Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed
Infrastructure is the engine for economic growth. The international donor community has spent about 70-100 billion U.S. dollars on infrastructure development in developing countries every year. However, it is arguable whether these financial resour...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/07/9646019/procurement-efficiency-infrastructure-development-financial-needs-reassessed http://hdl.handle.net/10986/6854 |
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okr-10986-6854 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AFFILIATED ORGANIZATIONS ASYMMETRIC INFORMATION AUCTION AUCTION DESIGN AUCTION MARKETS AUCTIONS BENEFICIARIES BID BID PRICE BIDDERS BIDDING BIDS BOND UNDERWRITERS BUSINESS DEVELOPMENT BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES COMMODITY COMPETITIVE BIDDING COMPETITIVENESS CONCESSION CONTRACT DESIGN DATA COVERAGE DEBT DEBT RELIEF DEBT REPAYMENTS DEVELOPING COUNTRIES DIGITAL ASSISTANTS DISBURSEMENT DUMMY VARIABLE DUMMY VARIABLES EAST EUROPE ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INFRASTRUCTURE ECONOMIES OF SCALE ELASTICITY ELECTRICITY ELECTRICITY GENERATION ELECTRICITY GENERATORS ELECTRICITY INFRASTRUCTURE ELECTRICITY SECTOR ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT EXTERNAL BORROWINGS EXTERNAL DEBT EXTERNALITIES FINANCIAL RESOURCES FOREIGN COMPANIES FOREIGN FIRMS GENERATION GENERATORS GOVERNMENT CONTRACT GOVERNMENT CONTRACTS GOVERNMENT EXPENDITURE HEALTH EDUCATION HIGHWAY HIGHWAY CONSTRUCTION HOLDING HOST COUNTRY HUMAN CAPITAL IMPLEMENTATION PLAN INFORMAL PAYMENT INFRASTRUCTURE CAPACITY INFRASTRUCTURE CONTRACT INFRASTRUCTURE COST INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE DEVELOPMENT PROJECTS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURES INSTALLATION INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVESTING INVESTMENT CLIMATE INVESTMENT COSTS INVESTMENT NEEDS LANES LENGTH OF ROAD LENGTH OF ROADS LEVEL OF COMPETITION LOCAL BUSINESS LOCAL MARKETS MANUFACTURING MIDDLE EAST MUNICIPAL BOND NATURAL RESOURCES NETWORKS NORTH AFRICA POLITICAL ECONOMY POLITICAL STABILITY POWER POWER SECTOR PRICE AUCTION PRICE COMPETITION PRIVATE FINANCING PRIVATE INFORMATION PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PROCUREMENT PROCUREMENT PROCESS PROCUREMENTS PUBLIC ADMINISTRATION PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC PROCUREMENT PUBLIC ROAD PUBLIC SERVICES PUBLIC WORKS RELIABILITY RESERVE RESULT RESULTS ROAD ROAD COSTS ROAD PROJECTS ROAD SECTOR ROADS SANITATION SANITATION SECTOR SERVICE CONTRACTS SOCIAL SERVICES STANDARD CONTRACT STOCKS SUB-SAHARAN AFRICA TELECOM TELECOMMUNICATIONS TENDERING TRANSACTION TRANSACTION COSTS TRANSMISSION TRANSMISSION LINES TRANSPARENCY TRANSPORT TRUE TUNNEL USES WATER CONSUMPTION WATER DISTRIBUTION WATER INFRASTRUCTURE WATER SERVICE WATER SUPPLY INFRASTRUCTURE WATER SUPPLY SECTOR WEB |
| spellingShingle |
AFFILIATED ORGANIZATIONS ASYMMETRIC INFORMATION AUCTION AUCTION DESIGN AUCTION MARKETS AUCTIONS BENEFICIARIES BID BID PRICE BIDDERS BIDDING BIDS BOND UNDERWRITERS BUSINESS DEVELOPMENT BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES COMMODITY COMPETITIVE BIDDING COMPETITIVENESS CONCESSION CONTRACT DESIGN DATA COVERAGE DEBT DEBT RELIEF DEBT REPAYMENTS DEVELOPING COUNTRIES DIGITAL ASSISTANTS DISBURSEMENT DUMMY VARIABLE DUMMY VARIABLES EAST EUROPE ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INFRASTRUCTURE ECONOMIES OF SCALE ELASTICITY ELECTRICITY ELECTRICITY GENERATION ELECTRICITY GENERATORS ELECTRICITY INFRASTRUCTURE ELECTRICITY SECTOR ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT EXTERNAL BORROWINGS EXTERNAL DEBT EXTERNALITIES FINANCIAL RESOURCES FOREIGN COMPANIES FOREIGN FIRMS GENERATION GENERATORS GOVERNMENT CONTRACT GOVERNMENT CONTRACTS GOVERNMENT EXPENDITURE