Other Infrastructure Study

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  • Publication
    Managing the Fiscal Implications of Public-Private Partnerships in a Sustainable and Resilient Manner: A Compendium of Good Practices and Lessons Learned from the COVID-19 Pandemic
    (Washington, DC, 2023-03-22) World Bank
    Public-private partnerships (PPPs) can sometimes be perceived as a means for delivering infrastructure for free. A more nuanced but still inexact view is that they are a mechanism to overcome fiscal constraints. Some argue, perhaps rightly, that often governments enter PPP contracts without fully understanding their fiscal implications. These misconceptions lead to several challenges. There is evidence that fiscal sustainability is often overlooked or ignored by countries with PPP programs, with long-term fiscal implications the governments did not understand or manage well. Governments also struggle with perceptions that they are not fully transparent about the real, ultimate costs of PPP projects. This report aims to illustrate how to improve fiscal risk management and treatment of fiscal commitments and contingent liabilities (FCCL) arising from PPP projects, to build better Infrastructure post-COVID-19. It intends to be a resource for World Bank client countries, including low income and fragile economies, to design their fiscal PPP management frameworks in a viable way that helps them develop their PPP programs while maintaining medium-to-long-term fiscal sustainability and resilience. With that in mind, Volume I highlights and contextualizes the main findings from a set of case studies that assessed the PPP fiscal risk management framework in select countries, and synthesizes the observable and qualitative results in managing the impact of crises, in particular the COVID-19 pandemic. Based on that, it also explores how this crisis has affected PPP projects and overall PPP programs, and suggests improvements to FCCL management frameworks in order to strengthen the capacity of countries to continue with their PPP programs in a sustainable fiscal manner. Volume II contains the detailed case studies on which Volume I is based.
  • Publication
    Infrastructure Tokenization: Does Blockchain Have a Role in the Financing of Infrastructure?
    (World Bank, Washington DC, 2023-03-22) World Bank Group
    The purpose of this report is to assess whether digitizing the equity or debt financing used for infrastructure projects using blockchain, that is, tokenized infrastructure, provides enough benefits to justify the use of this technology. The information presented here aims to inform the World Bank whether it should explore the possibility of tokenizing one of its infrastructure projects. The conclusions are based on interviews with tokenization start-ups, experts, and the review of current and planned regulatory frameworks in selected jurisdictions and use cases/pilots to date.
  • Publication
    Mongolia InfraSAP: Infrastructure for Connectivity and Economic Diversification
    (World Bank, Ulaanbaatar, 2020-11-10) World Bank
    Like many emerging economies, policy discussions on social and economic growth in Mongolia often gravitate to transport, energy and digital infrastructure as the backbone. ‘What infrastructure?’ and ‘infrastructure for what?’ are equally important questions given the aspirations to unlock new drivers of growth beyond mining and export of primary products. Mongolia’s vast territorial expanse and low population density create unique challenges for economic development in general and infrastructure investments in particular. Sandwiched between China and the Russia, two of the largest countries and economies in the world, Mongolia is the least densely populated country in the world. With just over 3.2 million people inhabiting a territory of 1.564 million square kilometers (more than six times the size of the United Kingdom and less than a third the population of London), Mongolia has a population density of 2.1 people per square kilometer. About half the population—some 1.4 million people—live in the capital city Ulaanbaatar. The rest of the population is spread across small urban centers and vast steppes. Given the spatial and density challenges, the conventional ‘build and they shall come’ approach to developing infrastructure has proved sub-optimal. Mongolia has some of the largest average transport distances (600km) and highest logistics costs (30% of GDP). The infrastructure challenge is made worse by the limited financing options. This infraSAP presents a more sophisticated approach which incorporates strategic value chain analysis and disaggregated modeling of freight movements, and then targets infrastructure investment for amplified impact. In this approach, infrastructure is located at the highest concentrations of economic activity and is developed as part of an integrated national logistics system. This surgical approach informs more targeted policy decisions on how to use scarce resources to accelerate economic diversification and competitiveness while addressing institutional bottlenecks.
