Sourcebook brief. Full Sourcebook can be found at ISE

1. I N F R A S T R U C T U R E
I S E S O U R C E B O O K B R I E F

2. O B J E C T I V E S
I N F R A S T R U C T U R E S O U R C E B O O K
ISE Sourcebook Series details the principles of core state
functions and explores realistic strategies for strengthening
governance. The objective of the infrastructure sourcebook is to
provide policy makers, government and private sector leaders,
and practitioners in development institutions, universities and
organizations of learning with a synthetic overview of the issues
in the sector, a stocktaking of current challenges, and proposals
for managing the challenges of the next 25 years.

3. VA LU E & R E L E VA N C E
I N F R A S T R U C T U R E S O U R C E B O O K
Infrastructure is and will continue to be one of the core state functions in both developed and
developing countries. It plays a significant role in a number of areas
The National
Economy
Infrastructure is a
driver of national
competitiveness
and foundational
for growth in other
sectors
Globalization
Quality
infrastructure is a
key factor in driving
global economic
integration
Quality of Life
& Poverty
Access to
infrastructure has
become an indicator
for quality of life it
brings opportunities
for inclusion and
mobility.
Stability &
Security
Infrastructures
continues to be the
basis of the
consolidation of
security and
projections of power
The
Environment
The environmental
price exacted by
infrastructure make
attention to design
imperative for
sustainable progress

4. U N D E RS TA N D I N G T H E S PA C E
I N F R A S T R U C T U R E S O U R C E B O O K
H I S T O R I C A L P E R S P E C T I V E S
C O M P O N E N T S
S T O C K A N D F L O W
C H A L L E N G E S
To allow for comparisons across eras and
countries we differentiate between the following
key components of infrastructure: network
(transport and communication), utilities,
government, housing and commercial.
In understanding the historical evolution of
infrastructure across a number of case
countries, the sourcebook draws important
lessons learned and key insights on
development trajectories.
The sourcebook identifies the common
features that have made the public skeptical
about the promise of infrastructure.
Corruption in the construction industry, to take
just one feature, is perceived to be among the
highest of all industries
The distinction between stock and flow also
enables us to use a dynamic rather than static
definition of infrastructure. This allows us to see
how technological, societal and political change
brings about significant redefinition of what
constitutes critical infrastructure at any moment
in time or across decades.

5. R O L E S O F G OV E R N M E N T
I N F R A S T R U C T U R E S O U R C E B O O K
Rules & Regulations
Infrastructure Plans
Commissioning
Operation
Supply Chain
Rules and regulations, both those promulgated by the government as
laws and regulations as well as those adopted by the industry in general
and specific firms as norms, standards, and operational procedures-
which, among the leaders, often exceed the government regulatory
framework, but minimally must comply with the law.
R E G U L A T O R Y T O O L S
• National Regulatory Standards - set
standards on how to properly regulate
infrastructure. However, these are
voluntary agreements. While these
serve primarily as advisors to
governments, they cannot force
governments to regulate.
• Standard Institutions - organizations in
most countries that help set voluntary
standards for certain industries.
Governments can stay informed about
standards throughout each phase of
the design
• Private Industry Standards- although
not all governments may own or
maintain power plants or
telecommunications industries, they
may still set the national standard to
which private companies must adhere.
• Regulatory Agencies - After standards
are set, a regulatory body should
ensure inspections and enforcement of
standards are met, while compelling
the private sector to maintain
infrastructure to the given
specifications

6. I N F R A S T R U C T U R E S O U R C E B O O K
Rules & Regulations
Infrastructure Plans
Commissioning
Operation
Supply Chain
National infrastructure plans are a new trend, with more countries
developing plans every year. Because infrastructure projects are
capital intensive, this allows countries to budget for allocation over
longer periods of time for several projects, rather than supply more
money than is realistic in the short term for projects that might not
see fruition. This also allows for countries to take into consideration
population shifts and urbanization to consider the best possible use
for infrastructure.
E X A M P L E I N F R A S T R U C T U R E P L A N S
R O L E S O F G OV E R N M E N T
Brazil
Growth
Acceleration
Program
The Growth Acceleration Program oversees and approves initiatives and
public works investment. PAC, the program's first phase, launched in 2007
with $349 billion and the second PAC-2 phase for 2011-2014 granted a
$526 billion extension. The Government allocated an additional $33.4
billion dollars in 2009 as part of a stimulus package.
Canada
Infrastructure
Canada
In 2002, the Infrastructure Canada Unit was established within the
Department of Transport, Infrastructure and Communities in order to lead
government efforts on infrastructure. Building Canada administers the
$33.5 billion 7-year plan and another $5 billion for targeted infrastructure.
The government allocated an additional $30 billion dollars in 2009 as part of
a stimulus package.
China 12th Five-Year Plan
The 12th Five-Year Plan from 2011-2016 allocates $1 trillion in
infrastructure funding, primarily for high-speed rail, water supply, electricity
and highways. The Plan was developed by the Central Committee and
Ministry of Housing and Urban-Rural Development. The Government
allocated an additional $540 billion dollars in 2008 as part of a stimulus
package.

