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Road Maintenance Financing and Cost Recovery Options: The Future of Road User Revenues in Developing Asia and the Pacific

Road Maintenance Financing and Cost Recovery Options: The Future of Road User Revenues in Developing Asia and the Pacific

Novembre 2024
Banque Asiatique de Développement (149 pages).

This paper on road maintenance financing and cost recovery options is the first of three that present the results and recommendations of a study on the Future of Road User Revenues in Developing Asia and the Pacific.
World Energy Transitions Outlook 2024

World Energy Transitions Outlook 2024

Novembre 2024
International Renewable Energy Agency - IRENA - (142 pages).

IRENA’s 1.5°C Scenario, set out in the World Energy Transitions Outlook, presents a pathway to achieve the 1.5°C target by 2050, positioning electrification and efficiency as key transition drivers, enabled by renewable energy, clean hydrogen and sustainable biomass.
Transformando la construcción en América Latina y el Caribe: Digitalización e innovación como claves para la sostenibilidad

Transformando la construcción en América Latina y el Caribe: Digitalización e innovación como claves para la sostenibilidad

Novembre 2024
Banque Interaméricaine de Développement (70 pages).

Este documento explora cómo la digitalización y métodos innovadores constructivos son una oportunidad para fomentar la construcción sostenible en América Latina y el Caribe (ALC) y cómo algunos países están empezando a avanzar en esta trayectoria. Se estructura en cuatro secciones principales: introducción, clasificación de diferentes tipos de soluciones actuales que promueven la construcción sostenible, análisis de iniciativas, desafíos y buenas prácticas en la construcción sostenible en Brasil, Chile, Costa Rica y Uruguay sobre la base de entrevistas con actores claves, y conclusiones y recomendaciones para facilitar la transformación del sector transformación del sector de la construcción de ALC hacia un sector sostenible, digitalizado y resiliente. Se identifican seis categorías de soluciones habilitantes para la construcción sostenible: tecnologías digitales avanzadas como Building Information Modeling (BIM), diseño con enfoque sostenible, materiales sostenibles, sistemas de construcción industrializada, medición y verificación del impacto ambiental, y enfoques de gestión eficientes. Las entrevistas revelaron 44 iniciativas de construcción sostenible, principalmente lideradas por el sector gubernamental. Los obstáculos incluyen brechas cognitivas y debilidades institucionales, mientras que factores promotores incluyen el impacto de la pandemia y el cambio climático. Se destacan buenas prácticas como el benchmarking internacional y cooperación técnica entre instituciones y apoyos de multilaterales. Es crucial un liderazgo público de largo plazo, incentivos adecuados y la colaboración entre los sectores público, privado y la academia para lograr la transformación hacia una industria de la construcción sostenible y competitiva en ALC.
World Cities Report 2024 - Cities and Climate Action

World Cities Report 2024 - Cities and Climate Action

Novembre 2024
UN-HABITAT (373 pages).

The fight against climate change and the struggle to achieve more sustainable and equitable urbanization are two sides of the same coin.
When buildings, homes and vital infrastructure like water and transportation systems are poorly planned, built and managed, they are no match for climate-fueled disasters like rising seas, heatwaves, and other extreme weather impacts. This challenge disproportionately affects the poorest and most vulnerable people.
But as this report shows, with bold investments and good planning and design, cities offer immense opportunities to slash greenhouse gas emissions, adapt to the effects of climate change, and sustainably support urban populations. Hundreds of cities around the world are leading the way by expanding inclusive green spaces, reducing emissions through smart planning and building, and investing in renewable energy to power civic services like transportation networks.
This report highlights strategies for local and regional governments and other partners to collectively forge solutions, drive innovation and craft budgets and policies that support sustainable urbanization for people and planet alike.
City and local leaders must also continue to be at the forefront of the fight against climate change. In many cases, cities are going further and faster than national governments in limiting global temperature rise to 1.5 degrees Celsius. The success or failure of new national climate plans will be realized at the community level, and local leaders must be involved every step of the way.
The recently adopted Pact for the Future highlighted the importance of all levels of government working together to plan, design and build safe, healthy, resilient and sustainable cities for all people.
Estimating Investment Needs for the Power Sector in Africa 2023-2030

Estimating Investment Needs for the Power Sector in Africa 2023-2030

Octobre 2024
Banque Africaine de Développement (63 pages).

