Sectors Undoubtedly, the contribution of the Private Sector in the economic growth of the country is vital. The Road Development Authority, as the executive arm of the Ministry of National Infrastructure, has facilitated a considerable number of infrastructural developments throughout the island in collaboration with private companies through the public-private partnership. In 2017, the Government and the private sector initiated the construction of roads for the development of Smart Cities on the concept of a cost sharing with the first project of such type being the Omnicane Smart City. The Road Development Authority has pursued its activities in the same line with the completion of the Grand Baie - La Croisette Link Road. This new link road is now allowing the development of a Smart City in that region together with other collateral developments. 23 I Page Negotiations, under the Public Private Partnership, are now ongoing for the eventual construction of roads in the region of Medine for the forthcoming Smart City in the region of Medine/Flic en Flac. The Road Development Authority is also going forward with the construction of a flyover in the region of Ebene to ease congestion in the area and at the same time facilitate the development of Smart City in the region of Cote D'Or, given that this new flyover and associated roads will facilitate access to the region. 4.3 Capacity Building and Empowerment Geuder Policy The RDA is committed to achieving gender justice as a matter of basic human right and fundamental principle. The Authority promotes an enabling environment where both men and women are equally respected and valued. Adopting and incorporating a gender approach in all developmental issues remain a prerequisite to attain full human development. Staffi ng at R DA As at June 2020, the RDA had a workforce of 446 employees (395 male and 51 female) on establishment with all grades inclusive, disseminated into different sections as per the Organigram. The table below illustrates the detailed staff list of the Authority. 2 Technical/ Surveying/ Draughtsmanship/ Lab 49 3 Inspectorate Cadre 39 4 Administrative/ Finance/ HR/ Audit/ Procurement 69 5 Worksmen Group 263 Total 446 Ta ble 6: Labo ur Force as at 30 J1111e 2020 During the year, the RDA recruited 14 new employees on establishment and promoted 3 employees to higher posts. On the other hand, 7 employees left the organization on grounds of retirement and other opportunities. 24 I Page It is to be noted that under the Youth Employment Programme, RDA recruited 5 unemployed youth to obtain training/ placement for an initial period of one year with the possibility of renewal. Moreover, to enhance the employability of unemployed graduates by providing them with skills matching the requirements of the public sector, 13 graduates were recruited under the Trainee Engineer Scheme. It is noted that there is a significant disparity in the number of male and female staff at the Authority. The reason for having a higher number of male staff is mainly attributed to the nature of work at the RDA comprising road construction and repairs. However, the RDA has not remained insensitive to gender equality and it has recruited more female employees (60%) during the last financial year as displayed in Chart below. Recruitment of Male & Female Staff • Male • Female Chart 3: Co 111pariso11for recruit111e11t of Male & Female Staff Capacity Building The RDA is fully committed to building the necessary expertise, devising and executing strategies, processes, systems and practices in the various functional areas. The authority believes in the notion of continuous learning. During the year under review, 19 staff members have had the opportunity to undergo in-house training and 4 staff members were sent abroad in fields related to their duties. The fields in which training was provided to staff were namely: • Training on leadership, • Urban risk reduction and making cities resilient, • Strengthening comprehensive cooperation in infrastructure and urban development, • Interactive tool to assess hazard perception skills of drivers in Mauritius, • Asbestos for Safety and Health Officers, • Disaster Information Management System, • Enhancing resilience to climate change, • Health and Socio-economic impact of road traffic injuries, • Data protection • Managing performance in the Public Sector 25 I P age RDA intends to optimize on the existing skills and expertise of its personnel and develop creativity at work and sustainability. Hence, these training programmes are designed to improve leadership skills, boost motivation and develop proactiveness of staff. 4.4 Risk Management With a view to providing assistance in identifying, analysing, assessing, treating, monitoring and communicating top strategic risks, the Risk Management Team has maintained a top risk register which is regularly updated with mitigating actions implemented. The strategic risks are assessed through a risk matrix, where risks are calculated on the basis of their respective severity and likelihood. The high rated risks are dealt with in priority so that they are reduced to a insignificant and acceptable level. Moreover, policies, procedures and practices to the tasks have been reviewed to effectively manage the risks. Additionally, an Audit and Risk Committee which is a subcommittee of the Board, independently reviews the corporate risks and mitigations. Furthermore, Management Team regularly brainstorms on lessons learned from both - project failures and successful ones to review its processes and systems and capture lessons for future improvement. Besides, a Safety and Health Committee has also been maintained regularly to identify, assess and prioritise safety related risks and hazards to ensure a safe working environment and positive actions being taken. 4.5 Citizens Oriented Initiatives - Complaiuts Managemeut Citizens Oriented Initiatives • Complaiuts Ma11agellle11t Since its introduction in 2017, the RDA pursued its online Complaint Management System with a view to attending complaints and queries from the public. Additionally, a hotline was introduced to register complaints and to take applicable measures for quality service to the public. Upon the launching of the Online Citizen Support Portal, administered by the Customer Support Unit (CSU), Prime Minister's Office, further complaints were received and dealt accordingly The complaint management system distributes the complaints received, through the above mentioned sources, to the different districts for effective management thereof. The complaints are being monitored and followed up regularly without delay. For the past FY, around 772 complaints were received out of which more than 52% have been resolved in the shortest delay. Most of the complaints which have not been resolved so far have been included in future maintenance works and/ or forthcoming projects and approval for funds are being sought for implementation. 26 I P age - . ... · __ ~~~- -~~~~v ;-.,_,t ' '~0~ I..',:· • 1,fo-J:1_· . ~~(._,~,{(: . . 1_'-~:(~~~-l~:~~t-J~ ·,...... • T \- • ' ~J ~:~,1 ~ ~l"'l~l ,,l:/ _,\._... \...:.. l.) !}_~1_~~1 2~ u~.: \,.. \..21,.:_q, ·\_\. '.l.t.: • ,1•i - ' ~~~---..\-:l:.-~-~,. -~ .. ' ~; - j .. _. 0 ,. .. .F~s'-"'-=l'.\'Z.:-.i · . : i_;,JC.~8..'-4'. • _~ ,~~;tf-!. _ __~- ··.-.~~ j}.L~i:~i~~:·! Black River- Port Louis Roads 66 54 12 81.00% Flacq Roads 74 48 26 65.00% Grand Port Roads 144 102 42 71.00% MokaRoads 110 59 51 54.00% Pamplemousses Roads 68 34 34 50.00% Plaine Wilhems Roads 156 28 128 18.00% - - Riviere du Rempart Roads 82 38 44 46.00% Savanne Roads 72 42 30 58.00% ------·- Total 772 405 367 52.40%--- Table 7: S11111111t1ry011 Complai11ts Complaints M anagement 180 160 140 120 100 80 60 40 20 0 o" o" o" o" o" o'li o'li o'li o'li o'li ~ <-,~ ...~ ~ ~'Ii ',(/, "~ "'(I, (/,~ 'Ii' 'Ii~ ~o v" ~~ ~o ~~ ~(/, ,./' il -,~(/, ov q_'li~ q_'-'li <.(I, -~'(/, ~ --- No. of Complaints Received --- No. of Complaints Closed --- No. of complaints Open Chart 4: Co111plai11ts Mrlllagc111c11t • Concept of RegioHal Offices The RDA is aiming to be closer to the public with a view to paying a more attentive ear to their complaints. It has reviewed its management system to enable its technical and inspectorate staff to be mostly present mthe different regional offices located throughout the island with a view to address matters pertaining to road maintenance in a timelier manner. Additionally, presence of technical staff in the district allows for better inspection of roads and for taking timely corrective action where required. This is a first step towards establishing an asset management strategy. 27 I P a ge • Special Supporting Division The Special Support Division of the Authority was set up with the main objective to provide support to all the other divisions and oversee the implementation of the RDP project. Additionally, it is responsible to deal with problems related to billboards and sponsorship of roundabouts and complaints received through the CSU. , Advertisemeuts o Control of advertisements (directional panel, billboard and totem and indicative panel) along Motorway and main roads across the island; o Tracking of illegal advertisements and issue notices for compliance or removal of same; o Regulate advertising structures as per the RDA guidelines, policy, regulations and the Roads Act; o Work in collaboration with other stakeholders, including the MRA for registration of the advertising structures. , List of Advertisers For the financial year under review, the Authority has closely monitored this field. Owners of billboards who are not in compliance with guidelines and regulations were required to alter them with a view to having them compliant, or otherwise, illegal ones were removed. The Authority is progressively working to further track illegal billboards. The table below highlights on the status of billboards throughout the island. Billboards Quantity I , I I I I I , I I • • I 1078 No of Billboards Surveyed by for Compliance 895 No of Illegal Billboards Identified 206 No. of Illegal Advertising Structures 175 Removal/ Alteration Table 8: S11 111111t1ry 011 Billboards 28 I Pa g e ,- Spo1Lsorship of Ro111ldabouts alld E1nba11k11te11ts Enhancement of the environment has remained a challenge for the Authority. In this connection, it has successfully reviewed its policy with sponsors as follows: o Liaison with the private sector for sponsoring the embellishment, landscaping and maintenance of the roundabout; o Regulating the number & type of decorative plants, flowers and grassing; o Selecting sponsor for the maintenance of the traffic islands associated with roundabout and regulating the frequency of maintenance works; o Collaboration with the Ministry of Environment and Ministry of National Infrastructure for the proposed landscaping design of roundabouts . 29 I Page ,- LED Digital Screen Advertisillg As the digital world is speedily taking over and representing an alternative mode for advertising structure, the RDA is progressively working on guidelines and regulations for enabling the innovative Digital Screen Advertising. ,- Footbridges Footbridges, provided mainly on motorways, are essential safety features for allowing safe crossing of pedestrians. With a view to allow good maintenance thereof, the RDA is intending to have these structures sponsored. The Authority is presently working on guidelines for the maintenance with the view to launching expressions of interest for inviting interested parties for sponsoring of footbridges. 4.6 Quality Assurance The RDA has maintained its quality assurance for the development projects and maintenance of road. Its Materials Testing Laboratory, fully equipped with required tools and equipment together with skilled and competent staff, has during the financial year under review conducted a total number of 2793 tests which include various types of soil tests, asphalt cores tests, asphalt tests, bitumen tests and tests for aggregates. The total revenue generated for conducting materials testing amounted to Rs 2,082,755/-, carried out for all RDA projects and for minor projects under the routine and periodical maintenance. 4. 7 Asset Ma11age1nent Strategy During the precedent year, the Authority initiated a Management Policy and Strategy for Asset Management with a view to (i) Improve the delivery potential of the RDA to ensure" a road user-driven level of services" for the present and future generations. (ii) To best sustain economic development (iii) Ensure minimisation of costs over the life of the asset for providing, maintaining and operating assets to support service and program delivery at specified standards. 30 I Page Presently, the Authority has under its purview a total road asset amounting to about MUR 70 billion representing more than 1300 Km of classified roads, 175 bridges, road signages and road furniture amongst others. These assets are programmed to increase over the coming years with new road under construction and other already earmarked for construction. The Maintenance Division is undertaking routine maintenance through direct labour and framework contractors. However, with such a huge asset, the introduction of a proper asset management strategy is much warranted for its effective maintenance. An operation plan has already been initiated and works have started. 31 I Page MITIGATING THE COVID-19 PANDEMIC Millim al Business Co11tiu11ity The Covid-19 pandemic is causing an unprecedented health crisis and.a human tragedy on an international scale while also causing significant economic implications never witnessed before. With the imposing of a national lockdown from 20 March to end of May 2020 and in line with the policy of the Government to operate with a minimum continuity, RDA continued its activities albeit on a reduced rate. Through the commitment, solidarity and devotion of its staff, RDA, as the national highway authority, strived to fulfil its obligation towards the Government and road users. It has ensured the payment to all contractors for claims received so that employees may in term get their salaries to face the lockdown period. It has ensured that all road infrastructure, including carriageways, footpaths, drains and safety furniture under its purview were minimally maintained during the lockdown. Additionally, the RDA has also teamed up with other Ministries/ departments to facilitate the conveyance of medical supplies to hospitals, food supplies for vulnerable people and marking at supermarkets/ shops for social distancing of public, amongst others. Co11trol of Fi11a11cial Loss d11ri11g the Lockdow 11Period With a view to palliate any financial loss associated with extension of time for contractual works, RDA issued the following notices to all contractors: (i) Notice of suspension of works; (ii) Notice of force majeure sent to all contractors as the phenomenon of Covid -19 had no precedence and was beyond the control of the employer. Since physical contact was not recommended during the lockdown period, most processes were enabled through digitalisation. The RDA is now making use of digital means for enabling its activities and putting into practice lessons learnt during the lockdown period with a view to make the organisation more efficient. For ensuring the safety of its staff, the required Work Access Permits were provided to staff together with required safety equipment in line with established sanitary protocols and close supervision of safety and sanitary matters were made at all level. 