Infrastructure funding in LLDCs and transit countries in South America
Azhar Jaimurzina
Chief, Infrastructure Services Unit Natural Resources and Infrastructure Division ECLAC | United Nations
ECLAC and Infrastructure Development of LLDCs
Monitoring infrastructure performance
Measuring infrastructure investment
Estimating Investment needs
Policy recommendations
Case studies and technical assistance
ECLAC and Infrastructure Development of LLDCs
Monitoring infrastructure performance
Measuring infrastructure investment
Estimating Investment needs
Policy recommendations
Case studies and technical assistance
4
Perception of infrastructure performance in South America
0.00
1.25
2.50
3.75
5.00
Customs International shipments Tracking and Tracing
Best performance (Germany) Average Latin America Gap
1.22431.42881.531.0098
1.84681.5421.542
1.8468
1.00981.53 1.4288 1.2243
Logistic Performance by regions, 2016 Infrastructure Quality, 2007- 2016
Quality of Infrastructure in LLDCs and Transit countries in South America, 2016
0.00
1.25
2.50
3.75
5.00
2007 2010 2012 2014 2016
Best performance Average Latin America Gap
1.871.681.421.751.771.77 1.75
1.42 1.68 1.87
Source: ISU/NRID, ECLAC, based on data from World Bank, Connecting to Compete
0.00
0.80
1.60
2.40
3.20
Chile Uruguay Peru Bolivia (Plur. State of)
Infrastructure Quality Average Latin America
5
Measuring infrastructure provision in LLDCs and transit countries: Current Situation
LLDCs and Transit countries in South America and selected regions: Road density, 2015 (per 100 km2)
Source: ISU/NRID, ECLAC, based on official data, for 2015 or latest year available
LLDCs and Transit countries in South America: Road infrastructure state and composition
0
50
100
150
200
Argentina Brazil Peru
Paved Not Paved Secondary and Terciary network
0
50
100
150
200
Argentina Brazil Peru Uruguay Germany OECD (Europe)
Road density (per 100 km) Average for Latin America
-30
0
30
60
90
120
0.0
10.0
20.0
30.0
40.0
Argentina Brazil (Plur. State of) Peru Uruguay
2007 2015 Percentage change
1.35142.5316
106.3492
-2.77780.752712.3656
1.07531.075312.3656
0.7527 -2.7778
106.3492
2.5316 1.3514
LLDCs and Transit countries in South America: Road density, 2007- 2015 (per 100 km)
Contribution of international freight to the total costs of imports imports of LLDCs and Transit countries
0
2.5
5
7.5
10
Argentina Brasil Uruguay Chile Perú Bolivia Paraguay
7.16.7
9.8
76.36.3
5.254.2
8.47.87.37.1
554.9
Source; Base de Datos de Transporte Internacional, ECLAC, 2016
0
4
8
12
16
carretero fluvial
8.29.7
6.36.8
8.98
2.9
6.35.4
7.3
4.8
7.2
4.33.4
4.4
8.6
12.4
2.4
15.8
8.39
5.6
7.5
3.93
4.6
2000 20102014Road Inland Water
ECLAC and Infrastructure Development of LLDCs
Monitoring infrastructure performance
Measuring infrastructure investment
Estimating Investment needs
Policy recommendations
Case studies and technical assistance
Source: ISU/CEPAL based on a 1980 - 2006: Calderón, César y Luis Servén, (2010), “Infrastructure in Latin America”, World Bank Policy Research Working Paper, No. 5317, Washington, D.C., Banco Mundial.
b 2007 - 2015: INFRALATAM.
Note: a Includes: Argentina, Brasil, Chile, Colombia, México y Perú. Year 2015 does noti include Chile.
b Includes: transport, energy, telecommunicacions, water and sanitation.
Latin America: Infrastructure Investment by Source, 1980-2015
(Percentage of GDP)
Infrastructure Financing in South America
Domestic sources
Public Budget
National Banks
PPPs
External sources
Multilateral Development
Banks
Regional infrastructure
funds
Subregional and bilateral
Banks
ODA
FDI
Innovative mechanisms and other forms of
financing
Investment Facility for Latin America
(LAIF)
Project Finance (PF) - Special
Purpose Vehicle (SPV)
Bonds of social impact
Source: Cipoletta Tomassian, C., Financiamiento de la infraestructura para la integración regional Alternativas para América del Sur, 2015
10
0.00
2.25
4.50
6.75
9.00
2008 2009 2010 2011 2012 2013 2014 2015
Infrastructure Transport Energy
LLDCs in South America : Infrastructure Investment, 2008 -2015 (Percentage of GDP)
0.00
1.75
3.50
5.25
7.00
2008 2009 2010 2011 2012 2013 2014 2015
Infrastructure Transport Energy
Bolivia (Plur. State of)
Paraguay
Source: ISU/ECLAC based on INFRALATAM
11
Infrastructure Investment and Infrastructure Development
Incr
ease
in t
he p
aved
roa
ds (
porc
enta
ge)
0
25
50
75
100
Total investment in road infrastructure (Porcentage of GDP)
0 7.5 15 22.5 30
80.1101
10.32815.0258
96.0886
17.9887
39.0955
15.6123
24.507523.2943
59.2456
36
21.4286
Incr
ease
in t
he t
otal
roa
d le
ngth
(po
rent
age)
'-
17.50
35.00
52.50
70.00
total investment in road infrastructure (porcentage of GDP)
0 7.5 15 22.5 30
12.3756
66.0458
8.3944
3.0162
12.766314.341
3.7937
11.015310.936913.7031
0
18.8865
Source: ISU/ECLAC based on INFRALATAM, 2017
ECLAC and Infrastructure Development of LLDCs
Monitoring infrastructure performance
Measuring infrastructure investment
Estimating Investment needs
Policy recommendations
Case studies and technical assistance
New Infrastructure and Maintenance Needs for the period 2016-2030
En % of GDPSector New investment Maintenance TotalTransport (Roads and rail) 0,3 0,3 0,7Electricity 0,4 0,3 0,7Telecommunicacions 0,4 0,9 1,3Water and sanitation 0,8 0,3 1,1Total 1,9 1,9 3,7
Scenario 1: GDP growth of 1.4%
Scenario 1: GDP growth of 2.5%