This study is a contribution to the ongoing discussion on the costs and implications of addressing the two fundamental energy challenges facing the African continent, namely achieving universal access to electricity in line with Sustainable Development Goal number 7 and expanding power systems to support economic growth without getting locked into a high-emissions pathway.
Specifically, the study aims to derive insights from economic least-cost expansion modelling to:
- Estimate economic least-cost investment requirements and related emissions; and
- Explore existing structural barriers to and enablers of the energy transition.
The headline estimates indicate a Base Case investment requirement of about USD 454 billion, or USD 64 billion per year from 2023 until 2030, if an optimal investment plan is realized. Behind this headline, there are several interesting results and findings. The timeline for SDG 7 is slipping. Significant progress has been made in electrification across the Continent over the past decade, with the share of connected households increasing from 25.7 percent in the year 2000 to 50.6 percent in 20202. Even so, it is estimated that nearly 195 million new connections will be required from 2023 till 2030 to achieve universal access and keep pace with population growth. The Base Case of this study includes an unprecedented expansion of off- and mini-grid connections through a significant mobilization of private investments and expansion of supply chains, supported by robust and harmonized regulatory frameworks and incentives.
Benchmarking Infrastructure Development : PPP Regulatory Landscape - Assessing Quality and Exploring Reform

Benchmarking Infrastructure Development : PPP Regulatory Landscape - Assessing Quality and Exploring Reform

Septembre 2024
Public-Private Infrastructure Advisory Facility (PPIAF) du groupe de la Banque Mondiale (125 pages).

Despite its intrinsic relevance and policy makers’ efforts to address the infrastructure gap, progress has been limited. A confluence of challenges from macroeconomic shocks and political instability to weak institutional capacity has hindered the capacity of countries to develop infrastructure that meets demand. Increasing efficiencies in delivering infrastructure services is at the core of addressing the gap. Numerous countries have turned to private sector participation in infrastructure development to achieve these efficiencies and catalyze private capital investments. Although there are different modalities to procure infrastructure, public-private partnerships (PPPs) have been extensively used by many countries to deliver successful programs. This report examines one of the key elements of an overall sound PPP ecosystem, the crucial role that the quality of PPP regulatory frameworks plays in fostering a conducive ecosystem for successful PPP programs while acknowledging that it is just one of several critical factors. This report incorporates new empirical analysis from primary data collected through Benchmarking Infrastructure Development 2023 (BID 2023). It also uses country case studies to illustrate and draw lessons from how countries have created robust PPP ecosystems and strengthened PPP regulatory frameworks over time. This report is aligned with the Knowledge Compact Agenda’s focus on evidence-based decision-making by providing evidence-based knowledge that can inform development strategies and PPP operations. Additionally, it focuses on fostering the PPP ecosystem that is conducive to private sector investment, thereby contributing to the Private Capital Enabling (PCE) objectives that will ultimately support Private Capital Mobilization (PCM), two critical corporate objectives of the World Bank Group to help to close the infrastructure gap.
Quarterly Report Deal PPP Update, Q2 2024

Quarterly Report Deal PPP Update, Q2 2024

Septembre 2024
InfraPPP & WAPPP (18 pages).

The number of PPP deals decreased by a negligible 4 units in the second quarter of 2024, despite more volatility on the economic front.
Firstly, developed countries saw a revamp of inflation, which led to a delayed start in the US Federal Reserve cutting cycle. Namely, the repricing of the FED policy stance and the appreciation of the dollar led many emerging markets to reconsider a more prudent approach to their monetary policy in an attempt to prevent currency devaluation occurrences. Support to inflation targeting was overall preferred to support to growth: with rates “higher for (slightly) longer”, investment plans clearly suffered.
Secondly, politics remains a global driver for volatility: a dense election calendar in key countries (India, Iran, Mexico and South Africa among others) lead to uncertainty on government transitions and fiscal policies. The heated political climax will continue in Q3 with the start of the US election campaign and snap elections in key countries like France and UK, potentially affecting the government’s investment plans and taxation structure thus further delaying the involvement of large constructors in offshore projects.
Thirdly, investors’ risk aversion was further tested by a spike in geopolitical tensions, with the intensification of the Gaza-Israel conflict which ultimately is taking a toll on maritime transport activity deviated from the Suez-Canal into longer cross-African routes. The impact affects PPP deals as projects based in the Red Sea area are now subject to higher geopolitical risk in case of conflict enlargement and governments benefit from slimmer receipts linked to cargo tariffs and harbor presence (first but not only Egypt).
Infrastructure and Structural Change in Africa

Infrastructure and Structural Change in Africa

Août 2024
Banque Mondiale (60 pages).

Past investments in electricity, Internet, and road infrastructure, in isolation and bundled, have contributed to structural transformation and economic development in Africa. Using new data on the expansion of the road, electricity, and Internet networks over the past two decades, the paper shows that having access to both paved roads and electricity has led to a significant reallocation of labor from agricultural to both manufacturing and services. Adding access to fast Internet has had a major impact on structural change, with an even larger impact on reallocating labor away from agriculture. The paper then uses a spatial general-equilibrium model to quantify the impacts of future regional transport investments, bundled with electricity and Internet investments, on economic development in countries in the Horn of Africa and Lake Chad region.
Drivers of Delays in Procurement of Infrastructure Projects

Drivers of Delays in Procurement of Infrastructure Projects

Juillet 2024
Banque Mondiale (71 pages).

