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China Railways Corporation (CRC) is considering new ways to attract capital to support the strategic development of the railway sector. Currently, government is the predominant equity financier, with debt being supplied by domestic bank credits and limited amounts borrowed from International Financial Institutions such as the World Bank and Asian Development Bank. Considering its high level of accumulated debt and liabilities (RMB 3.7 trillion on an asset base of 5.7 trillion), CRC wishes to explore equity investment mechanisms, to increase cash flow from its core and non-core activities, and to use different financing channels as a way to leverage the value of its assets and introduce market-based business models to the sector. CRC is seeking to attract investment from both the private sector and from public sources such as local governments and state owned enterprises. It refers to these sources of capital as ‘social capital.’ This report examines how companies in China and railways in seven other countries, China, France, India, Japan, Poland, Russia, United Kingdom, United States, have attracted capital and made capital budgeting decisions to support their strategic development.

The 2014-2015 Romania Regional Development 2 Program is the continuation of the World Bank’s technical assistance to the Ministry of Regional Development and Public Administration (MRDPA). Building on the previous engagement, the current work addresses a fundamental question: given Romania’s persistent development challenges, how can the country do more with less when it comes to the public infrastructure it needs? The key is to enhance coordination and harmonization of different funding sources, particularly infrastructure programs financed from the state budget and from EU structural funds. The National Local Development Program (PNDL), managed by the MRDPA, is reviewed in depth, though the conclusions typically hold for all state-budget-funded programs. This synthesis report summarizes the main findings and recommendations from eight final reports and 24 knowledge sharing workshops organized in all eight regions in Romania in 2015. Several ‘bonus’ outputs were also produced, going beyond the terms of this technical assistance (three investment guides, an applicant guide, and an operational manual). This synthesis report – along with all the outputs it draws from – is meant as a practical tool for policymakers at the national, regional, and local level. It also seeks to inform a broader audience of private and nongovernmental stakeholders.

As part of a long-term partnership between the World Bank and Brazil, the Federal Government of Brazil sought the World Bank’s assistance to review road safety management capacity in Brazil, building both on past experiences in the country and international best practices. This National Road Safety Management Capacity Review, therefore, was prepared by the World Bank, with the support of the Global Road Safety Facility (GRSF). The primary objective of the review is to evaluate the multi-sectoral capacity of road safety management in Brazil, identifying possible road safety challenges and presenting recommendations to address these challenges. The methodology of the review, in accordance with the guidelines of the World Bank Global Road Safety Facility, focused on examinations of key functional aspects of road safety, including institutions, legislation, financing, information, and capacities at all levels of government and among non-government actors. The review was prepared mainly based on interviews of key road safety stakeholders at the federal, state, and municipal levels, members of parliament, NGOs, and the private sector, in addition to direct inspection of roads and on-road behaviors, and the analysis of published research and reports on road safety. In addition, information and understanding gained from previous reviews of the states of São Paulo, Rio Grande do Sul, and Bahia were also incorporated.

In the context of Romania’s push toward sustainable and inclusive development, the government has asked the World Bank to support the harmonization of public investments financed by the European Union and the state budget. The current report describes the national program for local development (PNDL’s) framework and project cycle and provides an overview of the program’s project portfolio in 2014. It also draws a number of preliminary observations and presents some potential policy measures, based on a review of 289 technical-economic documentations (in most cases feasibility studies) for new investments proposed for PNDL financing in 2014. The aim is to understand gaps and opportunities in the PNDL’s programming and implementation, and also to help develop the MRDPA’s capacity for assessing received proposals. This report seeks to contribute to the overall objective of improving the design and implementation of state-budget-funded investment programs under the Ministry of Regional Development and Public Administration (MRDPA) - primarily the PNDL. Chapter one gives introduction; chapter two presents PNDL background and portfolio assessment; chapter three presents main challenges related to the quality of projects submitted for PNDL financing; and chapter four presents preliminary observations and policy measures recommendations.

