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Infrastructure Development Connecting communities and enabling economic growth

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  • Infrastructure Development

    Connecting communities and enabling economic growth

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  • Infrastructure Development 3

    Contents

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    The Importance of Infrastructure Development

    Our Global Experience Strategy & Policy

    Institutional Reform & Strengthening

    Enabling Environment Reform

    Infrastructure Finance

    Energy

    Roads

    Transport

    Urban Development

    Rural Infrastructure Development

    Water, Sanitation & Hygiene

    Focus on Nigeria

    Focus on Sustainability

  • Adam Smith International deserves credit for its innovative approach to infrastructure. It is a great support to DFID in its policy thinking, dedication to strengthening governance and political commitment to sound policy.

    International Development Select Committee Report

    4

  • 5Infrastructure Development

    Our infrastructure development programmes have been singled out for numerous awards:

    NIAFs Programme Manager was Highly Commended as Young Consultant of

    the Year 2014 by British Expertise

    CRIDF was shortlisted for the Association of Project

    Management Overseas Project of the Year

    in 2014

    Our long-running Nigeria Infrastructure Advisory Facility

    programme was awarded Development Project of the Year 2011 from

    BritishExpertise

    The Importance of Infrastructure Development

    Adam Smith International has worked at the cutting edge of infrastructure development for over 20 years and has assisted the economic growth and governance reform programmes of many developing and transitional economies.

    The effect of infrastructure investment is exponential, enabling fundamental growth through employment, empowerment, poverty reduction and improved health. High quality, resilient infrastructure lowers the cost of goods and services, particularly benefiting women and less affluent communities.

    If the private sector is to become an engine of economic growth then it must be supported by durable infrastructure which has been built, maintained and regulated with the future in mind. High quality, context-appropriate infrastructure builds the productivity of business as well as its willingness to plan, producing a transformation in the investment landscape.

    NIAF was also runner up for the Association for Project Management Overseas Project of

    the Year in 2011

    Durable, high quality and context-appropriate infrastructure will deliver a brighter future economically and socially for developing nations, and is a key response to climate change, in both abatement and adaptation.

  • 6Sierra Leone: Supporting National Water and Sanitation Policy

    We provide technical expertise in various government bodies and have developed and implemented a 5m WASH (Water, Sanitation & Hygiene) Facility to provide an integrated and cross-sectoral approach to watermanagement.

    DominicanRepublic: Power Sector Reform

    We created an action plan and were asked by the International Monetary Fund to monitor the power sectors progress against that plan by leading the Electricity Sector Monitoring Committee. The programme has achieved significant tangible results - a 10% increase in the payment collection rate of billed electricity since 2004, a 16% decrease in financial losses of electricity distribution companies since 2006 and a decrease in the cost of generating electricity.

    Our Offices London | United KingdomNew Delhi | IndiaNairobi | AfricaSydney | Australia

    Regions: Infrastructure Projects

    The Americas & Caribbean Central & Southern Africa West Africa East Africa Middle East & North Africa Europe & Former Soviet Union Central Asia

    South Asia & Asia Pacific

    Regions: Other projects

    Various

    Nigeria Infrastructure Advisory Facility

    We manage DFIDs award-winning Nigeria Infrastructure Advisory Facility, which advises on the development of transformational infrastructure projects at state and federal level across the power, infrastructure finance, urban, road and climate change sectors.

    Our Global ExperienceWe have worked across the world with many clients and governments on an award-winning portfolio of projects, connecting communities and enabling economic growth. Throughout this brochure, you will find examples of our work you can see a small selection here. For further information on our wider portfolio, visit www.adamsmithinternational.com/exploreourwork.

  • Infrastructure Development 7

    Nepal: Centre for Inclusive Growth

    We established the Nepal Centre for Inclusive Growth to identify new ways of tackling Nepals growth constraints and promoting social inclusion. Wemanage a series of policy projects, and currently focus on hydropower development.

    Southern Africa: Climate Resilient Infrastructure Development Facility

    CRIDF assists stakeholders in the preparation of infrastructure projects, finding the finance for the infrastructure to be put in the ground and maintained, and ensuring that communities adapt to the effects of climate change.

    Kenya: Procurement review for TradeMark East Africa

    TradeMark East Africa will procure US$200 million of infrastructure projects in 2012-16 in an effort to rectify the infrastructural problems inhibiting trade in East Africa. We recommended appropriate value for money procedures to be put in place which adhere to international standards, and equally strong procurement processes.

    Papua New Guinea: Transport Sector Support Programme

    We provide strategic direction to the Papua New Guinea-Australia Transport Sector Support Programme, which aims to achieve a well-maintained transport infrastructure network and ensure that there is effective agency and sector engagement, performance andaccountability.

    Uganda: National Roads Authority Reform

    Through a combination of technical training, soft skills capacity building, and the implementation of accountable and transparent systems, we have overhauled the Ugandan National Roads Authoritys (UNRA) core functions to improve value for money throughout the life cycle of procurement. We are assisting the UNRA in reaching its target of halving the average contract completiondelay.

  • 88

    NIAFs professional but practical approach to delivering expert support has proved extremely effective. NIAF has succeeded in achieving a direct impact on our countrys economic reformefforts.