32 I Page 5. LOOKlNG FORWARD The RDA is aware of the trust and responsibility placed by the Government to further enhance the road network which is directly linked with economic growth while ensuring for safety, road decongestion and improved connectivity for the benefit of the nation. The Authority is looking forward to implement the following new projects in line with its three-year delivery plan. These projects have aheady been conceptualised and approved for implementation. The table below provides the estimated budget for Financial Year 2020 / 21 and the budget forecast for the next three years for which RDA has aheady been planned for implementation. Estimates FY 2020/21 Description RsM Ongoing projects Studies 7.3 Capital Projects 1887.5 Bridges 4.6 Maintenance 800.0 Sub Total - ongoing projects 2699.4 New Capital projects: Consultancy for Bridges 15.0 Construction and Upgrading of Roads 29.0 National Environment Fund - Landslide Management 297.0 National Environment Fund- new bridges 7.0 COVID 19 -Project Development Fund 537.0 Sub Total - new projects 885.0 Grand Total 3584.4 Ta ble 9: S11111111ary of Budget Estimates FY20/ 21 33 I Page The percentage of the estimated budget for FY 20/21 is illustrated in the chart as hereunder and Rehabilitation, 800.0, 22% Chart 5: Perceutage of tile estimated budget for FY 20/ 21 The Budget Forecast for the next three years is shown as hereunder. · .,// ,,../ 375c, .,,/ li'OO ,,. 3 (~5,0 / / / '6<>0 / / HSO 350, ::, Cha.rt 5: Three Yea r Budget Forecnst 34 I P ag e Im10vative A pproaches The Authority is moving forward to bring innovative approaches in road construction. It is on the process of revising its road specifications to include innovative approaches and new teclmiques. The replacement of guard rails by jersey barriers has proved to effective in many parts along motorways given that they are maintenance free and less prone to accidents. RDA is pursuing the implementation of such barriers. The concept of providing bus lanes and bicycle lanes in forthcoming projects is being considered to enhance safety and reduce congestion. The RDA is also intending to make use of vibrating road markings which are more adapted to vibration causing less damages and hence having a longer life span. Moreover, the Authority is progressively moving forward to have roundabouts replaced by flyovers to further reduce road congestion. The counh-y, being a small island, is highly vulnerable to climate change and its subsequent effects. To this effect, adverse cli1natic conditions, namely severe cyclones and torrential rainfall, cause much damag es to roads, drains, bridges and amongst other infrastructure. Additionally, there is an increased cost of maintenance and repairs of infrastructure. Road Development Authority, as the national highway authority, has initiated a strategy focusing on the adaptation to climate change and construction of resilient infrastructure for the forthcoming years in the context of sustainable development of Mauritius . The adaptation strategy is part of the overall asset management strategy of the Authority In line with this adaptation strategy, the Authority intends to take proactive measures to mitigate the regular effects of climate change by building resilient and sustainable infrash·ucture. As a first measure to implement its adaptative strategy, the Road Development Authority is introducing the use of recycled asphalt in road maintenance works under its new Framework Agreement which will be effective as from January 2021. With a view to ensuring quality and value for money, the Authority has initiated a performanc e-based control of contractors. There is now close monitoring of the performance of contractors. '11 case of repeated poor performance, the new framework allows for such conh·actors to be excluded from being awarded any further works. 35 I P age Conclusion It is an undeniable fact that like many other organisations, RDA was struck by the unprecedent COVID 19 pandemic which put the whole nation to a complete Iockdown for a given period of time. Nonetheless, with the support of its dedicated staff and the Minish·y, the Authority was able to ensure a minimum continuity of its business and used its best endeavours to mitigate the adverse socio-economic effects of Covid 19. Gradually, with the phased resumption of activities, the Management together with the new Board successfully developed and implemented its strategy to adapt to the new normal. The Authority is confidently moving towards a recovery of the economy through enhanced construction activities. The Authority adheres to its principle of paving the way to success by implementing government decisions through passion, collaboration and innovation. - -....!------, Mr. N. Mowlabacc----- s General Manager 36 I Page CORPORAfEGOVERNANCEREPORT IntToduction The Road Development Authority (RDA), a body corporate established by Act No. 6 of 1998, operates under the aegis of the Minish·y of National Infrash·ucture and Community Develop1nent. It is established to carry out duties as per Road Act and RDA Act. RDA is also a representative on the iviorcellement Board, EIA Committee and other committees including Land Drainage, TIA etc, wherein recommendations in regard to access on classified roads and motorways are given. The RDA is required to comply with the National Code of Corporate Governance for Mauritius, 2016 (the 'Code') by virtue of the provisions of the Financial Reporting Act 2004. This Corporate Governance Report highlights how the RDA has implemented the recommendations of the Code. Principle ONE - GOVERNANCE STRUCTURE Board Structure The RDA has an effective Board which leads and controls the organization. It has the following main functions: • To approve, monitor, review and evaluate the implementation of sh·ategies, policies and business plans; • To prepare a statement of corporate objectives; • To ensure that the RDA complies with the highest standards of governance and that it has an effective system of control in place so that risks can be properly assessed and managed; • To ensure that communication of all material information to the stakeholders be made in a h·ansparent way. Vision The RDA aims to provide a reliable road network to support the main economic activities of the country through the effective movement of people and goods. Mission The mission of Road Development Authority is to provide a cost-efficient mobility in comfort and safety for the Mauritian population and its economic operators to all parts of the island, by developing, preserving and maintaining a high standard classified road network through the judicious use of human, material, financial, and technological resources. 37 I P age Organizational Chart The Road Development Authority has an approved organisation chart (by the Board) spelling out the senior governance position and their respective major accountabilities with respect to the functions devolved on the authority. Objectives of the Authority As per the RDA Act, the Authority is responsible for the construction, care, maintenance and improvement of motorways and main roads. Duties and Functions Duties and Functions of the authority are: a) To plan, design and supervise the consh·uction of roads, intended to be classified as motorways and main roads; b) To carry out or cause to be carried out the upgrading of motorways and main roads and their routine and periodic maintenance; c) To maintain existing bridges, tunnels and associated works on motorways and main roads; d) To plan, design and supervise the construction and reconstruction of bridges, tmmels and associated works on motorways and main roads; e) To advise the Minister on the formulation of a road development policy; f) To advise the Minister on the management policy of roads; g) To prepare and implement road development schemes; h) To conduct and coordinate research and investigation on materials required for road cons true tion; i) To conh·ol the display of advertisements along or visible from motorways and main roads; j) To regulate undertakers' works in relation to motorways and main roads Main Services Provided Chart 6: Services Provided /Jy RDA 38 I P age The main services provided by the Authority are: • Providing new roads as an integral part of national development. • Maintaining the classified road network in a safe and ride able quality . • Ensuring that bridges on classified roads are safe and to standard . • Giving clearance for access on classified roads . • Controlling advertisement on classified roads . • Controlling undertaker's works on classified roads . • Providing advice on road development policies . • Providing services for material testing . • Processing applications/ giving reconunendations for EIA and Morcellement and giving clearances at technical Committees. In addition to the above normal activities, RDA provides collaboration to Private Sector in several developments of private projects including Smart Cities. RDA also provides advisory services to different Minish·ies and Deparhnents with regards to road and transport issues; and undertakes som.e conh·aclual works on behalf of Traffic Management Road Safety Unit, Local Government, CW A including road surfacing, drainage works, handrails etc. Key Governance Responsibilities and Accountabilities The Board ensures that proper standards of Corporate Governance are applied and maintained throughout the organisation. The following key governance positions are critical in enabling the Board to fulfil its mission, vision and objectives: 1. Chairman of the Board The Chairman is non-executive and is appointed by Minister in compliance with the RDA Act 1988. 2. General Manager The General Manager is the Chief Executive Officer of the Authority and is appointed by the Board with the approval of the Minister in accordance to the RDA Act. The General Manager is responsible for the implementation of the policies of the Board, for achieving the financial operating goals and objectives and ensuring proper management and monitoring of the day-to-day affairs of the organization. In the performance of his duty, the General Manager is assisted by two Deputy General Managers. 39 I Page 3. Management Team Every employee of the Authority shall be under the administrative control of the General Manager. The Board may make provision, in such form as it may determine, to govern the conditions of service of the employees of the Authority and, in particular, for - (a) the appointment, dismissal, discipline, pay and leave of the employees of the Authority; (b) appeals by officers against dismissal and other disciplinary measures. The RD A is basically a technical organisation headed by professional Engineers and supported by administrative personnel. The main challenge of the Authority is, therefore, to manage efficiently its limited resources to further achieve its main objectives. The activities of the RDA are organised under two executive arms, namely, Administration and Technical. The Administration arm encompasses Secretariat and Finance while the Technical arm comprises the Planning Division, Development Division Implementation Division and the Maintenance Division with each division headed by a Divisional Manager. The Secretariat is under the administrative control of an Administrative Manager who is also responsible for the Stores Section. The Financial Controller is the head of the Finance Section. Principle TWO - THE STRUCTURE OF THE BOARD AND ITS SUB-COMMITTEES Structure The structure, composition and size of the Board have been established in accordance with Section 7 of the RDA Act. The Act provides for the Authority to be administered and controlled by the Road Development Authority Board. Composition The Board of RDA consists of nine Directors who are all non-executive and independent ones. They come from diverse business and academic backgrounds and possess the necessary knowledge, skills, objectivity, integrity, experience and cornmihnent to make sound Corporate Governance. The Chairperson is independent from the Parent Ministry. The composition of the Board of RDA as at 30 th June 2020 was as follows: Chairperson Mr Claude Emmanuel Wong So - OSK Up to 18 February 2020 Mrs. Dalida Allagapen From 19 February to 19 May 2020 Mr. Louis Joel Yves Patron As from 20 May 2020 40 I P ag e Board Members Board Members Name Designation and Qualification Representative of Ministry Mrs D.Allagapen Permanent Secretary of Public Infrastructure (as from 26.10.18) BA Hons English; Post Graduate in Business, Masters in and Land (Public Economic; Diplomacy and International Trade Infrastructure Division) Representative of Ministry Mr. Saeed Mahmad Director, of Public Infrastructure and Jewon (as from Traffic Management and Road Safety Unit Land Transport (Land 17.04.2015) MSc Civil Engineering, CILT (Level 5) Logistics Transport Division) and Transport Representative of the Prime Mr. Varun Krishn Assistant Permanent Secretary Minister's Office Munoosingh BSc. Finance & Economics, MA Economics (As from April 2018) Representative of the Mr. Ajay Ramdhany Lead Analyst Ministry of Finance and (as from 24 May 2016) MBA (with Financial Risk Management), FCCA Economic Development Representative of Mr. Vijaycurnar Dawon Superintendent of Police, Police Head Quarters Commissioner of (as from 14 July 2017) SC. GCE 'A' Police Appointed Member Mr. Beejaye Somai SC, Three diploma from International Labour Organisation. (as from 2 March 2018) Certificates of attendance in various workshops Appointed Member Mr. Al Jameel Mohamad Registered Professional Engineer Bassawon (as from 20 May B.Eng (Hons) Electrical & Electronics Engineering 2020) MSc Project Management Appointed Member Mr. Juswansing BA (Hons) Hindi & History Aubeeluck (as from 20 Post Graduate Certificate in Education May2020) MA Philosophy General Manager, RDA Mr. N Mowlabaccus Registered Civil Engineer - Master of Science in Civil Engineering, Associate Member of the Institute of Infrastructure Asset Management , Malaysia (Asia Region) Post Graduate Certificate in Airport Design & Construction and Airport Maintenance from Civil Aviation Academy of Singapore Certificate in Infrash·ucture Asset Management from Institute for Infrastructure Asset Management Secretary, RDA Mr. Kedurnath Administrative Manager - Ramphul (up to 11 June Master in Laws incorporating Common Professional 2020) Examinations; MSc Quality Management; BSc Management; Diploma in Public Administration Management; Certificate in Computer Science and Programming. Mr. Nisha! Teeluck (as Administrative Officer from 11 June 2020) MBA in Human Resource & Knowledge Management BSc (Hons) Occupational Safety & Health Management Tnble 10: Co111positio11 of the Boarrl Board and Sub Committees The Board, under the powers conferred by the Act, has set up three Sub Committees of the Board, as a mechanism to assist the Board in giving detailed attention to specific areas. Witlz the reco11stitutio11 of the Board ou 20 Ma11 2020, tlze Subcommittees were also reviewed 41 I P a g e Compositio11 of Board Committees The Board Committees for the period were as follows: 1. Human Resource Committee 2. Audit and Risk Committee 3. Fiuauce Committee Members Human Audit and Risk Finance Resource Chairman - Representative of Ministry of National ✓ - ✓ Infrastructure and Community Development Chairman (Public Infrastructure Division) Representative of Ministry of Transport and ✓ - ✓ Light Rail (Land Transport Division) Representative of the Ministry of Finance, - - ✓ Economic Planning & Development Chairman Representative of Prime Minister's Office ✓ ✓ Chairman Representative of Commissioner of Police ✓ ✓ - Appointed Members - Mr. B. Somai ✓ - - Appointed Members - Mr. A.J. M. Bassawon - ✓ - Appointed Members - Mr. J. Aubeeluck - ✓ - Tab le 11: Co111positio11 of S11b Co111111ittees The terms of reference of each subcommittee are formally approved by the Board as further detailed. Human Resource Committee The Human Resource Committee considers and makes recommendations to the Board on matters relating to, inter-alia: • Human Resource Strategies; • Selection and Appoinhnent; • Remuneration and Performance Management; • Training and Development; • Conditions of services; • Disciplinary and industrial dispute The General Manager and the Human Resources Management Officer are in attendance . 