ENHANCING CONNECTIVITY THROUGH TRANSPORT INFRASTRUCTURE The Role of - - PowerPoint PPT Presentation

ENHANCING CONNECTIVITY THROUGH TRANSPORT INFRASTRUCTURE

The Role of Official Development Finance and Private Investment

G20 GICA Meeting, January 26 2018

Kaori MIYAMOTO, Development Co-operation Directorate

Connectivity Transport Action Plans

2 Source: Mercator Institute for China Studies, 2017

Examples of Action Plan:

• PIDA
• ASEAN Connectivity
• Greater Mekong
• TEN-T
• The Belt and Road

Initiative (See Map) Connectivity Transport Infrastructure – International airports and ports as well as railways and roads that are cross-border or connect major cities.

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Strategies and Activities of Development Partners

STRATEGIES

• Enhance trade and integration
• Uphold social, safety, and environmental standards
• Specific regional focus

ACTIVITIES

• Finance construction, rehabilitation and maintenance
• Support soft projects, such as One Stop Border Post, harmonisation of

aviation safety standards, and national transport data management COLLECTIVE MECHANISMS

• Sustainable Mobility for All (SuM4All), GICA
• Pacific Region Infrastructure Facility (PRIF), Africa 50, TradeMark East Africa
• International Civil Aviation Organisation (ICAO)

International Maritime Organisation (IMO) Intergovernmental Organisation for International Carriage by Rail (OTIF) World Road Association (PIARC)

Current Spending and Financing Gap in Connectivity Transport

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USD Billion 2014-2015 annual average

Source: Calculations based on Brookings et al (2015) estimates

Sectoral Breakdown of ODF and Private Investment

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Breakdown by Sector

2014-2015 annual average

44% 61% 1% 16% 5% 15% 50% 8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Road Railway Port Airport

ODF Private investment

Breakdown of ODF and Private Investment

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Breakdown by Region

2014-2015 annual average

11% 46% 36% 39% 10% 50% 8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Asia Africa Europe America

Private Investment ODF

Breakdown of ODF and Private Investment

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Breakdown by Income-Level Group

6% 70% 94% 94% 30% 6%

5 10 15 20 25 30 35 40 45 50 55

UMICs LMICs LICs

ODF Private Investments 2014-2015 annual average, USD billion

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Development Partners

0.0 1.0 2.0 3.0 4.0 5.0

Arab Fund Korea IADB EU Institutions AfDB EBRD IsDB Japan AsDB WBG

ODA OOF

Top 10 Development Partners

2014-2015 annual average, USD Billion

Top Recipients for Connectivity Transport

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Top 10 ODF Recipient Countries

0.0 0.5 1.0 1.5 2.0

Bolivia (LMIC) Bangladesh (LIC) Ethiopia (LIC) Morocco (LMIC) Ukraine (LMIC) Egypt (LMIC) Kenya (LIC) China (UMIC) Viet Nam (LMIC) India (LMIC)

Thousands

ODA OOF

2014-2015 annual average, USD billion

Top 10 Countries with Most Private Investment

2014-2015 annual average, USD billion

5 10 15 20 25

Costa Rica (UMIC) Chile (UMIC) Peru (UMIC) Philippine s (LMIC) Mexico (UMIC) India (LMIC) China (UMIC) Colombia (UMIC) Brazil (UMIC) Turkey (UMIC)

India (LMIC) China (UMIC) China (UMIC) India (LMIC)

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Issues around Connectivity Transport

• 1. Project selection and planning
• 2. Co-ordination and harmonisation
• 3. Debt sustainability
• 4. Trade and investment policies
• 5. The future of transport

Full report for the presentation (forthcoming): OECD(2018), Enhancing Connectivity through Transport Infrastructure: The Role of Official Development Finance and Private Investment, DCD Working Paper. The Belt and Road Map: Mercator Institute for China Studies(2017), The Silk Road Initiative – China aims to built a global infrastructure network, 15 May 2017, https://www.merics.org/en/china-mapping/silk-road-initiative ODF data: OECD (2017), “CRS: Aid Activities”, OECD International Development Statistics (database), http://www.oecd-ilibrary.org/development/data/creditor-reporting-system/aid-activities_data-00061-en Private investment data: Compilation based on World Bank Private Participation in Infrastructure database and Dealogic Projectware Estimates on the financing gap: Brookings Institution, Global Commission on the Economy and Climate, New Climate Economy and the Grantham Research Institute (2015), Driving Sustainable Development through Better Infrastructure: Key Elements of a Transformation Program, Working Paper 91, July 2015, https://www.brookings.edu/wp- content/uploads/2016/07/07-sustainable-development-infrastructure-v2.pdf.

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Main Sources

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