Week- 5 Integrated Infrastructure Planning :

Experiences &Challenges
Contents
o Delivery of infrastructure: A challenge
Opportunistic challenges
IIP Experiences
Indonesia
Philippines
India
South Africa
Complex delivery system of infrastructure:
A challenge
• Delivery system complex–sophisticated skills set
and capacity needed.
• To do with characteristics as an ‘asset class’ (ADB,
2005), numerous factors shaping supply and
demand.
• Capital intensive, long lead and payback times,
financially risky.
• Combining infrastructures at various levels and
their smooth operations is a challenge.
Challenges for being multi-dimensional
• Integration of infrastructure is multidimensional
and integrating them at each dimension is a serious
concern.
• Hence. there are challenges how to link one
dimension with other for example energy, water,
transport, social infrastructures etc.
• It becomes more challenging in case of disasters like
Tsunami, earthquakes, and extreme climate events
such as drought, flood or epidemic such as Corona.
 Multiple stakeholders
• Integration of infrastructure is a joint venture
of government, private stakeholders,
international agencies and community.
• Therefore different stake holders have
differing interests.
• To simulate the entire system demands high
investment, awareness and commitment to
the task and finally to maintain the system.
 High level of co-ordination and planning
required,
• It is essential to have a high level coordination
among and between the infrastructures.
• Since most of the less developed nations have
high level of risk to their internal and external
security. Therefore, stability and peace is
essential to achieve high level coordination.
• Political instability, low level of commitment and
low level of peoples’ trust makes it difficult to
coordinate and integrate the infrastructure.
 Challenges: Synchronization,
• Must be provided as a complete functioning system –
‘synchronization of system component completion’ is crucial.
• The word synchronization means the operation or activity of two
or more things at the same time or rate.
• It also means to cause to go on, move, operate, work, etc., at the
same rate and exactly together: They synchronized their steps and
walked on together.
• In the absence of synchronization, infrastructures function as
individual entity such as road authority, railway authority, water
works etc.
 Opportunistic challenges
• Infrastructure assets are long-lasting – where it is
delivered shapes patterns of development,
economic opportunities and even societal
changes reflect different opportunities for
different sections of the society.
• Therefore integration need not be seen as
problem but as an opportunity in wider spectrum.
• As such opportunistic situation causes and reflects
challenges in integration of infrastructures.
 Pork-barreling: A serious challenge
• Strong competition from interest groups on where to place
infrastructure – means planning is open to political,
opportunistic and pork-barreling
• It means the utilization of government funds for projects
designed to please voters or legislators and win votes.
• Pork barrel is a metaphor for the appropriation of government
spending for localized projects secured solely or primarily to
bring money to a representative's district.
• The usage originated in American English. Scholars use it as a
technical term regarding legislative control of local
appropriations.
• As such pork barreling is a serious problem and a challenge
for equatable distribution of infrastructures across community
 Challenges-Role players
• Role-players, stakeholders must be consulted and are expected
to participate in planning and delivery of infrastructures.
• Negative externalities – i.e.. environmental and social impacts -
are high, driving up costs, risks.
• A negative externality is a cost that is suffered by a third party as
a consequence of an economic transaction.
• In a transaction, the producer and consumer are the first and
second parties, and third parties include any individual,
organisation, property owner, or resource that is indirectly
affected.
 Challenges-Role players (contd.)
• In case of infrastructure; producers are the
role players, consumers are the community
who consume the services rendered by the
infrastructures.
• The third party is the organization which is
responsible for maintaining and improving the
system.
Appropriate technology, type of infrastructure – relevant, are crucial.

• Appropriate technology is a movement (and

its manifestations)
encompassing technological choices and
applications that is
• small-scale, affordable by locals,
decentralized, labor-intensive, energy-
efficient, environmentally sound, and locally
autonomous.
 Challenges: Institutional
• Complicated institutional arrangements,
mandates – poor co-ordination and integration
• 3 spheres of government, silo approaches in
national departments, inadequate planning and
integration between and within different levels
of government.
• Infrastructure not delivered as a complete
functioning system I
 Challenges over long term, policy and
capacity
• Infrastructure planning not integrated into long-
term economic development plans.
• Severe policy and regulatory misalignments.
• competition between hard and soft infrastructure
development – not integration.
• Hard infrastructure rollouts not sequenced with
other (including ‘soft’ infrastructure) system
improvements necessary to deliver.
• Systemic lack of capacity across the public sectors.
 Challenges : back log, needs and existing
stock
• Huge infrastructure backlogs and future
needs, but limited public funding
• Focus on overcoming backlogs, failure to plan
for future needs and to maintain existing stock
• Pressure for delivery leads to hasty policy and
implementation – undermine development
impact
Challenges: Inadequate PPP, civil society and
communities
• Strong private sector – but sector skills,
finance not optimally leveraged
• Crowding-in and coordination public-private
players inadequate
• Inadequate stakeholder – communities, civil
society – consultation and participation
• Opportunistic capture of infrastructure
projects, planning rife
Challenges posed by crowd in and crowd out

