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infrastructure

Harnessing the Nile’s potential through private finance

Arsène Aimé H. Mukubwa's picture


Photo: Jorge Láscar | Flickr Creative Commons

The potential economic benefit from the cooperative use of the Nile’s water is estimated to be worth well over $11 billion—from irrigation and hydropower generation alone. But being able to harness those benefits is a far reach; the Nile Basin—a vital source of drinking water, irrigation, hydropower and transport—has a growing need for infrastructure investments to attain the full potential of this resource. Many of these infrastructure investments need to be coordinated between the basin’s 11 countries to ensure they are creating mutual benefits and are not causing harm to neighboring countries.

The Nile Equatorial Lakes Subsidiary Action Program - Coordination Unit (NELSAP-CU), one of the Nile Basin Initiative’s two investment programs, plays a prominent role in the region’s development. NELSAP supports poverty alleviation, economic growth, and the reversal of environmental degradation in the sub-region through cooperative development and water management. Between 2005 and 2015, we mobilized $90 million of cumulative finance for pre-investment programs (e.g. the Lake Edward and Albert Fisheries Project) and $930 million for investment projects (e.g. the Regional Rusumo Falls Hydroelectric Project).

This International Women’s Day: let’s design infrastructure better

Caren Grown's picture


Photo: Carol Mitchell | Flickr Creative Commons

As the backbone of development, infrastructure provides vital support for the twin goals of poverty reduction and shared prosperity. Considering the different needs, roles, and responsibilities of men and women in infrastructure design makes the achievement of these goals more sustainable.

Women and men face constraints both as beneficiaries and producers of infrastructure services. For example, there can be inequitable access to roads, financing for electricity connections, or clean water. There are also inequities in the infrastructure business value chain: Do utilities have a balance of women and men on technical and leadership teams? Is there diversity on boards, with regulators or policy makers? Are women-owned firms in supply chains?

The next Costa Rica? PPPs in Nicaragua are making that possible

Bernardo Weaver's picture

Photo: Devin Poolman | Flickr Creative Commons

Nicaragua’s Public-Private Partnerships (PPP) program is taking off. In less than a year, the country has moved quickly, overcoming hurdles to produce a PPP law, supporting regulations, and a well-staffed PPP unit. Its first deals are getting closer to fruition—the World Bank Group (WBG) team working on PPPs in Central America has just received four pre-feasibility studies for its top projects. Two of these are moving fresh out of the pipeline—the Pacific coastal toll road and a cruise ship terminal and marina in San Juan del Sur.

Why did the elephant cross the road?

Sunny Kaplan's picture


Photo: Phubadee Na Songkhla / Shutterstock

In the early 1950s, carving out a road in the newly-created Tsavo National Park in Kenya involved “hacking through scrubland,” according to Dame Daphne Sheldrick in her memoir, Love, Life, and Elephants. Founder of the David Sheldrick Wildlife Trust, an organization that rescues orphaned elephants and rhinos, she describes the park landscape as “inhospitable country, covered in an entanglement of dense scrub vegetation infested with tsetse fly...” but “known for its diversity of indigenous species, including fearsome lions, breeding herds of elephants, and thousands of black rhinos.”
 
Today, the two-lane Mombasa-Nairobi highway (A109) dissects the park to form Tsavo East and Tsavo West. This causes problems for wildlife. Richard Leakey, Chairman of Kenya’s Wildlife Service, says that 18 elephants have been killed from collisions with trucks, and other wildlife become roadkill on a regular basis.

Learning from Japan: PPPs for infrastructure resilience

Sanae Sasamori's picture
Also available in: Español | 日本語 


Photo: MediaFOTO/PIXTA

In March 2011, the Great East Japan Earthquake struck Japan, unleashing a tsunami that left some 20,000 people dead or missing. Sendai, the capital city of Miyagi Prefecture and a regional economic hub, was heavily affected by the disaster. About 500,000 residents in the city lost access to water, and the city’s primary wastewater treatment plant was completely submerged by the tsunami. Also, the tsunami damaged 325 kilometers of coastal railway assets and flooded about 100 kilometers of national highway in the Tohoku region, leading to the immediate closure of inland transport access to the devastated towns in need of assistance.
 
Four years later, while the recovery effort from the earthquake and tsunami was still underway, a private consortium signed a 30-year concession to operate Sendai Airport, making it the first state-owned airport in Japan operated by the private sector. This success was welcomed by policymakers and public-private partnership (PPP) practitioners with surprise—how could it be possible for a private operator to make a long-term investment decision in such a disaster-prone region?

PPP laws in Africa: confusing or clarifying?

