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

Box 9.6: How can the public sector be strengthened to deal with barriers to good
infrastructure performance
This is a critical issue for most countries, especially with respect to obtaining
skilled human capacity that will remain in country. Dealing with this issue will be
critical to obtaining infrastructure improvements in all Pacific countries, regardless
of the reform policies selected.
Successful private sector involvement and competition will require the
development of public sector capability to manage these arrangements, in addition
to good contract design. Capacity building is necessary to clearly define
institutional boundaries, and to ensure trade-offs between different interests and
objectives are well understood and transparent.
Public sector strengthening is also necessary for effective oversight through
regulation or other institutional arrangements.
Box 9.7: How will the reforms and improvements be financed
Improving access to and the quality of infrastructure in the Pacific will require
considerable investment. Most Pacific countries will require considerable increases
in their total levels of investment to combine improvements in infrastructure with
growth in other sectors of the economy.
Some Pacific countries have relied heavily on aid to fund major infrastructure
projects in the past. Meeting future investment requirements will require a change
to fiscal priorities, improved functioning of the financial sectors and mobilizing
private savings – both domestic and international.
74