Other Infrastructure Study

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http://hdl.handle.net/10986/2204

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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.
Beyond Unicorns: Harnessing Digital Technologies for Inclusion in Indonesia

(Washington, DC: World Bank, 2021-07-28) World Bank

Similar to many other countries around the world, the COVID-19 (coronavirus) pandemic has hit Indonesia hard. Latest estimates suggest that about 5.1 million people—equivalent to 2.4 percent of the working-age population—have lost their jobs, while an additional 24 million have had to work reduced hours due to the pandemic. As many as 50 percent of workers have experienced a reduction in earnings. The impact on living standards has been devastating, with more than 2.2 million Indonesians estimated to have been pushed into COVID-19-induced poverty in 2020. One unexpected silver lining from the crisis, however, has been the turbo-charged adoption of digital technologies. Businesses, both large and small, have flocked to digital technologies to try to ensure the continuity of their operations. School closures have forced students and teachers to adapt and explore digitally enabled remote learning options, including the adoption of a variety of EdTech solutions. HealthTech apps enabling remote consultations and the delivery of medicine have seen unprecedented growth in adoption rates. Confined at home due to mobility restrictions, Indonesians have switched to the internet for their entertainment and social needs, driving sharp growth in the usage of digital media (music and video streaming) and communications applications. With this pandemic-induced flight to digital expected to be permanent to a large extent, there is excitement about an even greater acceleration in what was already the fastest growing digital economy in Southeast Asia. But at the same time questions have also emerged about the possibility of the differential access to and adoption of digital technologies compounding existing inequalities. For a country that considers achieving balanced development one of its key priorities, this is an important new challenge.
Jobs and Distributive Effects of Infrastructure Investment: The Case of Argentina

(World Bank, Washington, DC, 2021-06) World Bank

This paper assesses the short-term job generation potential of infrastructure investments in Argentina. The analysis is based on a 2017 Input-Output model with a breakdown of the construction sector into multiple infrastructure subsectors. The disaggregation was possible with a novel database with cost structures for about 70 infrastructure projects. The analysis reveals significant heterogeneity across subsectors of infrastructure investment, with job generation potential ranging between 15,000 and 49,000 annualized direct, indirect and induced jobs in the short-term per US1 billion dollars invested, depending on the type of infrastructure project considered. The results show that public housing and rural road maintenance, followed by railway construction, water and sanitation and urban infrastructure have the highest potential to generate jobs in the short-term. On the other hand, road construction and energy distribution are activities with lower short-term generation potential, but with higher long-term impact on GDP growth according to their elasticities estimates in the literature. The analysis reveals the characteristics of the projects that are determinants of the degree of job generation potential, these include: labor intensity, split between skilled and unskilled labor, ratio of imports to total investment, technology, among others. Infrastructure investment in sectors with high potential for employment generation compares favorably with pure demand stimulus check programs in terms of the effects on income growth for the poor and across all quintiles. However, infrastructure investment in sectors with low employment potential tend to have relatively more limited distributive effects. It is argued that to optimize job generation potential of infrastructure investment in the short-term as a fiscal stimulus, and in the long-term as a foundation for future growth, interventions must be ready for implementation, with low risk of delays, and selected based on sound economic analysis. Also, policymakers must pursue projects with high economic returns to enable a more productive and competitive economy and look for opportunities in which public sector investment can crowd in rather than crowd out private sector investment.
Burundi Digital Economy Assessment

(World Bank, Washington, DC, 2020-12-21) World Bank Group

Coronavirus 2019 (COVID-19) has highlighted the need for accelerating digital adoption in Burundi. Burundi’s current sectoral strategies acknowledge the importance of investing in digital technology. However, these lack an overarching approach with an actionable roadmap and clear resources behind it. Burundi’s mobile network coverage and mobile broadband uptake continues to be characterized by a stark urban-rural divide. Digital platforms are paramount in connecting people, businesses, and the government - enabling both transactions and the exchange of information, goods, and services in more efficient and convenient ways. At present Burundi’s digital entrepreneurship sector remains embryonic, hampered by barriers such as limited ecosystem support and weak access to financing. Whether through the provision of public services closer to its citizens with digital platforms, or through increased financial inclusion enabled by digital financial services and dynamic digital ecosystems, Burundi stands to gain from a continued investment in the foundations of its digital economy. Chapter one gives introduction. Chapter two reviews cross-cutting factors that affect the strategic, institutional, and regulatory environment for the digital agenda in Burundi. The report proceeds to explore the five foundational pillars of the digital economy, in more depth. Chapter three looks at the access, quality, and usage of digital infrastructure, as well as the dynamics of the connectivity market, including what it will take to get more Burundians online. Chapter four discusses the current state of digital skills attainment and coverage. Chapter five analyzes the current application and scope for expanding the use of digital platforms - both in the public and private sector. Chapter six examines the state and uptake of digital financial services (DFS) among individuals, businesses and by government. Finally, chapter seven assesses the state of digital entrepreneurship and the culture of innovation in Burundi.
Togo Digital Economy Diagnostic Report

(World Bank, Washington, DC, 2020-11-26) World Bank Group

Rapid digital transformation has been re-shaping the global economy, changing fundamental patterns of socioeconomic activities and accelerating further in the wake of the global Coronavirus (COVID-19) pandemic. In this context, relying on the Digital Economy for Africa (DE4A) methodology, the report conducts a timely diagnostic of the state of digital economy in Togo. Togo is bordered by Ghana, Benin, and Burkina Faso, and has a coastline that runs along the Gulf of Guinea. The government of Togo (GoT) is cognizant of the importance of the transformation towards a digital economy. As the government of Togo launches into the development of a new strategy for digital transformation “Togo Digital 2025” the current diagnostic would provide useful information to use as a basis for such strategic document. This report aims to highlight opportunities to further develop Togo’s digital economy with a special focus on policies that can bridge the digital divide and help Togo achieve the DE4A targets. This report aims to provide practical and actionable recommendations that inform decision makers on priority areas for development.
Business Regulation in South Asia and the Belt and Road Initiative

