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Governance

More and better infrastructure services: Let’s look at governance; financing will follow

Abha Joshi-Ghani and Ian Hawkesworth's picture


Photo: AhmadArdity | Pixabay 

There are many reasons why infrastructure projects often fail to materialize, meet their timeframe, budget, or service delivery objectives. Important examples include weak and insufficient planning and assessment of affordability as well as uncertainty over the rules of the game. 

These issues severely constrain the ability of governments to mobilize finance to deliver key services that help achieve the Sustainable Development Goals (SDGs). The World Bank estimates that achieving the SDGs would require some $4.5 trillion in public and private investment by 2030.

In light of the financing requirements for the SDGs, the World Bank has developed the Maximizing Finance for Development (MFD) approach to help governments and other stakeholders crowd in private sector solutions while optimizing the use of scarce public resources. The success of the MFD initiative will depend in large measure on whether good infrastructure governance practices and tools are adopted.
 
The World Bank Group and the African Development Bank, with support from key development partners, have organized the second Infrastructure Governance Roundtable, to be held in Abidjan, Cote d’Ivoire, June 21-22, to foster a robust dialogue on how best to improve infrastructure governance practices to create sustainable infrastructure, and to assist with building capacity in this area.

A critical piece of the infrastructure puzzle: good governance

Chris Heathcote's picture



A major factor hindering infrastructure implementation and delivery is the absence of good governance, according to the 130 delegates from 27 countries who came together for the first Regional Roundtable on Infrastructure Governance in Cape Town in November.
 
There’s no denying infrastructure is crucial to Africa’s growth prospects. Nor can one ignore the ever-growing need for infrastructure on the continent—in Sub-Saharan Africa, only 35% of the population has access to electricity, and 23% still lack access to safe water and sanitation. Despite an estimated shortfall of nearly $100 billion in infrastructure investment in Africa, lack of financing is not the biggest problem.
 
The landmark Roundtable brought together representatives from African governments, the global private sector, multilateral and international organizations, civil society organizations and other development partners, for a discussion on the challenges and practical solutions to the governance impeding successful infrastructure delivery in Africa.

Catalyzing Change: Regional Roundtables on Infrastructure Governance

Olivier Fremond's picture
Also available in: Français


Photo: Pressmaster / Shutterstock.com

In the aftermath of the global financial crisis, policy makers focused on improving access to finance, missing the crux of the problem: governance.

In pursuit of achieving the Sustainable Development Goals through the 2015 Addis Ababa Action Agenda on financing for development, the Regional Roundtables on Infrastructure Governance* were created to promote a community of practice comprising government officials and the international development community to strengthen capacities within developing countries and establish good practices in infrastructure governance across various government sectors.

The inaugural roundtable, hosted by the Development Bank of Southern Africa, will take place in Cape Town on November 2-3, 2017, and aims to emphasize that for the commercial financing of infrastructure to be a viable option, governance reforms must happen.

Follow the money: How to cut through infrastructure’s worst red tape

David Nason's picture


(Photo: Getty Images)

There is a huge need for new and upgraded infrastructure around the world, particularly in emerging markets. Policy makers like to talk about raising trillions of dollars to fund infrastructure, but the truth is that capital for good projects exists. Regulation and lack of policy clarity are inhibitors.
 
What lacks is a strong pipeline of projects that meet societal needs and are financeable. If we can increase the quality of projects, and encourage smart and efficient regulations, the money to fund them will follow.
 
As an investor and infrastructure technology provider in 180 markets, GE surveyed its global investment, sales and policy teams for their insights on what is holding up progress.
 
We identified several areas that should be prioritized by the international community and local governments.

Sub-national pooled financing: Lessons from the United States

Kirti Devi's picture

As infrastructure projects are increasingly decentralized to sub-national governments (SNGs) in many countries, policymakers are keenly interested in developing sub-national bond markets to open up access to private-sector financing. However, the transaction costs of bond issuance are still prohibitive for small SNGs.
 
Pooled financing—through regional infrastructure funds, municipal funds, or bond banks—is being explored as a solution. Yet, many questions remain: 

Imagining infrastructure services in 2017

Laurence Carter's picture
Video: #IMAGINE a better future for all children | UNICEF


One of my favorite songs when I was growing up was John Lennon’s “Imagine.” A few months ago, UNICEF created a project around it to highlight the plight of millions of refugee children. As 2016 drew to a close, I couldn’t help but imagine a world with high-quality, affordable, sustainable, well-maintained infrastructure services for everyone.

I’m not sure a video of infrastructure projects set to “Imagine” would fire people up as much as the UNICEF video does. But there is value in reflecting on what we have accomplished in 2016, and what we might hope for and imagine in 2017, to bring this vision closer to reality for millions of people.

Rebooting Vietnam’s PPP program: Legislation that builds on lessons learned

Stanley Boots's picture

After over two years of development and drafting, Vietnam’s Decree 15 on Public Private Partnerships (PPP Decree) came into effect last spring. Dedicated specifically to the identification, preparation, and implementation of PPP projects, the PPP Decree replaced the largely unimplemented regulations for pilot PPP projects as well as the regime for build-operate-transfer (BOT), build-transfer-operate (BTO), and build-transfer (BT) projects. Almost a year after the PPP Decree was issued, it’s become clear that it has rebooted Vietnam’s potential for PPPs in a significant and lasting way. 

国際インフラ支援システムで、インフラ・プロジェクトの透明性、効率性、品質を確保

Christophe Dossarps's picture
Also available in: English
透明性、効率性、高品質-この3つは、筆者を含め、インフラ・プロジェクトに関わる者がごく頻繁に耳にする言葉である。残念ながら、我々がこれらのコンセ プトに馴染みがあるのは、多くのプロジェクトに欠けているからにほかならない。しかも、欠けているという事実は、「次回避けるべきこと」という教訓をもっ て認識されることが多い。

今回、プロジェクト準備のためのデジタル・プラットフォームである国際インフラ支援システム(IISS)が整備されたことで、官民パートナーシップ(PPP)によるインフラ事業や従来からの調達業務における透明性、効率性、品質が確保できるようになりつつある。IISSの導入により、インフラ・プロジェクトの準備、資金調達、成果の導き方が大きく変わる可能性があるのだ。過去6年にわたりこのプラットフォーム の開発に携わってきた筆者も、IISSの大きな可能性に大いに期待している。IISSによって、より質の高いインフラをより迅速に整備することができるよ うになり、地球全体で人々の生活の質を高めることができるだろう。

ビデオ「国際インフラ支援システムの導入」   
An Introducation of International Infrastructure Support System - Video produced by the Sustainable Infrastructure Foundation

 製作:持続可能なインフラ財団

Transparency, efficiency and quality in infrastructure projects is only a ‘click’ away

Christophe Dossarps's picture
Also available in: 日本語
Transparency. Efficiency. Quality. If you work with infrastructure projects, as I do, these are words you will hear all the time. Unfortunately, these concepts are familiar to us because so many projects lack them – often realized during a “lessons learned” recap of what not to do next time.

But with the new International Infrastructure Support System (IISS) - a digital platform that supports project preparation -achieving transparency, efficiency and quality in infrastructure PPPs, and traditional procurement, is within our reach.  I’ve been involved in IISS’s development for last six years and I’m inspired by this platform’spotential to transform the way infrastructure projects are prepared, financed and delivered.  Through it, we will be able to deliver more quality-infrastructure faster and improve people’s quality of life across the globe.
 
An Introducation of International Infrastructure Support System - Video produced by the Sustainable Infrastructure Foundation

 

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