6 KEY DRIVERS OF SUCCESSFUL PLANNING AND DELIVERY OF INFRASTRUCTURE PROJECTS
Infrastructure, delivered right, promotes economic growth and lifts communities out of poverty. But often, infrastructure projects fail to deliver their full potential because they are stymied by weak governance or regulatory structures, lost in bureaucratic density, or poorly planned. The infrastructure challenge has been discussed at length, but with very little clarity around the solution. The GIH InfraCompass Report defines the factors that contribute to quality infrastructure and increase private sector participation across the full infrastructure lifecycle.
The report identifies the key drivers of successful planning and delivery, and allows jurisdictions to focus on the most important drivers affecting their infrastructure market.
The nature of infrastructure means that capital commitments are high, ongoing operation and maintenance is expensive and investment decisions can be heavily politicised. Infrastructure markets are complex in nature – they involve the coordination of long term funding and planning, government, community and private markets.
At the same time, low levels of consistent and comparable data across countries make it difficult for decision-makers to fine tune their policies towards better outcomes and learn from best practice among their peers.
The report breaks down this complexity and identifies the most important drivers of quality infrastructure planning and delivery:
1. Robust governance,
Robust governance leadership and capable institutions that support the rule of law, transparency and consultation, and effective and independent decision-making structures for infrastructure investment.
2. Regulatory Framework
Consistent and predictable regulatory frameworks that are transparent, and welcoming of investment and competition.
3. Permits, approvals and land acquisition processes
Permits, approvals and land acquisition processes that are timely, predictable and navigable, and which minimise red tape to appropriate and justifiable levels.
Planning, not just of projects, but transparent setting of strategic social economic environment goals and integrated sectoral and system plans, enabling projects to be measured against clear objectives
5. Procurement Practices
Procurement practices that are transparent, enable efficient risk allocation and innovation, deliver value-for-money, enhance competition and provide certainty to all parties.
6Delivery and operation
Delivery and operation of infrastructure assets that continue to provide economic benefits after construction is complete.
All of these drivers contribute to the best possible environment for infrastructure markets.