  • Publication
    Morocco Infrastructure Review
    (World Bank, Washington, DC, 2020-05) World Bank Group
    Over the last twenty years, Morocco has invested massively in infrastructure. At the macroeconomic level, total investment of between 25 percent and 38 percent of gross domestic product (GDP) occurred between 2001 and 2017, one of the highest rates of investment globally. Much of this investment has gone into infrastructure, and more than half of it was undertaken by the public sector (treasury, public enterprises and local authorities). Morocco is also among countries receiving the most official development assistance relative to GDP, half of which is invested in infrastructure. The investments have created more reliable supply chains, improved access to markets and basic services, and increased productivity. Following this executive summary, chapter one reviews the quantity and quality of infrastructure services in Morocco and the notable achievements that the country has made in this regard; chapter two discusses Morocco’s infrastructure challenges; chapter three describes Morocco’s infrastructure investment needs and macroeconomic constraints; and, chapter four discusses proposed cross-cutting reforms. Appendix A provides key indicators for each infrastructure sector, Appendix B provides sector specific recommendations and lists selected projects in the infrastructure pipeline, and Appendix C explains the methodology used to derive the infrastructure investment estimates.
  • Publication
    Tunisia Infrastructure Diagnostic
    (World Bank, Washington, DC, 2019-12) World Bank Group
    Tunisia’s has made significant investments in infrastructure, which has contributed to economic growth. The investments have enabled reasonably good access to basic infrastructure services. While access rates are high, the relative quality of Tunisia’s infrastructure has deteriorated significantly over the last ten years. State-owned enterprises (SOEs), which dominate the infrastructure sector, receive considerable subsidies and incur notable financial losses. Overall, there is a heavy reliance on external borrowing to fund infrastructure investment, which creates contingent liabilities, and enhances foreign exchange and macro-economic risk. Chapter one provides an overview of Tunisia’s infrastructure performance; chapter two discusses each sub-sector in more detail in terms of achievements and challenges; chapter three looks at historical trends in spending followed by a scenario analysis of investment needs with anecdotal examples, and discusses the present macro-economic and fiscal constraints; and chapter four presents possible action items for further discussion with the Tunisian government.
  • Publication
    From A Rocky Road to Smooth Sailing: Building Transport Resilience to Natural Disasters
    (World Bank, Washington, DC, 2019-06) Rozenberg, Julie; Avner, Paolo; Fox, Charles; Hallegatte, Stephane; Rentschler, Jun; Avner, Paolo
    Reliable transport infrastructure is one of the backbones of a prosperous economy, providingaccess to markets, jobs and social services. Sustainable Development Goal 9 (SDG9) calls forincreased access to sustainable transport infrastructure in low- and middle-income countries.Collectively, these countries will need to spend between 0.5 percent and 3.3 percent of their GDPannually (157 billion to 1 trillion US Dollars) in new transport infrastructure by 2030 – plus an additional 1 percent to 2 percent of GDP to maintain their network – depending on their ambition and their efficiency in service delivery (Rozenberg and Fay, 2019). Because of the wide spatial distribution of transport infrastructure, many transport assets are exposed and vulnerable to natural hazards, increasing costs for national transport agencies and operators. During the 2015 floods in Tbilisi, Georgia, the repair of transport assets contributed approximately 60 percent of the total damage cost (GFDRR, 2015). In the 1995 earthquake in Kobe, Japan, accessibility as measured by the length of open networks directly after the shock dropped by 86 percent for highways and by 71 percent for railways (Kazama and Noda, 2012b). Such transport disruptions necessarily have direct impacts on the local economy. Employees face difficulties commuting, access to firms is disrupted for clients, interruptions in the supply chain inhibit production, and finished products cannot be easily shipped (Kajitani and Tatano, 2014). The paper, prepared as background material for the Lifelines report on infrastructure resilience, summarizes the main findings on the risk faced by transport networks and users as a result of natural disasters and climate change, and the main recommendations for building more resilient transport networks. It starts by describing how transport disruptions affect firms and households either directly and through supply chains. It then proposes a range of approaches and solutions for building more resilient transport networks, showing that the additional cost of resilience is not high if resources are well spent. Finally, it provides a set of practical recommendations.
  • Publication
    Improving Climate Resilience of Federal Road Network in Brazil
    (World Bank, Washington, DC, 2019-05) World Bank
    Although Brazil is the fifth largest country in the world, it has a relatively low number of natural hazards. However, its exposure to natural hazards has increased relative to other countries because of insufficient preventive actions in the past, resulting in more damage from natural hazards to both infrastructure and human lives than countries of comparable size would incur. Brazil faces an increasing risk of natural disasters, in particular floods and landslides. The objective of the study is to strengthen capacity of geohazard disaster resilience of federal highway infrastructure in Brazil through reviewing disaster risk management (DRM) capacity for federal road infrastructure and case studies of applying innovative methodologies for assessing disaster risk and evaluating economic benefits of resilience countermeasures. Although floods and landslides are the most recurrent natural disasters in Brazil, this report focuses on the latter, leaving floods for future studies. This report carefully describes how three innovative methodologies that, if properly applied, could improve the effectiveness of landslide risk management, thus reducing economic and human impacts. The report begins with diagnostics of the institutional capacities of geohazard risk management at the federal government level in Brazil. Chapters 1 and 2 include the backgrounds of natural disasters, road systems, and geohazards on roads in Brazil and a review of the road geohazard risk management with overviews of the following areas: institutional capacity and coordination, system planning, engineering designs, operation and maintenance, nonstructural measures, and contingency programming. Then, Chapters 3 and 4 describe the case study of application of the three innovative DRM assessment methodologies. Finally, Chapter 5 shows the suggestions and recommendations for the next steps.
