UK: Department for International Development
Strategy
DFID recognises that a sustainable infrastructure asset base is fundamental to economic growth and development and access to basic services. In DFID’s new White Paper – Eliminating World Poverty: making governance work for the poor, we commit to increasing investment in infrastructure by:
- strengthening partner governments’ capacity to prepare, finance, implement, and maintain projects;
- working with international partners to ensure at least US$10bn is provided annually for infrastructure investment in Africa by 2010 through the Infrastructure Consortium for Africa;
- addressing the constraints to effective use of private finance in infrastructure and leveraging in additional private sector investment.
Focus
DFID’s ‘Making Connections: Infrastructure for Poverty Reduction’ (PDF) sets out our approach in support of infrastructure development, covering a range of issues such as: infrastructure within national poverty reduction strategies; strengthened accountability for delivery; capacity-building; new models for developing joint ventures with public, private and not for profit sectors; and progressive subsidies targeted on sustainable delivery of services to the poor. DFID supports the application of OECD DAC’s Guiding principles for Using Infrastructure to Reduce Poverty.
Instruments
In line with general UK aid policy, most resource transfer are through national government systems, as general and sector budgetary support, as this strengthens government financial systems and enables a longer term focus. DFID has also played a key role in establishing a suite of multi-donor initiatives to support higher levels of private investment in infrastructure.
Major Achievements
DFID’s £68.6 million contribution (2003-2006) already has leveraged £0.7bn private investment in infrastructure projects: a 1:10 ratio. Encouraged by the success and demand for the programme, we plan to give another £40m over the next three years. The CDC Group has mobilised about £360m for infrastructure since 2003.