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

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9 How do we meet the Challenge This document discusses infrastructure performance in the Pacific. Most Pacific countries face a unique set of challenges to good infrastructure performance. They demonstrate different levels of infrastructure performance, have different development priorities, and face varying challenges to good coordination and accountability. But, some countries that face similar challenges demonstrate better performance than others. This suggests that better performance is possible, with better institutions, management and policy design. Nevertheless, there will not be a ‘one size fits all’ solution to infrastructure challenges in the Pacific. This discussion analyzes sector performance using publicly available data and information. Some of this is outdated. In addition, the scope of this study did not allow for extensive or in-depth interviews with Pacific country leaders and policy makers. It is therefore inevitable that there are gaps in this analysis, therefore we are not in a position to recommend solutions. This discussion paper is aimed at encouraging debate. It provides a preliminary analysis of infrastructure performance in Pacific countries, and a view on things that could be done to lift performance. Figure 9.1 illustrates an approach to meeting the infrastructure challenge in the Pacific. Figure 9.1: An Approach to Meeting the Challenge Fill in the Gaps Identify Infrastructure Priorities Develop Policy Framework Dedicate People and Financing Implement Action Plans Commitment & Perseverance Source: Castalia The first step is to ‘fill in the gaps’, and to verify the data presented, and to test whether the analysis rings true for Pacific country leaders. Leaders and policy makers must then decide how big a priority infrastructure is for their country. They must also determine the infrastructure priorities, as not all sectors will require the same level of investment or focus. Having identified the priorities, it will be necessary to put in place a policy framework that will enable and support the reform initiatives selected. People and finance must be dedicated to projects and program implementation. This process will take time. It will also take commitment and perseverance. In this section, we propose a set of discussion topics for debate, to initiate the first step of ‘filling in the gaps’. Each topic is presented in a separate box below, together with a summary of the views presented in this paper. 70
Box 9.1: Will benchmarking help provide a better picture of infrastructure performance It is difficult to determine how effectively or efficiently infrastructure is performing without making comparisons with systems in similar countries. We have suggested that benchmarking initiatives in the electricity and water sectors should be maintained and strengthened through publicizing the results and continuing to develop utilities’ capability to gather and measure data, and utility managers’ ability to use and act upon the benchmarking information to improve performance. Although each country’s specific circumstances will be unique, introducing performance benchmarking to other infrastructure sectors will help to improve performance and will encourage better coordination and accountability. Benchmarking will also help to identify areas of infrastructure underperformance, given the specific constraints faced by each country. A regional benchmarking unit, responsible for overseeing and assisting data gathering, measurement and analysis for all sectors and all countries would help to overcome capacity and capability constraints. Box 9.2: What public sector reforms will benefit Pacific countries How much more efficient can the existing public sector providers become with appropriate reforms Experience elsewhere shows the outcomes for infrastructure investment are significantly better when public sector entities operate commercially, and at arms length from day-to-day political interference. How realistic is this objective given the makeup of political and governance structures in the region If public sector reforms are to be successful, it is important that infrastructure operators are able to recover their full and reasonable costs of operation. If this is politically unacceptable, for example in countries with low income levels, subsidies should be made explicit. Skilled, capable management is necessary for successful reforms. Countries with small pools of human resources should consider appointing individuals from outside the country. Offering higher salaries may help to attract the right people, and may be worth the extra expense if the individual is able to turn performance around. Staff redundancies may be necessary to improve efficiency and to provide incentives for good performance. Governments can encourage the development of small businesses to compete for the provision of non-core services. Where this is not politically feasible, staff may be re-deployed at a minimum wage to perform other value added activities. These staff should not be replaced once they leave or retire. Implementing public sector reforms may only be possible over the medium term. However, actively recruiting skilled management, (if existing managers are deficient), is a short term priority, as it is important that senior managers have input to the reform planning process. 71
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The Pacific Infrastructure Challeng
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Table of Contents 1 Acronyms and Ab
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Figure 8.4: Annual Per Capita Inves
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Box 7.9: ECTEL - Regulatory Coopera
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kWh MDG MIAA MIPA MNOC MOTCA MOU MP
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2 Executive Summary This discussion
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Fiscal, regulatory and policy decis
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Figure 2.2: Estimated Annual Invest
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3 What’s the Purpose of the Discu
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Box 4.2: Improving Infrastructure f
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5 How well are Pacific Countries Pe
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Figure 5.1: Access to Electricity 1
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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 68 and 69: 8 What’s the Size of the Challeng
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 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
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In Samoa: Samoa’s Public Works De
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Many Pacific countries already outs
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4. Domestic and Pacific Island serv
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Figure A.31: TEU Throughput Levels
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system reduces cargo handling effic
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Economies of Scale Port operations
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The landlord model is the most comm
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Fiji 84 Ports The Maritime and Port
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Apia Port has become one of the bes
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Kiribati 90 Ports The Kiribati Port
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In Shipping: Services are considere
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Figure A.36: Total Passenger Throug
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Airline Services Figure A.38 illust
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establishment period. For the offic
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Vanuatu 101 Airports Vanuatu Limite
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Samoa 104 The Samoa Airport Authori
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Institutional Arrangements in Aviat
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Summary of Aviation Analysis The Pa
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Fiji Kiribati Marshall Islands Micr
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Barbados Dominica Grenada Jamaica M
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Samoa Solomon Islands Timor-Leste T
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Samoa Solomon Islands Timor-Leste T
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EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

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