Publication: Peru - Recent Economic Development in Infrastructure : Volume1. Investing in Infrastructure as an Engine for Growth - Spending More, Faster and Spending Better
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2010-12
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2013-02-26
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This report provided the Government of Peru with a comprehensive strategic assessment of three key infrastructure sectors: water/sanitation, transport and electricity, and to propose selected recommendations on how the Government could improve the performance of these sectors. Peru's public expenditure framework shows some rigidities, a number of which were introduced when fiscal resources were scarce or, more recently, because of concerns about a possible risk of inflation. The implementation of the stimulus package has required a laborious transition to remove bottlenecks to faster public spending, sometimes at the risk of affecting the mechanisms that help ensure the quality of public expenditures. The Peruvian authorities have been able to accelerate public investments in infrastructure but little thinking has been dedicated to improving the efficiency and effectiveness of such investments. The report concludes that Peru should focus on: prioritizing infrastructure investments through improved planning, promoting efficiency in infrastructure delivery, enhancing sub-national governments' capacity with respect to infrastructure, and leveraging the participation of the private sector.
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“World Bank. 2010. Peru - Recent Economic Development in Infrastructure : Volume1. Investing in Infrastructure as an Engine for Growth - Spending More, Faster and Spending Better. © World Bank. http://hdl.handle.net/10986/12501 License: CC BY 3.0 IGO.”
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Publication Peru - Recent Economic Development in Infrastructure : Volume 2. Investing in Infrastructure as an Engine for Growth - Spending More, Faster, and Spending Better(Washington, DC, 2010-12)This report provided the Government of Peru with a comprehensive strategic assessment of three key infrastructure sectors: water/sanitation, transport and electricity, and to propose selected recommendations on how the Government could improve the performance of these sectors. Peru's public expenditure framework shows some rigidities, a number of which were introduced when fiscal resources were scarce or, more recently, because of concerns about a possible risk of inflation. The implementation of the stimulus package has required a laborious transition to remove bottlenecks to faster public spending, sometimes at the risk of affecting the mechanisms that help ensure the quality of public expenditures. The Peruvian authorities have been able to accelerate public investments in infrastructure but little thinking has been dedicated to improving the efficiency and effectiveness of such investments. The report concludes that Peru should focus on: prioritizing infrastructure investments through improved planning, promoting efficiency in infrastructure delivery, enhancing sub-national governments' capacity with respect to infrastructure, and leveraging the participation of the private sector.Publication Africa's Infrastructure : A Time for Transformation(World Bank, 2010)This study is part of the Africa Infrastructure Country Diagnostic (AICD), a project designed to expand the world's knowledge of physical infrastructure in Africa. The AICD will provide a baseline against which future improvements in infrastructure services can be measured, making it possible to monitor the results achieved from donor support. It should also provide a more solid empirical foundation for prioritizing investments and designing policy reforms in the infrastructure sectors in Africa. The AICD is based on an unprecedented effort to collect detailed economic and technical data on the infrastructure sectors in Africa. The project has produced a series of original reports on public expenditure, spending needs, and sector performance in each of the main infrastructure sectors, including energy, information and communication technologies, irrigation, transport, and water and sanitation. The first phase of the AICD focused on 24 countries that together account for 85 percent of the gross domestic product, population, and infrastructure aid flows of Sub-Saharan Africa. Under a second phase of the project, coverage is expanding to include as many of the additional African countries as possible.Publication Benin's Infrastructure(World Bank, Washington, DC, 2011-06)Between 2000 and 2005 infrastructure made an important contribution of 1.6 percentage point to Benin's improved per capita growth performance, which was the highest among West African countries during the period. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 3.2 percentage points. Benin has made significant progress in some areas of its infrastructure. The rural road network is in relatively good condition, and about 30 percent of the rural population has access to an all-season road, a level above the country's peers. Air transport connectivity has improved. Also, important market liberalization reforms designed to attract private capital to the water and information and communications technology (ICT) sectors have boosted performance. In particular, increased competition in the ICT market has contributed to the rapid expansion of mobile and Internet services. Addressing Benin's infrastructure challenges will require sustained expenditures of $712 million per year over the next decade, with heavy emphasis on capital expenditure. Almost half of the total relates to the transport sector. At 16.6 percent of Benin's 2005 gross domestic product (GDP), this effort is almost at the level of other Sub-Saharan African countries. Benin already spends around $452 million per year on infrastructure, equivalent to about 10.5 percent of its GDP. Almost $101 million a year is lost to inefficiencies of various kinds, associated mainly with under pricing in the power and water sectors; poor financial management of utilities; and inefficient allocation of resources across sectors. If Benin could raise tariffs to cost-recovery levels, and reduce operational inefficiencies in line with reasonable developing-country benchmarks, it could substantially boost flows to the infrastructure sectors. Comparing spending needs with existing spending and potential efficiency gains (and assuming that the inefficiencies are fully captured) leaves an annual funding gap of $210 million per year. By far the largest share of the gap can be traced to the water supply and sanitation sectors. Benin has the potential to close this gap by adopting alternative technologies in water supply, transport and power. Savings from alternative technologies could amount to as much as $227 million per year.Publication Zimbabwe’s Infrastructure : A Continental Perspective(2011-09-01)Despite general economic decline and power-supply deficiencies, infrastructure made a modest net contribution of just less than half a percentage point to Zimbabwe's improved per capita growth performance in recent years. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 2.4 percentage points. Zimbabwe made significant progress in infrastructure in its early period as an independent state, building a national electricity network with regional interconnections, an extensive and internationally connected road network, and a water and sewer system. But the country has been unable to maintain its existing infrastructure since it became immersed in economic and political turmoil in the late 1990s. Zimbabwe now faces a number of important infrastructure challenges, the most pressing of which lie in the power and water sectors, where deteriorating conditions pose risks to the economy and public health. Zimbabwe currently spends about $0.8 billion per year on infrastructure, though $0.7 billion of this is lost to inefficiencies of various kinds. Even if these inefficiencies were fully captured, Zimbabwe would still face an infrastructure funding gap of $0.6 billion per year. That staggering figure can be reduced, however, to $0.4 billion if the country adopts a more modest spending scenario, or even to $0.1 billion under a minimalist, maintenance-only scenario. To close the gap, Zimbabwe needs to raise additional public, private-sector, and international funding, which, when coupled with the prospect of economic rebound and prudent policies, would allow the country to regain its historic infrastructure advantages.Publication Zimbabwe's Infrastructure(World Bank, Washington, DC, 2011-03)Despite general economic decline and power supply deficiencies, infrastructure made a modest net contribution of less than half a percentage point to Zimbabwe's improved per capita growth performance in recent years. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 2.4 percentage points. Zimbabwe made significant progress in infrastructure in its early period as an independent state. The country managed to put in place a national electricity network and establish regional interconnection in the power sector; to build an extensive network of roads for countrywide accessibility and integration into the regional transport corridors; to lay the water and sewerage system; and to make progress on building dams and tapping the significant irrigation potential. Unfortunately, at present the cross-cutting issue across all these sectors is Zimbabwe's inability to maintain and rehabilitate the existing infrastructure since the country became immersed in economic and political turmoil in the late 1990s. Neglect of all sectors due to the crisis has resulted in a generalized lack of new investment (in the power and water sectors in particular), and the accumulation of a huge rehabilitation agenda. Quality of service has declined across the board. The power system has become unjustifiably costly, inefficient, and unreliable. The condition of roads has deteriorated to the point that Zimbabwe became a bottleneck on the North-South transport corridor. Rural connectivity hardly exists. Failure to treat potable water, along with the deterioration of the water, sanitation, and garbage disposal systems, was responsible for the spread of cholera in 2008. By 2010 cholera affected most areas of the country and posed a health threat to neighboring countries. Looking ahead, Zimbabwe faces a number of important infrastructure challenges. Zimbabwe's most pressing challenges lie in the power and water sectors. Inefficient and unreliable power supply poses major risks to the economy, while the maintenance and upgrading of existing power infrastructure no longer looks to be affordable. At the same time, overhauling the water and sewerage system is imperative for curbing the public health crisis.
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