A Flexible Financing Model for Large-Scale Infrastructure Investments

Improving air transport is crucial to Papua New Guinea’s economic and social development, and the key to improving connectivity in the country.

The Civil Aviation Development Investment Program, a project supported by a multitranche financing facility from the Asian Development Bank (ADB), is establishing a sustainable civil aviation network for Papua New Guinea by improving airport facilities and services, and building the capacity of civil aviation agencies.

The project offers lessons for large-scale development projects that require long-term investments.

OECD Principles for Good International Engagement in Fragile States

A durable exit from poverty and insecurity for the world’s most fragile states will need to be driven by their own leadership and people. International actors can affect outcomes in fragile states in both positive and negative ways. International engagement will not by itself put an end to state fragility, but the adoption of the following shared Principles can help maximise the positive impact of engagement and minimise unintentional harm.

PPPs in Fragile and Conflict-Affected States (FCS)

Private sector investment is essential to support the budgets of governments to deliver basic infrastructure services. Especially in the developing world, PPPs can enhance the scope, quality and timely delivery of basic public services. However, a number of factors make it difficult for the private sector to get involved in the delivery of infrastructure services in developing countries.

Models for Private Sector Engagement in FCS

The difficult political, economic and regulatory environment in FCS creates challenges for PPPs, where the long pay-back phase for the private sector investors and lenders leaves them exposed to public sector risk over an extended period. This means that classic PPP models are not well suited to such situations and either