This study was conceived on the basis of a request by Ukraine’s Ministry of Agricultural Policies and Food (MoAPF). In 2013, the MoAPF explored the World Bank’s interest for investing in grain hoppers, following a deficit of hoppers and concerns about related difficulties for grain transport. In response, the World Bank secured resources from the Multi Donor Trust Fund for Trade and Development (TF016693) to carry out a review of grain logistics in Ukraine in order to better understand the challenges facing the sector. The objectives of this report are to assess the functioning of the grain logistics system, identify bottlenecks and put forward practical recommendations for investments and reform. Research points to five key drivers of current high logistics costs: (i) lack of regulatory clarity and sub-optimal management of public assets that create barriers to private investments; (ii) underutilization of river transport, (iii) underinvestment in rail transport; (iv) inefficiencies in storage management, and (v) excessive use of road transport. However, there are two important limitations of the report that should be taken into account. First, the ongoing crisis remains a source of uncertainty. It has so far had limited impact on grain production and logistics, yet access to finance has become more difficult and other impacts might arise in the future. Second, there are two areas that the report does not address: customs and ports. Both are important elements of logistics costs and deserve a comprehensive analysis in the future.

Romania faces today the critical need to enhance the coordination of public investment programs and projects in order to ‘do more with less,’ maximizing development impact given limited financial resources available. In this context, ‘value for money’ is the key guiding principle of public investments, making this final report is both critically important and timely. Romania’s preparations for the 2014-2020 EU programming period are in full swing, with multiple operational programs recently approved. In parallel, the Government is working on revamping instruments financed entirely from the state budget. The core focus is on the National Local Development Program (PNDL), the main state-budget-funded investment program for local infrastructure development, though findings and recommendations may be extrapolated to other state-budget-funded instruments (e.g., the Environment Fund) and, indeed, as decentralization and regionalization may evolve in the future, subnational governments may also apply the lessons of this work. The main goal of this work is to recommend and facilitate the adoption of prioritization and selection criteria that enhance coordination at the level of infrastructure programs and the projects they finance.

This report provides a diagnostic and a set of recommendations for the coordination of infrastructure investments in three main sectors in Romania: roads; water and wastewater; and social infrastructure (education, health, culture, and sports). The proposals formulated are targeted primarily at the main client of this work, the Ministry of Regional Development and Public Administration (MRDPA) and specifically at the Directorate General for Regional Development and Infrastructure (DG RDI), which manages the most important state-budget-funded program for local infrastructure investments – the National Local Development Program (PNDL). Other key stakeholders include the Center of Government (CoG), the Ministry of Public Finances, the Ministry of European Funds, other central authorities in charge of EU and/or state-funded investment programs, Regional Development Agencies, and county and local councils. While customized for the PNDL, the recommendations that follow can be replicated across all state-budget-funded investment programs. This report presents multiple instruments for promoting coordination: dedicated platforms, harmonization of investment programs (design, financing criteria, producers), and knowledge sharing of good practices at the local level.

This issue includes the following headings: mass rapid transit: a tool for urban expansion; financing: beyond sovereign guarantees; and low-income housing: lessons from Latin America.

This case study summarizes the findings of desk reviews and a field visit carried out in January 2011 as part of IEG's evaluation of the 2007 Governance and Anticorruption (GAC) strategy. The case study sought to evaluate the relevance and effectiveness of Bank support for GAC efforts over the FY2004-10 period, to assess the contributions of 2007 strategy implementation, and to identify early outcomes and lessons. This Background Paper is based on findings of the mission that visited Liberia in January 2011. The team is particularly grateful for informative meetings with officials from the Government of Liberia, Bank staff, and members of civil society. The evaluation aims to help enhance the Bank's approach to governance and anticorruption and to improve its effectiveness in helping countries develop capable and accountable states that create opportunities for the poor. Pursuant to this objective, the evaluation assessed the relevance of the 2007 GAC strategy and implementation plan, as well as the efficiency and effectiveness of implementation efforts in making Bank engagement with countries and other development partners more responsive to GAC concerns. It also sought to identify early lessons about what works and what does not in helping to promote good governance and reduce corruption. The Liberia case study is based on an extensive desk review as well as a field visit to Monrovia from January 17-22, 2011. It evaluates the relevance and effectiveness of Bank support for governance and anticorruption efforts since the launch of the Bank's GAC strategy in 2007. It elaborates on a desk review of the GAC responsiveness of the Bank's Liberia program and reviews the following GAC entry points: core public sector reform (public financial management and decentralization); demand for good governance (including social accountability issues); GAC in the road sector; and the investment climate. The case study also examines the extent to which the Bank's GAC Strategy has made a difference in staff attitudes toward addressing GAC issues in their operational work. The mission interviewed government, Bank, donor, and nongovernmental organization (NGO) staff based in Washington and in Monrovia.

Between 2000 and 2005 infrastructure made a modest net contribution of less than one percentage point to the improved per capita growth performance of the Central African Republic (CAR), despite high expenses in the road sector. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by about 3.5 percentage points. Assuming that the inefficiencies are fully captured, comparing spending needs against existing spending and potential efficiency gains leaves an annual funding gap of $183 million per year. By far the largest gap exists in transport. The CAR has the potential to close this gap by raising additional public funding for infrastructure from increased fiscal receipts of various kinds. Furthermore, the CAR has not captured as much private finance for infrastructure (measured as a percentage of Gross Domestic Product, or GDP) as many of its neighbors. This scope for improvement, coupled with the prospect of an economic rebound and prudent policies, could lift the country from it fragile state back to and beyond the prosperity standards it once enjoyed.

Infrastructure has contributed significantly to the growth of West African economies during the past decade. In Sierra Leone, infrastructure added only around 0.51 percentage points to the per capita growth rate over 2003-07. Similarly to other countries in the region and the rest of the continent, the boost to historic growth came predominately from the ICT (Information and Telecommunications Technology) revolution while power-sector deficiencies and poor roads held back growth. After nine years of peace, economic activity is flourishing at every level in Sierra Leone. Political stability, high government accountability, good governance standards, and streamlined tax reform helped Sierra Leone to become a bright success story, turning the country into the easiest and quickest place to start business in West Africa. Sierra Leone's image in the eyes of investors is strengthened as the country ranked as one of the top five countries in Africa for investor protection. Looking ahead, the country faces a number of critical infrastructure challenges. Perhaps the most daunting of these challenges lies in the power sector, the poor state of which retards development of other sectors. Access to power is very low, at around 1 to 5 percent in urban areas, and is nonexistent in the countryside. The country's installed power-generation capacity is around 13 megawatts per million people, which is lower than what other low-income and fragile states have installed. The entire existing power infrastructure is concentrated in the western part of the country, and even with the functioning of the Bumbuna power plant, only half the suppressed demand for Freetown, let alone that for the rest of the country, is being met. Regardless of recent reduction in tariffs, Sierra Leoneans still pay some of the highest tariffs in Africa. In 2010, Sierra Leoneans paid three times as much for power as did residents of African countries that relied on hydropower. Making investments in more cost-effective power generation options is therefore an important strategic objective for Sierra Leone, without which further electrification will simply be unaffordable for the wider population.

This project can be considered to be an initial process leading to the ultimate objective of identifying and assigning costs associated with the impacts of vehicle-generated dust so that the benefits can be quantified, if these impacts are ameliorated through actions such as the provision of a sealed road surface. The report outlines the background to the project, the results of the review process, describes the need for a comprehensive approach and identifies and provides some provisional estimates the possible impacts of traffic generated dust on road safety, health, agriculture and the environment. The objectives of the project, the achievements made, the problems encountered and the findings to date are described. The report outlines the overall approach that has been undertaken to achieve the stated aims of the project in relation to the available data. The outcomes from discussions with prospective developing country partners are reported together with the results of correspondence and discussions with other professionals. Recommendations and conclusions are made on the work undertaken to date. An outline methodology and terms of reference are provided for a follow-up study.

The World Bank financed the Gujarat State Highway Project (GSHP) during 2001-07. The project development objective was to enhance the capacity of the Government of Gujarat (GOG) for effective and efficient planning and management of road infrastructure, while concurrently maximizing existing road infrastructure asset productivity through priority investments and increased maintenance funding. The project not only achieved its objective and targets successfully, but also was implemented with a significant cost reduction (about 23 percent). The GSHP resulted in a reduction in the backlog of major maintenance and an improved network to meet rapidly growing transport demand in the state. The project had the unique distinction of no contract disputes, a rarity among the highway development projects in India. The project also set best practices in developing and managing a very comprehensive asset management system, state of the art quality assurance framework and a very comprehensive training and capacity building program. The annual road sector allocation has grown from USD 30 million in 1995-1996 to an impressive USD 610 million in 2010-11, currently the second largest among all the Indian states. This study attempts to identify the key elements of the Gujarat road sector reforms and explores whether and, if so, how such reforms can be replicated across other Indian states and possibly even in other countries in the region.