The objective of this study was to analyze the reasons for delays in procurement and contract execution of infrastructure projects. It analyzes available data from three different sources: Tender data for 656 works contracts extracted from the World Bank Systematic Tracking of Exchanges in Procurement (STEP), covering the period 2013-2022. This sample was used to analyze the incidence and extent of delays in the procurement of World Bank infrastructure projects; A sample of 312 works contracts for infrastructure projects financed by the World Bank and the Islamic Development Bank (IsDB), covering the period 2007-2019. This sample was used to analyze the reasons for delays in the procurement and delivery of World Bank and IsDB infrastructure projects at the contract level; CoST assurance reports from 2016 to 2020 covering 480 infrastructure projects across 12 member countries of CoST. This sample was used to analyze the reasons of delays for the reviewed infrastructure projects.
GPoC 2024, Global Powers of Construction

GPoC 2024, Global Powers of Construction

Juillet 2024
Deloitte (52 pages).

GPoC 2023 examines the main financial indicators of the industry’s major players and provides insights to help companies understand and assess the related challenges and opportunities. It also explores certain industry trends that have been shaping the construction sector over the past few years or are expected to have a major impact in the future.
In 2023 the aggregate US$ sales of the Top 100 GPoC rose by 3.4%, while market capitalization increased by 18.3%.
In 2023, revenue obtained by our Top 30 GPoC from international sales rose to 18.4% of total sales from 17.1% the previous year, still under the 19% pre-pandemic ratio achieved in 2019. None of our Top 30 GPoC reported construction losses in 2023 or 2022.
Perspectives for the long term remain positive as the industry is expected to grow from US$ 10.4 trillion in 2023 to US$ 16.1 trillion by 2030, with a CAGR of approximately 5.9% during the period. Global trends such as rapid urbanization and decarbonization of the economy represent a huge opportunity for construction companies to go overseas but also to add new activities to their portfolio in addition to the traditional construction business.
Asociaciones público-privadas inclusivas: una guía para América Latina y el Caribe

Asociaciones público-privadas inclusivas: una guía para América Latina y el Caribe

Juillet 2024
Banque Interaméricaine de Développement (99 pages).

El propósito del presente documento consiste en ofrecer recomendaciones prácticas para la consideración de los diferentes componentes que garanticen un desarrollo inclusivo de las Asociaciones Público-Privadas (APP) en infraestructura económica y social.
Project Development Funds (PDFs): Supporting Project Preparation to Structure Successful Public-Private Partnerships (PPPs)

Project Development Funds (PDFs): Supporting Project Preparation to Structure Successful Public-Private Partnerships (PPPs)

Juillet 2024
Banque Mondiale (97 pages).

Project development funds (PDFs) are dedicated vehicles that governments establish to systematically support the preparation of public-private partnerships (PPPs). The lack of adequate and consolidated resources to appropriately evaluate and prepare potential PPP projects is a key constraint faced by many PPP programs, and inhibits the ability of PPP projects to raise private investment. PDFs are generally established to address this challenge, by providing dedicated and centralized funding for PPP project preparation that is not subject to the constraints of typical government budgeting processes. Moreover, they often go beyond the provision of funding to address a range of challenges that can undermine the provision of high-quality and efficient PPP project preparation. By driving a cultural shift to encourage a greater consideration of PPPs, PDFs also serve as tools that can support overall government policy for, and signal political commitment to, the use of PPPs.
PDFs have contributed to the successful implementation of PPP projects, which can serve to support the increased private investment that will be critical if the United Nations Sustainable Development Goals (SDGs) are to be achieved. PDFs have directed significant funding to the preparation of PPP projects and contributed strongly to PPP projects reaching financial close and implementation. They have also supported the building of critical PPP capacity within governments and driven private sector confidence in PPP programs. These impacts help to increase private investment in infrastructure, a critical source of finance to support the achievement of the US$2 trillion to US$3 trillion of investment per year estimated to be necessary to achieve the SDGs. Although PDFs are not a panacea — they must be supported by a conducive PPP enabling environment and are often accompanied by other reforms — they can support the transmission of infrastructure development good practices. However, PDFs require deliberate design and management to be successful, and a wide range of issues — from legal status and governance to sustainability — need to be considered prior to their implementation.
This primer on project development funds (hereafter, “Primer”) seeks to capture and distill lessons for public sector and other PPP practitioners related to how and why PDFs are established, and how best toenable them to contribute to the success of PPP programs. Through its review of PDF and other relevant experience, this Primer seeks to identify lessons learned and success factors that influence the design and operationalization of PDFs. It aims to paint a clear picture of how and why PDFs can support the development of PPP programs to assist policy makers in understanding whether a PDF can help to address their particular PPP program challenges. Where practitioners are developing a PDF, this Primer provides detailed information on PDF design features to assist them in establishing a PDF that will deliver on its objectives.