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Policy Strategies to Accelerate Economic Growth in the Infrastructure Sector of the Andean Region Countries

The objective of this technical cooperation is to boost the growth of the Andean countries through the intensive and sustainable expansion of the infrastructure sector. The TC will study the limitations and potential of this sector of the economy to help accelerate the growth of the economies of each country, with emphasis on proposing public policies and private incentives that allow the expansion of the sector. Investment in infrastructure has two important effects on growth. The first is the generation of demand. The second is the positive impact on the competitiveness of the rest of the economic sectors. The TC will identify infrastructure projects with high returns and feasible solutions to overcome the obstacles that impede their development. The specific objectives are: 1) Develop an infrastructure investment strategy that is aligned with sustainability principles and that generates the greatest economic and social impact in each country of the Andean region, through the use of quantitative and qualitative tools for prioritization of projects; 2) Examine the impact of these projects on economic growth, welfare and private investment; 3) Identify and propose practical solutions to the main restrictions that currently impede the viability of these projects. In particular, specific proposals will be presented to overcome: (i) fiscal constraints that limit the ability of governments to implement a multisectoral infrastructure agenda, (ii) obstacles to the development of financing mechanisms and the participation of the private sector in infrastructure , including the study of guarantee funds to stimulate the investment of private capital in infrastructure; and (iii) institutional weaknesses related to national investment systems that limit the efficiency of infrastructure. All this will make it possible to provide policy recommendations that can be assimilated by the governments of the Andean region and that improve the Bank's position in the dialogue on the acceleration of economic growth through the development of the infrastructure sector.

Project Detail

Country

Regional

Project Number

RG-T3253

Approval Date

July 6, 2018

Project Status

Closed

Project Type

Technical Cooperation

Sector

TRANSPORT

Subsector

URBAN TRANSPORT INFRASTRUCTURE

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental and Social Impact Category (ESIC)

Category C: Likely to cause minimal or no negative environmental and associated social impacts

Total Cost

USD 1,250,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 1,250,000.00

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