•  Advocates of public-private partnerships (PPPs) for

infrastructure services in will take the lead on such
PPPs and crowd in the private sector.
• Crowding out refers to the times when "increased
public sector spending replaces, or drives
down, private sector spending." This requires the
government to use borrowed money to pay for its
spending.
• Klein attributes the shallowness of PPP popularity to
a lack of clear and ...
 GIF for coordination
• Facility (GIF), an entity meant to coordinate the
efforts of MDBs, private investors, and
• Stands for "Graphics Interchange Format." GIF is
an image file format commonly used for images
on the web and sprites in software programs.
• Unlike the JPEG image format, GIFs uses lossless
compression that does not degrade the quality of
the image.
• Nearly all GIFs use the 89a format.
 Role of MDB in infrastructure integration

• A multilateral development bank (MDB) is an

international financial institution chartered by
two or more countries for the purpose of
encouraging economic development in poorer
nations.
 Inadequate balance: Infrastructure,
environment, technology and new
developers
• Often inadequate balance between
infrastructure and environmental impact
• Need for new technology, versus use of new
developers yet to demonstrate viability (Sibisi,
2011)
 Global experience of Integrated
Infrastructure Planning
• Integrated urban infrastructure and services planning
(IUISP) is a planning approach to urban infrastructure
development which has been widely practiced in
many countries.
• Notably experiences of Asian countries (namely
Indonesia, India and Philippines) provide a wide
range of lessons and perspectives.
• Apart from the experiences of Asian countries, the
case of South Africa is also found worth
considering because it has helpful perspective.
 Experience of Indonesia
• Integrated Urban Infrastructure and Service
Development Plan (UIDP) of Indonesia is a good
example of improved infrastructure planning and
coordination.
• Since the late 1980s the towns and cities of Indonesia
have been planning and implementing IUIDP. The
IUIDP h
• The IUIDP was initiated by the Ministry of Public Works
of Indonesia in collaboration with the World Bank
and was also supported by Asian Development Bank.
 Experience of Indonesia (Contd.)
• Different problems and challenges were faced in the process
of IUIDP development especially during the first experimental
periods.
• Particularly, there were substantial delays due to policy
differences and technical problems between donors, central
and provincial governments. Shortage of qualified project
managers and inconsistencies between guidelines were also
among the challenges that were faced.
• Though Indonesia has achieved a substantial improvement of
urban infrastructure through this program, the impacts registered
in making the organizations responsible for providing,
maintaining and sustaining the achievements were limited.
 2- Integrated Infrastructure Planning:
Experience from India
• Integrated Development for Small and Medium Towns
(IDSMT) of India is a program that aimed at promoting the
development of smaller towns through the funding of
strategic projects with the specific objectives of reducing the
high rates of migration to the big cities and bringing about
a balanced urban growth.
• The program consisted of land development for shelter
(such as sites and services, major transport, road and
traffic improvement and commercial and industrial
development) and slum improvement.
• The program was launched during the 1980s and carried on
up to 1998.
 Integrated Infrastructure Planning:
Experience from India (Contd.)
• The program could not help to divert migration away
from the metropolitan centers and thus could not
stimulate growth in smaller and medium towns.
• Government policies ran counter to the program.
• Industrial liberalization caused faster growth of the
metropolises thereby constraining small towns
development.
• The structural readjustment program also
aggravated poverty in small cities.
 3- Experience of Integrated Infrastructural
Planning in Philippines
• In the Philippines, Metro Manila had a Capital
Investment Folio process, which is one of the
examples of Multi-Sectoral Investment Planning
(MSIP).
• It was primarily an exercise for coordinating the
major parastatal providers under the aegis of a
politically powerful inter-agency forum, with local
governments in subordinate role.
• Formerly there was a recognized metropolitan
planning jurisdiction with capital-allocating power.
3- Experience of Integrated Infrastructural
Planning in Philippines (contd.)
• Later a local Government Infrastructure Fund program
(LGIF) was launched to devolve greater power to the
local governments.
• A matching fund concept was applied to pool
funds from private capital, banks and municipal bonds.
Through these programs successful municipal bonds
were floated to finance a low cost housing project
and to secure bank loan for multi purpose sport centers.
To qualify for LGIF grant application, integration of vital
services and utilities became a pre-requisite.
 4-Integrated Infrastructure Planning
Experience from South Africa.
• From the mid 1990s, South Africa adopted
a Municipal Infrastructure Program (MIP)with
the aim of improving the quality of life of the
poorest sections of South African communities
through ensuring access to basic services.
• It is a multi faceted development program
containing different packages such as water
supply, sewage, road, storm water drainage,
transport facilities, toilet and sport facilities.
 4-Integrated Infrastructure Planning
Experience from South Africa (Contd.)
• The Department of Constitutional
Development (DCD) has been responsible for
the integration of MIP projects into broader
multifaceted development programs.
• Local governments in South Africa have been
restructured to focus on the provision of basic
infrastructure.
• The capacities of the local government were
also strengthened to meet these goals.
 4-Integrated Infrastructure Planning
Experience from South Africa (Contd.)
• In general the program has met its mission to
deliver infrastructure to remote locations
• most in need of assistance to marginalized
urban communities. It has achieved its
• mission through the coordination of municipal
infrastructure program by leveraging MIP
• fund and mobilizing local resources.
• The collaborative process for acquiring MIP funds
is followed by a guidelines.
 Lessons Learnt
• This shows that existing capacities for managing
integration should be carefully assessed. In other
words, this means that the benefits of integrating
under the existing specific conditions have to be clear
for all stakeholders.
• That decision has to be participatory and
decentralized to enable local governments; and that
integration of resources for urban development is better
managed at the local level where local government units
are the leading actors for the overall coordination of
resources.
 Lessons Learnt (Contd.)
• That integration has drawbacks if it is mis-
guided.
• It might cause adverse effect in such a way
that it might cause resistance and opposition
from different sectors leading to inefficient
performances and discouraging them from
cooperation in future actions.
 Gauging and refining strategies
• That it is essential to launch projects in order
to test and refine strategies before applying
them at wider scale.
Such a paractice helps to gauge and refine
the strategies by lessening the negative
consequences that might occur at the first
stage thereby helping to make the projects
more manageable.
 Consolidated grant vital for integration