    Arch. Nuhu Wya, Former Minister of State for Power, Government of Nigeria

    Impactful infrastructure is well planned infrastructure. Our attention to detail means that we help deliver the right projects, well budgeted and at lower risk. We understand that transformational change hinges on effective planning and a clear strategy around which we can build coalitions to support reform.

    From the development of a railway network to a long-term plan to increase investment in renewable energy, our work is based on rigorous technical analysis, political awareness and economic modelling.

    Our approach is known for being pragmatic and adaptable and each strategy we produce is carefully tailored to a countrys specific circumstances. Our experience in strategy formulation and delivery has given us the flexibility to adapt our plans to meet the challenges of the area we are engaged in. Rigorous, stress-tested monitoring and evaluation systems ensure that we build this experience into projects as they develop.

    In partnership with our clients, we build development strategies and policies that release potential. Our strategies identify where infrastructure can be improved to further growth, efficiency, employment and a wide range of social and economic aims.

    Strategy & Policy

  • Infrastructure Development 9

    East Africa

    TradeMark East Africa will procure US$200 million of infrastructure projects in 2012-16 in an effort to rectify the infrastructure problems inhibiting trade in East Africa. The organisation needs appropriate value for money procedures in place which adhere to international standards, and equally strong procurement processes.

    In 2012, we designed standard bid documents for the procurement and management of infrastructure suppliers. We then provided advice to the organisation on this, as well as on interacting with Country Procurement Systems in client states, and on resource allocation in order to administer these changes and minimise risks in procurement.

    Designing an infrastructure procurement strategy for TradeMark East Africa

    Enabling value for money in line with international

    standards and processes

    East Africa

    Maximising value for money in infrastructure programming

    Developing modern infrastructure is crucial to tackling poverty. Infrastructure projects also have a disproportionately high impact on marginalised socialgroups.

    Infrastructure spending constitutes up to half the total resources of many international donors; The UKs Department for International Development (DFID) spent 1 billion on infrastructure in 2009-10. Ensuring these projects best achieve value for money is vital.

    We completed a research project for DFID on how best to measure and maximise value for money across infrastructure projects. We recommended the use of the 3Es framework, analysing value for money in terms of economy (largely covering cost control within a project), efficiency (covering the conversion of input variables to outputs through quality and approach control), and effectiveness.

    Helping DFID achieve good value for money

    Global

    Poverty impact assessment guidelines for south east Africa

    We worked with the Mozambique Regional Gateway Programme (MRGP) and DFID to design an approach to poverty impact assessment. The MRGP prepares major transport and energy projects for implementation and needed assistance to develop a strategy for assessing the impact its projects have on poor communities.

    We found that many facets of Mozambique, Malawi, Botswana, Zambia and Zimbabwes regional poverty were shaped by infrastructure developments. Trunk transport infrastructure was identified as presenting risks and opportunities to the economic livelihood and wellbeing of the regions poorest.

    We developed operational guidelines for MRGPs procurement strategy. Now, contractors on an MRGP assignment must analyse the poverty structure in the communities affected by planned projects to facilitate better poverty impact in infrastructure development throughout the region.

    Ensuring better project planning to benefit the poorestcommunities

    Mozambique, Botswana, Malawi, Zambia and Zimbabwe

  • 10

    The NIAF programme is certainly the best managed and most effective programme of donor support we have experienced in Nigeria. No other development agency comes a close second in our rankings of important partners.

    Uche Orji, CEO, Nigeria Sovereign Investment Authority

    Governments play a key role in providing the right infrastructure. Adam Smith International has worked with governments around the world to develop the plans and methods for achieving this, often assisting them in harnessing the expertise and financial ability of the private sector.

    The priority for improving internal capacity is often within planning and regulatory institutions, where the greatest shortfalls in ability often exist. By improving this part of the delivery process, we enable private sector participation. Adam Smith International is experienced in designing, setting up and reforming government bodies.

    Equally important is the need to address technical skill deficits in project delivery. These exist from project design, planning, management, procurement, financing and operation. A skills deficit hinders the organic and sustained development of infrastructure. Institutional reform is often required to enable this increase in technical skills for example, to create a new and professionally managed agency outside the civil service and thus be able to pay market rates for the skills required.

    The ability of governments to achieve economic and social aims with limited resources is dependent on the efficiency and focus of the government itself. Ministries, departments and agencies are the cornerstones of reform and must be professional, efficient, flexible and transparent.

    Institutional Reform & Strengthening

  • Infrastructure Development 11

    Assessing the viability of multi-sector regulation in Malawi

    We examined options for combining Malawis infrastructure under a multi-sector regulator, to regularise and improve regulatory standards, establish appropriate sector competition and standardise service provision.

    Our team conducted an exhaustive review of the options for the sector, analysing the competition and operational state of utility and infrastructure services, as well as the nature and effectiveness of existing regulatory bodies. We also assessed comparable regulatory environments in other international locations, in order to consider the appropriateness of merging the various regulation functions into a single agency.

    Improving regulatory standards

    Malawi

    Reform of utility regulation in the Caribbean

    Many Caribbean countries have privatised their infrastructure utility companies to attract new investment, however these companies all had some degree of monopoly, requiring stable regulation. Many islands were also too small to maintain their own regulatory bodies.

