Other Infrastructure Study

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Mobilizing Private Finance for Development in Latin America and the Caribbean
(World Bank, Washington, DC, 2018-02) Abousleiman, Issam A.; Thompson Araujo, Jorge; Abousleiman, Issam A.; Thompson Araujo, Jorge
The Latin America and the Caribbean Region (LAC) has the largest stock of active PPP investments and the largest pipeline of infrastructure projects by volume globally, reflecting the central role of the private sector in the regional development agenda. Looking ahead, the region is making efforts to close the estimated US$180 billion per year investment gap with further private sector resources by: (i) improving the enabling environment for private investments to take place; and (ii) developing a robust pipeline of bankable projects. The WBG is well-placed to assist the region with financial support and knowledge services, as illustrated by the examples selected for part three of this report.
Georgia Economic Impact of East-West Highway Phase 2: Assessing the Impact of East-West Highway Investments on Exports through Gravity Modeling
(World Bank, Washington, DC, 2016-06-27) World Bank
The objective of this study is to assess the impact of the East-West Highway improvement program on Georgia’s ability to access international markets. As highlighted extensively in the literature, improving transport infrastructure and the efficiency of the logistics sector can help countries gain competitiveness in international export markets, which can translate into faster economic growth and higher income. This study hypothesizes that investments in the EWH have reduced the cost of shipping Georgian goods to the rest of the world, and such reductions should be more significant for goods transported by road. To estimate the effect of cost reductions generated by improvements in the EWH, a gravity-type model in first-differences has been estimated. The results show that: (i) a 10 percent increase in the length of upgraded road network predicts a 1.1 percent increase in exports transported by road while no significant effect is estimated for exports on other transport modes (rail, sea, and air); (ii) the resulting increase in exports by road was reflected by a decrease in exports transported by sea; (iii) the effect is statistically and economically significant only for customs offices located along the EWH; (iv) only exports of time-sensitive products responded positively and significantly to improvements in the EWH during the 2006-2015 period; (v) upgrading the entire EWH is estimated to generate additional export revenues between USD 776 million and USD 1,466 million. It is important to note that the overall trade generating effect of the investment is expected to be somewhat lower as the results suggest some substitution between road and sea transport, but the overall impact is a significant boost to exports.
Prioritizing Infrastructure Investments in Panama: Pilot Application of the World Bank Infrastructure Prioritization Framework
(World Bank, Washington, DC, 2016-04) Marcelo, Darwin; Mandri-Perrott, Cledan; House, Schuyler
Infrastructure services are significant determinants of economic development, social welfare, trade, and public health. As such, they typically feature strongly in national development plans. While governments may receive many infrastructure project proposals, however, resources are often insufficient to finance the full set of proposals in the short term. Leading up to 2020, an estimated US$836 billion - 1 trillion will be required each year to meet growth targets worldwide (Ruiz-Nunez and Wei, 2014; World Bank). Global estimates of infrastructure investments required to support economic growth and human development lie in the range of US$65-70 trillion by 2030 (OECD, 2006), while the estimated pool of available funds is limited to approximately US$45 trillion (B20, 2014). The past twenty years have also seen a shift towards decentralized infrastructure planning. Many subnational governments, regional entities, and sector agencies have been delegated responsibility for infrastructure planning promote local responsiveness, but responsibility for allocating funds often remains with a centralized finance agency (CFA). While constituencies may propose numerous projects, governments often have insufficient financial resources to implement the full suite of proposals. This report presents the IPF methodology and results of the pilot application to a select set of transport and water and sanitation projects in Panama. The report first gives background information on infrastructure prioritization in Panama, then follows with a description of the IPF in technical and implementation terms. Next, we present the results of the pilot and close with recommendations for implementing IPF to a wider set of projects.
Federative Republic of Brazil iRAP Pilot Technical Report: Federal Highways
(World Bank, Washington, DC, 2016-01) World Bank
As part of efforts to curb road deaths and serious injuries, the World Bank Global Road Safety Facility (GRSF) invited the International Road Assessment Programme (iRAP) to work with the National Department of Transport Infrastructure (Departamento Nacional de Infraestrutura de Transportes, DNIT) to assess the safety of Brazilian roads. During this second assessment of Brazilian roads, approximately 3,400km of roads were assessed. This technical report describes the road assessment project and includes details on data collection, the methodology used and a summary of the results. The infrastructure-related risk assessment involved detailed surveys and coding of 50 road attributes at 100 meter intervals along the network and creation of Star Ratings, which provide a simple and objective measure showing the level of risk on the road network. The star ratings show that 1 percent of road length is rated as 5-star, 9 percent is rated as 4-star, 58 percent is rated as 3-star, and the remaining 32 percent is rated as 2-star and below for vehicle occupants. For motorcyclists, no roads were rated as 5-star, only 3 percent of road length is rated as 4-star, 47 percent is rated as 3-star, and the remaining 50 percent is rated 2-star and below. For pedestrians less than 1 percent is rated as 4-star and 5-star, 2 percent is rated as 3-star and the remaining 13 percent is rated 2-star and below. For bicyclists less than 1 percent is rated as 5-star or 4-star, 5 percent is rated as 3-star and the remaining 14 percent is rated 2-star and below. The project also involved the creation of a Safer Roads Investment Plans, which draws on more than 90 proven road safety treatments, ranging from low cost road markings and pedestrian refuges to higher cost intersection upgrades and full highway duplication.
