Christian Delvoie,

1
Infrastructure MegaprojectsLessons from
Experience

• Christian Delvoie,
• Director, Infrastructure
• (East Asia and Pacific Region)
• The World Bank

2
The NIC infrastructure development model

• Senior policy makers, politicians and strategic
  vision
• Infrastructure driven by strong planning agencies
• High growth helped maintain policy consensus
• Investment anticipated demand when following
  demand, responses were rapid and strategic
• Much of the inner-workings hidden from public
  view
• Under increasing stress from the 1980s

• Growth in Infrastructure Stocks, East Asian NICs,
  
• 1960 - 2000

?
3
The regions fast growing countries are following
in their footsteps Thailand is in the
forefront

• Savings and investment (percent GDP) 1993-2002

Infrastructure investment (percent GDP)
Expansion of infrastructure stocks, 1990 2000
Total road network
Electricity generation capacity
4
Thailands infrastructure performance has driven
competitiveness

• Infrastructure quality ranking, Wold
  Competitiveness Report, East Asia

Indices of trade openness and accessibility in
East Asia
Note Vertical line is the average for all 102
surveyed countries, both within and outside of
East Asia
5
and supported poverty reduction with strong
infrastructure service delivery

• Service Access (Bars in blue outcomes above low
  and middle income country average average)

Water supply access (percent)

Electricity access (percent)
Telephone access (subscribers / 100 inhabitants)

Percentage paved roads
6
How can we approach the new infrastructure
challenge?
A common World Bank / ADB / JBIC analytical
framework
Generating strategic vision and turning that
vision into reality
Economic growth, plus sharing the benefits of
growth to reduce poverty
Rewarding organizations that perform well for
their stakeholders (and penalizing those that
perform badly)
Making risks and rewards commensurate with each
other in order to drive good performance
7
COORDINATION
Fiscal space
but about how services are paid for in the long
run, by tax payers and users. Can these groups
support the burden?
Financing is not only about who puts up the
capital
8
COORDINATION
Aligning Institutions

• Vertical coordination
• Managing spillovers in service provision
• Excessive fragmentation
• Coordinating urban infrastructure
• Taking account of environmental impacts

9
ACCOUNTABILITY AND RISK MANAGEMENT
Competition, regulation and sector policy

• Key issues
• Are supportive sectoral policies in place?
• Is regulation predictable and transparent?
• Is the market structure conducive to private
  sector participation?
• Are subsidy policies in place, and understood?
• Have contingent liabilities been costed, and are
  they manageable?

10
ACCOUNTABILITY AND RISK MANAGEMENT
Project identification and design

• Key issues
• Has the strategic importance of each of the
  investments been verified?
• Do the megaprojects make economic sense?
• Do they make financial sense?
• Is there a mechanism to ensure quality throughout
  project preparation and implementation in
  particular with regard to PPPs?