Road Safety Funding

Description

Road traffic accidents have an enormous impact on the social and economic welfare of Cambodia with an estimated annual cost of USD 116 million, representing around 3% of the country GDP (ADB Road Accident Costing Report 2004). Furthermore, road traffic accidents hinder development by killing and disabling the economically active population with 70% of all deaths due to road traffic injuries in Cambodia occur among young adults aged between 15-44 years (RCVIS 2007).

In a country where social security and insurance systems are almost inexistent, the cost of prolonged medical care and long term rehabilitation, coupled with the loss of income due to disability or death of a family’s primary earner can easily lead an affected household into poverty.

Thus, there is not only a clear social benefit to road safety and efforts to reducing road accidents, fatalities and injuries, but an economic benefit as well. Funding for road safety can be seen therefore as a long-term investment against future economic and social losses as a result of increasing road accidents and casualties.

The Royal Government of Cambodia has recognized the benefits of investing in road safety by including funding mechanisms in the National Road Safety policy and national action plan. Some of the internal funding mechanisms specifically promoted by the National Road Safety Committee (NRSC) include:

Earmarking traffic fines for road safety
Earmarking number plate revenue for road safety
Preparing annual road safety budgets submitted to the National Treasury

Other examples of road safety financing from around the world include:

Allocating a percentage from road maintenance fund to road safety
Developing a specific road safety fund
Fuel surcharge
Surcharges on fees such as driving license fees, vehicle registration and inspection

The National Road Safety Committee also receives funding from external sources. These activities cover mostly road safety and traffic law education and awareness raising, capacity-building and training, and black spot improvement. Recent donors have included:

Handicap International Belgium (HIB)
Global Road Safety Partnership (GRSP)
Asia Development Bank (ADB)
Japan International Cooperation Agency (JICA)
TOTAL
Caltex
Honda

Achieving a sustainable source of government funding for road safety activities is critical in reaching the national goal of reducing accidents, injuries and deaths, as well as reducing the burden on the national treasury. One of the stated objectives of the NRSC, therefore, is to advocate to the highest level for increased revenue streams to fund the road safety action plan.