16/4/2016/AfDB

The inaugural Global Infrastructure Forum 2016 convening here today brings together for the first time the leaders of the multilateral development banks (MDBs) — African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group – as well as development partners and representatives of the G20, G24, and G77, to enhance multilateral collaborative mechanisms to improve infrastructure delivery globally. The Forum is organized in close partnership with the United Nations. Following the meeting, a Chairman’s Statement will be issued, setting forth the next steps in this unprecedented collaboration.

Mandated by the Addis Ababa Action Agenda on financing for development to help bridge the infrastructure gap, which is key to achieving the Sustainable Development Goals (SDGs), the Forum aims to improve alignment and coordination among the partners, while respecting the diversity of approaches, policies, and procedures among them, to facilitate the development of sustainable, accessible, and resilient infrastructure for developing countries. The Forum will be held annually, with responsibility for hosting rotating among the MDBs.

Infrastructure plays a critical role in growth, competitiveness, job creation, and poverty alleviation. Yet increasing access to basic infrastructure services remains a critical challenge in developing countries. At least 663 million people lack access to safe drinking water. By 2025, 1.8 billion people will live in areas with absolute water scarcity. Sixty percent of the world’s population lacks internet access, while 1.2 billion people in the world still live without electricity. At least one-third of the world’s rural people are not served by an all-weather road.  Addressing the infrastructure gap requires a boost in investment including better leveraging of private investment, but also better governance, capacities, and improving efficiency to get more from existing spending on infrastructure.

MDBs have a strong track record of collaboration in the direct financing of projects and mobilizing private capital, as well as improving capacities and knowledge around infrastructure. Some examples include the Global Infrastructure Facility, the International Infrastructure Support System, the PPP Knowledge Lab, the PPP Days conference, Infrascope, and the PPP Certification program.

The Chairman’s Statement will highlight the idea that to achieve the objectives of the Forum, the MDBs and development partners resolve to work together on strengthening project preparation, promoting financing, building on shared principles and promoting compatible and efficient approaches, and improving data and information. A session to review progress will take place during the Global Infrastructure Forum 2017.

To view the full Chairman’s Statement, which will be released at the end of the meeting, please visit: https://pppknowledgelab.org/global-infrastructure-forum-2016.

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By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Commonwealth ministers are expected to meet the International Monetary Fund (IMF), the World Bank and Inter-American Development Bank to discuss issues bordering on debt and financing challenges of small states.

This is contained in a Statement from Julius Mucunguzi Acting Communications Adviser Communications and Public Affairs Commonwealth Secretariat and made available to InvestAdvocate.

According to the Statement, the group will be led by Denzil Douglas, St Kitts and Nevis Prime Minister and will be joined by Peter Philips, the Minister of Finance of Jamaica, Pierre Laporte, Minister of Finance of Seychelles, Lisiate ‘Aloveita ‘Akolo, Minister of Finance of Tonga and Faumuina Luiga, the Minister of Finance of Samoa.

According to Kamalesh Sharma, Commonwealth Secretary-General, the group’s objective is to raise awareness of the unique challenges faced by small states in accessing affordable finance, and managing and reducing their debt. “They will also propose practical ways to address their concerns,” Sharma said.

“Small States face many challenges when it comes to managing and servicing debt, and there are particular obstacles that prevent them from accessing concessionary finance,” he said.

Sharma affirmed that poor nations tend to be vulnerable to crises and natural disasters and the Commonwealth is acutely conscious of the need for practical action to address these issues, particularly by the international financial community.

“We seek renewed resolve and innovative approaches to build the economic resilience of small and vulnerable states, with attention paid to global inclusion and development,” he said.

He further affirmed that international financial institutions need to review the criteria used to determine the wellbeing of small states.

“The current yard sticks do not take into account the unique vulnerabilities of small states such as remoteness, exposure to shocks, small population size and limited options for economic diversification. All of these factors result in disproportionately large challenges for these countries in accessing financial resources,” Sharma said.

The Commonwealth Secretary-General said studies have shown that many small and vulnerable states are unable to meet their debt obligations, even to international lenders.

He noted that the situation is particularly acute in the Caribbean, where several public debt ratios are in excess of 90 percent (90%) of gross national income (GNI).

“As a result such countries are finding it difficult to meet obligations such as reducing poverty and providing basic and necessary public goods,” Sharma affirmed.

Following the meetings in Washington, the Commonwealth ministers are expected to produce a report that will be submitted to its Heads of Government Meeting in Colombo, Sri Lanka in November 2013.

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