INFRA Platform in Action

1. INFRA Platform in Action

2. Outline Countercyclical Stimulus Support Development Policy Operations Donor Harmonization Innovative Instruments INFRA Diagnostics

3. Countercyclical Stimulus 3

4. SIAP Progress Countercyclical Stimulus WBG Actions in the Regions Impact of Crisis WBG Response • Africa • largely shielded from the initial impacts; falling commodity prices, reduced private flows and a shrinking fiscal space created difficult environment for infrastructure investments in Africa • WB infrastructure lending increased from $2.5billion in FY2008 to $3.6 billion in FY2009 • East Asia and Pacific • Better prepared for the crisis due to structural and institutional reforms undertaken following Asian Crisis; many countries adopted stimulus packages with significant infrastructure component. • Bank helped countries in the region prioritize infrastructure investments by approving $3.1 billion of infrastructure lending in FY09. Stimulus plans of China, Vietnam, Indonesia supported. • Eastern Europe and Central Asia • experienced a ‘sudden stop’ in capital inflows; unable to implement countercyclical macroeconomic policies • WB approved $4.9 billion for infrastructure sectors in the region in FY2009 including $2.1 billion Kazakhstan South West Roads Project • Latin America • Countries relying greatly on infrastructure stimulus packages to respond to the crisis • Bank has supported governments in the region by committing $2.9 billion for infrastructure in FY09, including $450 million loan for Third Sustainable Development DPL • Middle East and North Africa • Countries face lower oil revenues, tourism revenues, remittances, and foreign direct investment as a result of the global crisis--all of which is likely to weaken economic performance • Bank committed $1.3 billion for infrastructure sectors in the region in FY2009, including $600 million for the Egypt AinSokhna Power Project • South Asia • Tightening of credit markets as seen in portfolio outflows, decline in external commercial borrowing, and an increase in credit spreads. This has created difficult conditions for undertaking large infrastructure investments • the Bank approved $1.9 billion for infrastructure in the region in FY2009, including $149 million for the Dhaka Water Supply and Sanitation Project. Stimulus support in India. 4

5. SIAP Progress Countercyclical Stimulus Projects 5

6. Outline Countercyclical Stimulus Support Development Policy Operations Donor Harmonization Innovative Instruments INFRA Diagnostics

7. Development Policy Operations • Lending for DPOs with infrastructure increased by more than two-fold from FY2008 to FY2009 while the number of DPOs increased by 23% 7

8. Development Policy Operations Policy Matrix Provisions/Triggers for Infrastructure Sectors • Number of service providers that are joint stock companies • Consumer tariff levels as % of properly accounted operating costs or maintenance budget as % of revenues. • Collection rates. • Number of service providers that have technically audited performance indicators and/or financially audited financial statements. • Transparency indicators, such as tariffs or other information made available to the public via publications in the mass-media; publication of annual report.

9. Development Policy OperationsExamples IndonesiaThird Infrastructure DPL Mexico Framework for Green Growth

10. Outline Countercyclical Stimulus Support Development Policy Operations Donor Harmonization Innovative Instruments INFRA Diagnostics

11. Donor Harmonization 11

12. Donor HarmonizationKazakhstan South-West Roads Project • Guiding Principles: • Synchronized parallel financing for corridor; • Uniform technical standards; • Common framework for environmental and social safeguards; and • Technical assistance and institutional strengthening to complement investments. • Coordinated Project Preparation: • ADB took lead on social, land acquisition, and economic analysis • WB took lead on environmental analysis and safeguards

13. - Project to expand access and improve the quality of basic services in education, health, agriculture, water supply and sanitation, and rural roads in Ethiopia • - Being jointly implemented by the World Bank and twelve other partners - African Development Bank, Austria, Canadian International Development Agency, Department for International Development, European Commission, Irish Aid, Italy, KfW, Netherlands, Spain, and Japan. • - World Bank’s IDA financing of $540 million is being supplemented by at least $0.8 billion from other development partners, for overall donor financing of $1.3 billion. • - Development partners will undertake joint missions and follow-up; conduct joint Program performance assessments; and align their disbursements to the Government’s budget cycle as much as possible. Donor HarmonizationEthiopia Protection of Basic Services(PBS) Program Project Figure 1: Ethiopia PBS - II Donor Contributions and Project Components ($ billion) 13

14. Donor HarmonizationArab and Islamic Funds 14

15. Donor HarmonizationArab and Islamic Funds • Initial interest expressed in collaboration in some 14 projects across Africa with preliminary commitments made totaling well over $200 million 15

16. Outline Countercyclical Stimulus Support Development Policy Operations Donor Harmonization Innovative Instruments INFRA Diagnostics

17. Innovative Instruments • INFRA is using the full range of WBG instruments 17

18. Innovative InstrumentProjects Turkey Renewable Energy and Energy Efficiency Botswana Morulpule B Generation and Transmission Mauritius Trade and Competitiveness DPL DDO

19. Outline Countercyclical Stimulus Support Development Policy Operations Donor Harmonization Innovative Instruments INFRA Diagnostics

20. INFRA Diagnostics Diagnostic Tools and Guidance Notes A. Diagnostic Tools 1. Strategic Country Reviews 2. Infrastructure Portfolio Assessments 20

21. INFRA DiagnosticsStatus of Diagnostics

22. INFRA DiagnosticsResults of Diagnostics

23. Thank You!