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Which South Asia do you live in?

Prabha Chandran's picture

This blog is part of the series #OneSouthAsia exploring how South Asia can become a more integrated, thus more economically dynamic region. The blog series is a  lead up to the South Asia Economic Conclave, an event dedicated to deepen existing economic links through policy and investments in regional businesses.

Which South Asia do you live in? The one which offers world-class metros and malls, super-specialty hospitals, gourmet eateries and designer homes where servants make your meals, drive your car or clean your mess? 

Or do you live in the South Asia where sanitation, water and electricity are a luxury, where filth, ignorance and violence means death comes early and more frequently from illness, poverty and natural disasters? Statistically, the latter is more likely.

Having lived in Southeast Asia, where the emergence of the Tigers has transformed the lives of millions of poor through investment in human development, infrastructure and exports producing high growth rates, the visible poverty and chaotic streets of South Asia are troubling. So, too, is the contrast provided by India's dollar billionaires -- the third-largest rich man's club in the world.

Gender equality in transport is good for business: Suggestions to ensure successful gender mainstreaming

Catalina Crespo-Sancho's picture

Also available in: العربية

Women’s economic equality is good for business. It is clear that women play a fundamental role in building and sustaining the world economy.
They offer a powerful source of economic growth and opportunity. Women contribute not only to the formal economy, but also through the valuable and generally unpaid tasks of caregiving and homemaking. It has been proven that better opportunities in education, health, employment, and policies lead to better well being for women, their communities and — in turn — the economic and social well-being of a country.
However, only recently has the relationship of gender and infrastructure — more specifically, transport — and the role it plays in a country’s social and economic well-being been addressed.
Transport networks are one of the most important elements of a country’s infrastructure, and they are key to reducing poverty and promoting equality. A country’s transport infrastructure generally centers on enabling the supply of goods, connecting and providing access to people, services and trade, with the objective of bringing economic prosperity to a nation. However, it has been only in the past five to ten years that infrastructure projects have started to include gender awareness as part of their investment decisions.
As women become even more central to a country’s economy, addressing their transportation needs takes on an essential role in promoting economic growth and prosperity.

How national PPP units can influence regional performance: Korea’s experience

Kang-Soo Kim's picture

Kang-Soo Kim is Executive Director, Public and Private Infrastructure Investment Management Center (PIMAC), at the Korea Development Institute (KDI), the Republic of Korea’s leading think tank on national economic development. In this blog entry, he explains how national Public-Private Partnership (PPP) units can influence regional economic performance.

Photo: Wikimedia Commons

What advice would you give governments creating a PPP unit?

First, for a government considering this, the vision for PPP needs to be established and shared with others. Second, clearly distinguished roles and functions must be institutionalized. Third, expertise needs to be developed in fields like law, finance, accounting, economics, development, and engineering. Fourth, active benchmarking of developed PPP economies and cooperation with other PPP units should be encouraged and promoted

Overall, it’s critical to remember that a PPP unit’s expertise and capacity is not built overnight. So my final piece of advice is that while experience is built, remaining patient is just as important as maintaining a clear vision of PPP.

What makes PIMAC effective?

The legal and institutional system that guarantees independence and objectivity to the evaluation body is the most important element here. A PPP unit should not be in any way influenced by other players in a PPP project — whether the budget authority, the competent authority, or the private concessionaire. The government is vulnerable to political influence although the private sector is the project stakeholder. Independent and objective assessment by the PPP unit is therefore all the more crucial. It is important that the government lends its support, and that all decision-making reflects evaluations made by the PPP unit.

​Caribbean PPPs come of age: Boot camp-style workshops kick off new approach to partnerships

Luciana Guimaraes Drummond E Silva's picture
Street scene in Delmas, Haiti
“Plantain nu eat like rice” — a Caribbean saying roughly translated as “Make do with what is available to you” — applies to the region’s experience with public-private partnerships (PPPs) as well as to life on the islands. For many decades, implementation of PPPs in the Caribbean has been mixed; government officials and citizens alike have had to “make do” with these results.  

Some partnerships have successfully delivered new or improved roads, ports, airports, bulk water treatment facilities, and electricity generation plants, along with other high-quality infrastructure facilities. However, other promising PPPs faced challenges that were never overcome. ​In many cases, the complexity of the PPP development and implementation process meant long delays in delivering projects; others resulted in questionable value or unexpected costs to governments or consumers. 

To help Caribbean governments fulfill the promise of PPPs to deliver improved infrastructure assets and services, the Caribbean Development Bank (CDB), the Inter-American Development Bank (IDB), the Multilateral Investment Fund (MIF), the World Bank Group (WBG), and the Public-Private Infrastructure Advisory Facility (PPIAF) have created the Caribbean Regional Support Facility. This US$1.2 million program was launched at the High-Level Workshop on Practical Implementation on PPPs in Saint Lucia on June 15.  An important component of its near-term activities, an upcoming series of boot camp-style workshops, will increase technical capacity among Caribbean government officials, offering the depth and breadth that’s been missing from the PPP market.

Crossing the Hindukush mountains in Afghanistan

Luquan Tian's picture
A panoramic view of the Salang Pass in Afghanistan
Panoramic view of the Salang Pass in Afghanistan. Credit: World Bank

The Afghan Government takes full ownership of a new project to rehabilitate the Salang Pass Highway

If you had travelled along the silk route to Afghanistan over a hundred years ago, your caravan would have encountered some formidable mountain terrain.  Crossing the treacherous icy passes was one of the greatest dangers, and could only be undertaken during the summer months.
Things did not change much until the 1960s.  That was when the Soviets built the sturdy two-lane Salang highway across the Hindukush mountains and bored a 2.8 km long tunnel at the Salang Pass at 3,400 meters above sea level. The Salang tunnel - the world’s highest road tunnel at that time - was a feat of engineering.

