This note aims at providing feedback onBrazil's successful experience in using performancebased contracts in the rehabilitation and maintenance of theroad networks. Since its introduction in the early2000's, the use of this contract management model hasprogressively spread to reach, as of today, one third of thefederal network and more than 10 percent of the states'networks, and expectations are for higher figures in theshort run. The note highlights the context which led to theintroduction of these contracts in the road sector and thestrategic orientations adopted in their structuring. Themodel was notably expected to bring rationalization,accountability and credibility to the sector at a momentwhen road maintenance, though a crucial issue whenconsidering the networks' characteristics andconditions, was not given sufficient consideration by theroad administrations. The note then provides an evaluationof the positive achievements resulting from these contracts.The evaluation, comparing objectively performance basedcontracts to the traditional input-admeasurements approach,shows that these contracts brought an overall improvedefficiency to the sector which translated to better roadconditions at lower costs for the governments and reducedmanagement burdens on the administrations. Finally, the noteprovides insights, gained from ten years of continuouslearning, on the main lessons learnt, and perspectives ondesirable evolutions in the future, while a balanced shareof responsibilities and initiatives between the public andthe private sectors is essential, strengthenedadministrations, fully accountable for preserving publicinterests, remain key to success; better articulatingcontract duration and rehabilitation works service life,which would lead to extended contract duration, is also oneof the possible orientations for future performance-basedcontracts in Brazil.
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