Other Infrastructure Study
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Publication Cambodia’s Regional Connectivity: Unlocking the Full Potential of Transport Corridors(Washington, DC: World Bank, 2024-12-06) World BankCambodia’s export-driven growth has resulted in increased freight demand. Containerized import and export cargo movement has increased more than five-fold over the past 12 years. By 2030, it is expected that trade volumes moving along highways and through ports, airports, and warehouses will double. However, high transport and logistics costs are major bottlenecks to Cambodia’s economic competitiveness and diversification. The Royal Government of Cambodia (RGC) developed the Comprehensive Intermodal Transport and Logistics System (CITLS) Master Plan for 2023–2033 to support improving the performance and efficiency of the transport sector and supporting the achievement of the national development objectives as defined in the RGC’s Pentagonal Strategy Phase 1. However, many of the projects put forward in the CITLS are in the conceptual phase requiring further technical studies and prioritization prior to securing financing from the public and private sectors. This report prepared by the World Bank team aims to complement the RGC’s efforts by focusing on immediate investments and policy actions to unlock opportunities along the existing transport corridors in Cambodia. The analysis and proposals described in this report focus on the short to medium-term priorities. By providing alternative insights on the role and performance of the existing roads, waterways and maritime transport, railways, and cross-border trade facilitation the report is designed to complement the CITLS. Throughout the course of this study, stakeholder consultations were conducted with involved public sector institutions and major private sector players in freight transportation and logistics.Publication A Roadmap for Safe, Efficient, and Interoperable Carbon Markets Infrastructure(Washington, DC: World Bank, 2024-11-08) World Bank; Carbon Markets Infrastructure Working GroupA well-structured and high-integrity carbon market has the potential to mobilize essential financing for climate action, especially in developing countries. Achieving scale will require secure, efficient, and interoperable infrastructure that fosters the growth and reliability of these markets. This "Roadmap for a Safe, Efficient, and Interoperable Carbon Market Infrastructure 2024" outlines critical bottlenecks and priority action areas identified by the Carbon Market Infrastructure Working Group (CMI WG). This includes clarifying ecosystem governance, documenting current standards and market practices related to information security and transaction integrity, and enhancing data and systems interoperability.Publication Benchmarking Infrastructure Development: PPP Regulatory Landscape - Assessing Quality and Exploring Reform(Washington, DC: World Bank, 2024-10-09) World BankDespite its intrinsic relevance and policy makers’ efforts to address the infrastructure gap, progress has been limited. A confluence of challenges from macroeconomic shocks and political instability to weak institutional capacity has hindered the capacity of countries to develop infrastructure that meets demand. Increasing efficiencies in delivering infrastructure services is at the core of addressing the gap. Numerous countries have turned to private sector participation in infrastructure development to achieve these efficiencies and catalyze private capital investments. Although there are different modalities to procure infrastructure, public-private partnerships (PPPs) have been extensively used by many countries to deliver successful programs. This report examines one of the key elements of an overall sound PPP ecosystem, the crucial role that the quality of PPP regulatory frameworks plays in fostering a conducive ecosystem for successful PPP programs while acknowledging that it is just one of several critical factors. This report incorporates new empirical analysis from primary data collected through Benchmarking Infrastructure Development 2023 (BID 2023). It also uses country case studies to illustrate and draw lessons from how countries have created robust PPP ecosystems and strengthened PPP regulatory frameworks over time. This report is aligned with the Knowledge Compact Agenda’s focus on evidence-based decision-making by providing evidence-based knowledge that can inform development strategies and PPP operations. Additionally, it focuses on fostering the PPP ecosystem that is conducive to private sector investment, thereby contributing to the Private Capital Enabling (PCE) objectives that will ultimately support Private Capital Mobilization (PCM), two critical corporate objectives of the World Bank Group to help to close the infrastructure gap.Publication Unlocking Local Finance For Sustainable Infrastructure(Washington, DC: World Bank, 2024-09-20) World BankThis study aims to further address gaps in research related to commercial financing challenges in Local Currency Financing (LCF) for sustainable infrastructure. This will include a review of broader financial market challenges with a focus on credit/banking markets. This study is part of a broader program supported by the Public-Private Infrastructure Advisory Facility (PPIAF) to address the challenges in mobilizing LFC commercial lending into infrastructure and climate projects, public-private partnerships (PPPs), and risk sharing facilities in emerging markets. The