RESEARCH PAPER SERIES
RPS 2018-01: Results of the Assessment of the Motor Vehicle User's Charge Utilization in the Philippines
by Ma. Sheilah G. Napalang, Pia May G. Agatep, Adoracion M. Navarro, and Keith C. Detros
Road funds like the Motor Vehicle User's Charge (MVUC) fund in the Philippines are earmarked funds that ensure a stable flow of resources, particularly for public road development projects. However, shortcomings from project identification to fund disbursement hamper effective implementation of the MVUC funding scheme. This paper assesses the different MVUC processes and finds that transparency and efficiency in collection should be improved through automation and accurate recording. Project identification and investment programming must also adhere to the recommended procedures in the operating manual. Finding indications of fund underutilization, it suggests accelerating fund utilization through advance project development and investment programming. Looking at five MVUC-funded projects, it observes that only one of the five projects had an impact monitoring system. Nevertheless, findings from field visits and interviews with beneficiaries reveal that there are positive benefits from the MVUC mechanism. A closer look at successful cases in other countries also reveals good practices that are worth noting. Click here to download the paper.
