The risks inherent in public-private partnerships (PPPs) are real. These long-term projects require substantial investment: typically, PPP project funding structures constitute 70 to 80 percent debt, with the remaining coming from equity sources. Because of the nature of these projects, their loan repayment profile demands a longer tenor. In a practical sense, once lenders start disbursing funds to a PPP, the loans could remain on their balance sheet for around 20 years. This is a typical scenario.
For such prolonged engagement in PPP projects, lenders’ ability to monitor the project during the construction and operation phase becomes critical. The approach to monitoring we’ve been offered so far serves its purpose up to a point, but promising developments in real-time data monitoring have the potential to serve as effective early warning signals—assuring the success of a PPP in ways that could revolutionize certain sectors.
Overjoyed at the emergency rehabilitation of Bauerfield International Airport, Vanuatu’s gateway for travelers, Linda Kalpoi, the general manager of the Vauatu Tourism Office, was in buoyant spirits as she attended the May 6 ceremony announcing the repair’s completion.
Vanuatu yearned for good news. Still recovering from Cyclone Pam’s devastation in March 2015, it was hit by political turmoil after the unprecedented conviction of 14 members of Parliament in October 2015. Then, on January 22, 2016 – the same day Ni-Vanuatu citizens were casting ballots for a snap election – Air New Zealand suspended flights due to safety concerns over the runway condition. Qantas and Virgin Australia followed suit a week later. With only a few airlines still operating, the country lost a sizeable chunk of international tourists.
Airport planning in Vanuatu has long been fraught with differing opinions and priorities. Multiple governments with conflicting visions for developing international air transport, as well frequent changes to the staff and leadership of Airports Vanuatu Ltd (AVL), had left the runway in critical need of repair.
For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030: good governance, gender equality, conflict and fragility, creating jobs, and, finally, preventing and adapting to climate change.
The world is a better place for women and girls in 2016 than even a decade ago. But not for everyone, and definitely not everywhere: This is especially true in the world’s poorest, most fragile countries.
It’s also particularly true regarding women’s economic opportunities. Gender gaps in employment, business, and access to finance hold back not just individuals but whole economies—at a time when we sorely need to boost growth and create new jobs globally.
- Gender-Based Violence
- Adolescent Girls Initiative
- Gender Data
- financial inclusion
- maternal and child health
- inequality and shared prosperity
- girls education
- Social Development
- Labor and Social Protection
- Information and Communication Technologies
- The World Region
- international development association
As more and more people live and work in a neighborhood with a limited land area, it becomes increasingly challenging to drive around without encountering congestion or to find a parking space easily. In this situation, public transit and non-motorized transport (NMT) become attractive alternatives for people who otherwise are reluctant to give up the comfort and flexibility of driving.
Conversely, as street blocks get bigger, people may find it takes too long to access public transit stations, which discourages the use of public transport facilities.
As straightforward as the logic may sound, the nature and magnitude of such influence are yet to be evaluated with solid empirical evidence. To take a closer look at the linkages between land use and travel behavior, I decided to study the case of Boston in the United States. I chose Boston because it boasts an effective public transit system, and was one of the first American cities to embrace transit-oriented development (TOD), an urban planning approach that promotes compact and mixed use development around public transit facilities.
Nevertheless, the car industry played an important role in the economic development of the socialist Yugoslavia, representing a big employer across all former Yugoslav republics. The onset of war in the early 1990s dealt a significant blow to the car industry there, with most the production facilities closing down by the end of that decade.
And then, in the early 2000s, car companies began opening new facilities in the immediate neighborhood (Hungary, Romania, Slovakia, Slovenia) and the region began producing world renowned brands such as Audi, Mercedes Benz, Renault, and Suzuki. This represented a new opportunity for manufacturers from the region to enter new supply chains - relying on skilled and experienced labor. On top of this, FIAT also opened a new factory in Serbia, further spurring demand for locally produced automotive parts.
If history is any guide, this growth in urban population will provide tremendous opportunities for increasing prosperity and livability. One can look at the successes of a few Asian cities such as Tokyo, Seoul, and Singapore to demonstrate how, with the assistance of good policies, urbanization and economic development go hand-in-hand. More generally, no major country has ever reached middle-income status without also experiencing substantial urbanization.
Yet cities can grow in different ways that will affect their competitiveness, livability, and sustainability. The more successful cities of Asia have been effective at creating opportunities, increasing productivity, fostering innovation, providing efficient and affordable services for residents, and enhancing public spaces to create vibrant and attractive places to live. But many, many, more cities have neglected fundamental investments in critical infrastructure and basic services, and have mismanaged land, environmental and social policies. This has resulted in traffic congestion, sprawl, slums, pollution, and crime.
Among the many complexities of urban development that have contributed to success, two critical factors stand out – investing in strategic urban planning, and in good urban governance.
- livable cities
- competitive cities
- Public Spaces
- Affordable Housing
- housing policy
- land use
- urban sprawl
- metropolitan planning
- urban planning
- municipal governance
- municipal finances
- Sustainable Communities
- Urban Development
- Public Sector and Governance
- South Asia
- East Asia and Pacific
Mobility is at the heart of everything we do – education, jobs, health, trade, social and cultural engagements. But mobility is facing critical challenges that need to be confronted urgently if we are to tackle climate change: over one billion more people on our planet by 2030, with greater needs for mobility; the expected doubling of the number of vehicles on the road by 2050; greenhouse gas emissions that represent almost a quarter of total energy-related emissions, and rising under a business as usual scenario; and the additional challenge of connecting one billion people who still lack access to all-weather roads and efficient transport services.
It is clear that countries’ mobility choices today will either lock us into unsustainable scenarios or will open the way for new possibilities.
On April 22 2016, 175 government leaders signed the historic Paris climate agreement, calling for ambitious and urgent action to implement global climate change commitments. On May 5-6 in Washington DC, representatives from government, private sector, civil society, academia and multilateral development banks will gather for the Climate Action 2016 Summit. With more than 70% of countries’ Nationally Determined Contributions (NDCs) mentioning transport, the sector is one of the focus area of this summit.
A framework for Sustainable Mobility
As coordinator of the summit’s transport track, the World Bank is organizing on May 4th a pre-Summit Transport day in collaboration with the World Resource Institute, the Paris Process on Mobility and Climate (PPMC) and the Michelin Bibendum Challenge. The pre-Summit event will focus on the bold actions that are needed not only to decarbonize transport, but also to make it accessible to all, to improve its efficiency, and to ensure its safety.
Like other countries in Latin America, Colombia has been expanding its road network over the years using a variety of public-private partnership (PPP) models and contractual structures. However, many of these projects were not properly prepared and structured, which in some cases has led to contract renegotiations. In addition, these projects attracted very limited participation from international investors.
with research contributions from Zichao Wei
At conferences, in meetings, and even during casual work conversations, I am asked the same two questions: “Which countries are ideal for investments in infrastructure? Where should the investors invest and what new opportunities should they look toward?”
While sitting in the World Bank gives us a bird’s-eye view of emerging markets and developing economies (EMDEs), it doesn’t offer the up-close-and-personal perspective that investors demand in order to answer these questions in a succinct way. Not that there’s any shortage of synoptic responses. Any number of “market gurus” can assess projects in a second, gathering all the low hanging fruits which are out there in EMDEs. If there is a private deal to be made, then the deal is already done.