42 I P age The Human Resource Committee is normally the Selection Board which conducts interviews, carries out selection exercises and makes recommendations for recruitment and promotion to the Board. Besides, the Board co-opts other Members in the selection Panel depending upon the posts. With a view to bringing more objectivity in the selection exercise and to ensure that the Authority hires the best candidate for key positions, the Board/Selection Panel carries a second round of reiteration sessions with the shortlisted candidates . The Selection Board including the reiteration sessions met on 06 occasions. SecretanJ The Adminish·ative Manager was designated as Secretary by Management till 11 th July 2020. With the reconstitution of the Board, the Administrative Officer was assigned the duties of Secretary. Finance Committee The Finance is a standing committee of the RDA Board. This Committee, which was previously termed as the Finance and Sh·ategic Committee, was reviewed with the reconstitution of the Board on 20 May 2020. Apart from finance issues, the Committee is called upon to look after most economic and efficient design, procurement and implementation of projec ts. The Committe e conducts independ ent and objective review of financial and procurement policies and processes and performance issues. The Committee's main responsibilities include the following, amongst others: • To ensure that there is an effective and consistent framework of financial and procurement regulations and procedures, and that they are regularly and comprehensively approved; • To recommend the medium-t erm budg et in line with the Strategic Plan and th e RDA's prioritised objectives for approval by the Board; • To review progress reports on the delivery and improvement plans with regard to all aspects of programme(s) implementation, including financial and non-financial parameters; • To monitor performance against agreed performance indicators in relation to programme and project implementation; • To develop, monitor and review the Procurement Strategy and the Capital lnveshnent Programme and make recommendations to the Board; • To review and recommend contract and financial matters which arise in between meetings of the Board and make decisions including approval of contracts for onward approval of the Board; • To recomm end and keep under review, on behalf of the Board, the RDA procurement plan; • To ensure that procurem ent of goods and services is carried out in line with established legal framework; • To determine corrective actions necessary to address any adverse trends and report to the Board on any serious service delivery failures or concerns; • To review and recommend the final accounts of the RDA for approval by the Board; and • To undertake any other such du ties as may be directed by the Board. The Committ ee met on 2 occasions during the financial period und er review. The General 43 I Page Manager, the Deputy General Manager and the Financial Manager are in attendance. SecretanJ The Administrative Manager was designated as Secretary by Management till 11 th June 2020. With the reconstihition of the Board, the Adminish·ative Officer was assigned as Secretary. Audit and Risk Committee In line with the National Code of Corporate Governance for Mauritius (2016), the roles and responsibilities of the Committee are to review and report to the Board on significant financial reporting issues and judgments which financial statements of the RDA contain having regard to matters communicated to the Committee by the Internal Auditor . Its responsibilities are also to: • Review the adequacy and security of RDA' s arrangements for its employees and Conh·actors to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters; • Review RDA's procedures for detecting fraud; • Review RDA' s systems and controls for the prevention of bribery and receive reports on non-compliance; • Review regular reports from the Internal Auditor and keep under review the adequacy and effectiveness of RDA' s compliance functions and control systems; • Review significant transactions not directly related to RDA's normal business as the Committee might deem appropriate; and • Review significant cases of employee conflicts of interest, misconduct or fraud, or any other unethical activity by employees or the organisation. SecretanJ The Administrative Manager was designated as Secretary by Management till 11 111June 2020. With the reconstih1tion of the Board, the Administrative Officer was assigned the duties of Secretary. Management of RDA The Road Development Authority is headed by the General Manager who is responsible for the implementation of the policies of the Board, for achieving the financial operating goals and objectives and ensuring proper management and monitoring of the day-to-day affairs of the organisation. Management Profile as at 30 June 2020 Chief Executive - Mr. Nazeer Mowlabaccus 44 I P age Registered Civil Engineer - Master of Science in Civil Engineering, Associate Member of the Institute of for Infrastructure Asset Management, Malaysia (Asia Region) Post Graduate Certificate in Airport Design & Construction and Airport Maintenance from Civil Aviation Academy of Singapore Certificate in Infrastructure Asset Management from Institute for Infrastructure Asset Management Senior Management Team (as at 30th June 2020) Name Designation Q11alificatio11s Ms Zulaikl,a Bai A li111ohamed Deputy General Manage Registered Civil Ellgilleer - B Tech (Hous) in Civil Ellgi11eerillg, Certificate i11Computer Sciellce alld Progra111111i11g Mr. Dlrnr111i11derM1111gra/z Divisional Manager Registered Civil E11gilleer - MSc Project Ma11agrn1e11t, (011 Leave without Pay) BTec/1 (Ho11s) ill Civil Ellgi11eeri11g Mr. S/zalltara111 Ja11kee Divisional Manager Registered Civil E11gi11eer, Msc ill Quality Mallage111ellt, Degree of Bac/zelor of Civil E11gi11eeri11g Mr. Ali Asraf J/111111/ca Divisional Manager Registered Civil E11gi11eer, Master of B11si11essAd111i11istratio11, BTec/z (Ho11s) ill Civil E11gi11eeri11g Mr. Ris/zi/ces/z fugoo Divisional Manager Registered Civil E11gi11eer, Msc ill Quality Ma11age111e11t, BTec/1 (Ho11s) i11 Civil E11gi11eeriug Mr. C/zar,sraj P11clwoa Divisional Manager Registered Civil E11gi11ee1~ BTec/1 (Ho11s) i11Civil E11gillceri11g Master of Tra11sport f\!la11age111e11t C/zartered Me111/Jerof the Clrartered l11stitute of Logistic aud Tra11sport Mr. Ma/ze11 Httrree Ag. Divisional Manager Registered Civil E11gi11eer, BTec/1 (Ho11s) i11Civil E11gi11eeri11g Mr. Adia 1/Jra/zim Assistant Divisional B. Eug Civil E11gilleeriug, Manager MSC Project Ma11age111e11t Master Droit Eco110111ieGestioll Spccialite: f\!laitrise d'Ouvrage P11/Jliq11eet Privee (MOPP) offcrte par A.F.D. Mr. S1111yasiDlrn r111ell Assistant Divisional B. E11gCivil E11gi11eerillg Manager Mr. Na/Jee/Jux As/zraf Ally Assistant Divisional B. E11gCivil E11gi11eeri11g Manager Master itr /1~fon11atioll Tec/111ology Mr. Bee/carry Oo111es/z Assistant Divisional B. E11gCivi I E11gi11eeri11g 45 I Page Manager Mr. A111111dlallBaboolall Financial Manager Fellow Certified C/zartered Acco1mta11t Mr. Kedumnt/z Ra111p/111l Administrativ e Master ill Laws i11corporati11g Co111mo11Professio11al Manager E:xa111i11atio11s; MSc Quality Ma11age111e11t;BSc Ma11ageme11t; Diplo111n i11Public Ad111inistratio11 Ma11age111ent; Certificate in Co111p11terScience a11d Progra111111i11g. Table 12: Senior Management Team 46 I Page Principle THREE - APPOINTMENT OF MEMBERS 1. The Board is appointed by the Minister of the parent Ministry as per Section 7 of the RDA Act. The Chairman is appointed by the Minister on such terms and conditions as he may decide as per section 7(3) of the Act. Five of the Board Members are ex-officio - representatives of different Ministries and three are appointed Members having experience in road construction, traffic management, road transport, scientific or administrative matters. 2. Tenure of Office The present tenure of office of members is for 2 years and are eligible for re appointment. Mr. Wong So was initially appointed as Chairman on 2nd March 2015 and his appointment was renewed till 18 February 2020. The Board was reconstituted on 20 May 2020 with Mr. J. Patron as the new Chairman. However, from 19 February 2020 till 15 May 2020, Mrs. D. Allagapen, Permanent Secretary of the MNICD acted as Chairperson of the Board. 3. Conflict of Interests Any member of the Board who acquires any :interest in any civil engineering undertaking or consultancy has to resign from the Board as stipulated in the Act. Additionally, all Board members and officials of RDA are required to disclose their interest as soon as the relevant facts come to their knowledge and do not participate in any deliberation or any decision with respect to the matter. Principle . FOUR - REMUNERATION, DUTIES AND PERFORMANCE OF MEMBERS Role, Function and Powers of the Board The role, function and powers of the Board are determined by the RDA Act. The Board is the focal part of the Corporate Governance System and is ultimately accountable and responsible for the performance and affairs of the Authority. Its main responsibility is to determine the Authority's strategies and policies for the implementation of the objectives of the Authority as defined in the Act. It ensures performance in accordance with the objects of the RDA, performance-based budgeting; and compliance m accordance with relevant laws, regulations, codes of best business practices. 47 I Pa ge Directors' Responsibility for the Financial Statements The Authority's Directors are responsible for the preparation and fair presentation of the financial statements in accordance with International Accounting Standards and in compliance with the requirements of prevailing statutes. Responsibilities of the Board of Directors The fundamental statutory responsibilities of the Board of Directors are to lay down the overall policies regulating the various business/ activities of the Authority; it oversees the Authority's strategic direction and its organisational structure. The Board discharges the above responsibilities either directly or through Board Committees for more in-depth analysis and review of various issues while retaining its responsibility for all policy matters. The Chairman of each Com1nittee periodically places reports of its proceedings before the Board for approval/information, as may be relevant. The Board promotes ope1mess, integrity and accountability to improve corporate behaviour, strengthens control systems over business and reviews management performance on a regular basis. In addition, the Board is committed to ensure as far as reasonably possible, and in accordance with legislation in force, the safely and welfare of its staff. To fulfil their responsibilities, Board members have access to accurate and relevant information periodically and as and when required. Attendance to Board Meetings and of its Sub Committees In accordance with the statutory provisions, the Board meets at least once per month. The Road Development Board met on 14 occasions during the period under review. Most of the Board Members or their alternate attended the Board meeting as scheduled. Chairperson- Mr. C. Wong So - OSK 10 Mrs. D. Allagapen 03 Mr. J. Patron 01 Representative of Ministry of National 14 6 2 3 Infrastructure and Community Development (Public Infrastructure Division) Representative of Ministry of Land Transport and Light Rail (Land Transport Division) 12 4 2 Representative of Prime Minister's Office 12 2 48 I Pa ge Representative of Ministry of Finance, Economic 14 - - 3 Planning and Development Representative of Commissioner of Police 13 3 2 - Appointed member - Mr. Beejaye Somai 11 2 - - Appointed member - Mr. Al Jameel Mohamad 1 - - - Bassawon Appointed member - Mr. Juswansing Aubeeluck 1 - - - Ta/Jlc 13: Attc11da11cc to Board 1111dS11/J Co111111ittces Remuneration of Board Members The Chairperson is remunerated in accordance with Section 7 (3) (a) of RDA Act and the members of the Board and other Sub-Committees are remunerated in accordance with the provisions of the Pay Research Bureau Report. Fees paid to members amounted to Rs 961,146.92 during the 12 months period, detailed as follow: - Chairman Mr C.E. Wong So OSK 571,55'1.72 Mr. J. Patron 104,032.26 Representative of the Ministry of National Mrs Allagapen 189,577.94 Infrastructure and Community Development (National Infrastructure Division) Representative of the Ministry of Land Transport Mr S. Jewon 23,525.00 and Light Rail (Land Transport Division) Representative of the Ministry of Finance, Mr A. Ramdhany '19,825.00 Economic Planning and Development Representative of the Prime Minister's Office Mr V. Munoosingh "12,310.00 Representative of Commissioner of Police MrV K Dawon 2'1,615.00 Mr B Somai '16,470.00 Appointed Members Mr A.J. M. Bassawon 1,120.00 Mr. J. Aubeeluck 1,120.00 Table 14: Re1111111cratio11of Board Members 49 I Pa ge Principle FIVE -RISK GOVERNANCE and INTERNAL CONTROL Risk Governance and Management The Board of the Road Development Authority is responsible for the total process of risk management and ensures that the Organisation develops and executes a comprehensive and robust system of risk management. The process of risk management includes the systematic and continuous identification and evaluation of risks as they pertain to the different units / sections of the organisation. Strategies are then developed to eliminate, transfer or mitigate each risk as and when they are identified and evaluated. The Board has put in place several mechanisms and committees both at the Board level and at Management level in its risk management initiatives (some of which have been highlighted below). • Internal Audit At the Road Development Authority, Internal Auditing is an objective assurance and consulting activity designed by management to add value and improve the organisation's operations. It helps the organization to achieve its strategic objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes. Internal Audit exercise is carried out in this perspective. The Ammal Audit Plai1 is a risk-geared audit plan which is reviewed by Management as well as the Audit and Risk Committee of the Road Development Authority. It is consequently approved by the Board. • Technical Audit Management has also set up a Technical Audit Team, consisting of experienced Principal Technical Officers and headed by the DGM, whose mandate is to carry out inspections on on-going capital projects and report upon any irregularities that they come through. These reports and the corrective measures taken to address problems reported thereon, are subsequently passed on to the Audit and Risk Committee. This task can be considered as a consulting activity which can also help to reduce or mitigate certain risks that can be encountered during project implementation. • Risk Management and Quality Audit Team With a view to providing assistance in identifying, analysing, assessing, treating, monitoring and communicating top strategic risks, the Risk Management Team has maintained a top risk register which is regularly updated with mjtigating actions 50 I Pag e implemented. Moreover, policies, procedures and practices to the tasks have been reviewed to effectively manage the risks. Additionally, the