study has drawn on the work done by the World Bank Group in particular the Infrastructure Finance Practice Group (IFP); Finance, Competitiveness & Innovation Global Practice (FCI); and the related donor-funded Joint Capital Markets Program (J-CAP) implemented by the Finance Competitiveness and Innovation Global Practice (FCI) and IFC. Through this report we expect that policy makers, money and capital market authorities, infrastructure, climate and environment, and private sector infrastructure/climate investors and financial institutions will be better informed to pursue financing options for infrastructure projects through LCF. Specifically, the report provides global knowledge and existing literature on the topic of LCF with a focus on local credit markets, an analytical framework, and actionable insights to navigate the complexities of LCF in infrastructure and climate investments. The study explains the key drivers and enablers/binding constraints for the development of a robust ecosystem for financing infrastructure in local currency (LCY), such as: (i) the scale of private savings in a country; (ii) the ability and willingness of local credit markets to provide long-tenor debt; (iii) the potential for local capital markets to provide finance; (iv) the cost differential between LCY and foreign currency (FX) debt; and (v) capacity for structuring and credit evaluation skills for sustainable infrastructure financing.Publication Unlocking the Potential of Digital Public Infrastructure (DPI) in Latin America and the Caribbean: A Region-specific Perspective - A World Bank-IADB Technical Note(Washington, DC: World Bank, 2024-08-06) World BankDigital Public Infrastructure (DPI) first came to wider public attention at a session on the future of digital cooperation during the UN General Assembly in 2022. During 2023, international interest in DPI grew during India’s Presidency of the G20. The World Bank defines DPI as foundational and re-usable digital platforms and building blocks such as digital ID, digital payments, and data sharing - that underpin the development and delivery of trusted, digitally-enabled services across the public and private sector. Although India and Estonia are the most often cited country examples of DPI in practice, digital public platforms are also emerging in LAC. This report produced under a joint Memorandum of Understanding between the World Bank Group (WBG) and the Inter-American Development Bank (IADB) aims to help improve digital infrastructure and connectivity to drive stronger results for people living in LAC. Its objective is to highlight the state of the potential for DPI across the LAC region, including understanding policymaker’s awareness and acceptance of DPI, and the maturity of DPI building blocks across the region. It aims to connect a long-standing discussion in LAC around effective digital transformation with emerging global DPI discourse, and at the same time the report explores specifically how, and where, DPI manifests in LAC and how it can be helpful in future.Publication Leveraging Private Sector Investment in Digital Communications Infrastructure in Eastern Africa(Washington, DC: World Bank, 2024-08-02) World Bank; CEPAThis study provides guidance on World Bank involvement in Digital Communications Infrastructure (DCI) projects in which finance has been extended to support build-out. In particular, the study provides guidance to inform World Bank projects in Djibouti, Ethiopia, Kenya, Madagascar, Somalia and South Sudan where more than US$1 billoin has been committed by the World Bank for improving digital infrastructure, services and skills. Through competitive procurement processes that engage private sector network operators, it is possible to amplify the funds available to countries by leveraging funds from network operators to ensure sustainable network deployment. The report looks at mechanisms such as reverse auctions, anchor tenant models, public-private partnerships and invstment guarantees to assess which work best in different marekt environments.Publication Cambodia: Geospatial Analysis for Resilient Road Accessibility for Human Development and Logistic Supply(Washington, DC: World Bank, 2024-07-30) Wang, B,; Colon, C.The primary purpose of this report is to introduce a practical framework to assist the Ministry of Rural Development (MRD) of Cambodia to prioritize its investment and interventions for rural roads in order to achieve climate resilient rural accessibility for poverty reduction, human development, and logistic supply. The framework is based on two core geospatial models, namely the flood disruption model and the logistic supply chain model, to collectively identify the most critical and climate vulnerable road sections for prioritized interventions. The flood disruption model simulates the impact of flood disruptions to different rural roads under a 50-year flood scenario and identifies roads where the accessibility loss after flooding results in most damaging impact for rural communities to reach schools, hospitals, job opportunities, and for agriculture products to reach nearby markets. The logistic supply chain model simulates the disruption of Cambodia’s nodes and links and models how supply chain flows get rerouted or blocked, which leads to increase of product prices and shortage of product availability. It quantifies the relative importance of each logistics corridors as well as their rural feeder roads. Combining two models, the proposed framework enables MRD to deploy its limited resources