(World Bank, Washington, DC, 2020-11-24) World Bank

This study provides a comprehensive comparative analysis of the business environment in six South Asian countries, Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka, to examine whether business regulatory requirements in these countries hinder them from fully benefiting from BRI project spillovers. The analysis is based on available secondary data sources and responses to a structured questionnaire sent to selected private sector participants in each of these countries, eliciting information on the law, regulation, and practice in a wide range of thematic areas influencing the overall business and regulatory environment. Survey respondents identified nine key themes as the most challenging for the private sector, including from the perspective of potential benefits from BRI-induced opportunities. The thematic areas are: (a) licensing and inspection requirements; (b) regulations and practices governing foreign investment; (c) access to resources such as land, credit, and electricity; (d) regulatory restrictions on the operation of foreign firms, such as local content requirements and currency repatriation; (e) regulatory governance and corruption and state capture; (f) predictability and quality of the regulatory framework, especially corporate taxation; (g) government procurement laws and practice; (h) effective dispute settlement and grievance mechanisms; and (i) trade and customs regulations. The identified thematic areas promote connectivity and regional integration and thus are particularly relevant from the BRI perspective. Improvements along different dimensions of these thematic areas will likely enable countries in the region to gain from BRI-induced opportunities.
Road Geohazard Risk Management Handbook

(World Bank, Washington, DC, 2020-10) Global Facility for Disaster Reduction and Recovery

This handbook outlines an approach to proactively manage the risks of geohazards on roads, road users, and the people living near and affected by road. This handbook is structured to support road geohazard risk management sequentially and systematically: Part I, Framework for Road Geohazard Risk Management, helps users understand the framework for road geohazard risk management, introduces some basic concepts, and provides context to the overall handbook; Part II, Institutional Capacity and Coordination, covers the institutional arrangements that are necessary for the successful implementation of geohazard management; Part III, Systems Planning, covers the systems planning aspects, pertaining to the identification, assessment, and evaluation of risks, along with raising awareness of disasters; Part IV, Engineering and Design, deals with the engineered solutions to address geohazard risks, giving examples of different solutions to particular risk types; Part V, Operations and Maintenance, focuses on the operations and maintenance aspects of geohazard management whether the maintenance of previously engineered solutions or the nonengineered solutions available to mitigate the impacts of geohazard risks; Part VI, Contingency Planning, addresses contingency programming issues, such as postdisaster response and recovery, and the important issue of funding arrangements; and Part VII, References and Resource Materials, contains the reference list and additional online resources. Additionally, this handbook includes standard templates for terms of reference (ToRs) that can be adapted for technical assistance projects for road geohazard risk management (see Appendix A) and an operation manual (OM) for the practitioners involved with road geohazard risk management (see Appendix B).
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.
Ghana Digital Economy Diagnostic

(World Bank, Washington, DC, 2019) World Bank Group

Universal adoption and effective application of digital technologies are expected to characterize economies of the future, shaping their ability to succeed in the global marketplace and offer a better quality of life for their citizens. Disruptive technologies are already altering traditional business models and pathways to development, yielding significant gains, increased convenience, as well as supporting better access to services for consumers. In 2016, the digital economy was worth an estimated 11.5 trillion dollars worldwide, equivalent to 15.5 percent of global GDP. It is forecast to reach 25 percent in less than a decade, far outpacing the growth of the ‘traditional’ economy (Huawei and Oxford Economics 2016). Mobile money is driving financial inclusion, particularly in Sub-Saharan Africa, with the number of accounts doubling to 21 percent between 2014-17. African e-commerce is also rapidly growing, at an estimated annual rate of 40 percent. Over the past five years, there has been a tenfold increase across the region in the supply of new intermediaries such as incubators, accelerators, and technology hubs, amongst others, numbering more than 400 across Africa today. The digital economy in Africa is expected to grow to over 300 billion dollars by 2025 (McKinsey 2013). Ghana has made substantial progress on financial inclusion, due in large part to growth in DFS. According to the World Bank’s Global Findex, the share of Ghanaian adults (over 15 years of age) with a formal financial account increased by 42 percent between 2014 and 2015. As a result, nearly 6 in 10 adults had formal access in 2017. With mobile account ownership increasing by nearly 200 percent between 2014 and 2017, mobile money has become the preferred payment alternative to cash when measured in terms of transaction volumes. In May 2018, the Bank of Ghana mandated that all mobile money providers connect to GHLink, with full interoperability between mobile money providers and banks introduced in December 2018.
Leveraging Technology to Support Construction Regulation and Permitting Reform: Insights from Recent Country Experience

(World Bank, Washington, DC, 2018-06) Molfetas, Aris ; Wille, John

Good regulations, combined with sound enforcement mechanisms and an efficient, transparent, and affordable permitting process, can ensure safety standards for the community, facilitate investment in new building stock, and contribute to capital formation. A recent study shows that long delays in obtaining permits can lead to higher transaction costs and fewer transactions. Similarly, an earlier study in the United States (US) found that accelerating permit approvals by 3 months in a 22-month project cycle could increase construction spending and property tax revenue. Unpredictable, lengthy, and expensive permitting procedures influence entrepreneurs' decision making. A recent competitiveness report on the US, for example, found that construction costs and the permitting process were among the top 20 factors in determining the location of a start-up. Given the relevance of this area for both communities and investors, governments have sought to leverage technology to enhance permitting service delivery and improve availability of zoning requirements and building regulatory information.