DEMAND FOR INFRASTRUCTURE: Why is increased infrastructure funding critical?
Quality infrastructure is a key requirement for ensuring that developing countries meet their UN Millennium Development Goals. Millions of people currently lack basic water, sewage, energy, transportation, and communication services that directly impact their life expectancy, ability to find employment, and overall quality of life. INFRADEV enables developing country government officials and development agencies to work directly with private sector providers of capital and services needed to develop and finance infrastructure finance.
Developing countries need US$ 650 billion a year to finance infrastructure projects for critical services such as energy, water, and transport, according to the World Bank, even before financing the improvements to meet the living standards of the Millennium Development Goals, but countries cannot meet this financing need alone.
Urgent development needs for poverty reduction, job creation, and improved living standards cannot be achieved without significant and sustained investment by the private sector. The Monterrey Consensus recognized that public/private initiatives are needed to “…enhance the ease of access, accuracy, timeliness and coverage of information on countries and financial markets…” and to “…create business-enabling environments.” Notwithstanding the importance of Official Development Assistance, the huge potential for benefits of private sector flows is well-documented: From 2000 to 2006, net private sector flows to developing countries totaled US $2.4 trillion compared to US $551 billion from ODA.”