Annex 1 of the Annex for IRI Guide:
The Worked Examples are provided to demonstrate to practitioners how the Guidelines can be applied to projects. The Worked Examples are hypothetical project business cases and include hypothetical financial assessments with key project information.
Increasingly, governments are looking for creative ways to pay for infrastructure, including through Land Value Capture (LVC) and Commercial Value Capture (CVC), as a means to go beyond the traditional “user pays’ or “government pays’ funding models. LVC has significant potential for providing alternative funding for infrastructure. The concepts surrounding, and implementation of, LVC is the subject of extensive analysis in the literature.1 CVC is far less extensively considered, and therefore will be the primary focus of the Guidelines.
Watch this space. The Guidelines on Innovative Revenues for Infrastructure (IRI) is intended to be a living document and will be reviewed at regular intervals.
Governments should consider possible innovative funding opportunities during early planning processes (at program and project level) and project preparation stage (at the Pre-Feasibility Study or Outline Business Case stage), to make sure that planning does not unnecessarily limit, or fail to identify and capture CVC opportunities.
In this section you will find more about the context of and the need for Innovative Revenues for Infrastructure (IRI), challenges faced by governments in funding infrastructure gap, the role and potential of IRI and CVC in closing the funding gap, the role of government in streamlining CVC, what are the potential CVC opportunities in infrastructure projects and core principles to consider when applying CVC in projects.
The Guidelines are intended to be used by practitioners who are looking for innovative ways to address and reduce infrastructure funding gaps (and therefore fiscal contributions/liabilities), diversify revenue sources from user fees, and/or help build a better business case for infrastructure projects (commercial value capture or CVC). Such interested parties include:
1. Planning agencies
2. Ministries of Economy and Finance
3. Central agencies responsible for managing Public Private Partnership (PPP) programs or PPP Units
In Indonesia, the World Bank has established the Indonesia Infrastructure Finance Development (IIFD) multi-donor trust fund funded by the Government of Canada’s (GOC) Department for Foreign Affairs, Trade and Development (DFATD) in the amount of US$15 million, to be implemented during 2016-2020.
CVC can be a way for governments to increase revenues to fund facility improvements, expand services and/or asset maintenance without increasing taxes or user fees. CVC revenues have, in many instances, proven to be successful in mobilizing additional funding for various infrastructure projects and help deliver better quality of public service. However, optimism bias and over-reliance on CVC revenues could also result in project delays or cancellation.
Find a full outline to modules and sections found on this online guide.
Find a full outline to modules and sections found in this online guide.