• That a consolidated fund/grant system is vital

for effective integration of programs through a
national urban development framework
guided by a policy for their to implementation
at the regional and local level.
 Infrastructure led development
through public investment

• That application of Infrastructure led

development through public investment
could be a much more effective tool for
guiding urban development in comparison to
the traditional approach of solely controlling
land use developments.
 Involvement of the private sector in the
development of urban infrastructure.
• In fact, this strategy is important for
strengthening the integration of
infrastructure development with land use
development.
• It is a strategy that has enabled cities to
guide their developments to the desirable
levels by supporting the involvement of the
private sector in the development of urban
infrastructure.
 Local Practice of IUISP preparation
in Ethiopia
• Though, there were some efforts of urban
infrastructure and services planning in Ethiopia,
they were however, not systematically developed.
• Evidently, almost all infrastructure and service
institutions (water, transport and drainage,
electricity and telecommunications) always tried to
integrate their plans with the existing and proposed
road networks.
• Nevertheless, due to lack of consistent follow-up, the
initiatives could not be as successful as expected.
 Effects of uncoordinated planning
• Due to uncoordinated planning and design
and weak institutional arrangements redoing
faulty designs and rebuilding utility lines have
wasted a significant amount of resources.
• Frequent cutting of city streets by various
utility companies has severely affected the
environmental quality and the efficiency of
the urban transport system.
Concerns of Utility Companies: Example from
Addis Ababa
• In Addis Ababa, when utility companies (ETC,
AAWSA,and EEPCO) needed to install new lines or to
improve the existing ones underneath the roads, they
used to apply to the Addis Ababa City Road
Authority (AACRA) for permit to cut paved roads.
• Very often permits were not granted promptly.
Besides, the permits given were not based on
adequate information and database. The concerns of
the utility company that secured such a permit were
limited only to laying its own utility lines.
 Cutting and destruction of other
infrastructures.
• As a result, such developments often took place at
the expanse of the other utility lines that were
already in place.
• In fact this has resulted in the cutting and
destruction of other infrastructure lines that were
otherwise functioning in good conditions.
• It has also resulted in delaying in the
implementation of projects thereby adversely
affecting overall city infrastructure and services
provision.