Shifting into Higher Gear: Recommendations for Improved Grain Logistics in Ukraine
(World Bank, Washington, DC, 2015-08) World Bank Group
This study was conceived on the basis of a request by Ukraine’s Ministry of Agricultural Policies and Food (MoAPF). In 2013, the MoAPF explored the World Bank’s interest for investing in grain hoppers, following a deficit of hoppers and concerns about related difficulties for grain transport. In response, the World Bank secured resources from the Multi Donor Trust Fund for Trade and Development (TF016693) to carry out a review of grain logistics in Ukraine in order to better understand the challenges facing the sector. The objectives of this report are to assess the functioning of the grain logistics system, identify bottlenecks and put forward practical recommendations for investments and reform. Research points to five key drivers of current high logistics costs: (i) lack of regulatory clarity and sub-optimal management of public assets that create barriers to private investments; (ii) underutilization of river transport, (iii) underinvestment in rail transport; (iv) inefficiencies in storage management, and (v) excessive use of road transport. However, there are two important limitations of the report that should be taken into account. First, the ongoing crisis remains a source of uncertainty. It has so far had limited impact on grain production and logistics, yet access to finance has become more difficult and other impacts might arise in the future. Second, there are two areas that the report does not address: customs and ports. Both are important elements of logistics costs and deserve a comprehensive analysis in the future.
Rail Electronic Data Interchange in a Border Crossing Point in South East Europe: An Assessment of Options
(Washington, DC, 2015-05) World Bank
Within the European Union (EU) rail transport is currently the least integrated transport mode. This leads to delays, extra costs, and insufficient use of rail freight, especially for time-sensitive cargo. This also represents a missed opportunity in terms of moving towards a greener transport modal split within the EU. Rail freight, for which international activity represents 50 percent of total activities, will not be able to develop fully if border crossing rail operations do not deliver a better service for shippers and freight operators who require seamless trans-national transport as is possible by road, air and sea. Observing that the modal split of rail in the EU is stagnating at around 16 percent after years of decline, the European Commission proposed a regulation on a European rail network for competitive freight to be based on a number of rail freight corridors which entered into force on November 9, 2010. Regulation No 913/2010 makes it mandatory to create a European rail network for competitive freight based on international freight corridors, recognizing that the need to strengthen the competitiveness of rail freight requires a corridor approach, involving corridors that cross national borders. TheEU adoption in 2010 of a corridor approach focusing on international rail freight has important implications for EU member states, accession and candidate countries, in terms of approaching rail freight investments and performance from an international corridor perspective with enhanced cross-border coordination, with the ultimate aim of increasing the attractiveness of rail to potential freight customers. The objective of this report is to address this recommendation by assessing whether it makes sense to introduce a pilot EDI in a rail border crossing point in South East Europe. It aims to make a preliminary assessment of the various technical options in terms of hardware, software, and communication requirements of such architecture, taking into account that any technical solution proposed needs to be adapted to the countries in question, given existing infrastructure and European regulations. The ultimate aim is to improve rail border crossing performance in South East Europe by the use of EDI to improve integration.
Infrastructure Development in Edo State: Adapting to Constraints and Creating Capabilities
(World Bank, Washington, DC, 2015-04-29) Porter, Douglas John; Rasool Cyan, Musharraf; Lee, Panthea; Brisson, Zack; Itegboje, Osione; Talsma, Adam
Governor Adams Oshiomhole assumed office in November 2008 following a successful court appeal to retrieve the mandate given to him by the people of Edo. Widespread support from a variety of interest groups buttressed the legal challenge and helped create the political space for the Governor’s pursuit of an agenda focused on both reform and speedy delivery. Popular demand for reform was evident, but responding to this presented major challenges. Historically,Edo had been one of the best performing states in the country. Expectations were high that he would restore this status and address the perceived poor performance and allegations of corruption leveled against previous administrations. This case study is an attempt to better understand the process through which the Administration was able to maximize its delivery. This report is one product of several ongoing efforts by the World Bank to better understand how to better tailor its interventions to local realities with the overarching objective of improving its impact. To do this in the case of capital spending in Edo, it was necessary to craft a study method that suspended judgments about actual practices. Thus, rather than holding these practices up to international standards, and highlighting deficits and shortcomings in relation to those standards, the study purpose was to depict how the State administration had responded to the political priorities of the new Governor by adapting to the constraints it faced and creating new ways to deliver through infrastructure spending. This case study underlines the very rich and often messy reality that leaders frequently find when assuming office and the trade-offs that they are forced to make. In doing so, it reminds us of the political realities within which we work and, like other case studies recently undertaken to inform Bank engagements in Nigeria, finds that traditional blue print approaches in such circumstances are unlikely to work and that sequencing, tailoring to local contexts and adaptation along a non-linear road to reform is more feasible path.
