East Asia and Pacific
Central government spending on transport increased by threefold between 2010-2016. This has enabled the country to extend its transport network capacity and improve access to some of the most remote areas across the archipelago.
The country has a road network of about 538,000 km, of which about 47,000 km are national roads, and 1,000 km are expressways. Heavy congestion and low traffic speeds translate into excessively long journey times. In fact, traveling a mere 100 km can take 2.5 to 4 hours. The country relies heavily on waterborne transport and has about 1,500 ports, with most facilities approaching their capacity limits, especially in Eastern Indonesia. Connectivity between ports and land infrastructure is limited or non-existent. The rail network is limited (6,500 km across the islands of Java and Sumatra) and poorly maintained. The country’s 39 international and 191 domestic airports mainly provide passenger services, and many are also reaching their capacity limits.
- sustainable development goals
- transport infrastructure
- freight transport
- Air pollution
- urban planning
- non-motorized transport
- Energy Efficiency
- low-emission transport
- low-carbon mobility
- low-carbon transport
- green transport
- urban transport
- mass transit
- public transport
- air transport
- maritime transport
- waterborne transport
- road transport
- roads and highways
- transport planning
- transport policy
- sustainable transport
- sustainable mobility
- Sustainable Communities
- Public Sector and Governance
- Private Sector Development
- Climate Change
- Urban Development
- East Asia and Pacific
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Over the last few decades, Public-Private-Partnerships (PPPs) have been used to build transportation, energy, telecommunications, and other infrastructure throughout the world. Value chains were established to foster growth in these sectors and significant experiences gained. A sector largely overlooked for PPP investments is the tourism sector.
In 2016, travel and tourism generated $7.6 trillion (10.2 percent of global gross domestic product) and an estimated 292 million jobs globally. The tourism sector is also the largest market-based contributor to finance protected areas such as national parks. In some countries, tourism depends almost exclusively on natural systems, often with wildlife as the primary attraction.
India’s agriculture sector—including animal husbandry, forestry, and fishing—has always been one of the country’s core economic sectors, accounting for about 16 percent of India’s GDP and employing nearly half of the working population. Although India has the second largest arable land pool in the world, agriculture is still mired by challenges such as low effective yield and underemployment. Underinvestment in agri-infrastructure, fragmented land holdings, and lack of knowledge and skills among farmers, are some of the key causes. These challenges in turn have aggravated issues like inflation, farmer distress and unrest, political and social disaffection—all of which have severe socioeconomic ripple effects on other sectors. This significantly curtails the ability of India’s economy to touch double-digit growth.
The task of preparing a viable, feasible, and sustainable infrastructure project can be a daunting one filled with many challenges. Throw in the need to incorporate an element of connectivity and the challenges only multiply in number and complexity. Indeed, during the annual meeting of the Global Infrastructure Connectivity Alliance (GICA), held in January 2018 at the OECD headquarters in Paris, GICA members identified several of these challenges, including the need to share best practices, ensure robust project preparation, and address the financing gap.
While multilateral development banks (MDBs) and international financial institutions (IFIs)—including GICA members Asian Infrastructure Investment Bank (AIIB), Eurasian Development Bank (EDB), Asian Development Bank (ADB), and the World Bank Group (WBG)—have the experience and financial or analytical tools to help, actually finding or accessing these resources can be difficult.
Is there a way to bridge this knowledge gap?
Bapak Kris manages a pellet production factory, located just outside Boyolali City in Central Java. Since its founding, he has started considering the domestic market- despite the fact that the produced pellets have mainly been for export- as the global markets have begun to cool down. When Bapak Kris learned that the Indonesia Clean Stove Initiative (CSI) had launched its Results-Based Financing (RBF) pilot in the Province, he registered and participated in the pilot.
He combined his knowledge of the local pellet market with the pilot program incentives to expand his distribution network and test new pellet-based clean stoves. With each stove sold, the company provided the consumer 1 kg of wood pellets free of charge. With the experience of participating in the RBF pilot, Pak Kris sees the potential of the clean cooking market. He plans to continue selling clean stoves and hopes to set up his own pellet factory.
, which can help people escape poverty.
A paved road can lead to a world of possibilities for small business owners, increasing access to additional markets and suppliers, as well as opportunities to grow their businesses.
The urban infrastructure finance gap
Cities already account for approximately 70-80 percent of the world’s economic growth, and this will only increase as cities continue to grow.
Cities will need partners to help them provide these building blocks for the future. The public sector cannot address these crucial needs alone, and overall official development assistance barely totals three percent of this amount. Cities should begin looking toward innovative financing options and to the private sector.