Africa Strategic Infrastructure Initiative : a principled approach to infrastructure project preparation facilities

A lack of well-prepared projects is a major obstacle to infrastructure development in emerging and developing countries, and hence to their general economic development. In Africa, for example, the infrastructure shortfall involves the sacrifice of about 2% of GDP growth per annum. Even a modest increase to the pipeline of well-prepared projects would impact beneficially on local economies, improving the welfare of communities and boosting the investment opportunities available to the market. Unfortunately, existing IPPFs, with their budget constraints and operational issues, often lack the ability to deliver these benefits. The hope is that this report will help to increase that ability. If IPPF creators adopt the principles of success outlined here and optimize the strategic, operational and financial aspects of each IPPF's design, then IPPFs have a more sustainable and promising future. The five principles of success for IPPFs can be summed up as: clear objectives and a focused strategy; a self sustainable financing model; excellence in portfolio management; cost-efficient and value-adding advisory services; and stringent governance and accountability. These principles should underlie and inform the design of each IPPF in all its aspects, strategic, operational and financial. The design will vary from IPPF to IPPF, according to such factors as region, sector and targeted sources of funding. IPPFs should aim to increase private-sector financing in project preparation, but also to leverage private-sector expertise to improve project preparation. When these private-sector resources are combined with public-sector support, the chances of successful project preparation are greatly enhanced. That in turn enhances the prospects for full-scale sustainable infrastructure development, and all the consequences of that for economic growth and social progress around the world