En % of GDPSector New investment Maintenance TotalTransport (Roads and rail) 0,9 0,4 1,3Electricity 0,9 0,4 1,3Telecommunicacions 0,5 0,9 1,4Water and sanitation 0,9 0,3 1,1Total 3,1 2,0 5,1
New Infrastructure and Maintenance Needs for the period 2016-2030
En % of GDPSector New investment Maintenance TotalTransport (Roads and rail) 1,3 0,4 1,7Electricity 1,3 0,4 1,7Telecommunicacions 0,6 0,9 1,5Water and sanitation 0,9 0,3 1,2Total 4,1 2,0 6,1
Scenario 3: GDP growth of 3.2%
Scenario 1: GDP growth of 3.9%
En % of GDPSector New investment Maintenance TotalTransport (Roads and rail) 1,7 0,5 2,2Electricity 1,8 0,4 2,2Telecommunicacions 0,7 0,9 1,6Water and sanitation 1,0 0,3 1,3Total 5,2 2,1 7,4
(En miles de millones de USD de 2010): 2016 - 2030 Infrastructure Investment Needs in the BAU scenarios
0
2,250
4,500
6,750
9,000
5,942
4,290
2,978
1,451
Transport (road and rail) Energy (electricity) TelecommunicationsWater and sanitation Gap
Scenario 2,5% Scenario 3,2% Scenario 3,9%Scenario 1,4%
ECLAC and Infrastructure Development of LLDCs
Monitoring infrastructure performance
Measuring infrastructure investment
Estimating Investment needs
Policy recommendations
Case studies and technical assistance
ECLAC and Infrastructure Development of LLDCs: Policy Recommendations
I. Specific recommendations on infrastructure development and maintenance ❑Promoting increase in public investment intended for the creation of new infrastructure, and programmes for transport infrastructure maintenance ❑Facilitating compliance with transit rules and improving infrastructure quality ❑Improving and maintaining railway infrastructure (tracks and rolling stock) ❑ Improving the navigability of inland water routes, including signalling, maintenance and channel-widening projects
II. Recommendations on infrastructure Financing
❑ Increase the level and the efficiency of the public infrastructure investments: ❑ Integration of sectoral policies ❑ Contra cyclical investments ❑ Multi-criteria evaluation
❑ Build upon the region’s extensive and rich experience with the PPP in infrastructure
❑Improve the overall quality of institutional processes on the selection, implementation and evaluations of infrastructure projects
ECLAC and Infrastructure Development of LLDCs: Policy Recommendations
I. Specific recommendations on infrastructure development and maintenance ❑Promoting increase in public investment intended for the creation of new infrastructure, and programmes for transport infrastructure maintenance ❑Facilitating compliance with transit rules and improving infrastructure quality ❑Improving and maintaining railway infrastructure (tracks and rolling stock) ❑ Improving the navigability of inland water routes, including signalling, maintenance and channel-widening projects
ECLAC and Infrastructure Development of LLDCs: Policy Recommendations
II. Recommendations on infrastructure Financing
❑ Increase the level and the efficiency of the public infrastructure investments:
❑ Integration of sectoral policies ❑ Contra cyclical investments ❑ Multi-criteria evaluation
❑ Build upon the region’s extensive and rich experience with the PPP in infrastructure
❑Improve the overall quality of institutional processes on the selection, implementation and evaluations of infrastructure projects
ECLAC and Infrastructure Development of LLDCs: Policy Recommendations
II. Recommendations on infrastructure Financing
❑ Increase the level and the efficiency of the public infrastructure investments:
❑ Integration of sectoral policies ❑ Contra cyclical investments ❑ Multi-criteria evaluation
❑ Build upon the region’s extensive and rich experience with the PPP in infrastructure
❑Improve the overall quality of institutional processes on the selection, implementation and evaluations of infrastructure projects
Regional Dialogue on Infrastructure Governance
21
The capacity to maximize the contribution of infrastructure to sustainable development
directly depends on the quality of institutions and public and
private dialogue and stakeholders’ involvement.
❑ Infrastructure governance defined as a set of processes, relating both to the taking of decisions in the area of infrastructure and to implementation of those decisions, where there is interaction between the mechanisms, procedures and rules established formally and informally by institutions
❑This refers both to the conduct of suppliers in their respective markets for infrastructure services and to the vertical and horizontal structure of those markets.
Opportunities for enhancing infrastructure development
22
❑ Improving data and reliable indicators on infrastructure development and financing
❑ Monitor the use of various funding mechanisms
❑ Collaboration with the multilateral development banks at the regional and global levels
❑ Supporting a national dialogue on infrastructure development, financing and governance
❑ National transport policy workshops ❑ Infrastructure governance at various levels: sectoral, local, national or regional
❑ Supporting a regional dialogue and regional cooperation initiatives
❑ Coordinating the interventions of the various UN institutions and relevant actors.
23
Azhar Jaimurzina
Chief Infrastructure Services Unit
Natural Resources and Infrastructure Division
ECLAC | United Nations
[email protected] http://www.eclac.org/drni
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