Tuesday, June 25, 2024

Overview of the Infrastructure Governance Framework

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Ensuring accessible, cost-effective, and sustainable infrastructure services is essential in eradicating poverty and building shared prosperity. Yet, numerous governments encounter difficulties in delivering these services to their citizens, primarily due to governance issues rather than financial constraints. On average, nations squander approximately one-third of their infrastructure expenditures due to inefficiencies, with low-income countries experiencing losses exceeding 50 percent, as reported by the International Monetary Fund (IMF).

To address these governance challenges surrounding infrastructure development and enhance the efficiency of infrastructure investments, the World Bank has introduced the Infrastructure Governance Assessment Framework, known as InfraGov. This framework aims to assist countries in optimizing their infrastructure investments and achieving better outcomes.

The framework provides an overview of the governance that leads to quality infrastructure and offers resources and methodologies for conducting such an assessment. The aim is to provide actionable recommendations that result in concrete policy changes. Three new InfraGov Assessments have been completed for Kyrgyz Republic, Tajikistan, and Uzbekistan.

Broadly speaking, the InfraGov framework assesses three major areas of infrastructure governance:

  • The first area relates to the lifecycle of an infrastructure project, focusing on selection, design, procurement, and implementation of investment projects. 
  • The second identifies key cross-cutting issues for good infrastructure, including integrity, transparency, and consideration of social, environmental, and climate-change risks and opportunities.
  • The third area concerns the ways in which infrastructure services are provided to consumers. It encompasses market structure and competition, the regulatory framework for addressing natural monopoly activities, and corporate governance and governance arrangements around State Owned Enterprises.

The relevance of these broad areas and dimensions may vary depending on the specific governance arrangements in place for different sectors in different countries. They are only meant to offer an analytical framework that helps uncover governance issues affecting the provision of infrastructure assets and services. They are not intended to prescribe specific systems or institutions; rather they highlight behaviors likely to deliver good infrastructure outcomes, acknowledging that there are many different ways to stimulate these behaviors. The aim is to provide problem-driven actionable recommendations that result in concrete policy changes.

Last Updated: Dec 07, 2023

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