Global Agenda Accelerating Infrastructure Delivery

The report argues that the gap between infrastructure needs and delivery is primarily caused by a failure to implement the 'user pays' principle and poor project preparation. It highlights the success of the European Bank for Reconstruction and Development (EBRD) in using Public Service Contracts (PSCs) and Project Support Agreements (PSAs) to improve the creditworthiness of water and urban transport projects. Additionally, it examines the role of project development facilities from the Asian Development Bank (ADB) and International Finance Corporation (IFC) in creating bankable projects. Finally, it details land value capture mechanisms used in cities like São Paulo, Copenhagen, Hong Kong, London, and Washington DC to recoup public investment costs from increased real estate values.

• Successful infrastructure projects share three common characteristics: a strong underlying business case generating economic and financial returns, a robust financing and contractual structure ensuring bankability and legal enforceability, and sustainable funding sources derived from user charges or stable public sector support.
• The EBRD has reduced the project cycle for municipal infrastructure from nearly 50 months to less than 36 months by utilizing a two-pronged strategy: a Public Service Contract (PSC) and a Project Support Agreement (PSA) or Municipal Support Agreement (MSA).
• In the Romanian water sector, the EBRD's approach led to significant revenue growth, with an estimated increase from $300 million in 1994 to $1.4 billion by 2011 in real terms, enabling the sector to potentially make $3 billion in additional self-financed investments.
• The Asian Development Bank's Cities Development Initiative for Asia (CDIA) helps medium-sized cities in the Asia-Pacific region bridge the gap between development plans and implementation; as of October 2013, it had initiated 83 project financing structures across 55 cities in 14 countries.
• The IFC InfraVentures fund, with a $150 million allocation, provides risk capital and professional co-development to move private sector-led infrastructure projects to financial closure, having committed $54.1 million to 25 projects since its creation.
• Land value capture allows the public sector to recoup costs by allocating increases in land values resulting from infrastructure back to the public sector, with evidence showing that a 10% increase in distance from a station typically results in a 1% drop in property value.
• Specific land value capture examples include Brazil's CEPAC bonds, which raised approximately $3.8 billion for urban redevelopment in São Paulo, Rio de Janeiro, and Curitiba by selling additional building rights.
• London's CrossRail project utilizes a special 2% increase in business property tax levied since 2011, projected to generate £4.1 billion toward a total cost of £16 billion.
• In the USA, the Washington DC metro's Silver Line extension uses special assessment districts to generate funding, including up to $400 million from a tax of 22 cents per $100 of assessed value on commercial and industrial properties for Phase I.

APA

World Economic Forum (2014). Global Agenda Accelerating Infrastructure Delivery. http://www3.weforum.org/docs/WEF_AcceleratingInfrastructureDelivery_2014.pdf

Chicago

World Economic Forum. Global Agenda Accelerating Infrastructure Delivery. 2014. http://www3.weforum.org/docs/WEF_AcceleratingInfrastructureDelivery_2014.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Global Agenda Accelerating Infrastructure Delivery |date=April 2014 |url=http://www3.weforum.org/docs/WEF_AcceleratingInfrastructureDelivery_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2014global, author = {{World Economic Forum}}, title = {{Global Agenda Accelerating Infrastructure Delivery}}, institution = {World Economic Forum}, year = {2014}, month = apr, url = {http://www3.weforum.org/docs/WEF_AcceleratingInfrastructureDelivery_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }