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

More documents

Recommendations

Info

8 What’s the Size of the Challenge Improving access to and the quality of infrastructure will require considerable investment. This section estimates the likely levels of investment that would be required to achieve Millennium Development Goals or other reasonable infrastructure access objectives. Such calculations are, of course, never precise. However, they provide a useful indication of the scale of the challenge. We also compare the targeted levels of future infrastructure investment to recent investment performance. This provides us with the context for considering how the required investments may be funded. The figure below summarizes our key findings by comparing the sum of annual per capita investments required for water and sanitation, electricity, telecommunications and roads with the total per capita investment for selected Pacific countries for the most recent year for which statistics are available 20 . Figure 8.1: Estimated Annual Investment Requirements for Infrastructure Sectors compared to Total Investment in 2003 $300 $250 $200 $150 $100 $50 $- PNG PNG Fiji Fiji Solomon Isl Solomon Isl Source: International Financial Statistics (IMF) Water Sanitation Mainlines Cellulars Electricity Total The scale of the infrastructure challenge varies among the Pacific Island states, but it is significant everywhere. If total investment levels were to be maintained at their current levels, a significant re-allocation of resources would be required. Fiji, which has enjoyed relatively high levels of total investment due to its strong tourism and manufacturing sectors, would need to devote about 25 percent of those investments to the infrastructure sectors. At the other extreme, Solomon Islands would need to allocate almost their entire current investment spending to infrastructure. To combine improvements in infrastructure access with growth in other sectors of the economy, all Pacific countries would need to achieve strong increases in their total levels of investment. This would require mobilization of private savings – both domestic and international, improved functioning of the financial sectors, and a change in fiscal priorities. 20 Total investment is Fixed Capital Formation, derived from the International Financial Statistics (IMF). 60
The following sections present our estimates of the total investment needs for the water and sanitation, electricity, telecommunications and roads sectors. We note that our estimates of the total infrastructure investment needs are understated by the amounts needed for these sectors. We have not been able to find reliable estimates for the expected investment needs in ports, shipping, airports and air services. Such investments will be driven in part by commercial considerations about the level of demand for various services, and the quality expected by customers. 8.1 Water and Sanitation Our estimates of investment required in improved access to water, are based on the service target levels set by the Millennium Development Goals (MDG). MDGs require halving the percentage of population without access to improved water supply by 2015. We use current estimates of the number of households without access to improved water and population growth projections to calculate the additional number of connections required over the 10 year period. Population projections were obtained from the UN Urbanization Projections. The unit cost of connecting a household to water was estimated at US$400. 21 This estimate is perhaps a higher-end figure given that access can be increased through various forms of improved water supply (e.g. household connection, public standpipe, private standpipe, etc), and not only household connections. We then apply a similar logic to estimating the investment requirement for wastewater and sanitation. Our calculations are based on an average per connection cost of US$700. Overall, significantly higher investment levels per capita are required to reach MDGs in wastewater and sanitation than in access to water. In general, richer countries require less investment since they already provide access to a relatively high proportion of their population. Fiji is an exception to this trend, with some of the highest per capita investment requirements among the Pacific Island states, despite being among the richest. This is explained by the low starting levels of coverage. Figure 8.2: Annual Per Capita Investment Requirement in Water to reach MDG $7.00 Annual Per Capita Investment Requirements in Water (US$) for 2000-2015 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Fiji Kiribati Palau Papua New Guinea Samoa Solomon Island Tonga Vanuatu Dominica Jamaica St Lucia Source: Castalia Research 21 The unit cost of connection was obtained from the World Bank Policy Research Paper 3102, July 2003, “Investing in Infrastructure: What is Needed from 2000 to 2010” by Marianne Fay, and Tito Yepes. 61
Page 2 and 3:
The Pacific Infrastructure Challeng
Page 4 and 5:
Table of Contents 1 Acronyms and Ab
Page 6 and 7:
Figure 8.4: Annual Per Capita Inves
Page 8 and 9:
Box 7.9: ECTEL - Regulatory Coopera
Page 10 and 11:
kWh MDG MIAA MIPA MNOC MOTCA MOU MP
Page 12 and 13:
2 Executive Summary This discussion
Page 14 and 15:
Fiscal, regulatory and policy decis
Page 16 and 17:
Figure 2.2: Estimated Annual Invest
Page 18 and 19: 3 What’s the Purpose of the Discu
Page 20 and 21: Box 4.2: Improving Infrastructure f
Page 22 and 23: 5 How well are Pacific Countries Pe
Page 24 and 25: Figure 5.1: Access to Electricity 1
Page 26 and 27: Water tariffs are often too low In
Page 28 and 29: Table 6.1 shows that in addition to
Page 30 and 31: These characteristics mean that Pac
Page 32 and 33: 6.2 Challenges to Institutions and
Page 34 and 35: 6.2.2 Demographic Issues in the Reg
Page 36 and 37: These high rural populations mean t
Page 38 and 39: Figure 6.3: Comparison of Defining
Page 40 and 41: Lack of legal and regulatory suppor
Page 42 and 43: 7 Challenge: How do we Lift Perform
Page 44 and 45: 7.1.2 Poor Policy Design and Coordi
Page 46 and 47: different, some efficiency may be g
Page 48 and 49: Figure 7.1: Accountability in Infra
Page 50 and 51: Box 7.3: Expert Panels can Improve
Page 52 and 53: Some of these reforms have already
Page 54 and 55: 7.2.2 Choose an Appropriate Reform
Page 56 and 57: Box 7.5: Public Sector Reforms in t
Page 58 and 59: Pacific countries, management salar
Page 60 and 61: There are three classic types of pr
Page 62 and 63: While private sector involvement ma
Page 64 and 65: Air services would also benefit fro
Page 66 and 67: 7.2.5 Regional Coordination One opt
Page 70 and 71: Figure 8.3: Annual Per Capita Inves
Page 72 and 73: Figure 8.5: Mainlines Trend 0.600 N
Page 74 and 75: Figure 8.8: Annual Per Capita Inves
Page 76 and 77: Figure 8.11: Total Annual Per Capit
Page 78 and 79: 9 How do we meet the Challenge This
Page 80 and 81: Box 9.3: Can private sector involve
Page 82 and 83: Box 9.6: How can the public sector
Page 84 and 85: The proportion of mainline access a
Page 86 and 87: Box A.2: Introducing Telecommunicat
Page 88 and 89: Universal Access Universal access r
Page 90 and 91: good example of this. The Kiwi Shar
Page 92 and 93: Figure A.7: Reported Faults per 100
Page 94 and 95: Table A.1: Institutional Indicators
Page 96 and 97: and there have been calls to recons
Page 98 and 99: A.2 Electricity Sector Analysis A s
Page 100 and 101: Figure A.10: Average Electricity Ta
Page 102 and 103: Figure A.11: Economies of Scale in
Page 104 and 105: interest rate relief on a US$9m loa
Page 106 and 107: As Figure A.14 shows, Vanuatu perfo
Page 108 and 109: Table A.3: Industry Structure and G
Page 110 and 111: Regional Cooperation in Electricity
Page 112 and 113: A.3 Water and Sanitation Sector Ana
Page 114 and 115: Figure A.17: Availability of Water
Page 116 and 117: Figure A.20: Staff per 1000 Connect
Page 118 and 119:
including full operating expenses a
Page 120 and 121:
Corporatization is often employed t
Page 122 and 123:
operating costs, collections levels
Page 124 and 125:
Figure A.25: Road Network Density v
Page 126 and 127:
Federated States of Micronesia at b
Page 128 and 129:
In Samoa: Samoa’s Public Works De
Page 130 and 131:
Many Pacific countries already outs
Page 132 and 133:
4. Domestic and Pacific Island serv
Page 134 and 135:
Figure A.31: TEU Throughput Levels
Page 136 and 137:
system reduces cargo handling effic
Page 138 and 139:
Economies of Scale Port operations
Page 140 and 141:
The landlord model is the most comm
Page 142 and 143:
Fiji 84 Ports The Maritime and Port
Page 144 and 145:
Apia Port has become one of the bes
Page 146 and 147:
Kiribati 90 Ports The Kiribati Port
Page 148 and 149:
In Shipping: Services are considere
Page 150 and 151:
Figure A.36: Total Passenger Throug
Page 152 and 153:
Airline Services Figure A.38 illust
Page 154 and 155:
establishment period. For the offic
Page 156 and 157:
Vanuatu 101 Airports Vanuatu Limite
Page 158 and 159:
Samoa 104 The Samoa Airport Authori
Page 160 and 161:
Institutional Arrangements in Aviat
Page 162 and 163:
Summary of Aviation Analysis The Pa
Page 164 and 165:
Fiji Kiribati Marshall Islands Micr
Page 166 and 167:
Barbados Dominica Grenada Jamaica M
Page 168 and 169:
Samoa Solomon Islands Timor-Leste T
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Samoa Solomon Islands Timor-Leste T
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
“A-Z World Airports Online” www
show all

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

Create successful ePaper yourself

Delete template?

Save as template?