  • Publication
    Nepal Infrastructure Sector Assessment
    (World Bank, Washington, DC, 2019-02-28) World Bank
    Despite several severe shocks in the past, conflict, unstable governments, earthquakes, and trade disruptions, Nepal has made strong progress in reducing poverty and boosting shared prosperity. With the decade-long peace and constitutional process concluded, the Government of Nepal is keen to accelerate economic growth and become a middle-income country by 2030. Between 1996 and 2011, the proportion of households living in extreme poverty fell from 46 to 15 percent. Nepal's macroeconomic fundamentals have remained sound. This report takes place as Nepal transitions to a federal structure. This poses a unique and unprecedented opportunity to establish clarity of functions, expenditures, and revenue assignments, as well as changing jurisdictions across various levels of governments and agencies, including as they interface with the private sector. The new government is in place and emphasizing the need for stronger cooperation between the public and private sectors. Against this background, this report assesses the energy (electricity generation, transmission, and distribution), transport (roads, airports, and urban transport), and urban (water supply, sanitation, and solid waste management) infrastructure sectors. The report recommends interventions that combine short-term and longer-term structural and policy changes with tailored project implementation approaches. Completing projects will help stress test the framework and system and identify potential bottlenecks that can be corrected. Such a learning-by-doing approach will further help prioritize the implementation of the initiatives proposed in this report and target capacity development initiatives in the areas of greatest need.
  • Publication
    Gender Equality, Infrastructure and PPPs: A Primer
    (Washington, DC, 2019) World Bank
    For all of our age’s technological advances, service innovations, and instant connectivity, gender inequality stubbornly remains a defining characteristic of the structure of our economies and the opportunities for our citizens. This is especially true in many corners of the developing world, where women trail men in health and educational outcomes, access to jobs and assets, and their ability to voice their opinions and exercise agency over their lives. Urban transit systems that are mapped against job locations for women, designed to provide security, and operated to remove uncertainty of arrival times, are essential to balancing labor opportunities for female workers. In the various infrastructure sectors, the authors are pleased to report that best-practice examples have been mounting. Yet, for infrastructure-development professionals, particularly those focused on crowding in private financing and operations and preparing public-private partnerships (PPPs), knowing where to start integrating gender equality concerns into our work can be daunting. However daunting, the incorporation of gender considerations is uniquely important for PPPs, where private-service providers become the main interface with consumers. This report consolidates and draws from a wide spectrum of examples that cut across sectors to demonstrate how infrastructure, its development, and the policies and regulations governing its construction and operation, can play a role in closing gaps between women and men. It pinpoints approaches for ensuring that projects not only do no harm, but also serve as vehicles for empowerment, providing practical guidance that can be systematically integrated into PPP projects and frameworks. The primer points out that best practices at the intersection of gender equality and infrastructure PPPs are still evolving.
  • Publication
    Egypt: Enabling Private Investment and Commercial Financing in Infrastructure
    (World Bank, Washington, DC, 2018-12-01) World Bank Group
    In 2016 the Government of Egypt (GoE) has embarked on an ambitious and much needed transition towards a better economic policy. While the macroeconomic stability and market confidence have been largely restored, the overall fiscal situation remains challenging. With limited fiscal space, solely relying on public resources to fund infrastructure investments, will no longer be a viable strategy to meet the country's needs. Building on the success of attracting private investment in renewables and natural gas sector, there is significant potential for replicating the success across other infrastructure sectors. Egypt has recognized that in order to raise competitiveness, increase investments in human capital, and sustain the benefits of the homegrown reform; it will need to continuously shift its development model towards creating an enabling environment for the private sector to invest more, export more and generate more jobs. Starting with Energy, Transport, Water and Sanitation and Agriculture, this report highlights the tremendous potential and opportunities available in each of these sectors. Additionally, it also presents a roadmap for sectoral transformation, whilst highlighting the cross-cutting enabling and functional activities required to facilitate this transition.