    We reviewed utility regulation in 14 countries of the Caribbean Community and recommended a strategy to strengthen their telecommunications, electricity and water regulatory capability and policy.

    Our team reviewed regulatory arrangements and advised on policy reforms in each of these countries. A critical product of this work was a plan for the creation of a regional regulatory entity, in which some of the smaller Caribbean countries will combine to share expertise in what would be the first multi-country, multi-sector regulatory body, making it significantly easier for them to regulate their utility sectors.

    Caribbean

    A plan for the creation of a pan-regional regulatory body

    Establishing the Nigeria Sovereign Investment Authority

    NIAF has provided significant support to the establishment of the Nigeria Sovereign Investment Authority (NSIA). The objective has been to accelerate the delivery and improve the return on infrastructure. NIAF provided legal advice from the outset of the fund to establish its governance structure, the resource allocation and three sub-funds to leverage available capital.

    Once this operational framework was designed and implemented, NIAF focused on transactions; it provided majority support on a number of flagship projects, notably the vital Second Niger bridge. Through NIAFs legal, advisory and transaction support, NSIA recovered the project from collapse, restructured the private sector consortium, and drove through cost savings of 100m. President Jonathan presided over the ground-breaking ceremony in March 2014. Nigeria

    Strengthening institutions for better delivery of large-

    scaleinfrastructure

    Nigeria

  • 12

    Adam Smith International develops healthy enabling environments across disparate sectors, geographies and circumstances. We design regulatory frameworks and bodies, and have worked with our clients to establish these legislations and institutions by assisting with recruitment and organisational planning. As well as conception, we can draft follow-up and supporting legislation, and ensure that regulations are relevant and workable.

    Involving communities, populations and businesses is vital - from community road maintenance schemes, to sophisticated

    public-private partnership airport projects. Private sector participation can take many forms and is powerful when engaging smaller scale businesses or communities in infrastructure delivery.

    With our support, governments can involve key participants and groups in infrastructure projects, including lower income communities, women, and the small business community. This enables infrastructure with far-reaching impact to be completed by sponsoring representation or assisting at the project design to draft an inclusive design brief.

    Performance has been outstanding, particularly with regard to progress on hydropower development.

    DFID Annual Review 2012, Centre for Inclusive Growth

    An enabling environment is a prerequisite to successful infrastructure development. This is because developing new infrastructure often demands new ways of doing business, requiring governments to improve regulation, legislation or policy.

    Enabling Environment Reform

  • Infrastructure Development 13

    Strengthening policy-making to unlock infrastructure constraints in Nepal

    We established Nepals Centre for Inclusive Growth as an independent organisation mandated to identify new ways of tackling Nepals growth constraints and promote social inclusion.

    The Centre works by managing a series of policy projects that yield tangible and sustainable results by pioneering new approaches, identifying overlooked opportunities and introducing fresh thinking to the countrys developmentprogramme.

    The work has focused on providing support to hydropower development. TheCentre is also improving macro-economic policymaking, strengthening governance at the apex of the bureaucracy and piloting municipal level public-private partnership investments to help Nepal move closer to middle- incomestatus. Nepal

    Pioneering new approaches to address

    Nepals growthrestraints

    Rwanda

    Assisting Rwanda in realising its infrastructure priorities

    Private solutions for infrastructure in Rwanda

    We produced a Country Framework Report as a route-map for how the government of Rwanda could best develop its infrastructure needs.

    The report provided a comprehensive study of Rwandas infrastructure in transport, energy, water and sanitation, and telecommunications. It set out a map for reform, highlighting opportunities for the private sector and donors to assist Rwanda in realising its infrastructure priorities, and the supporting policies and actions required for implementation.

    We also provided follow-up support to organise a high-level conference to discuss our recommendations for the energy and water sectors, and identify investment opportunities for the private sector.

    Rwanda

  • 14

    The assistance provided by NIAF in the design of the PPP framework for Nigeria has been unparalleled.

    Dr. Yemi Kale, Former Special Advisor to the Honorable Minister of Finance, Government of Nigeria

    Adam Smith Internationals reputation is built on 20 years of innovative advice on infrastructure finance.

    We develop the most appropriate form of private sector participation and public-private partnerships for the context. Our financing structures consider value for money, affordability, risk allocation, competition, transparency, stakeholder engagement, political will and pragmatism. This experience has earned us the opportunity to create federal and public-private partnership units across the developing world. Finding the appropriate model depends on project objectives, the host country environment and building trust between contracting partners.

    As a leader in public-private partnership provision, we assist countries in constructing a robust strategy and prospectus.

    For a successful public-private partnership approach, government institutions must be equipped with sufficient skills to design, negotiate and manage contracts. Without these, public-private partnerships can be a costly and risky source of infrastructure financing. We provide technical assistance and capacity building to level the playing field and improve the public-private partnership options available to governments.

    Finding workable solutions for private sector participation in infrastructure and public-private partnerships is our core strength.

    Infrastructure Finance

    Our Financial Structures

    Pragmatism

    Affordability

    Political Will

    StakeholderEngagement

    Transparency

    Competition

    Risk Allocation

    Value for Money

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  • Infrastructure Development 15

    Accelerating the delivery of new infrastructure projects in Nigeria

    Nigeria has an extensive infrastructure gap. However, channelling private capital through public-private partnerships (PPPs) can help to bridge it, improving project delivery and operation.