Maude Vallée's picture



Between 2004 and 2017, some 30 African countries have adopted laws regarding Public-Private Partnerships (PPP). If we were to add to this list the countries that have implemented PPP policies, and those who are in the midst of drafting PPP laws, the tally would rise, leaving us with less than just 10 African countries that are entirely without a PPP framework.

What this tells us is that the calls by international financial institutions have been heard by decision-makers in Africa: a quality PPP legal framework will not only help identify successful projects, but it will guide those projects effectively and transparently towards closure, all the while ensuring development goals are met and investors are satisfied.

But how does reality measure up to the theory? How many projects, based on PPP law, have actually reached financial close? Given the time required to prepare a PPP, it is maybe too early to see PPP laws translated into concrete PPP projects, especially as more than 20 countries have in fact adopted their laws only in the last five years.

Breathing new life into power utilities through debt restructuring tools

Teuta Kaçaniku's picture


Photo: Raymond Ward | Flickr Creative Commons

Sector reform is a familiar concept for anyone working in the energy sector, particularly in developing countries. Typically, reforms involve measures such as building an institutional framework that allows for an independent regulator, improving the operational efficiency of utilities (for example, by unbundling vertically-integrated utilities), creating an environment for private sector participation, and last but not least, introducing tariffs that reflect costs. All these measures are designed with one goal in mind: to put the sector on a sustainable path and improve the quality of service for end-users.

While acknowledging the many benefits that sector reforms can bring, one issue we continue to face is the poor financial state of key power utilities. In other words, a lack of creditworthiness. Often, their lack of financial creditworthiness is the most critical obstacle to implementing investment programs. This makes utilities even more dependent on continuous government subsidies.

How do city leaders get things done? Learning from mayors in Japan

Sameh Wahba's picture
Also available in: Español | 日本語 
Picture of the Competitive Cities Technical Deep Dive participants enjoying a walk through the Minato Mirai 21 area (with the Cosmo Clock in the background), which aims to concentrate high-value added activities and a high quality of life in an integrated urban core in downtown Yokohama. Photo Credit: TDLC
The task of mayors and city leaders is no longer limited to providing efficient urban services to their citizens. Job creation is at the forefront of the economic development challenge globally.

Cities need jobs and opportunities for their citizens and the means to generate tax revenues to fund projects that meet their populations’ growing demand for basic services. The WBG flagship report on Competitive Cities outlines how creating jobs in urban areas – urgently but also at scale– is essential.
 
In November, 2017, we spent a week with approximately 30 city and national government officials and policymakers from several countries, including Argentina, Chile, Croatia, Egypt, Ethiopia, Malaysia, Philippines, Romania, South Africa, Tunisia and Uganda. These leaders represented diverse cities across the world, all with a common objective – how to make their cities and regions more competitive?

Many were dealing with a fragmented institutional landscape, often with overlapping jurisdictions – necessitating clarity of institutional circuits and processes. Some struggled to coordinate economic development strategies with private sector. Lack of adequate sub-national socio-economic data to drive evidence-based policy making compounded issues. City leaders are not looking for a lesson in theory – but evidence of what works and what doesn’t, and practical, implementable examples of how to get things done.
 
We spent the week as part of a Technical Deep Dive, studying and living the experience of two exceptional Japanese cities - Yokohama and Kobe. These cities have dealt with:
  • population influx,
  • industrialized at a rapid pace,
  • responded to environmental challenges,
  • reached the technological frontier,
  • undergone a housing bubble,
  • and even went through a major disaster (the Kobe earthquake) and recovered from it.

Energy challenges in the Kyrgyz Republic: It’s time to act!

Zamir Chargynov's picture
Last week, a technical failure occurred at Bishkek’s Heat and Power Plant, leaving parts of the capital city temporarily without power and heat supply. People residing in buildings connected to the district heating system experienced very cold and uncomfortable conditions, made worse by the exceptionally harsh winter this year. While the specific causes of the incident are still being investigated, it seems clear that old equipment at the Plant which is being operated well beyond its shelf-life was behind the failure.

Bishkek Heat and Power Plant

How an online platform helps drive infrastructure in developing countries

Catherine Workman's picture


Photo: Free-Photos / Pixabay Creative Commons

In order for investors to see the potential in developing long-term attractive infrastructure assets, projects must be well prepared. The lack of such primed projects is a major obstacle for ramping up global infrastructure, particularly in developing and emerging economies.

This is one of the priorities for the G20, as Argentinean President Mauricio Macri emphasized in December 2017: "Infrastructure for development" will be one of the key issues of focus during the country's G20 Presidency and it will "…seek to develop infrastructure as an asset class by improving project preparation."


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