Other Infrastructure Study

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    New Perspectives on Results-Based Blended Finance for Cities
    (World Bank, Washington, DC, 2019) World Bank Group
    There is clear evidence on the need for cities to rapidly scale-up their investments in climate change mitigation programs and build strong foundations for climate-resilient communities. Investing in low carbon infrastructure and climate resilience can generate competitive returns and is crucial for preventing a reversal of the development gains made in low-income countries up until now. Overcoming the barriers in financing climate-smart infrastructure in cities means adjusting their currently unattractive and inadequate risk-return investment profile. Our analysis explains that well-targeted concessional funding can derisk the financing structure of a project and turn a typical non-bankable project to financial viable one. Additionally, it makes the case for results-based blended finance approaches that strengthen the accountability in project development by linking financing to the achievement of measurable, pre-agreed results. Addressing the lack of creditworthiness, the limited accountability and capacity in institutions and service delivery practices should be at the center of urban investment strategies. The report highlights the need for technical assistance and capacity building programs that will support cities bring order to their financing and accounting practices, support shadow credit ratings and help them become creditworthy. It is estimated that only 20 percent of the 500 largest cities in developing countries are considered creditworthy. Cities and development partners face a common challenge: Making the most effective use of available public finance instruments and disburse scarce public (concessional) funds in a way that maximally leverages private sector co-investments.
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    Building the Resilience of WSS Utilities to Climate Change and Other Threats: A Road Map
    (World Bank, Washington, DC, 2018-12-29) World Bank Group
    Water supply and sanitation (WSS) utilities are expected to become increasingly susceptible to the expected impacts of climate change. WSS utility planners and engineers have dealt with natural climate variances and disaster planning as part of the design process for many years. However, the traditional methods for these plans have not considered the deep uncertainty surrounding many future conditions, which are further exacerbated by climate change. To help utilities incorporate resilience and robustness in their choices, this road map proposes a process in three phases that can inform the design of strategies necessary to WSS services provision. The road map builds on the understanding that climate change is most often an amplifier of existing uncertainties (many of which are threats), and, as such, should not be evaluated as a stand-alone impact. The approach reveals the strengths and vulnerabilities of investment plans concisely and helps utilities invest robustly by identifying near-term, no-regret projects that can be undertaken now, while maintaining flexibility in pursuing additional actions adaptively as future conditions evolve. These results can be achieved both with a qualitative exploration and a quantitative assessment, depending on the context and the resources available.
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    The Status of Infrastructure Services in East Asia and Pacific
    (World Bank, Washington, DC, 2017-10-03) World Bank Group
    Infrastructure plays an important role in the economic and social development of any country. Access to reliable, high-quality, efficient and affordable infrastructure services is a critical factor for reducing poverty and inequality, promoting economic growth and improving productivity, creating jobs, and promoting environmental sustainability and resilience in the face of major uncertainties including climate change. Given the World Bank Group’s active role in infrastructure development, the East Asia and Pacific (EAP) regional team has commissioned this report to take stock of the current levels of access, quality, tariffs, and costs associated with infrastructure services. This report aims to provide an overview of the status of economic infrastructure in several key sectors in the EAP region, particularly for networked infrastructure services such as urban water supply and sewerage, road transport, and electricity distribution. The exercise aims to shed light on the areas of greatest need, as well as to identify which sectors and geographical areas most require focused investments. The report also offers an account of trends and current levels of private sector investment in EAP countries to help inform financing strategies and decisions.