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Publication(World Bank, Washington, DC, 2018-12-01) World Bank GroupStarting in 2017, PPI investment has been reported for ICT-backbone infrastructure (such as fiber-optic cables (land-based/submarine cables), mobile towers, base stations and other hard assets) with an active government component, whereby the government is involved by way of being a contracting authority (i.e., a party to a concession agreement) or the full or part-owner of the assets. Information was also back-filled for the previous 10 years based on the new methodology, therefore this note covers a 10-year period. Tracking private investment in this sector will be increasingly important due to the critical role that ICT plays in development. With some seven billion mobile connections and 60-percent coverage of 3G networks worldwide, the ICT sector is critical for disruptive innovation and for leapfrogging development and enhancing the impact of the fourth Industrial Revolution. In 2017, private investment in ICT amounted to USD 3.0 billion across six projects (including one cross-border project). This marked a significant increase over the investment level of USD 462 million in 2016, as well as the previous 10-year average (2007-2016) of USD 1.3 billion. The 3.2-percent share of ICT in global PPI investment in 2017 marked the second highest share of the last 10 years, after the four-percent share in 2008. However, the ICT sector only accounted for an average of 1.3 percent of global PPI investment over the last 10 years. Overall, there were 37 ICT-backbone projects recorded since 2008, totaling USD 14.1 billion. Of six projects in 2017, two fell into the category of mobile-network infrastructure development. The remaining projects were submarine/land fiber-optic cable-installation projects. The two network development projects, namely the USD 1.5 billion 4G-network-development project in Myanmar and the USD 946 million national-mobile-network development project in Mexico, contributed more than 80 percent of the total ICT investment. The average project size in 2017 (USD 500 million) was almost five times higher than in 2016, because all the projects in 2016 were cable-installation projects, which are typically smaller than network-development projects. However, the average project size in the previous ten-year period was USD 381 million.
Publication(World Bank, Washington, DC, 2018-12-01) World Bank GroupIn 2017, PPI investments in energy stood at USD 51.9 billion across 203 projects (compared to USD 46.8 billion across 183 projects in 2016), and accounted for more than half (56 percent) of the PPI investments across all four infrastructure sectors included in the PPI database—energy, water, transport and ICT. Of these four, the energy sector has attracted the most private-sector participation. By dollar value, from 2008 to 2017, cumulative investments in the energy sector (conventional and renewable energy) accounted for approximately 59 percent of total PPI investments. Although the energy sector continued to be the predominant sector attracting private investments in 2017, because of increased investment in other sectors, the share of energy-sector investments decreased from 69 percent of all PPI investments in 2016 to 56 percent in 2017.Energy investments reached their peak in 2012, as private investors shrugged off the effects of the global financial crisis and pumped USD 89.6 billion into the sector. However, by 2015, private-sector investments in energy reached their lowest levels, at USD 38.5 billion, a trend largely accelerated by a steep drop in oil prices in 2014 and a subsequent decrease of investment in the conventional-energy sector. From 2015 to 2017, investments picked up gradually, with increasing investments in renewables.In terms of the number of projects, two-thirds of all projects (203 out of 304) in 2017 were in the energy sector. Interestingly, the number of energy projects as a percentage of all PPI projects fluctuated very little after 2014. On average, from 2008 to 2017, the PPI energy projects accounted for 69 percent of all PPI projects.
Publication(World Bank, Washington, DC, 2018-12-01) World Bank GroupTransport PPI investments form an integral part of total PPI investments. Since 2008, transport PPI investments have been forming a larger and larger percentage of PPI investments across the four sectors (energy, ICT, water and transport). PPI investments in transport used to attract 23 to 29 percent of all PPI investments prior to 2011. After 2011, transport PPI investments haveconsistently garnered more than 30 percent of all PPI investments, reaching a high of 61 percent i