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Australia’s involvement in the Global Infrastructure Facility (GIF)—as a founding member, and co-chair of the advisory council over the past year—underscores our commitment to lift investment in global infrastructure, which is a critical component to ensuring economic growth and poverty alleviation.
Strong economic infrastructure underpins human development, enables movement of people and goods, provides access to and expands markets and services, facilitates innovation, and enhances competitiveness.
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Critically constrained public resources on the one hand, and huge existing infrastructure needs for basic services on the other, make private participation in emerging markets and developing economies (EMDEs) not just critical, but in fact, imperative. Crowding in private finance is essential to spur economic development and meet the twin goals of shared prosperity and elimination of extreme poverty, as well as to achieve the Sustainable Development Goals.
The Private Participation in Infrastructure (PPI) Database, with data spanning over almost 27 years, has become a powerful tool and measure for gauging the level of private investment in infrastructure in EMDEs.
Photo: World Bank Group
By committing to the Sustainable Development Goals (SDGs), countries pledge to pursue progress on economic, social, and environmental targets, in a balanced and integrated manner. The SDGs are cross-cutting and ambitious, and require a shift in how we work in partnership. They also push us to significantly change the level of both public and private investment in all countries.
We need creative solutions to leverage each partner’s comparative advantage. We also need to mobilize private sector investment and innovation in support of the SDGs.
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It seems like every week there are new reports being published about public-private partnerships (PPPs) by different organizations around the world. How can you keep track of what’s new and what’s relevant for your work?
With over 4,000 documents on PPPs in seven different languages (English, Spanish, French, Portuguese, Arabic, Russian, and Chinese) in its searchable document library,
What’s been trending over the last quarter on the PPP Knowledge Lab?
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Infrastructure is a key driver for growth, employment, and better quality of life in emerging markets and developing economies (EMDEs). But this comes at a cost. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operations such as power plants, buildings, and transport. The Overseas Development Institute estimates that over 720 million people could be pushed back into extreme poverty by 2050 as a result of climate impacts, while the World Health Organization projects that the number of deaths attributable to the harmful effects of emissions from key infrastructure industries will rise from the current 150,000 per year to 250,000 by 2030.
Does this mean we need to build less infrastructure? No. But part of the solution lies in low-carbon infrastructure.
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A few years ago, I participated in a meeting to discuss best practices in Public-Private Partnership (PPP) regulation. There was no shortage of examples. In fact, PPP practitioners were eager to share their experiences from countries around the world, but we did not have a systematic way to make all that information accessible to policy makers. Moreover, at the time, I kept thinking that there were many more good examples beyond those we were sharing at the meeting.
The lack of systematic data on the quality of PPP regulation was a serious issue. What we needed was a comprehensive, systematic way to go beyond individual examples. How could we collect available information, organize it in a rigorous and systematic way, and make it all accessible to policy makers?
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Last week, the European Court of Auditors (ECA) published a report providing new, relevant evidence on public-private partnerships (PPPs). It addresses a small sample of PPP transactions, many of which were concluded in a period of financial crisis. Nevertheless, .
Around the world, roads remain the dominant mode of transport and are among the most heavily-used types of infrastructure, accounting for about 80% of the distance travelled for individuals and 50% for goods.
Despite this intensive use, the funding available for road maintenance has been inadequate, leaving roads in many countries unsafe and unfit for purpose.
To make matters worse, roads are also very vulnerable to climate and disaster risk: when El Niño hit Peru in 2017, the related flooding damaged about 18% of the Peruvian road network in just one month.
It is no surprise then that roads are the sector that will require the most financing. In fact, the G20 estimates that roads account for more than half of the $15 trillion investment gap in infrastructure through 2040.
- Climate Change
- Financial Sector
- Law and Regulation
- Private Sector Development
- Public Sector and Governance
- Urban Development
- Sustainable Communities
- sustainable transport
- sustainable mobility
- maximizing finance for development
- roads and highways
- road safety
- climate change adaptation
- climate resilience
- climate risk
- infrastructure financing
- infrastructure financing gap
- Disaster Risk
- disaster risk management
- public-private partnerships
- private participation
- private participation in infrastructure
- investment guarantees
- Multilateral Investment Guarantee Agency
Photo: David Lawrence / World Bank Group
One September afternoon, my boss, Pankaj Gupta, popped his head into my office. He had some ideas about how the novel use of guarantees might help solve a type of problem we had not faced before. The Energy and Extractives Global Practice had received a request from Ukraine. The problem was the country was heading into the 2014/15 winter with a large gas shortfall.
These were not easy times for Ukraine, which was in the throes of armed conflict on its Eastern border. With an economy in turmoil, the credit rating agency, Standard & Poor's, had dropped Ukraine's credit rating two notches in the last year. The rating now languished at CCC, or very speculative and non-investment grade. This made finance, the life-blood of service delivery, difficult to access and expensive.
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This World Water Day, the Private Infrastructure Development Group (PIDG) is celebrating the success of the Kigali Bulk Water Project in Rwanda’s capital.
The large-scale water treatment plant, due for completion in 2020, will produce 40 megaliters of clean water per day, equivalent to one-third of Kigali's total supply. Water will be drawn from the Nyabarongo River to be treated before distributing a clean supply to up to 500,000 domestic, commercial, and industrial customers. Kigali Water is one of the first water projects to be developed using a public-private partnership (PPP) model in sub-Saharan Africa.