Reaping the Full Benefits of Large Infrastructure Projects
10. September 2018
In the OECD Business and Finance Outlook 2018, the third chapter focuses on ways to help economies linked to the Belt and Road Initiative (BRI) to maximise the longer-term benefits of infrastructure projects as recipient countries and to ensure an open and transparent environment for international investment. This means ensuring a level playing field for investors from both emerging and advanced economies. Asia’s longer-term infrastructure needs will require much more investment than any one country can ultimately provide (USD 26 trillion to 2030, according to the Asian Development Bank) so efficient and cost effective solutions are essential. Host countries are likely to benefit most, with positive spill-over effects resulting for other economies when the process is based on level playing field considerations.
Five broad areas that could benefit from the implementation of, and wider adherence to, international standards for promoting a level playing field have been identified: the role of SOEs, given their growing presence in the international market; competition and the integrity of processes in procurement; mitigating corruption risk and ensuring responsible business conduct; incorporating environmental impact assessments in projects; and ensuring openness to international investment. In all areas, OECD standards provide useful guidance for both infrastructure-recipient economies and supplying economies.