    We concentrated on easing constraints to Nigerian PPPs, such as coordinating policy across government agencies, developing a bankable project pipeline and reaching financial closure on landmark transactions to build broad investor support. We have offered project-specific support to two federal agencies, embedded advisors in the Lagos State PPP office, offered start-up and project support to the Sovereign Investment Authority and provided assistance to the Ministry of Finance on policy coordination.

    The results of our intervention have been significant and were recognised in 2010 when we won the African Investor PPP Champion of the Year award.

    Our advisors have helped the government develop $3bn of

    Infrastructure projects in Lagos alone

    Nigeria

    The development of small-scale water infrastructure in southern Africa is characterised by sluggishness. It is estimated that the investment shortfall in the regional water sector is 600m per year for the next 15 years. The region needs a catalytic intervention to mobilise wider investment to make inroads into the infrastructure backlog.

    We are filling this need. We offer a live programme of support to stakeholders throughout southern Africa for the development, implementation, operation and maintenance of water infrastructure that benefits the regions poorest. To do so, we broker relationships between funding partners to bring infrastructure to implementation. We also investigate innovative finance solutions such as micro-financing and revolving credit facilities and build these into plans to ensure that communities have access to the finance required to maintain the infrastructure long after it is put in the ground.

    Our assistance is leveraging maximum support to catalyse a fundamental change for some of the 94 million inhabitants of the region.

    Catalysing infrastructure development through

    leveraging finance

    Nigeria

    Offering public-private partnership assistance for Indias roads

    We advised the government of Chattisgarh on establishing the foundation for successful PPP projects. We set up institutional, regulatory and legal frameworks and considered opportunities in the road sector. We created standardised bidding documents for different PPP models which we implemented in previously identified projects.

    We also built capacity within local offices, enabling employees to structure, deliver and monitor PPP projects.

    India

    Enabling the development of 25,000km of nationalhighways

    Southern African Development Community

    SADC

    Financing the development of small-scale water infrastructure in southern Africa

  • 16

    From electricity sector reform to policies for the provision of sustainable domestic fuel, we have established ourselves as a centre of excellence to which governments turn when answering the energy challenges they face.

    We are known for our experience across the energy value chain, from major hydropower yield management to rural energy access. We have provided leadership on tariff management, privatisation approaches, project finance and stakeholder engagement.

    Through all of this, we have been recognised for our pragmatic approach, bringing rapid as well as lasting access to better energy to millions of citizens.

    NIAFs assistance has been key in helping the Presidential Task Force on Power drive forward the power reform programme.

    His Excellency Goodluck Jonathan, President of Nigeria

    EnergyAdam Smith International is an innovator in the design of effective energy policies. We specialise in the provision of technical assistance across policy, legal, regulatory, institutional and organisational reform.

  • Infrastructure Development 17

    Electricity sector reform in the Dominican Republic

    The Dominican Republics electricity sector faced widespread non-payment by customers (nearing 25%), and extensive theft, with 20% of power stolen. It also suffered from frequent power outages because the distribution companies could not cover their costs.

    We drafted an action plan for government, and monitored the sectors progress against that plan for the IMF by leading the Electricity Sector MonitoringCommittee.

    Results included a 10% increase in payments collections, a 16% reduction in losses, a decrease in production costs and a reduction in oil-fired electricitydependence.

    Dominican Republic

    Enabled a 10% increase in payment collections since 2004

    Our NIAF programme provides technical, organisational, financial and legal assistance to Nigerias electricity sector and played an instrumental role in the recent privatisation of the countrys distribution and generation companies. Close relationships with the Ministry of Power, Bureau of Public Enterprises, Transmission Company of Nigeria and the Nigerian Electricity Regulatory Commission have helped us target our interventions, and NIAF sits on the board of the Presidential Task Force.

    NIAF support was pivotal to the privatisation of distribution and generation companies, attracting investment by independent power producers, establishing a competitive electricity market and introducing a new tariff structure which will benefit the poor and provide a reliable source of power which will act as a spur to economic diversification and growth.

    Many challenges remain, but independent ownership of assets and the consequent investment in infrastructure is now a reality: the first independent power producers are under construction, and power output has risen over 50% from less than 20,000GWh in 2008 to 30,000GWh by the end of 2013.

    Power output has risen 50% from 2008 to 2013

    Nigeria

    Nigeria

    Supporting the privatisation of the Nigerian power sector

    Nepal has three areas of growth potential hydropower, tourism and agricultural products but is hindered by growth constraints such as lack of expenditure on infrastructure and a prohibitively high electricity tariff.

    Our non-partisan Centre for Inclusive Growth has focused on five projects supporting hydropower development. We have helped develop a project development agreement template for hydropower concession agreements and supported the negotiation of six specific hydropower megaprojects, worth $8bn, whilst protecting social issues in the negotiations.

    The Centre also works on macro-economic planning and is enabling a significant increase in living standards.

