Photo: HAC/Croatian Motorways
The state of Croatia’s road sector poses a unique challenge compared with more typical World Bank projects where road assets either need to be developed or require significant rehabilitation. If you've ever had the chance to experience Croatian roads you'll quickly realize the country has a well-developed motorway and state road network, in relatively good condition. This begs the question: how can the World Bank help improve a sector with already high-quality assets in a middle-income country like Croatia?
Over the past two decades, rated infrastructure worldwide has grown threefold. Some periods of flatter growth aside, the rise of infrastructure lending for both project finance and corporates has helped steer the sector’s development.
All the while, the infrastructure sector has developed a more robust risk profile compared to companies primarily involved in the production of goods, otherwise known as non-financial corporates (NFCs). And,
Photo: Gordon | Flickr Creative Commons
Public-private partnerships (PPPs) in Brazil have been around since 2004 when federal legislation established the legal framework to make them possible. Since then, approximately 100 PPP contracts have been signed in Brazil, totaling almost 160 billion Brazilian reais ($50 billion) in private investment in numerous sectors, including hospitals, schools, public lighting, sanitation, solid waste management, sport arenas, public buildings, urban transport, and roads. Some notable successes include the Belo Horizonte schools PPP, which supports non-pedagogical services in 51 schools, and the 298-bed Bahia Subúrbio Hospital, which opened in 2010.
Photo: Burst | Pexels Creative Commons
Australia’s involvement in the Global Infrastructure Facility (GIF)—as a founding member, and co-chair of the advisory council over the past year—underscores our commitment to lift investment in global infrastructure, which is a critical component to ensuring economic growth and poverty alleviation.
Strong economic infrastructure underpins human development, enables movement of people and goods, provides access to and expands markets and services, facilitates innovation, and enhances competitiveness.
Photo: Creativa Images | Shutterstock
Critically constrained public resources on the one hand, and huge existing infrastructure needs for basic services on the other, make private participation in emerging markets and developing economies (EMDEs) not just critical, but in fact, imperative. Crowding in private finance is essential to spur economic development and meet the twin goals of shared prosperity and elimination of extreme poverty, as well as to achieve the Sustainable Development Goals.
The Private Participation in Infrastructure (PPI) Database, with data spanning over almost 27 years, has become a powerful tool and measure for gauging the level of private investment in infrastructure in EMDEs.
Photo: World Bank Group
By committing to the Sustainable Development Goals (SDGs), countries pledge to pursue progress on economic, social, and environmental targets, in a balanced and integrated manner. The SDGs are cross-cutting and ambitious, and require a shift in how we work in partnership. They also push us to significantly change the level of both public and private investment in all countries.
We need creative solutions to leverage each partner’s comparative advantage. We also need to mobilize private sector investment and innovation in support of the SDGs.
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It seems like every week there are new reports being published about public-private partnerships (PPPs) by different organizations around the world. How can you keep track of what’s new and what’s relevant for your work?
With over 4,000 documents on PPPs in seven different languages (English, Spanish, French, Portuguese, Arabic, Russian, and Chinese) in its searchable document library,
What’s been trending over the last quarter on the PPP Knowledge Lab?
Photo: Felix_Broennimann | Pixabay Creative Commons
Infrastructure is a key driver for growth, employment, and better quality of life in emerging markets and developing economies (EMDEs). But this comes at a cost. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operations such as power plants, buildings, and transport. The Overseas Development Institute estimates that over 720 million people could be pushed back into extreme poverty by 2050 as a result of climate impacts, while the World Health Organization projects that the number of deaths attributable to the harmful effects of emissions from key infrastructure industries will rise from the current 150,000 per year to 250,000 by 2030.
Does this mean we need to build less infrastructure? No. But part of the solution lies in low-carbon infrastructure.
Photo: Bannafarsai_Stock | Shutterstock
A few years ago, I participated in a meeting to discuss best practices in Public-Private Partnership (PPP) regulation. There was no shortage of examples. In fact, PPP practitioners were eager to share their experiences from countries around the world, but we did not have a systematic way to make all that information accessible to policy makers. Moreover, at the time, I kept thinking that there were many more good examples beyond those we were sharing at the meeting.
The lack of systematic data on the quality of PPP regulation was a serious issue. What we needed was a comprehensive, systematic way to go beyond individual examples. How could we collect available information, organize it in a rigorous and systematic way, and make it all accessible to policy makers?
On Thursday, April 5, the World Bank-Singapore Infrastructure Finance Summit will take place – the eighth time that the World Bank, the Government of Singapore, and the Financial Times are partnering to hold this annual event.
The Summit has gone from strength to strength each year, and helped pave the way for the many infrastructure-themed events across the reigon. This year, as Singapore’s chairing of ASEAN brings its ministerial meetings to the city-state, finance ministers from across Southeast Asia will join the Summit, and their presence underscores the importance they attach to sustainable infrastructure development.