Syndicate content

prioritizing infrastructure investments

Can good infrastructure decisions be made with little information?

Aditi Raina's picture



The simple answer is yes—with a little help from the Infrastructure Prioritization Framework developed by the World Bank.
 
Experts can make decisions based on remarkably few pieces of information. Research by James Shanteau at Kansas State University has shown that expertise is reflected in the type of information used, not the amount of it. The Infrastructure Prioritization Framework, or IPF, attempts to capitalize on precisely these aspects of expertise and decision-making. This enables objective evaluations of infrastructure projects using minimal but relevant data in information-constrained environments.
 
Why is this important? It’s easy to make decisions when complete information is available. But this is rarely the case in most developing economies, where policymakers must rely on limited data to make decisions. But this does not mean the resulting decisions have to be poor. Critical to such situations is the ability to identify and select accurate and relevant information to achieve the desired objectives, something that requires experience, expertise, and judgment. 

Prioritizing infrastructure investments: Framework and forward momentum

Cledan Mandri-Perrott's picture


The Infrastructure Prioritization Framework (IPF) is a quantitative tool that synthesizes and displays financial and economic as well as social and environmental indicators at the infrastructure project level. Two composite indices or dimensions are displayed in a Cartesian plane to offer a simplified picture of comparative performance alongside the public budget constraint for a particular sector.
 

Prioritizing infrastructure investments: Panama’s long-term path to PPPs

Cledan Mandri-Perrott's picture


In Panama, a healthy economic climate and enthusiastic institutional support provided an ideal testing ground for the World Bank’s Infrastructure Prioritization Framework (IPF). The country’s GDP growth and economic buoyancy in 2014 motivated an ambitious public investment program, accompanied by a high number of infrastructure project proposals to the Ministry of Economics and Finance. Coupled with political commitment to narrow the deficit, Panama moved to implement select projects for a five-year strategic period.

Prioritizing infrastructure investments: Helping decision-makers do their job

Cledan Mandri-Perrott's picture

Government officials and PPP practitioners make difficult decisions about infrastructure projects all the time. But perhaps the choice they grapple with the most is which projects to select for implementation within a given investment period. Many factors come into play, such as government budget constraints, the relative efficiency and effectiveness of investments, as well as costs and benefits of projects to society. With so much to consider, governments need improved decision-making frameworks that are rigorous enough to accommodate multiple components but practical enough to remain feasible and affordable.