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EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

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Figure 2.2: Estimated Annual Investment Requirements for <strong>Infrastructure</strong> Sectors<br />

compared to Total Investment in 2003<br />

$300<br />

$250<br />

$200<br />

$150<br />

$100<br />

$50<br />

$-<br />

PNG PNG Fiji Fiji Solomon Isl Solomon Isl<br />

Source: International Financial Statistics (IMF)<br />

Water Sanitation Mainlines Cellulars Electricity Total<br />

S<br />

Many <strong>Pacific</strong> countries have relied heavily on aid to fund major infrastructure projects in<br />

the past. Meeting future investment requirements will require a change to fiscal priorities,<br />

improved functioning of the financial sectors, and mobilizing domestic and international<br />

private savings.<br />

2.5 How do we meet the <strong>Challenge</strong><br />

<strong>The</strong>re will not be a ‘one size fits all’ solution to infrastructure challenges in the <strong>Pacific</strong>.<br />

Figure 2.3 illustrates an approach to meeting the infrastructure challenge in the <strong>Pacific</strong>.<br />

Figure 2.3: An Approach to Meeting the <strong>Challenge</strong><br />

Fill in the Gaps<br />

Identify<br />

<strong>Infrastructure</strong><br />

Priorities<br />

Develop<br />

Policy<br />

Framework<br />

Dedicate<br />

People and<br />

Financing<br />

Implement<br />

Action Plans<br />

Commitment & Perseverance<br />

Source: Castalia<br />

<strong>The</strong> first step is to ‘fill in the gaps’, and to verify the data presented, and to test whether<br />

the analysis rings true for <strong>Pacific</strong> country leaders. Leaders and policy makers must then<br />

decide how big a priority infrastructure is for their country. <strong>The</strong>y must also determine the<br />

infrastructure priorities, as not all sectors will require the same level of investment or<br />

focus.<br />

8

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