to rural roads that matter the most. Section 1 gives introduction. Section 2 provides the basic context of Cambodia’s rural road network and the challenge imposed by climate change to rural road investment planning. Section 3 introduces the proposed prioritization framework and how it could assist better prioritization at MRD in practice. Section 4 elaborates how two underpinning geospatial models work, including the data, assumptions, and limitations of each model. Section 5 illustrates key results when the proposed prioritization is applied to Cambodia’s rural communes and recommends an indicative list of prioritized rural roads for illustration purpose. Section 6 provides a summary of the main recommendations, next steps for practitioners, and concluding remarks.Publication Climate Change Adaptation and Social Inclusion Screening and Quantification Tool for PT Indonesia Infrastructure Finance(Washington, DC: World Bank, 2024-07-24) World BankIndonesia is highly vulnerable to the impacts of climate change, including projected sea-level rises, changing precipitation patterns, intense tropical cyclones, and storm surges. This is largely due to the concentration of urban poor in city peripheries, where infrastructure supply is limited and of low-quality. The government of Indonesia is strongly committed to combating climate change and, as such, has made a number of commitments to strengthen its climate change adaptation and mitigation priorities. As a step towards this, Indonesia ratified the Paris Agreement in 2016 and submitted its nationally determined contributions (NDCs). In this context it becomes imperative to catalyze infrastructure investments that foster E&S sustainability, with a focus on gender protection and equality, particularly in, vulnerable communities. To help further the government’s strategic priorities, PT Indonesia Infrastructure Finance (IIF), a leading non-bank private infrastructure financing institution, is committed to strengthening the application of international best practices in climate risk and social inclusion standard. The objective of this assignment was to (i) strengthen IIF’s capacity to develop a strategy and methodology to screen climate-smart projects and quantify the impacts and benefits of the application of climate risk, gender, and other social inclusion considerations such as Cultural Heritage, Biodiversity, Ecosystem Services, and Indigenous peoples from a project perspective and (ii) help support and advance Indonesia’s sustainability and climate commitments.Publication A Pathway to Decarbonization of the Vehicle Fleet in Serbia and the role of Electric Mobility(Washington, DC: World Bank, 2024-06-24) World BankSerbia is transitioning to an environmentally sustainable, low-carbon, climate-resilient economy, but the transition must be accelerated in view of climate change and increasing air pollution. Serbia has Europe’s worst per capita record for pollution-related deaths, and the environmental performance Index shows that Serbia has a score for environmental health and ecosystem vitality below that of most of the Western Balkans six countries and similar European economies in transition. The problem has several origins, notably excessive reliance on fossil fuels, particularly coal, for electricity generation and heating; outdated, high-emission vehicles, many of which are imported from other European countries; and the declining popularity of public transportation. This report analyzes the enabling environment for decarbonization and electrification of the transportation sector; makes recommendations for establishing an efficient, sustainable E-Mobility market; and identifies steps to do so.Publication Project Development Funds (PDFs): Supporting Project Preparation to Structure Successful Public-private Partnerships (PPPs) - A Primer(Washington, DC: World Bank, 2024-06-03) World Bank GroupProject development funds (PDFs) are dedicated vehicles that governments establish to systematically support the preparation of public-private partnerships (PPPs). The lack of adequate and consolidated resources to appropriately evaluate and prepare potential PPP projects is a key constraint faced by many PPP programs, and inhibits the ability of PPP projects to raise private investment. PDFs are generally established to address this challenge, by providing dedicated and centralized funding for PPP project preparation that is not subject to the constraints of typical government budgeting processes. PDFs have contributed to the successful implementation of PPP projects, which can serve to support the increased private investment that will be critical if the United Nations Sustainable Development Goals (SDGs) are to be achieved. This primer on project development funds seeks to capture and distill lessons for public sector and other PPP practitioners related to how and why PDFs are established, and how best to enable them to contribute to the success of PPP programs. Through its review of PDF and other relevant experience, this Primer seeks to identify lessons learned and success factors that influence the design and operationalization of PDFs. It aims to paint a clear picture of how and why PDFs can support the development of PPP programs to assist policy makers in understanding whether a PDF can help to address their particular PPP program challenges. Where practitioners are developing a PDF, this Primer provides detailed information on PDF design features to assist them in establishing a PDF that will deliver on its objectives.