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.
Birdwatchers and nature enthusiasts already know that a field guide is a book designed to help the reader identify wildlife or other objects that occur naturally, like minerals. It’s meant to be carried into the “field” to help distinguish between similar objects.
At the Global Infrastructure Hub, we thought it was time for a field guide to infrastructure, pointing out the different resources that populate the landscape and helping them connect better. The Global Infrastructure Hub’s Field Guide to Infrastructure Resources (Field Guide) collects together existing resources and helps the user establish connections among them.
It is estimated that in order to close the gap in infrastructure, the Latin America and Caribbean (LAC) region requires an additional investment of $120 –$150 billion a year. However, given the current low levels of public investment, coupled with the fiscal challenges faced by the region and limited funding available from Multilateral Development Banks (MDBs), it is clear that private investment will play an important role in future years.
In 2014, the G-20 strengthened MDBs’ mandate to take concrete and practical steps to ensure that MDB-based project preparation facilities (PPFs) and other related initiatives collaborate to support governments by developing prioritized pipelines of economically viable and bankable infrastructure projects that can attract the private sector.
Amazon is promising to deliver goods with drones. Seeing these prospective innovations in airborne delivery, we’ll be forgiven for thinking that bad roads will increasingly be secondary concerns.
But the reality is that “last mile” road access will continue to be a major and costly development challenge for years to come. “Last mile" access refers to road to final destinations, whether communities, crops, markets, schools or clinics. These are typically provincial, city-municipal and barangay (village) roads in the Philippines.
Often the responsibility of local governments, these roads determine the ease and cost by which people and goods can get to final destinations. Communities across the globe face poor road access, depriving them of economic and social opportunities, whether bringing produce to markets, getting kids to school, or mothers to clinics. Billions of dollars continue to be spent on last mile road access, but often with very poor results.
Can drone technology make a difference?
Saturday’s Global Infrastructure Forum was full of firsts: this unprecedented daylong gathering in Washington, DC brought together the leaders of the multilateral development banks (MDBs), as well as development partners and representatives of the G20, G-24, and G-77, the OECD, the Global Infrastructure Hub and the United Nations. All shared the goal of enhancing multilateral collaboration to improve infrastructure delivery globally.
Conversation may be an art, but the best conversations spur action, too – and the upcoming Global Infrastructure Forum 2016 will focus on strengthening and formalizing collaboration among multilateral development banks (MDBs) to improve infrastructure delivery around the world. This unprecedented daylong gathering in Washington, DC brings together the leaders of the MDBs, as well as development partners and representatives of the G20, G-24, and G-77 and the United Nations, with the aim of enhancing multilateral collaborative mechanisms to improve infrastructure delivery globally.
Back in 2000, a research assistant and I received a request from a multilateral development bank that wanted a model for how much money was needed for them to invest in Latin America. I put together a very simple model – it was actually more of a benchmarking exercise – asking what kind of infrastructure in roads, energy, and water/sanitation that countries had at that time, based on income, economic structure, and urbanization. Then I created projections in terms of income and urbanization. I thought, “Well, assuming countries grow this way and follow the patterns of the past, it’s quite easy to deduce an investment pattern and an investment amount.” I called this final figure the “infrastructure gap.” Little did I expect it, but the term caught on and a subset of literature of infrastructure investment was born. We’re still talking about the infrastructure gap today, and it is a focus of the upcoming Global Infrastructure Forum 2016.
But a lot has changed in 16 years, and it’s time to re-cast our conversation about the infrastructure gap. In fact, it’s imperative to change the conversation if we want to achieve our goals. And the Forum is the right place to start.
U.S. First Lady Michelle Obama and Microsoft founder Bill Gates are among the featured speakers at the first major gathering of the world’s finance and development leaders in 2016 – the Spring Meetings of the International Monetary Fund and World Bank Group.
The global economy, climate change, refugees, and the digital divide are just a few of the topics on the agenda in the lead-up to the meetings the week of April 11. We’re webcasting 19 events in multiple languages featuring government ministers, experts, and CEOs.
Tune in Wednesday for a special event with Obama on educating adolescent girls. Later, the World Bank’s top economists will weigh in on economic growth in turbulent times, and Margaret Chan of the World Health Organization co-hosts a session on bringing mental health issues out of the shadows.