HEALTH EDUCATION HIGHWAY HIGHWAY CONSTRUCTION HOLDING HOST COUNTRY HUMAN CAPITAL IMPLEMENTATION PLAN INFORMAL PAYMENT INFRASTRUCTURE CAPACITY INFRASTRUCTURE CONTRACT INFRASTRUCTURE COST INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE DEVELOPMENT PROJECTS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURES INSTALLATION INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVESTING INVESTMENT CLIMATE INVESTMENT COSTS INVESTMENT NEEDS LANES LENGTH OF ROAD LENGTH OF ROADS LEVEL OF COMPETITION LOCAL BUSINESS LOCAL MARKETS MANUFACTURING MIDDLE EAST MUNICIPAL BOND NATURAL RESOURCES NETWORKS NORTH AFRICA POLITICAL ECONOMY POLITICAL STABILITY POWER POWER SECTOR PRICE AUCTION PRICE COMPETITION PRIVATE FINANCING PRIVATE INFORMATION PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PROCUREMENT PROCUREMENT PROCESS PROCUREMENTS PUBLIC ADMINISTRATION PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC PROCUREMENT PUBLIC ROAD PUBLIC SERVICES PUBLIC WORKS RELIABILITY RESERVE RESULT RESULTS ROAD ROAD COSTS ROAD PROJECTS ROAD SECTOR ROADS SANITATION SANITATION SECTOR SERVICE CONTRACTS SOCIAL SERVICES STANDARD CONTRACT STOCKS SUB-SAHARAN AFRICA TELECOM TELECOMMUNICATIONS TENDERING TRANSACTION TRANSACTION COSTS TRANSMISSION TRANSMISSION LINES TRANSPARENCY TRANSPORT TRUE TUNNEL USES WATER CONSUMPTION WATER DISTRIBUTION WATER INFRASTRUCTURE WATER SERVICE WATER SUPPLY INFRASTRUCTURE WATER SUPPLY SECTOR WEB Estache, Antonio Iimi, Atsushi Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed |
| relation |
Policy Research Working Paper No. 4662 |
| description |
Infrastructure is the engine for
economic growth. The international donor community has spent
about 70-100 billion U.S. dollars on infrastructure
development in developing countries every year. However, it
is arguable whether these financial resources are used
efficiently, particularly whether the current infrastructure
procurement prices are appropriate. Without doubt a key is
competition to curb public procurement costs. This paper
analyzes procurement data from multi and bilateral official
development projects in three infrastructure sectors: roads,
electricity, and water and sanitation. The findings show
that the competition effect is underutilized. To take full
advantage of competition, at least seven bidders are needed
in the road and water sectors, while three may be enough in
the power sector. The paper also shows that not only
competition, but also auction design, especially lot
division, is crucial for reducing unit costs of
infrastructure. Based on the estimated efficient unit costs,
the annual financial needs are estimated at approximately
360 billion U.S. dollars. By promoting competition, the
developing world might be able to save at most 8.2 percent
of total infrastructure development costs. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Estache, Antonio Iimi, Atsushi |
| author_facet |
Estache, Antonio Iimi, Atsushi |
| author_sort |
Estache, Antonio |
| title |
Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed |
| title_short |
Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed |
| title_full |
Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed |
| title_fullStr |
Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed |
| title_full_unstemmed |
Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed |
| title_sort |
procurement efficiency for infrastructure development and financial needs reassessed |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/07/9646019/procurement-efficiency-infrastructure-development-financial-needs-reassessed http://hdl.handle.net/10986/6854 |
| _version_ |
1764400982702161920 |
| spelling |
