Kaori Miyamoto and Emilio Chiofalo, OECD Development Co-operation Directorate, October 2015.
An overview of the support by multilateral and bilateral development partners to the infrastructure of developing countries.
1. Financing gaps and the amounts of distributions of ODF for infrastructure
- Investment gap is estimated at being 2-3 times larger than current investments.
- Only 6-7% of developing countries’ infrastructure financing comes from development partners.
- Actors interested in devoting the highest share of their overall ODF to infrastructure are Arab countries, certain regional development banks and Japan.
- Although Asia received the largest amount of ODF, it received proportionally less when accounted for its share of population among the developing countries (Africa, America and Europe received more).
- Sectors receiving the highest share of ODF were transport and energy.
2. Private sector participation
- Development partners are also supporting the shaping of policies that facilitate private sector participation in infrastructure development.
3. The support of private sector by Development Finance Institutions (DFIs) and International Financial Institutions (IFI) and gives information on Export Credit Agencies (ECAs)
- DFIs and IFIs offer equity, loans, guarantees and technical support to the private sector investment in infrastructure.
- Confidentiality of commercial activities, makes difficult the DFI and IFI’s additionality. Great part of their infrastructure financing is oriented towards Upper-Middle Income countries which questions additionality. Only 7% of the projects supported were in LICs, while 66% were in UMICs.
- Attributing mobilisation of private sector resources only to DFIs and IFIs is debatable, bearing in mind the number of development partners involved.
4. The support of development partners to green infrastructure (low-carbon and climate-resilient infrastructure)
- 37% of ODF to infrastructure is devoted to climate change mitigation.
5. The emerging countries and institutions assisting developing countries within a cooperation framework for the development of infrastructure
- Main emerging partners in development co-operation for infrastructure are China, India, Turkey and Arab partners.