Audit and Risk Committee which is a subcommittee of the Board, independently reviews the corporate risks and mitigations. Furthermore, Management Team regularly brainstorms on lessons learned from both - project failures and successful ones to review its processes and systems and caphue lessons for future improvement. Besides, a Safety and Health Committee has also been maintained regularly to identify, assess and prioritise safety related risks and hazards to ensure a safe working environment and positive actions being taken. • Procurement Committee The Procurement Committee 1s an internal committee of the Management which reviews and makes recommendations to the Board through the General Manager on matters relating to procurement, bids evaluation and award of contracts in accordance with the Public Procurement Act. The Deputy General Manager or his representative, one Divisional Manager, the Financial Manager and the Principal Procurement and Supply Officer form part of the Committee. An Office Management Assistant is designated as Secretary. The Committee meets regularly and during the period under review, it met on 43 occasions. • Control on variation in cost in project With a view to strengthening the procurement mechanism and to reduce variations in project, the Board had put in place a control mechanism with the following measures: - (i) The internal Procurement Committee was sh·engthened and take due diligence in its evaluation and recommendations of bids to the General Manager and/ or to the Board; (ii) An officer from the Finance Section is co-opted in the Bid Evaluation Committee to ensure financial efficiency. (iii) With a view to minimising unfavourable fluchrntions in exchange rate, RDA has been instructed to favour local currency to foreign one, to consider payment in local currency for local inputs and not to put local contractors in a disadvantage position. (iv) Good project management practices and proper planning and design have been ins tih1 tionalized. (v) Negotiation on variations between the contractor and the Project Engineer from RDA or Consultancy Firm are kept transparent and in line with Public Procurement Act Regulations and Directives. Negoliation and decision on variation are taken by a negotiation panel (comprising of at least 3 officers, one of whom to be from Finance) designated and validated by the General Manager/Board depending on case to case basis. The outcome of any negotiation on variations is brought to the 51 I Page Board after being analysed by the Finance Committee. (vi) Quantities are monitored closely even those certified and recommended by Consultant or Resident Engineer in order to avoid any possible collusion and to deter malpractices. • Project Review and Assurance Process A project review process has been maintained to ensure value for money. An independent team not involved in the project reviews independently the project and its findings are brainstormed with Management Team to ensure value for money. • Minor Works Under Road Maintenance Project The procurement procedure has been maintained to outsource minor works which were normally undertaken by major conh·actors under Road Maintenance Framework Agreement to small contractors/SME's region wise It has two-fold objectives; to reduce cost and secondly to create more employment. The framework for SME has been further extended for higher ceiling. This was applied during the financial year and has been extended for vegetation conh·ol as well. • Investigative Committee An independent Investigative Committee was set up by the Board to enquire on any irregularity with respect to major road infrastructure projects contracted from January 2010 to December 2014 including Terre Rouge Verdun. In November 2018 a report was submitted by the Committee which laid particular attention on one project, Terre Rouge Verdun Project. The Committee recommended for "further action" in connection with the road collapse. Through the advice tendered by the State Law Office, upon the request made by RDA, on the potential legal actions (recovery of cost/which could be contemplated with regards to the performance of the Consultant and the Conh·actor under the project or otherwise) an international law firm specialisied in construction law matters to examine the whole issue from a legal perspective needed to be hired. The RDA has further requested the State Law Office to assist in identifying such international law firms and in drafting the terms of reference for hiring such firms. As at 30th June, the reply from the State Law Office was still awaited. 52 I Pag e Principle SIX - REPORTING WITH INTEGRITY Submission of Annual Report The Arnmal report incorporating the Financial State1nent of the Road Development Authority is prepared according to International Public Sector Accounting Standard (IPSAS) and submitted to the National Audit Office within the prescribed submission date after duly approved by the Board. After the Annual report is audited by the National Audit Office it is posted in the website of RDA and filed/ tabled with all the relevant authorities as per statutory requirements. Further to submission of the Annual Report Financial Year ending 30 June 2019, same was received from the National Audit Office and the Director of the National Audit Office stated in the Report that the Financial Statements gave a b·ue and fair view of the financial position of the Road Development Authority as at 30 June 2019, and of its financial performance and its cash flows for the year ended in accordance with International Public Sector Accounting Standard (IPSAS). Integrated Sustainability Reporting RDA has developed and implemented social, safety, health and environmental policies and practices that in all material respects comply with existing legislative and regulatory frameworks. • Anti-Corruption Policy With a view to preventing fraud and corruption at the RDA and to ensuring Good Corporate Governance practices, the Board has put in place various conb·ol mechanisms. This is monitored by and reported at the Audit and Risk Committee. RDA has also adopted policies and procedures in relation to anti-corruption, gift, conflict of interest which are applicable at all levels from Board Members to minor grades. • Environmental Issues Sustainable development and environmental issues are taken into consideration in the design and implementation of project. • Safety and Health The RDA has complied with the Occupational Safety & Health (OSH) Act and other regulations and legislations regarding safety and health issues. Policies and procedures 53 I Page have been established and updated in this respect for continual improvement. An OSH management system is implemented for systematically and periodically assess risks, devise and implement control measures to eliminate and minimize risks assuring for the safety & health of employees. The RDA Safety & Health Committee established as per the OSHA, as an essential component of the OSH M,magement System meets on a regular basis to oversee OSH matters throughout the Authority. • Social issues With a view to promoting the exchange of information, undertaking research RDA has provided training facilities to trainees as a corporate social action, it has enlisted a number of young graduates under Youth Employment Programme and Trainee Engineers to provide them with skills, competence and opportunities for registration. • Gender Policy The Authority is committed to achieving gender justice as a matter of basic human right and fundamental principle. The Authority promotes an enabling environment where both men and women are equally respected and valued. Adopting and incorporating a gender approach in all developmental issues remain a prerequisite to attain full human development. • Code of Ethics The RDA is committed to the highest standards of integrity and ethical conduct in dealing with all its stakeholders and Staff at all levels. To this effect a code of ethics has been developed and circulated among staff. Adequate grievances and disciplinary procedures are in place to enable enforcement of the Code of Ethics. • Political Donations During the period under review, no political donations were made. • Charitable Donations During the period under review, no charitable donations were made. • Related Party Transactions The particulars in respect of Related Party Transactions have been disclosed in the Financial Statements. 54 I Page Principle SEVEN - AUDIT The Board should establish formal and transparent arrangements to appoint and maintain an appropriate relationship with the organization's internal and external auditors. • Internal Control System The Board is primarily responsible for the effectiveness and efficiency of the system of internal control, while the design, implementation and monitoring of the system devolves on management. Each unit in the Organization has its own internal control procedures and mechanism to ensure that operations are carried out accordingly and Internal Audit Unit is present to ascertain that rules and regulations are followed and adhered to. Any breach of internal control mechanism set up by management or any unethical/ irregular reported to Management and ultimately to the Board through the Internal Audit and Risk Committee. Internal Audit The Internal Audit function is considered vital to the Authority and plays an independent assurance and monitoring role, providing independent opinion on the effectiveness or otherwise of the system of Internal Control. The Internal Audit Unit at the Road Development Authority which is under the responsibility of the Internal Audit, assists both Management and the Board by monitoring, examining, evaluating, reporting on and recommending improvement to the adequacy and effectiveness of the Authority risk management processes, derives assurance that the risk management process are in place and effective. Regular reports from the Internal Audit Division are sent to the Audit and Risk Committee and to the Board. Accounting The Board is responsible for the preparation of accounts which fairly presents the state of affairs of the Authority and the results of its operations and which had to be complied with International Accounting Standards. In this context, the Board is responsible for adequate accounting records, maintenance of an effective system of internal conh·ol, · and choice of accounting policies supported by reasonable prudent judgement. External Audit The RDA Act provides that the Auditor to be appointed shall be the Director of Audit. This ensures the independency of the system. Every year the National Audit Office sends officers to carry out Audit and Financial Statement of the RDA and to report 55 I Pa ge thereon. All weaknesses and their findings are reported to Managem.ent through a Report. The External Auditor's Report is reviewed by the Internal Auditor and presented in the Audit and Risk Committee. The External Auditor's Report together with the recommendations of the Audit and Risk Committee are presented to the Board. Principle EIGHT-RELATIONS WITH STAKEHOLDERS Shareholders and stakeholders are consulted and met directly and indirectly through several mechanisms set out at Road Development Authority in meeting the objectives of RDA. Regular meetings and consultations are held with the Parent Minish·y, being the main 'share holders' in all matters pertaining to RDA activities. The Public and other stake holders are also consulted in the project planning and implementation processes. Customers The RDA views road user satisfaction as one of its most important function through the provision of high-quality roads and effectively maintaining the road riding standard and safety. Additionally, RDA addresses all complaints received through the CSU, its head office and the regional offices. The RDA ensures that its staff members and representatives possess the necessary skills, experience and knowledge to serve the public better with transparent advice and timely service delivery in line with relevant legislation, rules, codes and guidelines. Suppliers The Authority ensures that value for money services and goods are rendered to the RDA in an efficient way while engaging with suppliers on ethical commitments. Conclusion The Board is fully aware of its obligations and requirements under the Code of Corporate Governance and has, in as much, adhered to the Code on the basis of accountability, transparency, ethics and values. The Board is committed to adopting the highest standards of Corporate Governance and the best practices to anage its activities in the interest of the country. Mr. L. J.Y. J. Patron General Manager Chairman, RDA 56 I Page ROAD DEVELOPMENT AUTHORITY .~ Ill)\ FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ZOI9/ZOZO .. -, • - - ·-J • . • • ROAD DEVELOPMENT AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 Notes --2020 2019 (Restated) MUR MUR MUR MUR ASSETS Current assets Cash and cash equivalents 6 68,611 ,892 73,757,088 Trade and other receivables 7 74,434,832 40,184,541 Inventories 8 13,079,915 15,428,633 Held to maturity investment 9 49 538 584 44 975 787 Total current assets 205,665,223 174,346,049 Non-current assets Car loan receivable 10 3.434,398 3,120,778 Property.plant and equipment 11 28,086,998 31,671 ,552 Intangible assets 12 285,177 315,612 Investment in project 13 25,666,717 45 689 532 Total non current assets 57,473,290 80,797,474 TOTAL ASSETS 263,138,513 255.143,523 LIABILITIES Current Liabilities Trade and other payables 14 131,184,316 99,267,777 Borrowings 15 25,666,717 22,500,000 Employees Benefit Obligations 16 9 000,000 11 100 000 Total current liabilities 165,851,033 132,867,777 - Non-current liabilities Borrowings 17 - 23,189,531 Retirement Benefit Obligations 18 260,127,641 175,260,694 Employees Benefit Obligations 19 85,419,576 78,075,651 Car loan payable 20 3 434 ,398 3 120,778 Total non-current liabilities 348,981 ,615 279,646,654 TOTAL LIABILITIES 514,832,648 412,514.431 NET ASSETS (251,694,135) (157,370,908) NET ASSETS/EQUITY Capital Contributed Accumulated Deficit 21 (251 ,694,135) (157,370,908) TOTAL NET ASSETS/EQUITY (251,694,135) (157,370,908) Thes Financial Statements were approved by the RDA Board on 30th September 2020 The notes to the Financial Statements from pages 8 to 35 form an integral part of the Financial Statements ROAD DEVELOPMENT AUTHORITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 2020 2019 (Restated) MUR MUR REVENUE Non exchange transactions Grants for RDA Road Projects 22 2,056,685,028 2,182,961,095 Grants for Road Projects out of National Environment Fund 23 85,379,168 46,193,136 Grants for Financing of Recurrent Expenditures 24 160,397,533 150,236,320 Contribution from State Trading Corporation 25 86,035,318 100,233,914 Grant for financing of Capital Expenditure 26 2 338 038 7 143 655 2,390 835 085 2 486 768 120 OTHER INCOME Exchange transactions Laboratory Fees 2,082,895 2,257,815 Sub Division of Land (Morcellement Fees) 10,000 46,000 Investment Income 1,935,297 24,138 Rental Income 197,731 Other Miscellaneous Income 27 2 232 726 3 550 879 6 260 918 6 076 563 TOT AL REVENUE 2,397,096,003 2,492,844,683 EXPENDITURE Expenditure on Road Projects Expenditure for RDA Road Projects 28 (2, 056,685,028) (2,182,961 ,095) Expenditure for Road Decongestion Projects out of National Environment Fund 29 (85,379,168) (46,193,136) (2,142,064,196) (2,229,154,231) Other Expenditure Staff Cost 30 (197,414,148) (192,990,789) Depreciation and Amortisation 31 (7,027,805) (7,474,308) Tools and materials 32 (11 ,134,498) (8,205,098) Motor vehicle expenses 33 (4,522,806) (5,757,982) Rent 34 (10,337,973) (9,869,696) Other administrative expenses 35 (10,649,681) (11,910,636) Finance