7. I N F R A S T R U C T U R E S O U R C E B O O K
Rules & Regulations
• New approaches to commissioning have appeared to move in
the direction of life cycle quality improvement and
sustainability, starting at the pre-design phase and moving
through design, construction, and use, and working across the
phases to identify opportunities to improve the process.
• There is a significant relationship across the supply chains and
between various actors. Commissioning is ongoing through the
design, construction and first period (usually one year) of use.
Commissioning is the third building block. In the current,
segmented industry, it appears to be a control mechanism to
ensure that the delivery of construction fulfills the owners' and
users' project requirements in three ways: the legal standards
(safety, security, emissions etc); fulfilling design specifications;
and meeting quality assurance standards. Within this, the job of
commissioning essentially becomes system and quality audit
before use.
Infrastructure Plans
Commissioning
Operation
Supply Chain
R O L E S O F G OV E R N M E N T

8. I N F R A S T R U C T U R E S O U R C E B O O K
Rules & Regulations
Operation, maintenance, renovation and retiring make up the fourth
building block. Despite the historically well-understood importance of
operations and maintenance, government budgetary practices have
often neglected these components and have not sufficiently
acknowledged their importance in policy, budgets or analysis.
Infrastructure Plans
Commissioning
Operation
Supply Chain
U S C A S E S T U D Y
A comprehensive study by the US Department of Commerce has shown
that the value of annual work performed in renovation of infrastructure –
which excludes housing – exceeds the volume of expenditure and classic
operation and maintenance. Retiring of infrastructure – including its
destruction and re-use – is comparatively new, but in fields such as
nuclear installation, is likely to be quite significant, particularly given the
challenges of environmental issues.
R O L E S O F G OV E R N M E N T

9. I N F R A S T R U C T U R E S O U R C E B O O K
Rules & Regulations Supply chain and clusters make up the fifth building block of the
construction industry; supply chains are the linkages between
construction and other industries. As the construction industry
empirically has one of the largest back and forth connections to
other industries, analysis of this building block provides for a focus
on creation of efficiencies – both in overall costs and in delivery of
services – and in building of coalitions of interests among a wide
range of stakeholders.
1. Strong and committed leadership is required to create an integrated supply chain.
2. All participants should have a true understanding of what partnering means.
3. Long-term relationships should be forged among the supply chain
4. Establish processes to incentivize for good performance as part of the supply chain.
5. The client should provide long term work for enhancing supply chain integration.
6. Parties should invest in training and development of supply chain organizations.
7. Involve downstream suppliers and subcontractors at the beginning of the project
8. Main contractors should support partners if any lack resources or experience
9. Payments of services provided should be made early to build trust.
10. Learning should be taken from one project to the next.
L E S S O N S I N S U P P L Y C H A I N M A N A G E M E N T
Infrastructure Plans
Commissioning
Operation
Supply Chain
R O L E S O F G OV E R N M E N T

10. D E S I G N & D E L I V E RY
I N F R A S T R U C T U R E S O U R C E B O O K
Feasibility Studies
and Financing
Procurement
Operations &
Maintenance
Construction Demolition
• Forecasting
• Conducting studies and planning
to deliver bankable projects
• Public-private partnerships
• User fees
• Municipal Bonds
• Project By-Products
• Project Finance Collaterized debt
obligations
• Special Purpose Vehicles
• International Finance Institutions
• Venture Capital financing
• Impact of Basel III
• Investment Types
• Taxes
• Contract categories
• Incentives
• Solutions
• Opportunities
• Capacity
• Funding
• Performance-Based
Financing
• Sustainability
• Infrastructure Reliability
• Benchmarking
• Productivity in Industry
and Construction

11. W I T H I N T H E S O U R C E B O O K
I N F R A S T R U C T U R E S O U R C E B O O K
Examination of organizational cultures as constraints
in sustainable design will facilitate exploration of
better ways of learning, designing and building
It will offer governmental policy makers and private
sector partners an empirical framework for
identifying their assets and constraints
Each of the building blocks of the construction
industry opens the possibility of benchmarking
across levels of government and industry
The discussion of best practices in effectiveness,
efficiency and timely delivery provide stakeholders
with options on tackling the needs of the future
Examination of drivers of environmental and social
consequences, as well as documentation of
breakthrough solutions in sustainability, clarifies how
to tackle the challenges of sustainability
S A M P L E O F
A D D I T I O N A L
C O N T E N T I N F U L L
S O U R C E B O O K
• Contemporary Policy Issues in
Infrastructure
• Impact of Demographic Changes
• Inter-sector corruption
• Roles in infrastructure governance
• Importance of regional
infrastructure
• Innovative financing tools
• Borrowing and Spending for
Investment and Consumption
• Disaster preparedness
• Sample indices
• Etc.

12. W I T H I N T H E S O U R C E B O O K
I N F R A S T R U C T U R E S O U R C E B O O K
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I N F R A S T R U C T U R E S O U R C E B O O K
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