infrastructure funding in lldcs and transit countries in...

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

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

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

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%



New Infrastructure and Maintenance Needs for the period 2016-2030





(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: 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


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

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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