costs 36 (721 ,498) (1,116,473) (241 ,808,409) (237,324,982) TOTAL EXPENDITURE (2,383,872,605) (2,466,479,213) SURPLUS FOR THE YEAR/PERIOD 13,223,398 26,365,470 The notes to the Financial Statements from pages 8 to 35 form an integral part of the Financial Statements ROAD DEVELOPMENT AUTHORITY STATEMENT OF CHANGES IN NET ASSETS/ EQUITY FOR FINANCIAL YEAR ENDED 30 JUNE 2020 2019 (Restated) Accumulated Funds Total MUR MUR Balance as at 01 July 2018 (166,351,985) (166,351,985) Adjustments for financial year 2017/2018 : Road accident claims more than 1O years and claims pertaining to government vehicles written off for FY 17 /18 (2,151,054) (2,151,054) At 1 July (restated) (168,503,039) (168,503,039) Adjustments for financial year 2018/2019: Exchange gain on Investment in Project 179,410 179,410 Amortisation of Investment in Project - Repayment of loan (22,439,709) (22,439,709) Foreign exchange loss on loan (179,410) (179,410) Actuarial gain on Retirement Benefits Obligation - Defined Benefit Plan 7,206,370 7,206,370 Surplus for the Financial Year 2018/19 26,365,470 26,365,470 Balance as at 30 June 2019 (157,370,908) (157,370,908) 2020 Accumulated Funds Total MUR MUR Balance as at 01 July 2019 (157,370,908) (157,370,908) Adjustments for financial year 2019/2020: Actuarial gain/ (loss) on Defined Benefit Plan (83,047,612) (83,047,612) Exchange gain Investment in Project 4,476,198 4,476,198 Foreign Exchange loss (4,476,198) (4,476,198) Amortisation of Investment in project - Repayment of loan (24,499,013) (24,499,013) Surplus for the Financial Year 2019/2020 13,223,398 13,223,398 Balance as at 30 June 2020 (251,694,135) (251,694,135) The notes to the Financial Statements from pages 8 to 35 form an integral part of the Financial Statements ROAD DEVELOPMENT AUTHORITY Cash Flow Statement for the financial year ended 30 June 2020 m 1 July 2018 to 30 1 July 2019 to 30 June 2019 June 2020 (Restated) MUR MUR Cash Flows from Operating activities Surplus / (Deficit) for the year 13,223,398 26,365,470 Adjustments for: Depreciation and Amortisation 7,027,805 7,474,308 Retirement Benefit Obligations 1,819,335 3,290,694 Provision for Passage Benefit 4,477,131 4,353,098 Provision for Vacation Leave 3,442,130 2,157,447 Provision for Sick Leave 6,419,967 7,536,508 Interest Income for Investment in Treasury Bills (1,935,297) (24,138) Profit on disposal of PPE (8,283) Finance Costs 721,498 1,116,473 35,187,684 52,269,860 Change in Inventories 2,348,718 (3,396,010) Change in Trade and other receivables (34,682,291) 38,615,212 Change in Trade and other payables 32,366,539 (3,486,633) Net Cash flows from Operating activities 35,220,650 84,002,429 Cash flows from Investing activities Purchase of Property,Plant and Equipment (3,311,903) (9,191,566) Additions to Intangible Assets (110,630) (92,460) Investment in Government Treasury Bills (48,727,500) (44,951,649) Encashment of Investment in Treasury Bills 44,951,649 Investment income received 1,148,351 Loan released to staff (2,075,000) (1,437,000) Loan refunded by staff 2,211,380 3,899,892 Net Cash flows from Investing activities (5,913,653) (51,772,783) Cash flows from financing activities Passage Benefit paid (2,913,888) (3,344,489) Vacation Leave paid (913,885) (1,813,302) Sick Leave paid (5,267,530) (6,043,543) Repayment of ADB Loan (24,499,012) (22,439,709) Interest paid (721,498) (1,116,473) Car loan received from Ministry of Public Infrastructure 2,075,000 1,437,000 Car loan disburbed/repaid to Ministry of Public Infrastructure (2,211,380) (3,899,892) Net Cash flows from financing activities (34,452,193) (37,220,408) Net (decrease)/ increase in cash and cash equivalents (5,145,196) (4,990,762) Cash and cash equivalents at beginning of year/period 73,757,088 78,747,850 Cash and cash equivalents at end of year/period 68,611,892 73,757,088 Notes to the Cash Flow Statement (a) Cash and Cash Equivalents Cash and Cash Equivalents consist of cash in hand balances with bank. Cash and Cash Equivalents included in the Cash Flow Statement comprise the following Statement of Financial Position amounts : 2020 2019 MUR MUR Cash at Bank (233,309,106) (483,357,213) Notice Deposit 301,920,998 557,114,301 68,611,892 73,757,088 (b) Held to maturity investment The held to maturity investment consist of one investment in Government Treasury Bills of settlement amount of Rs 48,727,500 with the State Bank (Mauritius) Ltd held in Mauritian Rupees. The value date of the investment was 19 November 2019 with a maturity date of 6 November 2020 and yield of 2.7% per annum. On maturity, the nominal amount of Rs 50,000,000 will be paid to the RDA. The notes to the Financial Statements from pages 8 to 35 form an integral part of the Financial Statements ROAD DEVELOPMENT AUTHORITY Statement of Comparison of Budgeted and Actual Amounts for the Financial Year ended 30 June 2020 Variance - Variance - ~ Revised and Revised and Financial Component Note Original Budget Revised Budget Actual Recei ved Original Budget Actual Budget Statement Rs Rs Rs Rs Rs Rs REVENUE Government Grant for RDA Road Construction and Maintenance 22 2,997,700,000 2,056,100,000 2,008,521,890 (941,600,000) (47,578,110) 2,056,685,028 Government Grant for Road Construction -NEF 23 138,000,000 86,500,000 85,379,168 (51,500,000) (1,120,832) 85,379,168 Government Grant for Financing of Recurrent Expenditures 24 150,425,606 147,632,000 151,263,939 (2,793,606) 3,631,939 151,263,939 Government Grant (Recurrent Expenditure paid by MPI) 24 368,000 368,000 253,407 (114,593) 253,407 Government Grant for Financing of Tools & Materials 24 15,000,000 15,000,000 8,880,187 (6,119,813) 8,880,187 Contribution from State Trading Corporation 25 98,000,000 84,392,000 78,868,014 (13,608,000) (5,523,986) 86,035,318 Government Grant for Financing of Other Plant & Machinery 26 2,000,000 2,000,000 349,773 (1,650,226) 349,773 Government Grant for Financing of Management Information System 26 Government Grant for Financing of Upgrading of Sub Office Building 26 1,000,000 (1,000,000) Government Grant for Financing of Acquisition of Motor Vehicles 26 2,000,000 2,000,000 1,988,265 (11,735) 1,988,265 3,404,493,606 2,393,992,000 2,335,504,644 (1 ,010,501,606) (58,487,356) 2,390,835,085 Laboratory fees 2,500,000 2,000,000 371,245 (500,000) {1,628,755) 2,082,895 Subdivision of Land (Morcellement fees) 100,000 100,000 10,000 (90,000) 10,000 Rental Income Tender Fees 27 200,000 200,000 45,000 (155,000) 45,000 Investment Income 1,000,000 1,000,000 1,148,351 148,351 1,935,297 Income for damage caused to Road Infrastructures 27 2,300,000 1,000,000 996,529 {1,300,000) (3,471) 1,739,793 Other Income 27 100,000 100,000 402,000 302,000 447,933 TOTAL REVENUE 3,410,693,606 2,398,392,000 2,338,477,769 (1,012,301,606) (59,914,231} 2,397,096,003 ROAD DEVELOPMENT AUTHORITY Statement of Comparison of Budgeted and Actual Amounts for the Financial Year ended 30 June 2020 Variance - Revised ~ Variance - Revised Financial Note Original Budget Revised Budget Actual Paid and Original Budget and Actual Budget Statement Rs Rs Rs Rs Rs EXPENDITURE Rs Expenditure on RDA Road Construction and Maintenance 28 2,997,700,000 2,056,100,000 2,01 1,602,267 941,600,000 44,497,733 2,056,685,028 Expenditure on Road Construction-NEF 29 138,000,000 86,500,000 85,379,168 51,500,000 1,120,832 85,379,168 Expenditure on Tools & Materials 32 15,000,000 15,000,000 8,880,187 6,1 19,813 11,115,288 TOTAL EXPENDITURE ON ROAD CONSTRUCTION AND MAINTENANCE 3,150,700,000 2,157 ,600,000 2,105,861,622 993,100,000 51,738,378 2,153,179,484 Staff Cost 30 202,557,191 182,000,000 188,510,245 20,557,1 91 (6,510,245) 196,275,056 Repairs& Maint Bldg 35 389,000 1,000,000 416,003 (611 ,000) 583,997 422,547 Repairs & Main! Office Equipment 35 602,800 850,000 830,870 (247,200) 19,130 787,028 Repairs Plant & Machinery 35 270,000 300,000 186,287 (30,000) 113,713 187,077 Maintenance Premises 35 626,000 400,000 507,797 226,000 (107,797) 537,291 Books & Periodicals 35 15,000 15,000 2,500 12,500 11,383 Motor Vehicle exps 33 4,595,000 5,800,000 4,516,925 (1,205,000) 1,283,075 4,522,806 Advertising 35 500,000 400,000 694,263 100,000 (294,263) 694,262 Printing 35 300,000 200,000 175,483 100,000 24,517 175,482 Postage 35 201,900 175,000 175,889 26,900 (889) 164,353 Stationery 35 1,323,000 1,300,000 927.481 23,000 372,519 1,041,650 Magazines Newspaper 35 56,300 55,000 44,715 1,300 10,285 43,395 Professional /Legal Fees 35 600,000 425,000 740,800 175,000 (315,800) 734,785 Audit Fees 35 400,000 400,000 400,000 400,000 Rent 34 10,168,000 10,060,000 10,184,373 108,000 {124,373) 10,337,973 Electricity 35 1,293,000 1,450,000 1,333,002 (157,000) 116,998 1,263,646 Gas 35 1,000 1,000 1,000 Water 35 39,000 51,000 46,591 (12,000) 4,409 43,571 Telephone 35 1,330,000 1,450,000 1,310,810 (120,000) 139,190 1,308,157 Security Fees 35 Insurance & Indemnity 35 548,415 845,000 898,510 (296,585) (53,510) 642,076 Overseas Travelling 35 250,000 75,000 418,584 175,000 {343,584) 363,684 Conference Committees 35 1,000,000 935,000 961,147 65,000 (26,147) 950,632 Miscellaneous Expenses 35 149,300 250,000 76,093 (100,700) 173,907 97,318 Staff Welfare 30 842,000 850,000 830,991 (8,000) 19,009 838,735 Staff Training 30 1,200,000 210,000 268,600 990,000 (58,600) 300,357 Bank Charges 36 80,000 65,000 93,204 15,000 (28,204) 93,461 Tools & Equipment 32 19,500 25,000 18,615 (5,500) 6,385 19,210 Road accidenls written off 32 650,150 Cont to Int Organisation 35 125,000 125,000 143,309 {18,309) 131,192 Interest on ADB Loan 36 1,000,000 1,000,000 675,382 324,618 628,037 TOTAL RECURRENT EXPENDITURE 230,481,406 210,712,000 214,988,469 19,769,406 (4,276,469) 223,665,316 Depreciation and Amortisation 31 7,027,805 TOTAL EXPENDITURE 3,381,181,406 2,368,312,000 2,320,850,091 1,012,869,406 47,461,909 2,383,872,605 ROAD DEVELOPMENT AUTHORITY Statement showing reconciliation of Actual Cash Flows with Financial Statements for the financial year ended 30 June 2020 REVENUE Rs Actual Revenue as per Statement of Comparison 2,338,477,769 Adjustment for Opening Receivables FY 19/20 - Non Exchange Transactions (23,285,480) Adjustment for Opening Receivables FY 19/20 - Exchange Transactions (16,720,020) Adjustment for Closing Receivables FY 19/20 - Non Exchange Transactions 56,468,583 Adjustment for Closing Receivables FY 19/20 - Exchange Transactions 17,528,739 Other Adjustments 24,626,412 Revenue as per Statement of Financial Performance 2,397,096,003 EXPENDITURE Rs Actual Expenditure as per Statement of Comparison 2,320,850,091 Adjustment for Opening Accruals FY 19/20 (5,357,710) Adjustment for Closing Accruals FY 19/20 29,693,222 Adjustment for Opening Prepayments FY 19/20 917,386 Adjustment for Closing Prepayments FY 19/20 (1,690,065) Other Adjustments 30,612,541 Non Cash Items Adjustments 8,847,140 Expenditure as per Statement of Financial Performance 2,383,872,605 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I 1. REPORTING ENTITY AND BUSINESS ACTIVITY The Road Development Authority (RDA), a body corporate established by Act No. 6 of 1998, operates under the aegis of the Ministry of National Infrastructure and Community Development. Its registered office .is situated at 8th Floor, Blue Tower, Rue De L'lnstitut, Ebene, Postcode 80817. RDA is also a representative on the Morcellement Board, EIA Committee, wherein recommendations in regard to access on classified roads and Motorways are given. The mission of the RDA is to provide a cost efficient mobility in comfort and safety for the Mauritian population and its economic operators to all parts of the island, by developing, preserving and maintaining a high standard classified road network through the judicious use of human, material, financial and technological resources. The RDA is responsible for the construction, care, maintenance and improvement of motorways and main roads. The duties and functions of the RDA are: • To plan, design and supervise the construction of roads intended to be classified as motorways and main roads; • To carry out or cause to be carried out the upgrading of motorways and main roads and their routine and periodic maintenance; • To maintain existing bridges, tunnels and associated works on motorways and main roads; • To plan, design and supervise the construction and reconstruction of bridges, tunnels and associated works on motorways and main roads; • To advise the Minister on the formulation of a road development policy; • To advise the Minister on the management policy of roads; • To prepare and implement road development schemes; • To conduct and coordinate research and investigation on materials required for road construction; • To control the display of advertisements along or visible from motorways and main roads; ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I 2. BASIS OF PREPARATION (a) Statement of Compliance The financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) issued by International Public Sector Accounting Standards Board (IPSASB). (b) Going Concern The financial statements have been prepared on a going-concern basis. The RDA will continue to be in operational existence in the foreseeable future on the basis that government will continue to support the RDA in form of grant and that the RDA will continue to receive contribution from the State Trading Corporation in respect of Road Tax on fuel. (c) Use of estimates and assumptions The preparation of financial statements in conformity with IPSAS and generally accepted accounting practices requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In the application of the RDA 's accounting policies which have been described in Note 4, Management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the estimate affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Estimates include, but are not limited to fair valuation of inventories, accounts receivables and accrued charges. One of the key assumptions and estimation concerning the future at the reporting date is the Retirement Benefit Obligation. This requires the use of actuarial calculations or other assumptions that include significant estimates in respect of, inter alia, the expected return on plan assets, future salary increases and future pension increases. These significant estimates are assessed annually by management with the actuaries where applicable. Differences between actual and estimates are recorded as actuarial gains or losses. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I (d) Reporting date The Financial Statements has been prepared for the year 01 July 2019 to 30 June 2020. Comparative figures relate to the period 01 July 2018 to 30 June 2019. (e) Functional and Presentation of Currency The Financial Statements are presented in Mauritian Rupees. Rounding has been made where applicable to the nearest Mauritian Rupee. (f) Budget Information The Budget is prepared on cash basis, classified by nature of expenses, and covers the Financial Year 1 July 2019 to 30 June 2020. (g) Cash Flow Statement The indirect method has been used as basis in the preparation of Cash Flow Statement. (h) Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of the Financial Performance, Financial Position on an accrual basis using historical cost are followed in the preparation of the Financial Statements. The Cash Flow has been reported on Cash Basis. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I 3. ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE At the date of preparation of these Financial Statements, the following standards, amendments to existing standards and interpretations were in issue but not yet effective. They are mandatory for accounting periods beginning on the specified dates, but the RDA has not early adopted them. New or revised standards, amendments and interpretations: IPSAS Pronouncement Effective date of amendments IPSAS 28 Financial Instruments 01 January 2022 IPSAS 29 Financial Instruments: 01 January 2022 RecoQnition and Measurement IPSAS 30 Financial Instruments: 01 January 2022 Disclosures IPSAS 41 Financial Instruments 01 January 2022 IPSAS 42 Social Benefits 01 January 2022 4. ACCOUNTING POLICIES The following specific accounting policies that materially affect the measurement of financial performance and the financial position are applied:- 4.1 Revenue recognition Revenue recognitions are based on exchange and non-exchange transactions and recognized on an accrual basis. Exchange Transactions- lPSAS 9-Revenue from Exchange Transactions Revenue under exchange transaction are those arising from rendering of services, the sales of goods or the use by others of the RDA assets. Revenue is recognised to the extent that it is probable that the economic benefit or service potential associated with transactions will flow to the RDA and that the revenue can be reliably measured. It includes among others Laboratory fees, Sub Division of land, Income from Accident, Tender fees, Investment Income and Rental Income. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I All Accident claims dated more than 10 years has been written off as it is felt that there is no reasonable expectation of recovery (either partially or in full). In addition these claims are legally time barred to be recovered. Accident claims involving government vehicles have been written off. Held-to-maturity investments are recorded at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis. Non-Exchange Transactions IPSAS 23-Revenue from Non-Exchange Transactions Assets and revenue arising from transfer transactions are recognised in accordance with the requirements of IPSAS 23- Revenue from Non-Exchange Transactions (Taxes and Transfers). It includes mainly Grants and contribution received from State Trading Corporation and other inflows of future economic benefits or service potential from non-exchange transactions, other than taxes. Grants consist of Grants for RDA Road Projects, Grant for financing of Recurrent Expenditure and Grant for financing of Capital Expenditure. Certain projects are financed out of National Environment Fund (NEF). This Fund is managed by MOFEPD. 4.2 Foreign Currency Translation Transactions in currencies other than Mauritian Rupees are recorded at the rates of exchange prevailing on the dates of the transactions. At each Statement of Financial Position date, non-monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the Statement of Financial Position date. Gains and losses arising on retranslation are recognized in the Statement of Changes in Net Assets/Equity. 4.3 Expenditure All expenses have been accounted for on an accrual basis. 4.4 Property, Plant & Equipment Property, plant and equipment are initially recognized as assets at cost if it is probable that future economic benefits associated with the items will flow to the RDA and their costs can be measured reliably. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I Depreciation is calculated on straight-line basis to recognise the consumption of economic benefits of an asset over its useful life. The annual rates used are as follows: Plant and Machinery 15% Furniture and Fittings 10% Computers 20% Office Equipment 10% Motor Vehicles 10%-17% Building 2% Property, plant and equipment are stated at historical cost or revalued amount less any accumulated depreciation and any accumulated impairment losses. Profit or loss on disposal of property, plant and equipment is determined by the difference between the carrying value of the asset and its disposal proceeds and is accounted for in the Statement of Financial Performance. Depreciation is accounted for the Statement of Financial Performance, except for that part which relates to the revalued portion of assets which is charged to the revaluation reserve. 4.5 Intangible Assets Intangible assets which comprise of computer software are stated at historical cost less accumulated amortization and any impairment losses. Amortization is provided over the estimated useful life using the straight-line method. The estimated useful life for intangible asset is 5 years and is amortised at the rate of 20%. 4.6 Impairment of Assets/Revaluation Impairment of Assets At each Statement of Financial Position date, the RDA reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the RDA estimates the recoverable amount of the cash generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognized immediately in the Statement of Financial Performance, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. A reversal of impairment is recognized immediately in the Statement of Financial Performance, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as revaluation increase. There is no indication that those assets have suffered from impairment loss. Hence no review of the carrying amounts of the tangible and intangible asset was carried out. Revaluation of Assets Any increase arising on revaluation is credited to a Revaluation Surplus account in Statement of Changes in Net Assets/Equity except to the extent that it reverses a revaluation decrease for the same asset previously recognized in Statement of Financial Performance. 4.7 Investment in Project Expenditure incurred under the Loan from the African Development Bank (ADB) for the South Eastern Highway Project is treated as Investment in Project in the Financial Statements. 4.8 Inventories Inventories are valued at the lower of cost and current replacement cost where they are held for: o Distribution at no charge or for a nominal charge ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I o Consumption in the production process of goods to be distributed at no charge or for a nominal value Cost is determined using FIFO method and comprises the invoiced value from suppliers. Current replacement cost is the cost the entity would incur to acquire the asset on the reporting date. 4.9 Provisions Provisions are recognized as liabilities (assuming that a reliable estimate can be made) because they are present obligations and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligations. Provisions are reviewed at each Statement of Financial Position date and adjusted to reflect the current best estimate. 4.10 Employees Benefit Obligations Employee benefits comprise all forms of consideration given by the RDA in exchange of service rendered by employees. These include current and short term benefits such as salaries, National Savings Fund, Family Protection Scheme Contribution, annual vacation and sick leave, passage benefits, and post employment benefits such as pensions (Retirement Benefits). The average monthly number of employees for the year ended 30 June 2020 stood at 436 compared to 437 for the year ended 30 June 2019. Employee benefits that are earned as a result of past or current service are recognized as a liability, net of payment made and charged as expenses. 4.11 Retirement benefit obligations Provisions for retirement benefits for the RDA staff are made under the Statutory Bodies Pension Fund Act 1978 (as amended) and pension is payable to eligible employees upon retirement. The RDA contributes monthly to both a Defined Benefit Plan and a Defined Contribution Plan which are both managed by the State Insurance Company of Mauritius Ltd (SICOM). ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 Defined Benefit Plan The net liability at Statement of Financial Position date is determined as the present value of funded obligations after adjusting for the fair value plan assets. The current service cost and any recognized past service cost are included as an expense together with the associated interest cost, net of expected return on plan assets is recognized in the Statement of Financial Position. The contribution rates to the Defined Benefit Plan for permanent and full time employees is 6% from the latter and 15% from the employer. Defined Contribution Plan With effect from January 2013, all new entrants in a Statutory Body shall henceforth join the new Public Pensions Defined Contribution Pension Scheme. The contribution rates to the Public Pensions Defined Contribution Pension Scheme for permanent and full time employees is 6% from the latter and 12% from the employer. (i) State Plan and FPS Contribution Contributions to the National Savings Fund and Family Protection Scheme are expensed to the Statement of Financial Performance in the period in which they fall due. (ii) Annual vacation and sick leave and staff passage benefits Provision is made for benefits accruing to employees in respect of annual vacation leave, sick leave and staff passage benefit when it is probable that settlement will be required and the benefits are capable of being measured reliably. The estimated liability of vacation leave that accumulates is recognized when the employee become entitled to leave. 4.12 Cash and Cash Equivalents Cash and cash equivalents comprise of cash and bank balances. 4.13 Trade and other receivables Trade and other receivables are stated at amortised cost. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I 4.14 Trade and other payables Trade and other payables are stated at amortised cost. 4.15 Contribution received from State Trading Corporation (STC) Contribution receivable from the State Trading Corporation in respect of Road Tax on fuel consumption (25 cents per litre on Mogas, 15 cents per litre on Gas oil and 15 cents per litre on Dual Purpose Kerosene) under the "Petroleum Pricing System" is accounted as Revenue. This contribution is utilized for financing repayment of African Development Bank Loan and RDA recurrent expenditure and has been wholly accounted for in the Statement of Financial Performance in line with IPSAS 23. 4.16 Car Loan to RDA Employees Car Loans to the RDA employees are advanced by the Accountant General through the Parent Ministry. All car loan and interest repayments are deducted by the RDA and remitted to the Accountant General. The amount due by employees (which comprises of the capital element of the loan) is accounted for as Accounts Receivable and the amount payable to the Accountant General as Accounts Payable. 4.17 Taxation The RDA is exempted from Income Tax. 4.18 Events after the Reporting Period There are no material events subsequent to the Statement of Financial Position date which are of such importance that they would require adjustments or disclosures in the Financial Statements. 4.19 Finance Costs Finance cost includes interest expense and bank charges incurred in connection for a loan contracted by the RDA from the African Development Bank (ADB) for the financing of the South Eastern Highway Project . It is recognized as an expense in the period in which they are incurred. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS .FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 4.20 RDA Road Projects All road constructions and maintenance are financed from Government Grant except for two projects which are financed out of the National Environment Fund (NEF). Its corresponding payments to Contractors and Consultants and grant received are accounted in the Financial Statements 4.21 National Environment Fund The projects 'Repairs to Terre Rouge Verdun Road -04 Section' and 'Consultancy services for the reconstruction of Baie du Cap -Chamarel -Case Noyale Road (B104) at Chamarel' are financed out of the National Environment Fund (NEF) which is managed by the Ministry of Finance, Economic Planning and Development. The payments for the two above mentioned projects are funded out from the Grant which is disbursed out of NEF upon application and submission by RDA of all relevant supporting documentations. Its corresponding payments to Contractors and Consultants and grants received are accounted in the Financial Statements. 4.22 Held-to-Maturity Investment Investments with fixed or determinable payments and fixed maturity dates, that the entity has the positive intent and ability to hold to maturity, are classified as held-to maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. 4.23 COVID 19 Following the COVID-19 pandemic, the country was under sanitary lockdown. Most of RDA staff did not attend work for period 20 March 2020 to 12 May 2020 due to sanitary confinement. The RDA endured its direct consequences mainly on procurement, initiation and implementation of Road Projects. The immediate and on going adverse financial impacts on individual projects were dependent on the nature and scale of the projects. The main impact was that all works were suspended during the lockdown and thus physical progress was hampered and budgetary provision being under-utilized. As from 12 May 2020, work has resumed slowly to normal while maintaining all recommended sanitary protocols. ,, ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I The RDA did not receive any direct government assistance for COVID-19 pandemic nor was it involved in providing financial support to its staff except for protective equipment like face masks thereby limiting the spread of COVID-19. All salaries and benefits were paid as normal and where necessary, amounts are being recouped in line with Government directives. The pandemic has had no material effect that will impact Provisions, Contingent Liabilities and Contingent Assets, Employee Benefits and Government Grant. 4.24 Trade and other receivables - Income from Accident Trade and other receivables in respect of income from accident are recognised initially at cost less allowance for impairment. An allowance for impairment of trade receivables is established when there is objective evidence that the Authority will not be able to collect all amounts due according to the original terms of the receivables. The amount of the allowance is in respect of Road Accident Claims that are more than 10 years due and these are written off (either partially or in full) as there is no reasonable expectation of recovery. The amount of the allowance is recognised in the Statement of Financial Performance. 5. FINANCIAL RISK MANAGEMENT A description of the various risks to which the RDA is exposed is shown below as well as the approach taken by management to control and mitigate those risks. 5.1 Credit Risk This risk is primarily attributable to its trade receivables. The RDA has policies in place to ensure that credit facilities are given to customers with an appropriate credit history. 5.2 Operational risk management Operational risk, which is inherent in all organizations activities, is the risk for financial loss and business instability arising from failures in internal controls, operational processes of the system that supports them. 5.3 Legal Risk Legal risk is the risk that the business activities of the RDA have unintended or unexpected legal consequences. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 I It includes risk arising from: a) Inadequate documentation, legal or regulatory incapacity, insufficient authority of a counterparty and uncertainty about the validity or enforceability of a contract in counterparty insolvency; b) Actual or potential violations of law or regulation (including activity unauthorized for a company and which may attract a civil or criminal fine or penalty); c) Failure to protect the RDA property (including its interest in its premises); d) The possibility of civil claims (including acts or other events which may lead to · litigation or other disputes). The RDA manages legal risk through the effective use of its legal adviser. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 6. CASH AND CASH EQUIVALENTS The Cash and Cash Equivalents is in respect of all bank accounts held by the RDA. Cash and cash equivalents is made up as follows: 2020 2019 MUR MUR Cash at Bank (233,309,106) (483,357,213) Notice Deposit 301 ,920,998 557,114,301 68,611,892 73,757,088 7. TRADE AND OTHER RECEIVABLES 2020 2019 {Restated} MUR MUR Contribution from STC 30,197,457 23,030,153 Car Loan Receivable within one year (Refer to note 10) 1,550,000 2,000,000 Income from accident 14,012,658 13,919,544 Government Recurrent Grant Receivable Government Grant for RDA Road Projects and Maintenance receivable 26,271,126 255,327 Prepayments & Other Debtors 2,403,591 979,517 74,434,832 40,184,541 8.INVENTORIES 2020 2019 MUR MUR The inventories held are as follows : Tools and materials 11,971,327 14,206,428 Stationery 1,108,588 1,222,205 13,079,915 15,428,633 9. HELD-TO-MATURITY INVESTMENT The held-to-maturity investment consist of one investment in Government Treasury Bills of settlement amount of Rs 48,727,500 with the SBM Bank (Mauritius) Ltd held in Mauritian Rupees. The value date of the investment was 19 November 2019 with a maturity date of 6 November 2020. Thus.it has 353 days to maturity and carries a yield of 2.7% per annum. On maturity, the nominal amount of Rs 50,000,000 will be paid to the RDA. Held-to-maturity investments are recorded at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The held-to-maturity investment is being used as an alternative to deposits in bank which do not reap any interest income. Interest income received through held to maturity investment is recognized as revenue. The Held-to-Maturity Investment is a risk free investment as it is issued by the Government as Government Treasury Bills. The details are as follows : 2020 2019 MUR MUR Investment in Government Treasury Bills 48,727,500 44,951,649 Interest Income allocated for FY 2019/2020 811 ,084 24,138 Held to Maturity Investment 4g,538,584 44,975,787 2020 2019 MUR MUR 10.CAR LOAN RECEIVABLE At 1 July 5,120,778 7,583,670 Add Car Loan advanced during the year 2,075,000 1,437,000 Less Repayment during the year (2,211,380) -3,899,892 At 30 June 4,984,398 5,120,778 Less Amount receivable within one year (Note 7) (1 ,550,000) (2,000,000) 3,434,398 3,120,778 ,, . NOTE 11 ROAD DEVELOPMENT AUTHORITY m NOTES TO THE ACCOUNTS FOR THE PERIOD 1 JULY 2019 TO 30 JUNE 2020 Property,Plant and Equipment PLANT & MOTOR OFFICE FURNITURE BUILDING COMPUTERS TOTAL MACHINERY VEHICLES EQUIPMENT & FITTINGS Rs Rs Rs Rs Rs Rs Rs COST At 01 .07.19 5,293,605 29,644,887 54,802,427 7,450,577 4,187,532 8,967,851 110,346,879 Additions 0 349,773 1,988,265 168,483 310,782 494,600 3,311,903 Disposals/Theft -29,900 -29 ,900 At 30.06.20 5,293,605 29,964,760 56,790,692 7,619,060 4,498,314 9,462,451 113,628,882 Accumulated Depreciation At01 .07.19 678,678 22,560,369 39,330,456 5,541 ,446 3,439,199 7,125,179 78,675,327 Depreciation Charge For Year 105,872 1,776,931 3,764,567 327,490 165,060 746,820 6,886,740 Disposal/Theft -20,183 -20, 183 At 30.06.20 784,550 24,317,118 43,095,023 5,868,936 3,604,259 7,871,999 85,541,885 Carrying Amount At 30.06.20 4,509,055 5,647,643 13,695,669 1,750,124 894,055 1,590,452 28,086,998 At 30.06.19 4,614,927 7,084,518 15,471,971 1,909,131 748,333 1,842,672 31,671 ,552 NOTE12 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 Intangible Assets Computer Software COST Rs At01 .07.19 1,851,958 Additions 110,630 At 30.06.20 1,962,588 AMORTISATION At01 .07.19 1,536,346 Amortisation Charge For Year 141,065 At 30.06.20 1,677,411 Carrying Amount At 30.06.20 285,177 At 30.06.19 315,612 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 2020 2019 MUR MUR 13. INVESTMENT IN PROJECT Al 1 July 45,689,532 67,949,831 Reduction due to capital repayment (24,499,013) (22,439,709) Exchange gain I (loss) -(Refer note 37) 4,476,198 179,410 At 30 June 25,666,717 45,689,532 14. TRADE AND OTHER PAYABLES 2020 2019 MUR MUR Deposits for Road Projects 75,738,780 68,434,257 Deposits for erection and display of advertisement 4,599,399 4,413,719 Deposit for laboratory fees 238,521 316,536 Other Deposits received 65,000 65,000 Other Creditors and accruals 4,050,115 2,031,186 Car Loan payable within one year to Accountant General (Refer to note 20) 1,550,000 2,000,000 Creditors for RDA Road Projects and Maintenance 26,269,798 3,334,376 Grant received in advance - Road Projects 18,405,834 18,405,834 Creditors for Works under STC Funds 266,869 266,869 131,184,316 99,267,777 15. BORROWINGS The RDA has a Loan from the African Development Bank (ADS) for financing the South Eastern Highway Project. The Loan is fully guaranteed by the Government of Mauritius.The principal is repayable over a period of fifteen (15) years in thirty (30) equal and semi annual instalments.Interest is payable every six (6) months at a rate equal to six (6) months LIBOR (for disbursement in US Dollars) and six (6) months EURIBOR (for disbursement in EU ROS). The first repayment was effected in Financial Year 2006-2007 and the Loan ends in June 2021. The balance due in USO and EURO as at 30 June 2020 has been translated to Mauritian Rupees at the exchange rate ruling at the Statement of Financial Position date. 2020 2019 MUR MUR USO 342,385.44 13,866,610 USO 684,770.89 24,754,468 EURO 259,229.06 11,800,107 EURO 518,066.40 20,935,063 Total amount due as at 30th June 25,666,717 45,689,531 Less:Amount Payable within 1 year (25,666,717) (22,500,000) Amount Payable after 1 year 23,189,531 16. EMPLOYEES BENEFITS OBLIGATIONS 2020 2019 MUR MUR Staff Passage Benefit (See Note 19.1) 2,900,000 3,300,000 Staff Sick Leave (See Note 19.2) 5,200,000 6,000,000 Staff Vacation Leave (See Note 19.3) 900,000 1,800,000 9,000,000 11,100,000 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 17.BORROWINGS MUR MUR Proportion of Borrowings repayable after 1 year (see Note 15) 23,189,531 18. RETIREMENT BENEFIT OBLIGATIONS Amounts recognised in Statement of Financial Position at end of year: For year ending 30 For year ending June 2020 30 June 2019 Rs Rs Defined benefit obligation 416,048,921 321,144,708 Fair value of plan assets (155,921,280) (145,884,014) Liability recognised in Statement of Financial Position at end of year 260,127,641 175,260,694 Amounts recognised in income statement: Service cost: Current service cost 14,270,671 10,164,464 Past service cost (Employee Contributions) (5,462,103) (5,595,110) Fund expenses 349,724 387,712 Net Interest expense/(revenue) 6,315,417 12,124,129 Statement of Financial Performance Charge 15,473,709 17,081,195 Remeasurement Liability (gain)/loss 88,174,201 (86,152) Assets (gain)/loss (5,126,589) (7,120,218) Net Assets/Equity (NAE) 83,047,612 (7,206,370) Total 98,521,321 9,874,825 Movements in liability recognised in Statement of Financial Position: At start of year 175,260,694 179,176,370 Amount recognised in Statement of Financial Performance 15,473,709 17,081,195 (Contributions paid by employer) (13,654,374) (13,790,501) Amount recognised in NAE 83,047,612 (7,206,370) At end of year 260,127,641 175,260,694 The plan is a defined benefit arrangement for the employees and it is funded. The assets of the funded plan are held independently and administered by The Sta_te Insurance Company of Mauritius Ltd. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 18. RETIREMENT BENEFIT OBLIGATIONS (continued) For Jlear ending 30 For Jlear ending June 2020 30 June 2019 Reconciliation of the present value of defined benefit obligation Rs Rs Present value of obligation at start of period 321,144,708 310,018,757 Current service cost 14,270,671 10,164,464 Interest cost 11,561,209 20,926,266 (Benefits paid) (19,101,868) (19,878,627) Liability (gain)/loss 88,174,201 (86,152) Present value of obligation at end of period 416,048,921 321,144,708 Reconciliation of fair value of plan assets Fair value of plan assets at start of period 145,884,014 130,842,387 Expected return on plan assets 5,245,792 8,802,137 Employer Contributions 13,654,374 13,790,501 Employee Contributions 5,462,103 5,595,110 (Benefits paid + other outgo) (19,451,592) (20,266,339) Asset gain/(loss) 5.126,589 7,120,218 Fair value of plan assets at end of period 155,921,280 145,884,014 Distribution of plan assets at end of period Percentage of assets at end of year June 2020 June 2019 Fixed Interest securities and cash 61.70% 58.70% Loans 3.00% 3.40% Local Equities 10.10% 13.10% Overseas bonds and equities 24.60% 24.20% Property 0.60% 0.60% Total 100.00% 100.00% Additional disclosure on assets issued or used by the reporting entity June 2020 June 2019 (%) (%) Percentage of assets at end of year Assets held in the entity's own financial instruments 0% 0% Property occupied by the entity 0% 0% Other assets used by the entity 0% 0% Components of the amount recognised in NAE Year June 2020 June 2019 Currency Rs Rs Asset experience gain/(loss) during the period 5,126,589 7,120,218 Liability experience gain/(loss) during the period (88,174,201) 86,152 (83,047,612) 7,206,370 Year 2020/2021 Expected employer contributions 14,308,725 Weighted average duration of the defined benefit obligation 15 years (Calculated as a % change in PV of liabilities for a 1 % change in discount rate) The plan is exposed to actuarial risks such as : investment risk, interest rate risk, longevity risk and salary risk. The risk relating to death in service benefits is re-insured. The cost of providing the benefits is determined using the Projected Unit Method. The principal assumptions used for the purpose of the actuarial valuation were as follows : ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 18. RETIREMENT BENEFIT OBLIGATIONS (Continued) For year ending 30 For year ending June 2020 30 June 2019 Discount rate 3.60% 6.75% Future salary increases 2.40% 4.00% Future pension increases 1.40% 3.00% Mortality before retirement A 6770 Ultimate Tables Mortality in retirement PA (90) Tables 65 years Retirement age The discount rate is determined by reference to market yields on bonds. Significant actuarial assumptions for determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based reasonably on possible changes of the assumptions occuring at the end of the reporting period. - If the discount rate would be 100 basis points (one percent) higher (lower), the defined benefit obligation would decrease by Rs 54.9M (increase by Rs 69.4M) if all other assumptions were held unchanged. - If the expected salary growth would increase (decrease) by 1 %, the defined benefit obligation would increase by Rs 33.2M (decrease by Rs 28.2M) if all assumptions were held unchanged. - If life expectancy would increase (decrease) by one year, the defined benefit obligation would increase by Rs 13.SM (decrease by Rs 13.3M) if all assumptions were held unchanged. In reality one might expect interrelationships between the assumptions, especially between discount rate and expected salary increases, given that both depends to a certain extent on expected inflation rates. The analysis above abstracts from these interdependence between the assumptions. 19.EMPLOYEES BENEFIT OBLIGATIONS 2020 2019 MUR MUR Staff Passage Benefit 11,078,626 9,115,383 Staff Sick Leave 36,258,822 34,306,385 Staff Vacation Leave 38,082,128 34,653,883 85,419,576 78,075,651 2020 2019 19.1 PROVISION FOR PASSAGE BENEFITS MUR MUR Al 1 July 12,415,383 11,406,774 Adjustment (7,486) At 1 July (restated) 12,407,897 11,406,774 Payment during the year (2,913,888) (3,344,489) Charge for the year 4,484,617 4,353,098 At 30 June 13,978,626 12,415,383 Less Amount due within one year (Note 16) (2,900,000) (3,300,000) 11,078,626 9,115,383 2020 2019 19.2 PROVISION FOR SICK LEAVE MUR MUR At 1 July 40,306,385 38,813,420 Adjustment (109,106) 273,183 At 1 July (restated) 40,197,279 39,086,603 Payment during the year (5,267,530) (6,043,543) Charge for the year 6,529,073 7,263,325 At 30 June 41,458,822 40,306,385 Less Amount due within one year (Note 16) (5,200,000) (6,000,000) 36,258,822 34,306,385 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 2020 2019 19.3 PROVISION FOR STAFF VACATION LEAVE MUR MUR At 1 July 36,453,883 36,1og,733 Adjustment 11,879 (91,595) At 1 July (restated) 36,465,762 36,018,143 Payment during the year (913,885) (1,813,302) Charge for the year 3,430,251 2,249,042 At 30 June 38,982,128 36,453,883 Less Amount due within one year (Note 16) (900,000) (1,800,000) 38,082,128 34,653,883 2020 2019 20.CAR LOAN PAYABLE MUR MUR At 1 July 5,120,778 7,583,670 Add Car Loan advanced 2,075,000 1,437,000 Less Repayment during the year (2,211,380) (3,899,892) At 30 June 4,984,398 5,120,778 Less Amount due within one year (Note 14) (1,550,000) (2,000,000) 3,434,398 3,120,778 21. ACCUMULATED DEFICIT 2020 2019 (Restated} MUR MUR At 1 July (157,370,908) (166,351,985) Prior Year Adjustment : Road accident claims more than 1 O years and claims pertaining to government vehicles written off prior to FY 18/19 (2,151,054) At 1 July (restated) (157,370,908) (168,503,039) Actuarial gain/ (loss) on Defined Benefit Plan (83,047,612) 7,206,370 Exchange gain/ (loss) Investment in Project 4,476,198 179,410 Foreign Exchange gain/ (loss) (4,476,198) (179,410) Amortisation of Investment in project - Repayment of loan (24,499,013) (22,439, 709) Surplus for the Year 13,223,398 26,365,470 At 30 June (251,694,135) (157,370,908) 22. GRANTS FOR RDA ROAD PROJECTS The Capital Grant for RDA Road Projects represents amount received from the Ministry of National Infrastructure and Community Development for financing of roads construction and maintenance 2020 2019 MUR MUR Grants for RDA Road Projects 2,056,685,028 2,182,961,095 23. GRANTS FOR ROAD PROJECTS OUT OF NATIONAL ENVIRONMENT FUND The Capital Grant for Road Projects out of National Environment Fund (NEF) represents amount received from the Ministry of Finance, Economic Planning and Development through the Ministry of National Infrastructure and Community Development for financing of certain road projects. 2020 2019 MUR MUR Grants for Road Projects 85,379,168 46,193,136 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 24. GRANTS FOR FINANCING OF RECURRENT EXPENDITURES This relates to Government Grant received as follows: 2020 2019 MUR MUR Financing of Tools and Materials 8,880,187 11,690,666 Recurrent Grant 151,263,939 137,912,236 Recurrent expenditures paid by Ministry of National Infrastructure and Community Development on behalf of RDA 253,407 633,418 160,397,533 150,236,320 25. CONTRIBUTION RECEIVED FROM STATE TRADING CORPORATION Contribution receivable from the State Trading Corporation in respect of Road Tax on fuel consumption (25 cents per litre on Mogas, 15 cents per litre on Gas oil and 15 cents per litre on Dual Purpose Kerosene) under the "Petroleum Pricing System" was accounted as State Trading Corporation Fund in Financial Year 2016/17 and prior years . This contribution was utilized for repayment of ADB Loan and financing of recurrent expenditure. With the full implementation of IPSAS 23 'Revenue from Non-Exchange Transactions (Taxes and Transfers)' as from 01 July 2017, the deferment policy has been reviewed and transfers received are now recognised as income in the period in which the transfer arrangement becomes binding. 2020 2019 MUR MUR Received during the year 78,868,014 98,149,716 Opening Receivables (23,030,153) (20,945,955) Closing Receivables 30,197,457 23,030,153 Statement of Financial Performance 86,035,318 100,233,914 2020 2019 26. GRANT FOR FINANCING CAPITAL EXPENDITURE MUR MUR Government Grant received in current year for acquisition of Motor Vehicles 1,988,265 2,668,800 Government Grant received in current year for acquisition of Management Information System 513,475 Government Grant received in current year for acquisition of Machinery and Equipment 349,773 3,961,380 2,338,038 7,143,655 27. OTHER MISCELLANEOUS INCOME 2020 2019 MUR MUR Tender Fees 45,000 133,000 Processing fees for advertisement 402,000 151,500 Income from Accident 1,739,793 3,115,413 Miscellaneous Income 45,933 150,966 2,232,726 3,550,879 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 28. EXPENDITURE FOR ROAD PROJECTS OUT OF RDA BUDGET The Expenditure for Road Projects out of RDA Budget represents amount paid to Consultants and Contractors for roads construction and maintenance. 