This Report seeks to identify key capital market instruments that can help mobilize institutional investors to infrastructure and small and medium enterprises (SMEs) financing in Emerging Market Economies (EMEs) and provide policy recommendations to facilitate their use.6 There is limited quantitative data available in this topic on EMEs. As a result, the approach taken in this report is qualitative and conceptual, drawing from our experience to gauge the current use of these instruments, ...

Consistent with these objectives to mobilise further investment, this report provides an overview of the type of risks in infrastructure and the tools available to policymakers and regulators to help effectively manage and allocate risks amongst the various stakeholders, with the objective of facilitating the engagement of investors in infrastructure projects through the judicious use of risk mitigation instruments and techniques.

The selected voluntary policy recommendations provided below seek to assist  governments in  tackling key challenges linked to mobilising private financing for infrastructure and SMEs, in particular from institutional investors and capital markets and diversifying financial instruments with special attention to equity financing. As challenges are country-specific, the recommendations are intended to serve as guidance to country authorities in their effort to cope with their speci...

This paper examines how pension funds, insurance companies and asset managers approach environmental, social and governance (ESG) risks and opportunities in their portfolio investments, and whether current investment governance standards in legal and regulatory frameworks encourage or discourage them from integrating ESG factors in investment decision-making.1 Concerns have been raised that investment governance standards may be unduly restrictive and so discourage institutional investors ...

The checklist takes the form mainly of YES/NO questions. Itemised lists are provided in many cases, but as these may not be exhaustive, a catchall “other” choice is typically included for which a specific answer may be input. The checklist also allows respondents to identify issues for which follow-up action might be needed, as well as issues which may be described as “in progress”, such as actions currently being considered or under development but not yet implemen...

The G20/OECD High Level Principles on Long-Term Investment Financing by Institutional Investors (the “High Level Principles” or “Principles”) are designed to assist OECD, G20 and any other interested jurisdictions to facilitate and promote long-term investment by institutional investors. The High-Level Principles are intended to complement and do not substitute for any existing international principles and/or guidelines that may apply to particular categories of inv...

Large-scale port projects have irreversible effects on land use and multiple impacts on the local economy and local community. They affect the way that the regional and national economy operates as a whole, with major impacts on regional transport systems. Port planners make better decisions when these broad impacts are examined as part of the development of a national freight transport and logistics strategy. Private investment in port terminals is also facilitated by the certainty engend...

This report reviews the experience with strategic infrastructure planning in a selection of countries and complements that analysis with a discussion of how strategic planning is conducted in the private sector. It summarises the discussion of a roundtable organised by ITF which brought together 27 international experts in London in June 2016. The roundtable was organised around presentations from regulators, policy makers and researchers on the strengths and weaknesses of strategic planni...

This report sets out several of the recent advances, and suggests the most promising approaches, to the quantification and valuation of some of the wider economic benefits that flow from transport-related development. Economic appraisal can offer decision-makers important insights into the expected socio-economic impacts of transport projects. The sophistication of modern supply chains and the growing prominence of the services sector have increased the interest of decision-makers in econo...

The World Bank Group prepared this primer as an important first step toward gender equality in PPP projects. The primer consolidates and draws from a wide spectrum of examples that cut across sectors to demonstrate how infrastructure, its development, and the policies and regulations governing its construction and operation, can play a role in closing gaps between women and men. It pinpoints approaches for ensuring that projects not only do no harm, but also serve as vehicles for empowerme...

This new report looks at data from state-owned enterprise and public projects and compares it to data on private participation in infrastructure. The result is a snapshot that shows the relative proportion of investment commitments made by the public, SOE, and private sectors to infrastructure projects at global, regional, and sectoral levels in 2017.

While almost all cities and towns in economies where the European Bank for Reconstruction and Development (EBRD) invests receive a regular municipal waste collection service of some kind, service quality and delivery are frequently unreliable and inefficient. Coverage focuses primarily or exclusively on urban areas and, in many cases, once the waste has been collected, it is simply dumped at a nearby location, with little consideration of the consequences for public health, resource conser...

This policy paper addresses the objectives, challenges and lessons learned from AFC schemes, with a particular focus on emerging markets and second-tier cities with limited resources. It focuses on defining the challenges and their importance to the AFC sector, and introduces a range of project and policy solutions including best-practice, market-driven approaches and other commercial alternatives that have been used successfully. It supports transition and reform for efficient, accountabl...

This paper proposes the adoption of advanced asset management practices that could help water and wastewater utility operators to improve their competitiveness and become more sustainable in operational terms. In addition, it highlights how the private sector could potentially facilitate this change by introducing new ideas and disciplines.  

This paper considers supply and demand determinants of MDBs’ current guarantee products, addresses the requirements of private sector investors, and identifies ways to close the gaps between private sector needs and the ability of MDBs to scale up risk mitigation mechanisms. The main conclusion from this analysis is that MDBs’ business models impose significant limitations on the further use of guarantees. A possible alternative to overcome these limitations is the creation of ...

This document is part of a long-term work plan by MDBs to increase awareness around guarantees provided by those institutions. It also aims to set the stage for further discussions on how to enhance MDB guarantee products and advance on the infrastructure as an asset class agenda.

SOURCE enables governments to rapidly develop well-prepared infrastructure projects with consistency and transparency across sectors. The tool helps gather and synthesize data to enhance the quality of project preparation, speed up procurement, and promote dialogue between public and private parties. 

Deep reforms of the Philippine power sector began in 2001, aiming at competitive wholesale and retail markets. This case study analyzes the Philippine experience with wholesale electricity markets at the generation level, including design, implementation, and outcomes. The spot market began operation in 2006, amidst adequate generation capacity albeit highly concentrated among few players. The reforms have successfully introduced market-driven forces to system operation and spot price sign...

The Peruvian power market was established in 1992, amid serious supply constraints and financially distressed power utilities. Since its inception, the market has been adapted by competitive market reforms and adaptations due to government-driven public policy objectives. This paper analyzes the experience of Peru with power markets, including market design, implementation, and outcomes. A cost-based power pool with locational marginal prices was established overnight, with bilateral contr...

The Colombian power market was established in 1995, driven primarily by concerns about the reliability of supply in the largely hydro-based domestic power system. The power sector reform was expected to help avoid blackouts by attracting private investment and increasing the efficiency of existing capacity. However, two decades after its inception, the market has not been successful in providing reliable supply along competitive outcomes. 

This report aims to shift the debate regarding investment needs away from a simple focus on spending more and toward a focus on spending better on the right objectives, using relevant metrics. It does so by offering a careful and systematic approach to estimating the funding needs to close the service gaps in water and sanitation, transportation, electricity, irrigation, and flood protection. Exploring thousands of scenarios, this report finds that funding needs depend on the service goals...

The 2018 Global Infrastructure Forum (GI Forum), the third since its establishment as part of the Addis Ababa Action Agenda on Sustainable Development Goals in 2015, built on the previous forums. Its goal is to bridge the infrastructure gap by improving alignment and coordination among multilateral development banks and their partners to facilitate implementation of sustainable, accessible, and resilient infrastructure for developing countries. This document con...

ADB’s new publication shows how governments and their development partners can use PPPs to promote more inclusive and sustainable growth. The study finds that successful PPP projects are predicated on well-designed contracts, a stable economy, good governance and sound regulations, and a high level of institutional capacity to handle PPPs.

The Global Infrastructure Hub released the reference tool which is a useful aid for policy-makers and practitioners in their quest to improve project preparation practices and their capacity for preparing quality infrastructure projects.