    Delivering practical solutions to address Nepals growthconstraints

    Nepal

    Realising Nepals growth potential through hydropower

  • 18

    Adam Smith International provides comprehensive assistance to effectively plan, manage and maintain road networks. Improving the urban and rural roads through targeted technical assistance allows developing economies to work cohesively. The private sector can reap the benefits of an extended supply chain, while goods and services are unchained and able to find national markets at a lower cost and with greater reliability.

    Additionally, better road networks contribute to a lower mortality rate and greater mobility and opportunity for all. Managing road networks through regulatory bodies and with cohesive planning tools ensures that road development contributes to national environmental, social and economic goals.

    Roads are national arteries, providing the commercial flow of a country.An efficient road network is an essential method of transportation for society, moving workers to their jobs, carrying goods and helping people to reach basic services.

    Roads

    Roads

    Access to work in a wider economic area

    Ability to transport goods

    Reach basic services

    Promote EconomicGrowth

  • Infrastructure Development 19

    Adam Smith Internationals project to reform procurement procedures for the Uganda National Roads Authority will have a real impact on the effectiveness of the efficiency and management of the roads sector in Uganda.

    Ayalew Belew, Director of Procurement, Uganda National Roads Authority

    Reforming the Ugandan National Roads Authority

    Roads are vital to growth in Uganda, which is land-locked and has few navigable waterways.

    The government created the Ugandan National Roads Authority (UNRA) to procure the services of private firms, but the sector remained affected by inefficiency in the procurement process, poor contract management and project monitoring. We are assisting UNRA in halving the average contract completiondelay.

    Through a combination of technical training, soft skills capacity building, and the implementation of accountable and transparent systems, we have overhauled UNRAs core functions to improve value for money throughout the lifecycle ofprocurement. Uganda

    Halving contract completion times in roads development

    Establishing a robust and transparent road

    managementframework

    Enhancing management of the road sector in Nigeria

    We are implementing a Road Management Framework in Nigeria to support the sustainable funding of road maintenance. We are helping the Federal Ministry of Works, Federal Roads Maintenance Agency and the Roads Sector Development team manage problems by establishing an effective Road Asset Management System, including a Bridge Management System.

    We will demonstrate the cost effectiveness of a consistent programme of funding at a local government level. We are also supporting a programme of public sector job creation schemes, which focus on maintaining rural roads by training residents to maintain their own road network. They are taught through direct engagement with state governance.

    Nigeria

    Nigeria

  • 20

    Transport strategies are crucial to the health of developing economies, allowing the movement of workers, goods and ideas between locations.

    We have worked across Africas transport sectors, on bus mass transit, bus rapid transit, light rail, long-distance rail and public ferries, as well as providing technical assistance in areas such as supporting the haulage industry to deliver promptly.

    Our teams balance the efficient solution for transport concerns with the ethical solution for climate resilience. We also enhance existing transportation systems by emphasising scheduling and maintenance, maximising the efficiency of what is already in place.

    Combined, our approaches deliver a mixture of context specific support and future consciousness to drive continual improvement in transport infrastructure.

    TransportOur experience in transport spans sectors as diverse as shipping and urban bus networks, offering technical assistance in disciplines ranging from climate proofing to procurement.

    PolicyDevelopment

    Planning: Transport Master Plans

    Private Sector Participation

    Legislation & Legal Instruments

  • The Papua New Guinea-Australia Transport Sector Support Programme aims to achieve a well-maintained transport infrastructure network. It will contribute to a safe, reliable transport system that enables economic and social development, encompassing maritime, aviation and land transport.

    The programme works to ensure that priority land transport assets are maintained, safety and security systems operate effectively and that there is effective agency and sector engagement, performance and accountability.

    The programme provides policy, performance advice and support to the transport sector to develop infrastructure links for economic benefit.

    Papua New Guinea

    Enabling an efficient and well maintained transport sector

    Reducing time taken to cross borders and move goods

    between countries

    Supporting TradeMark East Africa to speed up trade across the region

    TradeMark East Africa (TMEA) promotes regional and economic integration in East Africa by working closely with national government, business and societyorganisations.

    We provide institutional and capacity building support to TMEA and its partners across several sectors. We aim to source projects to reduce the cost of transportation and increase trade competitiveness along the key trade corridors in East Africa.

    Our target by 2016 is a 30% decrease in the time a truck takes to cross borders, and a 15% decrease in time taken to move goods.

    Developing the transport sector in Papua New Guinea

    Papua New Guinea

    East Africa

    East Africa

    Infrastructure Development 21

    Adam Smith International delivered a well-developed, comprehensive and high quality National Urban Transport policy for Sierra Leone.

    Ministry of Transport & Aviation, Government of Sierra Leone

  • 22

    Urban development includes a number of disciplines, including the provision of climate friendly, economically vital urban transport and supporting planning systems, providing water and sanitation support and managing solid waste.

    Adam Smith Internationals approach to urban development is based on firstly understanding the constraints of the institutional environment and building on this to provide institutional and capacity support. This enables clients to make coordinated decisions according to master plans developed with tomorrows world in mind without constraint.

    Our urban expertise spans some of Africas largest and most dynamic cities Lagos, Abuja, Freetown and Dar Es Salaam. Our interventions are proven to improve municipal services, enhancing capacity and the institutional environment necessary to sustain improvements long-term.

    Rapid urbanisation is a sign of rising prosperity. Our urban development experience enables us to provide technical assistance which shapes cities to act as economic hubs and centres of excellence.