5 questions about road safety in India

Arnab Bandyopadhyay's picture
Panoramic view of car jam in India

In the run up to the first hackathon on road safety in India, we caught up with Arnab Bandopadhyay, Senior Transport Engineer at the World Bank and asked him a few questions: 
  • Why is the World Bank focusing on road safety in India?
India’s roads are among the most dangerous in the world. The number of deaths from road accidents has risen sharply over the past decade. More than one million people have lost their lives in the past 10 years alone and another 5.3 million have been disabled or disfigured for life.

While India has less than 3% of the world’s vehicles, it accounts for some 11% of the world’s road deaths. That too, when many such incidents are not documented at all.

Road accidents are not only traumatic for victims and their families but also take a huge economic toll on the country.    They cost an estimated 3% of GDP each year. The large majority of road accident victims are pedestrians, cyclists and motorcyclists - mostly from the economically weaker sections of the society – making road safety a matter of social equity. Promoting road safety is therefore an important national priority.

Protecting Your PPP: Stabilizing partnerships in uncertain times

Waleed Youssef's picture
Uncertainty is inherent in developing and operating complex infrastructure and services projects, and it is for this very reason that government officials seek public-private partnership (PPP) partners to mitigate the most complex of risks. Yet legal and regulatory frameworks, in place for legitimate reasons (especially in emerging markets), often dampen the private sector’s ability to address in an optimal manner the challenges that can and often do arise during the term of a concession.

It is important to distinguish between projects that exceed expectations — and therefore generate greater than expected financial returns to both parties, yet require additional, unanticipated capital investments — and struggling projects where there is an urge by the developer to reduce ongoing investment and maintenance.
Istanbul Ataturk Airport. 
Photo: Wikimedia Commons

“Successful PPPs are all alike…”
To paraphrase Tolstoy, successful PPPs are all alike, but every unsuccessful PPP is unsuccessful in its own way.

Successful projects are easier to manage owing to positive cash flows, and could additionally incorporate an obligation by the developer to increase its investment according to certain capacity-related triggers on the basis of floor and ceiling for project returns. This could also be supplemented by sponsor commitments to co-investment or to extend the concession terms based on minimum returns, as well as a sponsor sinking fund to ensure independence from the uncertain and tedious public budgeting process. Very often, concession agreements focus on what to do when things go wrong, but not how to continue to meet demand when things go well, especially toward the end of the concession term.

In India, the great — yet unexplored — potential of inland water transportation

Shivika Singh's picture
Most of us attendees were novices in the area of inland water transportation in India and were curious to know what Arnab Bandyopadhay, Senior Transport Engineer at the World Bank’s India country office would say.

Indian waterways
Indian waterways. Photo credit: World Bank

And the gold medal for PPP goes to…Galeão International Airport’s record-setting deal

Isabel Marques de Sá's picture
When the Olympic Games comes to Rio in 2016, new medal-worthy sports will include kitesurfing, golf, and rugby sevens. If the Olympic Committee ever considers including our “sport” – the practice of public-private partnerships (PPPs) – the top medal would surely go to the home-grown Galeão International Airport PPP, which set the 2014 record as the largest PPP deal that closed globally. For this gateway to Rio – which is in the midst of preparing to accommodate more than 10,000 athletes and tens of thousands more visitors for the 2016 Olympics – even the concessions merit global rankings.
Image: Wikimedia Commons

Standing by for liftoff
The concession of Galeao International Airport (official name: Rio de Janeiro/Galeão–Antonio Carlos Jobim International Airport) got off the ground in the second round of airport concessions. The first round dates back to early 2012, when the government issued tenders for three major airports: Guarulhos (São Paulo), Viracopos (Campinas) and Brasília.  

In mid-2012, following the successful outcome of these three projects, the Brazilian National Development Bank (BNDES) approached IFC to assist with a second round of airport concessions, including Confins airport (Belo Horizonte) and Galeão (Rio de Janeiro).  IFC teamed up with the Estruturadora Brasileira de Projetos (EBP), a project preparation company owned by some of the biggest Brazilian commercial banks and BNDES. Together, IFC and EBP were responsible for the financial, technical/economic/engineering, and environmental studies. 

Improving Public Investment Management: Spotlight on Ethiopia

Mario Marcel's picture
Overview of Addis Ababa, Ethiopia. Photo - Arne Hoel / World Bank
Overview of Addis Ababa, Ethiopia. Photo: Arne Hoel / World Bank

Last month I met with ministers and local officials in Addis Ababa to explore areas where we, at the World Bank, can help build institutional capability in Ethiopia. The trip was an enriching experience, both personally and professionally. It was gratifying to see first-hand the good work and commitment to development exhibited by our staff in the country.

We have had a decade-long engagement with Ethiopia with a successful track-record. Ethiopia has one of the largest World Bank portfolios in the Africa Region (US$6.1 billion in 2014) and the partnership is strong, with a robust future.

During my visit, I gave a lecture at Addis Ababa University on Public Investment Management before an audience of faculty, students, civil society organizations and donors. I shared with them how much public infrastructure investment has done for the country. Ethiopia has the third-largest public investment rate in the world and three times the average for Sub Saharan Africa.

This effort has contributed to growth that has averaged 10.9 percent since 2004—a figure higher than that of their neighbors or low-income countries on average. Infrastructure investment has also been helpful in expanding access to services and in gaining competitiveness, being a large landlocked country.