Performance of Australian Aid 2015–16 May 2017
Infrastructure, trade facilitation and international competitiveness
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- Private investment in wind energy bringing electricity to Sindh Province in Pakistan
Infrastructure, trade facilitation and international competitivenessIn 2015-16, Australia invested $538 million or 13 per cent of ODA in infrastructure, trade facilitation and international competitiveness. Australian investments addressing infrastructure gaps and facilitating trade are essential elements of the aid program’s focus on sustainable economic growth and poverty reduction, and support the development of the private sector in the Indo-Pacific region. New strategies, released in 2015, guide Australia’s aid for trade investments, investments in economic infrastructure, and engagement with the private sector. Applying the priorities set out in these strategies ensures new investments align with Australian aid policy objectives and broader Australian interests, are well-planned, innovative, engage with the most effective partners – including to leverage other financing flows for the region, manage risks, and address cross-cutting issues such as gender equality and governance. Australia’s work is strongly aligned with the SDGs including Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9) and Sustainable Cities and Communities (SDG11). Infrastructure enables the movement of people and goods and provides access to local and global markets, as well as health, education, water, energy and communications services. Without adequate infrastructure, countries are unable to fulfil their economic potential and the benefits of growth do not reach poorer and more remote areas. Encouraging open markets, helping to facilitate trade and increasing the productivity of key sectors are also important ways in which Australia is helping countries to increase job opportunities, particularly for women, and boost economic growth. Figure 26 shows the areas of Australia’s infrastructure expenditure in 2015-16. Figure 26: Infrastructure, trade facilitation and international competitiveness areas of expenditure, 2015-16 
By addressing key constraints to infrastructure financing and delivery across the region, Australia is helping bridge the estimated US$8 trillion gap in infrastructure funding needed by 2020. Building on major new initiatives announced in 2014-15, Australia’s aid program is working with partners to develop investment pipelines to address the serious infrastructure shortfalls constraining trade and growth. Australia is contributing AUD$25 million to the Global Infrastructure Facility which has 33 separate infrastructure projects under development globally, with over a third of these in East Asia and the Pacific. In 2015-16, Australia announced its contribution of $10 million to a complementary initiative with the Asian Development Bank, the Asia-Pacific Project Preparation Facility, which has helped expand the portfolio of projects in the Pacific under active consideration. These facilities are expanding the number of ‘bankable’ projects in the region to draw in much needed international private finance that will address the infrastructure gap. This project preparation work is underpinned by Australia’s continued long-term support for the Public Private Infrastructure Advisory Facility (PPIAF) ($2 million in 2015-16), a global facility led by the World Bank targeting government reforms to increase private sector financing and delivery of infrastructure in developing countries. In 2015-16, Australia successfully secured the establishment of a PPIAF office in Singapore to help expand PPIAF’s services in the Asia-Pacific region. As the Chair of the Private Infrastructure Development Group (PIDG) in 2016, Australia has helped expand its footprint in the Asian region. The PIDG uses donor funds to leverage private financing into priority infrastructure projects in developing countries and emerging economies. Continued support for the subsidiary InfraCo Asia Development has seen a steady pipeline of investments develop across the region, with ongoing project development of hydro-electricity projects in Nepal, Vietnam and the Philippines, a waste to energy project in Sri Lanka and a series of wind farms in Pakistan (see box below). In 2015-16, Australia made its first contribution to a second PIDG subsidiary company, GuarantCo, which provides local currency guarantees to shore up domestic debt and equity financing for infrastructure projects. Australia’s investment in GuarantCo is enabling its establishment of an office in Singapore, co-located with InfraCo Asia Development, to better service the Asian region. Australia’s total contribution to the PIDG in 2015-16 was $10 million. Figure 27: Infrastructure, trade facilitation and international competitiveness investment performance, 2015-16 
Directory: about-us -> publications -> Documents Documents -> Table of Contents 1 Introduction and Background 7 Documents -> Annual Review for 2014 Summary Report Documents -> East Asia regional development cooperation report 2009 October 2010 Documents -> East Asia Regional Organisations and Programs Annual Program Performance Report 2011 Documents -> Development Cooperation Report 2010: Afghanistan May 2012 Documents -> Review of the dfat ending Violence Against Women (evaw) Program in Afghanistan Documents -> Independent progress report Documents -> Annual program performance report: South Asia 2008–09 September 2009 Documents -> Kuala Lumpur, 22 November 2015 Download 2.96 Mb. Share with your friends:
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