    Urban Development

    Rural Urban

    Population Shift

  • Infrastructure Development 23

    We appreciate the quality of support and professionalism in an area we consider extremely important to the future of transportation in Lagos.

    Babatunde Disu, CEO, Lagbus

    Sierra Leone has struggled to adapt its infrastructure to modern needs, weakening its chance to attract international investment and causing traffic chaos in urban areas across the country.

    Our Sierra Leone Urban Transport Project delivered a national urban transport policy to improve urban mobility for millions of citizens. We proposed infrastructure investments to the Ministry of Transport and Aviation. These included new projects, refurbishments, improving works already underway, addressing the sustainability of current infrastructure, and operations and maintenance to improve the efficiency and effectiveness of existing infrastructure.

    Our team also delivered a mobility plan specific to Freetown: a city whose citizens rely heavily on struggling public transport services. We proposed that such services should be developed alongside efforts to restrict the use of private vehicles and improve facilities for pedestrians.

    Delivering a national urban transport policy for Sierra Leone

    Improving urban mobility for millions of citizens

    Future-proofing Nigerias cities

    Poor urban infrastructure is a major obstacle to Nigerias growth, a problem that stems from a lack of delegated authority to individual cities, with decisions being made at a state level.

    The effective city needs to act as an incubator of growth, enhancing economic outcomes by using scale to deliver better infrastructure, healthcare and education. Our vision for Nigerias cities sees them leading the re-balancing of Nigerias economy.

    The Urban Development component of NIAFs Effective Cities project increases the area of serviced land available in urban areas, as well as improving municipal service delivery in the areas of water supply, sanitation and solid waste management. It works with state governments to establish city development authorities, which act swiftly in urban planning matters. Urban Development currently provides assistance to the state governments of Kano, the Federal Capital Territory, Enugu and Kaduna.

    Nigeria

    Nigeria

    Planning and developing bus and rail transit systems

    acrossNigeria

    Sierra Leone

    Sierra Leone

  • 2424

    We combine our total experience of infrastructure development to offer reform packages for rural areas, seeking to address barriers to their full participation in the economy. Barriers can be the physical infrastructure of an area for instance, the requirement for a specific rural road maintenance programme. They can also be a result of specific climate hazards affecting rural areas, which tend to be more agrarian and sensitive to weather changes.

    In addition, challenges for power, potable water access and local institutional capacity vary so greatly between locations that a locally sensitive approach to infrastructure is required. Our expertise in rural infrastructure development enables a package of solutions to address all of these issues.

    It is a pleasure to have CRIDF as a partner because it ensures that poor communities needs are addressed.

    Director General, Regional Water Administration Central Mozambique, Government of Mozambique

    We connect rural areas with markets to provide resilient infrastructure, spreading economic opportunity across communities.

    Rural Infrastructure Development

    ImprovedRoads & Rural Access

    Renewable &Distributed Energy

    Accessto

    Markets

    Access to Health & Education

    Services

    Economic Growth

    & Poverty Reduction

    Potable Water Access & Agriculture

    Improved Water, Food & Energy Availability

  • Infrastructure Development 25

    A key component of Australias approach to regional development in the Mekong region is to focus on increasing regional integration to accelerate economic growth, create jobs and reduce poverty. In order to maximise the impact of the infrastructure projects it finances, we undertook a detailed study of infrastructure project financing options in the Mekong and further programming recommendations, focusing on the feasibility and impact of supporting small-scale infrastructure projects in the transport and energysectors.

    We assessed the type of small-scale infrastructure investments which had the greatest impact on economic growth and poverty reduction and identified potential points of future engagement for Australia.

    Improving the effectiveness of rural development efforts

    Vietnam, Cambodia and Laos PDR

    On the road to rural reform in Nigeria

    Nigeria has the largest road network in West Africa, but of its 194,000km of roads, less than 30% are paved, hindering economic growth. Our programme trains residents of rural communities to maintain their road network using labour-based techniques. We support the Subsidy Reinvestment and Empowerment Programme (SURE-P), which funds payments of trainees, provision of hand tools and monitoring devices using biometric technology.

    A labour-based road maintenance programme across Nigeria will bring better rural access, sustainable roads maintenance and improved livelihoods by improving road links. The programme also results in skills transfer through training, building the capacity of rural workers.

    Helping communities to maintain their roads to

    enableprosperity

    Nigeria

    Nigeria

    Securing water for livelihoods in Southern Africa

    Climate Change in southern Africa is projected to dramatically affect water, food and energy availability. Southern water basins are likely to become water stressed, whereas northern basins are likely to become even wetter.

    Our live programme of support to stakeholders in Southern Africa focuses on developing infrastructure solutions to protect the livelihoods of the most poor and vulnerable communities in the region. We help to build climate resilient principles into existing infrastructure plans. For example, in Namibia we have taken plans for community gardens schemes and added a small-scale irrigation component, which will enable households to move away from dangerous floodplains while still having guaranteed access to water for growing crops.

    Developing infrastructure to improve livelihoods of the

    ruralpoor

    Southern African Development Community

    SADC

    Analysis of small-scale infrastructure investment options in the Mekong Region

  • 26

    We also develop government institutions to formulate policies and enforce regulations.

    We have adapted international best practice in water supply management and water regulation reform in some of the most challenging environments in Africa, delivering context-specific results that have long-lasting sustainable impact.

    Our interventions address the structural and regulatory barriers to investment, managing private sector participation in water to produce solutions that maximise investment and access, without impacting on less affluent communities.

    Our technical assistance enables countries to manage the integration of shared water resource management and we specialise in the management of transboundary basins.

    Water, Sanitation & Hygiene

    Strengthened Institutional Capacity

    Essential Regulatory Reform

    Improved Sector Coordination

    Better Water Resources

    Management

    Effective Private Sector Participation

    Improved Water, Sanitation & Hygiene

    Service Delivery

    Our

    Inte

    rven

    tion

    In the water sector, Adam Smith International builds capacity within service providers, ensuring effective management of water resources.

  • Infrastructure Development 27

    The embedded technical assistance provided through Adam Smith International has been instrumental in the significant progress of the WASH sector in Sierra Leone.

    H.E. Momodu Maligi III, Minister of Water Resources, Government of Sierra Leone

    Supporting national water & sanitation policy in Sierra Leone

    Following the establishment of the National Water and Sanitation Policy by the government of Sierra Leone, we helped address the urgent need for an integrated and cross-sectoral approach to water management, and to improve the financing, management and delivery of sustainable waterservices.

    Our team provide technical assistance in key strategic points of the Ministries of Water Resources, Health and Sanitation and District Councils, along with developing and implementing a 5m WASH Facility. We combat key problems across society and work closely with the ministries to focus on many permanent and lasting solutions by way of legislative reform, building the capacity of key institutions, and coordinating responses across sectors.

    Our programme of support to the main municipal water companies has increased revenues by 125% and provided lasting services to over 60% of the population.

    Sierra Leone

    Delivering sustainable waterservices

    Working towards water security for vulnerable communities

    Improving water services to Southern Africans

    Almost 154 million people in Southern Africa still have no access to adequate drinking-water and sanitation facilities. In the face of a variable climate, existing infrastructure for community access to potable water or wastewater treatment has in many cases been rendered unfit for purpose.

    We are currently working to support the water services sector in poor communities across the region. We help stakeholders design tailored infrastructure solutions that are resilient to the likely impacts of climate change, conferring water security and good quality for years to come.

    Sierra Leone

    Southern African Development Community

    SADC

  • 28

    NIAF provides independent policy, planning, economic and financial advice aimed at removing infrastructure bottlenecks to support the growth of the non-oil economy and help Nigeria accelerate its poverty reduction programme. NIAFs award-winning management structures allow it to operate flexibly, mobilising support at key windows of opportunity, while retaining a strategic direction which ensures that infrastructure benefits the poorest in society.

    In the Power Sector, NIAFs headline achievement has been its role in the privatisation process, the most complex in West Africa. At the end of 2013, over 70% of Nigerian power was generated and over 40% distributed by privately owned companies, and NIAF provided the technical support needed to complete the privatisation process.

    The NIAF Roads Sector has allowed the Federal Roads Maintenance Agency to complete a Centralised Roads Database and supervise the beginning of survey work to implement it. Additionally, a roads pavement management system embedded international best practice, a formal Bridge Management System was instituted and the Federal Ministry of Works will adopt NIAF-designed technical construction standards.

    In the Capital Projects area, NIAF supports the infrastructure finance delivery mechanisms of the federal government, building institutional capacity and ensuring that funding for infrastructure projects, through public-private partnerships and other access to capital markets, achieve the best

    value for money. Thanks to our technical assistance, over $300m of capital projects were screened for cost variances in the 2014 budget, achieving significant savings. Three NIAF-supported public-private partnerships infrastructure projects additionally reached financial close.

    The Effective Cities team supports cities through state governments across urban transport and development. NIAFs urban transport work supported the launch of formal bus rapid transport in Lagos and is supporting Lagos and Abujas light rail construction schemes, which will provide reliable commuter services, taking cars off the road and enabling greater labour mobility. NIAF is also supporting the first ever public transport scheme in Kano, and the existing bus mass transit scheme in Abuja. In addition, we are promoting rubbish collection schemes to reduce pollution and disease in Kaduna and Kano, provided lighting for Lagos largest market and are developing trailer parks which will reduce roadside parking.

    Mitigating the effects of climate change is an important part of the NIAF programme. NIAF runs programmes directly tailored to Nigerias climate change challenges. The NIAF clean-cook stoves programme has so far produced two pilot areas to produce fuel efficient, less pollutant and cheaper methods of heating food in rural areas. We have also agreed an action plan for the promotion of on-grid clean power generation.

    DFIDs five-year, 95m Nigeria Infrastructure Advisory Facility II (NIAF) programme provides demand-led advice and assistance to Nigerian government bodies at federal and state level as they meet national infrastructure challenge across the power, infrastructure development finance, roads, effective cities and climate change sectors.

    Focus on Nigeria: NIAFThe Nigeria Infrastructure Advisory Facility II

  • Infrastructure Development 29

    Nigeria

    Nigeria

    NIAFs professional but practical approach to delivering expert support has proved to be extremely effective. We believe that DFIDs NIAF project is rightly regarded as one donor assistance programme that has truly succeeded in delivering a direct impact on our countrys economic reform effort.

    Arch. Nuhu Wya, Former Minister of State for Power, Government of Nigeria

    DFID through NIAF is our best development partner. The contrast between NIAF and others is like day and night in terms of timeliness and effectiveness of support.

    Nwanze Okidegbe, Chief Economic Adviser to the President of Nigeria

    We have increasingly concentrated resources in the north of Nigeria, which is at risk of conflict given its higher concentration of urban and rural poverty, poor existing infrastructure and lack of institutional capacity. Our work to promote Northern Growth has had extensive impact. Over 7,000 GWh of electricity has been supplied through the northern power distribution companies. Kano and Kaduna have implemented solid waste management projects to remove street refuse, a major NIAF-supported solar power pilot programme is underway and over 1,000 people in Northern Nigeria have been employed under the NIAF-supported pro-poor labour based restoration and maintenance of rural roads programme.

    Nigeria has the demographics, natural resources and economic potential to become Africas powerhouse in the coming decades. NIAFs support will ensure that this happens in a way which will benefit all Nigerians and prove sustainable, leaving a legacy of improved capacity and resilientinfrastructure.

  • 30

    Adam Smith Internationals Climate Resilient Infrastructure Development Facility (CRIDF), funded by the Department for International Development since 2013, recognises the link between economic development and sustainable, equitable use of Southern Africas transboundary water resources. The Facility therefore aims to catalyse the development of projects that increase the ability of communities, policy makers and planners to cope with climate extremes.

    CRIDF targets infrastructure development in transboundary water basins. By doing so, we improve the conditions for enhanced cooperation between stakeholders in shared river basins, and strengthen the evidence base for demonstrating the national benefits of cooperation on shared waters. In this way, CRIDF aims to contribute to peaceful, climate resilient and sustainable planning and management of southern Africas shared waters, and generate current and future benefits for the regions poorest.

    To achieve this we work through three linked channels:

    1. Small-scale Infrastructure Projects

    We are invited by stakeholders to participate in the preparation of infrastructure projects at any point in the project cycle. Our team supports the in-country procurement, subsidy and supervision systems for infrastructure that will be, once complete, owned and managed by Local Authorities, Water User Associations, or energy suppliers. We use these projects as a platform to engage further stakeholders, introducing climate resilience and transboundary concepts into national and regional policies. We then disseminate the lessons and evidence from all our projects through stakeholder networks in an effort to replicate success, and mainstream climate resilience and pro-poor considerations into water management practices.

    2. Infrastructure Finance

    In addition to providing a small amount of capital finance for our chosen projects, we mobilise infrastructure finance interventions to complement our infrastructure preparation activities. This work is focused on investigating and securing innovative finance arrangements and funding partners for the implementation of our infrastructure projects. By doing so, we can leverage maximum regional support to catalyse a fundamental regional change.

    3. Technical Assistance to Stakeholders

    We provide extensive technical assistance to our stakeholders, ranging from long-term advice to key institutions, to a rapid advisory service to respond to ad hoc requests for support. Such technical assistance can gain us a seat at the table from which to influence the planning and management of infrastructure in shared water basins.

    We are on the road to achieving real change for some of the 94 million inhabitants of Southern Africa, including:

    Broadening the scope of the Ruhuhu scheme in Tanzania to allow 18,000 poor beneficiaries access to improved water security, climate adaptation, clean energy generation and new transport links;

    Improving the health of poor communities in Malawi with a safe water supply by way of an integrated public private partnership; and

    Securing better livelihoods for flood-afflicted communities in Namibia through development of a small-scale irrigationscheme.

    Economic growth throughout Southern Africa is driving rapid demographic change and an increase in demand for water, food and energy. The problems associated with resource availability are being exacerbated by climate change, in a region already affected by a dramatically variable climate.

    Focus on Sustainability:Climate Resilient Infrastructure Development Facility

  • Infrastructure Development 31

    Southern African Development Community

    SADC

    CRIDF is an important facility to support SADC member states with infrastructure development and will play a key role in fostering mutual cooperation towards the realisation of regional integration for water resources management and development in SADC.

    SADC Water Division

    CRIDF was shortlisted for the Association of Project

    Management Overseas Project of the Year

    in 2014

  • Find out more

    For an in-depth look at any of these projects and more of our Infrastructure Development experience, visit www.adamsmithinternational.com.

    For assistance, please contact:

    Matt Uzzell Head of Infrastructure Development T: +44 207 091 3517 E: [email protected]

    Copyright 2014 Adam Smith International. All rights reserved.

    www.adamsmithinternational.com

    Adam Smith International is an award-winning professional services business that delivers real impact, value and lasting change through projects supporting economic growth and government reform internationally.

    We specialise in the design, management and delivery of complex projects. Our wide-ranging experience can be grouped into two main areas: Government Reform and Economic Growth. Government Reform includes Civil Society and External Accountability; Education Development; Justice, Security and Peacebuilding; Public Administration Reform; Public Financial Management; and Revenue Reform. Economic Growth includes services in Extractive Industries Governance, Infrastructure, Climate Change and Private Sector Development.

    Often working in challenging environments and conflict affected areas, we have a proven track record for achieving tangible results.

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