Philippine Transport Infrastructure Development Roadmap Framework Plan: Executive Summary
(World Bank, Washington, DC, 2014-10) Cambridge Systematics
Various transport-related agencies and local governments develop their respective transport plans or strategies to address bottlenecks and improve outcomes in the transport sector. However, to be able to bring a more focused or targeted intervention that is more inclusive, these various strategies need to focus on establishing interconnectivity between key urban growth centers and between lagging and fast-growing regions, and creating supporting institutions that promote greater integration. Upon the request of the National Economic and Development Authority, a framework plan was developed to provide policy-makers with a strategic framework to help identify the transport needs of the Philippines and guide in implementing an integrated, more coordinated approach to establishing stronger transport infrastructure linkages to support the country’s inclusive growth agenda. The framework plan was developed under the guidance of a vision and goals developed by stakeholders across the Philippines. This comprehensive vision can be summarized as ‘Bringing us all closer together for prosperity.’ The geographic focus of the Framework Plan includes all of the Philippines outside of Metro Manila. This Framework Plan does not replicate the work being done by the Japan International Cooperation Agency (JICA) for Metro Manila (the JICA study covers Metro Manila with an approximate radius of 100 kilometers and is being conducted to evaluate specific transport infrastructure projects for the Metro Manila area). Future improvements and needs of transportation infrastructure to meet the demand for long-distance transport to and from Metro Manila and to other urban/economic centers in the Philippines are considered; nevertheless, national-level strategies recommended in this study affect all areas of the Philippines.
Regional Economic Impact Analysis of High Speed Rail in China : Main Report
(Washington, DC, 2014-06-25) World Bank
This report reflects a two-stage work flow designed to fulfill the research objectives: stage one defined the methodology, and stages two tested this methodology and transferred the know-how to the China Railway Corporation and its consultants through case studies. Chapter two summarizes the theoretical framework within which regional economic impacts are discussed and quantified. Chapter three reviews current regional economic impact analyses in China. Chapter four summarizes the approach to practical regional impact assessment in other countries and reviews the relevance of the main methods in the Chinese context. Chapter five summarizes the work that has been carried out by the World Bank to date in estimating regional impacts in China. Chapter six develops a practical approach to quantifying the regional economic impacts of future HSR in China, including methods for data collection, surveys and interviews. Chapter seven presents the implementation of the methodology in the case studies and the interpretation of quantified model results. Chapter eight summarizes the conclusions and the recommendations for further work. In addition, appendices one to three provide further details about existing assessment studies and methodologies. Appendices four and five show the interview and survey forms. A separate report provides a step-by-step how-to guide for a regional economic impact assessment using a four zone generic example model, which as a simple numerical example complements the presentation of the case study applications on Changchun-Jilin HSR and the northern part of the Beijing-Shanghai HSR.
Zimbabwe Infrastructure Policy Review
(World Bank, Washington, DC, 2013-12-09) Ringskog, Klas
Many empirical studies have demonstrated the close relationship between a country’s economic development and its stock of infrastructure. Decades of deferred maintenance and lack of long-term financing have taken a heavy toll on Zimbabwe’s infrastructure that at one time was ranked at the top in Africa. Only the information and communications technologies (ICT) sector has been performing relatively well but its high tariffs add to the cost of doing business in Zimbabwe. The strategy in the infrastructure sectors is to encourage public private partnerships (PPPs) for the financing and execution of the different sub-projects. This strategy has been emerging in the electric power, road transport, and ICT sectors and is now being extended to water supply and sanitation. This review builds on the findings from an October-November 2013 mission that, upon the request of the Ministry of Finance, assessed the ministerial submissions for the 2014 public sector investment program (PSIP). The review concludes that the perception of the predictable policies is key for attracting responsible private partners for sustainable PPPs. The review recommends less risky options such as: (i) outsourcing operations of existing plants; (ii) lease contracts of existing plants; and (iii) sales of existing thermal plants. The review notes that the analytical multi donor trust fund (AMDTF) is programmed to close on June 30, 2014. It is of the essence to explore the possibilities to locate concessionary funding for a successor to the AMDTF given the high priority of additional studies in the power, water, and ICT sectors to prepare for the reforms suggested.