2020 2019 MUR MUR Design and Construction of Grade Seperated Junction on M1 at De Caen Street at Port Louis 181 ,590,472 La Brasserie Beaux Sanges Link Road (Consultancy for Design and Survey Fees) 1,136,954 New Access Road at SSR Airport 13,550,767 Construction of a Third Lane to Grand Bassin 1,642,661 Saint Julien Bypass 13,074,483 73,079,998 Consultancy Services for Pont Fer/Jumbo/Dowlut roundabouts and for the construction of A1-M1 Link Road 53,760,427 56,364,134 The Construction of Grade Separated Junctions at Pont Fer- Jumbo - Dowlut Roundabouts and A1-M1 Link Road 748,659,963 406,612,320 Repair to Embankment on Motorway M3 at Ripailles 92,819,451 110,074,565 Construction of re-inforced concrete piles on Embankment on MotorwayM3 at Ripailles 8,715,330 145,207,278 Detailed design of Safety Piles System 853,445 Supervision for Construction of re-inforced concrete piles on Embankment on MotorwayM3 at Ripailles 239,772 4,431,292 Upgrading of 828 Road (Lot 3) Phase 1 from Deux Freres to Beau Champ 9,611,125 Re-alignment of B 15 Road with reconstruction of Choisy Bridge at Poste de Flacq 7,310,097 Upgrading of Radier St Martin at Bel Ombre 1,889,268 17,849,533 Ste Marie Bridge , Bel Ombre 38,766,756 21,786,527 Joli Bois Bridge , Mare Tabac 12,789,096 3,558,167 Construction of a third lane along Motorway M2 between Roche Bois Roundabout to Jin Fei Roundabout 17,362,529 170,893,301 Upgrading of Pointe aux Sables Road at Petit Verger 77,069,279 17,328,855 Construction of an Access Road at Fort William 1,990,916 56,794,649 Review and Updating the Road Management System 237,002 216,729 Improvement of bend at Nouvelle Decouverte 25,849,004 7,713,783 Reprofiling of L'Amaury Road 7,579,100 16,343,908 Reconstruction of 8104 (Baie du Cap- Chamarel-Case Noyale) Road at Chamarel 12,484,860 A 1-A3 Link Road 97,839,406 49,337,484 Cap Malheureux bypass 123,142,860 54,177,046 Hillcrest Flyover, Quatres Barnes 94,796,461 31,767,020 Consultancy services for design and supervision for the construction of New Access Road at SSR Airport 142,762 La Croisette New Link Road 33,808,155 11,229,762 Link Road between M3 and Arsenal Branch Road 3,719,522 Road Maintenance and Rehabilitation 589,374,548 713,073,302 2,056,685,028 2,182,961,095 ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 29. EXPENDITURE FOR ROAD DECONGESTION PROJECTS OUT OF NATIONAL ENVIRONMENT FUND The Expenditure for Road Projects out of National Environment Fund (NEF) represents amount paid to Consultants and Contractors for certain road projects. The NEF is a Fund managed by the MOFEPD. 2020 2019 MUR MUR Repairs to Terre Rouge Verdun Road -04 Section 83,836,788 46,193,136 Consultancy services for the reconstruction of Baie du Cap -Chamarel -Case Noyale Road (B104) at Chamarel 1,542,380 85,379,168 46,193,136 30. STAFF COST 2020 2019 MUR MUR Salaries and compensation 120,082,977 115,511 ,459 End of year bonus 9,828,203 9,482,274 Travelling 17,173,508 16,410,113 Overtime 4,906,213 7,347,054 Allowance 5,580,075 4,133,490 Medical Examination for employees 92,000 90,800 Uniform/Protective Equipment Allowance 2,400,037 2,122,538 Passage Benefit 4,477,130 4,348,744 National Savings Fund Contribution 2,082,944 1,956,580 Annual Leave refund 41,598 67,673 Vacation Leave refund 3,442,129 2,166,645 Gratuity 197,790 205,261 Pension Contribution 17,472,522 18,520,120 Family Protection Scheme 2,102,674 2,008,713 Sick Leave refund 6,355,063 7,546,775 Staff Training 340,550 213,907 Staff Welfare 838,735 858,643 197,414,148 192,990,789 31. DEPRECIATION AND AMORTISATION 2020 2019 MUR MUR Plant & Machinery 1,776,931 1,743,379 Motor Vehicles 3,764,567 4,312,960 Office Equipment 327,490 346,134 Office Furniture 165,060 157,814 Computers 746,820 677,520 Buildings 105,872 105,872 Computer Software 141,065 130,629 7,027,805 7,474,308 32. TOOLS AND MATERIALS The expenditure incurred under this item comprises among others guardrails, handrails, instant patch, bitumen, cement, iron bars and small tools used in road maintenance such as drilling machines and grinders. 2020 2019 MUR MUR Tools & Materials 11,134,498 8,205,098 -' r ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 33. MOTOR VEHICLE EXPENSES This expense relates mainly to repairs and maintenance, fuel, insurance and road tax in respect of RDA vehicles - lorries, vans and cars . 2020 2019 MUR MUR Motor vehicle expenses 4,522,806 5,757,982 34. RENT This relates mainly to rental expenses paid for the RDA headquarters 2020 2019 MUR MUR Rent 10,337,973 9,869,696 35.OTHER ADMINISTRATIVE EXPENSES 2020 2019 {Restated} MUR MUR Conference and Committees 950,632 1,154,631 Advertisement 694,263 386,548 Maintenance Premises 537,291 409,290 Repairs building 422,547 1,038,702 Stationery 1,041 ,650 1,388,300 Printing 175,483 174,972 Postage 164,353 186,035 Books and Periodicals 11,383 7,396 Newspapers and magazines 43,395 60,345 Electricity 1,263,646 1,488,455 Telephone 1,308,157 1,495,056 Water 43,571 47,961 Repairs/maintenance office equipment 787,028 852,395 Repairs/maintenance plant & machinery 187,077 260,874 Overseas travelling 363,684 44,734 Miscellaneous 97,318 247,989 Gas 240 Insurance and Indemnity 642,076 880,890 Legal/Professional fees 734,785 381,038 Audit fees 400,000 637,500 Road accidents written off 650,150 644,682 Contribution to international organisations 131,192 122,603 10,649,681 11,910,636 36. FINANCE COSTS 2020 2019 MUR MUR Bank Charges 93,461 63,604 Interest on African Development Bank Loan 628,037 1,052,869 721,498 1,116,473 37. FOREIGN EXCHANGE DIFFERENCE This exchange difference is the result of the translation of the foreign loan from African Development Bank at the exchange rate ruling at the Statement of Financial Position date as at 30 June 2020. This exchange difference has been recognised in the Statement of Changes in Net Assets/Equity. ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 38. EXCHANGE GAIN ON INVESTMENT IN PROJECT This exchange gain is the result of the translation of the foreign loan from ADB at the exchange rate ruling at the Statement of Financial Position date as at 30 June 2020. This exchange gain has been recognised in Statement of Changes in Net Assets/Equity. 39. RELATED PARTY TRANSACTIONS Key Management Personnel Key Management Personnel as per IPSAS 20, are: a) All directors or members of the governing body of the RDA ; and b) Other person having the authority and responsibility for planning, directing and controlling the activities of the RDA The Management of RDA comprises of the General Manager, 1 Deputy General Manager, 5 Divisional Managers, 1 Acting Divisional Manager, 1 Financial Manager and 1 Administrative Manager as Key Management Personnel. The aggregate remuneration of key management personnel and the number of members determined on a full time equivalent basis receiving remuneration in this category are: 2020 2019 MUR MUR General Manager 3,966,980 3,394,188 Other Key Management Personnel 22,754,240 26,247,845 Number of Persons 10 12 Close members of the family of Director 352,882 Close members of the family of Other Key Management Personnel 571,552 Remuneration of Chairperson who is part-lime is as follows: Chairperson 104,032 900,000 There has been a change of Chairperson during the year. Remuneration of close members of family of Other Key Management Personnel relates to previous Chairperson. Car Loan transactions with Key Management Personnel 2020 2019 MUR MUR Opening Balances 937,152 2.452.427 Loans receivable within 1 year 748,714 1,015,275 Loans receivable after 1 year 188.438 1,437,152 Opening Balance of Loans to staff promoted to key management level during the year Loans granted during the year 1,000,000 832,048 1,515,275 Loan instalments received Loan transfer out Closing Balances 1,105,104 937,152 Receivable within 1 year 388.437 748,714 Receivable after 1 year 716,667 188.438 1,105,104 937,152 All eligible officers of the RDA are granted duty free facilities and loans for the purchase of a car as prescribed in the PRB reports. There was no other remuneration or compensation to key management personnel. Related party transactions were carried out at commercial terms and conditions. 40. CONTINGENT LIABILITIES No provision has been made in these financial statements for any liability that may arise under the Employment Rights Act or contingency sums under contract of goods, services and projects. There are pending litigations in respect of court cases where the Authority is involved or is a party to ii. One case relates to the incident following the flashflood in Port Louis on 13 March 2013 where Swan Insurance Co Ltd is claiming the sum of Rs 70M from the following defendants: (1 )The State of Mauritius,(2)The Ministry of Environment, Sustainable Development, (3) Disaster and Beach Management, (4) The Mauritius Meteorogical Services, (5) The Ministry of Public Infrastructure and Land Transport ,(6) The Road Development Authority, (7) The municipal Council of Port Louis, (8) General Construction Company Limited.The RDA legal adviser is disputing liability on very strong grounds. Other legal {:ases which are being handled by RDA legal adviser are as follows : Plaint with Summons - Intermediate Court: Marie Rosemary Ronelle vis (1) Municipal Council of Curepipe (2) Road Development Authority. Claim Rs 1,839,000. Status : Proforma 14 July 2020 Appeal: EDCC Co Ltd vis (1) K. Dabeesing (2) Road Development Authority Status: Merits 9 November 2020 ...,.:>·· . ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 41. REINSTATEMENT OF OPENING ACCUMULATED DEFICIT The following prior year adjustments were made. Where appropriate, items in the Statement of Financial Position and Statement of Financial Performance and the comparative informatipn have been reclassified and restated MUR Accumulated Deficit as at 1 July 2019 (154,575,172) Adjustment for road accident claims written off prior to FY 2018/19 (2,151,054) Adjustment for road accident claims written off for FY 2018/19 (644,682) Accumulated Deficit as at 1 July 2019 (restated) (157,370,908) 42. NOTES ON BUDGET INFORMATION Difference between Original and Revised Budget (a) Government Grant for RDA Road Construction and Maintenance and Road Projects for NEF The negative variance relates to some projects that were delayed and hence corresponding grant for financing these projects could not be claimed. This is mainly due to Covid 19 sanitary confinement and external dependencies such as interface with other projects, delay in policy decisions, land acquisition, procurement and legal delays. Change in scope of works, resource constraints and complex geotechnical challenges are other reasons that road projects could not be carried out on time. (b) Government Grant for Financing of Recurrent Expenditure The negative variance was caused mainly by the fact that there was lower level of expenditure as a result of Covid-19 sanitary confinement. (c) Contribution from State Trading Corporation The negative varaince was caused by the fact that level of activity slowed in the country due to Covid-19 sanitary confinement and thus fuel consumption had decreased. (d) Government grant for financing of sub-office building The negative variance was caused by the fact that the construction of the building could not be started due to delay in finalisation of the design and technical drawings. (e) Expenditure on RDA Road Construction and Maintenance and Road Projects for NEF The positive variance relates to some road projects that were delayed. This is mainly due to Covid 19 sanitary confinement and external dependencies such as interface with other projects, delay in policy decisions, land acquisition, procurement and legal delays. Change in scope of works, resource constraint, complex geotechnical challenges are among the reasons for the delay in implementing road projects (f) Staff Cost Savings was caused mainly by the fact that there was delay in recruitment and some staff were on leave without pay. (g) Motor Vehicle Expenses The negative variance relates to an increase in the Revised Budget due to increase in size and an ageing of vehicles fleet (h) Repairs Building The negative variance relates to an increase in the Revised Budget due to electric works carried out in workshops of suboffices to cater for heavy load and improvement to its security aspects (i) Staff Training The decrease in Staff Training amount in the Revised Budget relates to lack of training for RDA officers as there were shortage of staff to implement projects and the complexity of road projects. Thus staff could not be released for training purposes ROAD DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020 Difference between Revised Budget and Actual Amounts (a) Government Grant for RDA Road Construction and Maintenance and Road Projects for NEF The negative variance relates to some road projects that were delayed due Covid 19 sanitary confinement and thus grant could not be claimed. In addition there were some external dependencies such as interface with other projects, delay in policy decisions, land acquisition, procurement and legal delays. Change in scope of works, resource constraint, complex geotechnical challenges are among the reasons for the delay in implementing road projects (b) Government Grant for Financing of Recurrent Expenditure The positive variance was caused mainly by the fact that Contribution from STC was lower than expected as level of activity slowed in the country due to Covid-19 sanitary confinement and thus fuel consumption had decreased. (c) Government Grant for Financing of Other Plant and Machinery The negative variance is mainly due to procurement delays caused by the fact that e-procurement was launched for procuring of plant and machineries and no offer were made by suppliers. (d) Government Grant for Financing of Upgrading of Sub Office Building The negative variance relates to the construction of RDA sub office at Helvetia that could not be started due to the complexity of the design and technical drawings of the building that took time to be finalised by the Ministry of National Infrastructure and Community Development (Building Section) (e) Expenditure on RDA Road Construction and Maintenance and Road Projects for NEF The positive variance relates to some road projects that were delayed due Covid 19 sanitary confinement. This is due to external dependencies such as interface with other projects, delay in policy decisions, land acquisition, procurement and legal delays. Change in scope of works, resource constraint, complex geotechnical challenges are among the reasons for the delay in implementing road projects (f) Expenditure on Tools & Materials The positive variance relates to reduced spending on guardrails, handrails to be installed for road security. (g) Staff Cost The negative variance was caused by higher level of overtime and mileage payment after sanitary confinement. In addition, several staffs had retired with retirement benefits in respect of sick leave, vacation leave and passage benefits being paid. Payment was also effected for sanitary masks and personal protective equipment as a sanitary measure against Covid 19. (h) Motor Vehicle Expenses The positive variance is due to the fact that there was lower level of activity as a result of Covid-19 sanitary confinement. ~ ~... -_, .._\