ENHANCING CONNECTIVITY THROUGH TRANSPORT INFRASTRUCTURE The Role of - PowerPoint PPT Presentation

ENHANCING CONNECTIVITY THROUGH TRANSPORT INFRASTRUCTURE The Role of Official Development Finance and Private Investment G20 GICA Meeting, January 26 2018 Kaori MIYAMOTO, Development Co-operation Directorate

Connectivity Transport Action Plans Connectivity Transport Infrastructure – International airports and ports as well as railways and roads that are cross-border or connect major cities. Examples of Action Plan: • PIDA • ASEAN Connectivity • Greater Mekong TEN-T • • The Belt and Road Initiative (See Map) 2 Source: Mercator Institute for China Studies, 2017

Strategies and Activities of Development Partners STRATEGIES • Enhance trade and integration • Uphold social, safety, and environmental standards • Specific regional focus ACTIVITIES • Finance construction, rehabilitation and maintenance • Support soft projects, such as One Stop Border Post, harmonisation of aviation safety standards, and national transport data management COLLECTIVE MECHANISMS • Sustainable Mobility for All (SuM4All), GICA • Pacific Region Infrastructure Facility (PRIF), Africa 50, TradeMark East Africa • International Civil Aviation Organisation (ICAO) International Maritime Organisation (IMO) Intergovernmental Organisation for International Carriage by Rail (OTIF) World Road Association (PIARC) 3

Current Spending and Financing Gap in Connectivity Transport USD Billion 2014-2015 annual average 4 Source: Calculations based on Brookings et al (2015) estimates

Sectoral Breakdown of ODF and Private Investment Breakdown by Sector 2014-2015 annual average Road Railway Port Airport ODF 61% 16% 15% 8% Private investment 1% 44% 5% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5

Breakdown of ODF and Private Investment Breakdown by Region 2014-2015 annual average Asia Africa Europe America ODF 46% 36% 10% 8% Private Investment 11% 39% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6

Breakdown of ODF and Private Investment Breakdown by Income-Level Group 2014-2015 annual average, USD billion ODF Private Investments 55 50 45 40 35 30 94% 25 20 15 30% 10 6% 5 70% 94% 6% 0 UMICs LMICs LICs 7

Development Partners Top 10 Development Partners 2014-2015 annual average, USD Billion WBG AsDB Japan IsDB EBRD ODA AfDB OOF EU Institutions IADB Korea Arab Fund 0.0 1.0 2.0 3.0 4.0 5.0 8

Top Recipients for Connectivity Transport Top 10 ODF Recipient Countries Top 10 Countries with Most Private Investment 2014-2015 annual average, USD billion 2014-2015 annual average, USD billion ODA OOF Turkey India (LMIC) India (LMIC) (UMIC) Viet Nam Brazil (LMIC) (UMIC) Colombia China (UMIC) China (UMIC) (UMIC) China Kenya (LIC) China (UMIC) (UMIC) India India (LMIC) Egypt (LMIC) (LMIC) Mexico Ukraine (LMIC) (UMIC) Morocco Philippine (LMIC) s (LMIC) Peru Ethiopia (LIC) (UMIC) Bangladesh Chile (LIC) (UMIC) Costa Rica Bolivia (LMIC) (UMIC) 0.0 0.5 1.0 1.5 2.0 0 5 10 15 20 25 9 Thousands

Issues around Connectivity Transport 1. Project selection and planning 2. Co-ordination and harmonisation 3. Debt sustainability 4. Trade and investment policies 5. The future of transport 10

Main Sources Full report for the presentation (forthcoming): OECD(2018), Enhancing Connectivity through Transport Infrastructure: The Role of Official Development Finance and Private Investment , DCD Working Paper. The Belt and Road Map: Mercator Institute for China Studies(2017), The Silk Road Initiative – China aims to built a global infrastructure network, 15 May 2017, https://www.merics.org/en/china-mapping/silk-road-initiative ODF data: OECD (2017), “CRS: Aid Activities”, OECD International Development Statistics (database ), http://www.oecd-ilibrary.org/development/data/creditor-reporting-system/aid-activities_data-00061-en Private investment data: Compilation based on World Bank Private Participation in Infrastructure database and Dealogic Projectware Estimates on the financing gap: Brookings Institution, Global Commission on the Economy and Climate, New Climate Economy and the Grantham Research Institute (2015), Driving Sustainable Development through Better Infrastructure: Key Elements of a Transformation Program, Working Paper 91, July 2015, https://www.brookings.edu/wp- content/uploads/2016/07/07-sustainable-development-infrastructure-v2.pdf. 11

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