okr-10986-68542021-04-23T14:02:32Z Procurement Efficiency for Infrastructure Development and Financial Needs Reassessed Estache, Antonio Iimi, Atsushi AFFILIATED ORGANIZATIONS ASYMMETRIC INFORMATION AUCTION AUCTION DESIGN AUCTION MARKETS AUCTIONS BENEFICIARIES BID BID PRICE BIDDERS BIDDING BIDS BOND UNDERWRITERS BUSINESS DEVELOPMENT BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES COMMODITY COMPETITIVE BIDDING COMPETITIVENESS CONCESSION CONTRACT DESIGN DATA COVERAGE DEBT DEBT RELIEF DEBT REPAYMENTS DEVELOPING COUNTRIES DIGITAL ASSISTANTS DISBURSEMENT DUMMY VARIABLE DUMMY VARIABLES EAST EUROPE ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INFRASTRUCTURE ECONOMIES OF SCALE ELASTICITY ELECTRICITY ELECTRICITY GENERATION ELECTRICITY GENERATORS ELECTRICITY INFRASTRUCTURE ELECTRICITY SECTOR ENTERPRISE SURVEY ENTERPRISE SURVEYS EQUIPMENT EXTERNAL BORROWINGS EXTERNAL DEBT EXTERNALITIES FINANCIAL RESOURCES FOREIGN COMPANIES FOREIGN FIRMS GENERATION GENERATORS GOVERNMENT CONTRACT GOVERNMENT CONTRACTS GOVERNMENT EXPENDITURE HEALTH EDUCATION HIGHWAY HIGHWAY CONSTRUCTION HOLDING HOST COUNTRY HUMAN CAPITAL IMPLEMENTATION PLAN INFORMAL PAYMENT INFRASTRUCTURE CAPACITY INFRASTRUCTURE CONTRACT INFRASTRUCTURE COST INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE DEVELOPMENT PROJECTS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INFRASTRUCTURES INSTALLATION INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVESTING INVESTMENT CLIMATE INVESTMENT COSTS INVESTMENT NEEDS LANES LENGTH OF ROAD LENGTH OF ROADS LEVEL OF COMPETITION LOCAL BUSINESS LOCAL MARKETS MANUFACTURING MIDDLE EAST MUNICIPAL BOND NATURAL RESOURCES NETWORKS NORTH AFRICA POLITICAL ECONOMY POLITICAL STABILITY POWER POWER SECTOR PRICE AUCTION PRICE COMPETITION PRIVATE FINANCING PRIVATE INFORMATION PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PROCUREMENT PROCUREMENT PROCESS PROCUREMENTS PUBLIC ADMINISTRATION PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC PROCUREMENT PUBLIC ROAD PUBLIC SERVICES PUBLIC WORKS RELIABILITY RESERVE RESULT RESULTS ROAD ROAD COSTS ROAD PROJECTS ROAD SECTOR ROADS SANITATION SANITATION SECTOR SERVICE CONTRACTS SOCIAL SERVICES STANDARD CONTRACT STOCKS SUB-SAHARAN AFRICA TELECOM TELECOMMUNICATIONS TENDERING TRANSACTION TRANSACTION COSTS TRANSMISSION TRANSMISSION LINES TRANSPARENCY TRANSPORT TRUE TUNNEL USES WATER CONSUMPTION WATER DISTRIBUTION WATER INFRASTRUCTURE WATER SERVICE WATER SUPPLY INFRASTRUCTURE WATER SUPPLY SECTOR WEB Infrastructure is the engine for economic growth. The international donor community has spent about 70-100 billion U.S. dollars on infrastructure development in developing countries every year. However, it is arguable whether these financial resources are used efficiently, particularly whether the current infrastructure procurement prices are appropriate. Without doubt a key is competition to curb public procurement costs. This paper analyzes procurement data from multi and bilateral official development projects in three infrastructure sectors: roads, electricity, and water and sanitation. The findings show that the competition effect is underutilized. To take full advantage of competition, at least seven bidders are needed in the road and water sectors, while three may be enough in the power sector. The paper also shows that not only competition, but also auction design, especially lot division, is crucial for reducing unit costs of infrastructure. Based on the estimated efficient unit costs, the annual financial needs are estimated at approximately 360 billion U.S. dollars. By promoting competition, the developing world might be able to save at most 8.2 percent of total infrastructure development costs. 2012-06-01T15:19:36Z 2012-06-01T15:19:36Z 2008-07 http://documents.worldbank.org/curated/en/2008/07/9646019/procurement-efficiency-infrastructure-development-financial-needs-reassessed http://hdl.handle.net/10986/6854 English Policy Research Working Paper No. 4662 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |