This presentation was made by Andrew McDowell, European Investment Bank, at the 4th OECD Forum on Governance of Infrastructure held in Paris, on 17 April 2019

1. Quality Infrastructure Investment
Andrew McDowell
Vice President, European Investment Bank
OECD Forum on Governance of Infrastructure
Paris, 17 April 2019

2. • How much should countries be spending?
• How much do they actually spend?
2
Infrastructure: a precondition for sustainable growth
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2010 2015 2020 2025 2030
Infrastructure investment at current trends and need
($tn)
Investment need
Investment need inc. SDGs
Current trends
• Investment need: between 2% and 8% of GDP – depending on goals and
effectiveness (WB research)
Source: G20 Global
Infrastructure Outlook

3. • Value for money
• delivers the desired social and economic impact at the lowest cost
• Extend the life of existing assets
• better maintenance and (partial) rehabilitation to expand service
capacity quickly without major costs
• debottlenecking assets that are difficult to replace e.g. bridges, airports,
metros and transmission grids
• Expand infrastructure capacity in areas of high demand
• anticipate that new assets may be in operation longer than expected
• Ensure new infrastructure is flexible
• conduct a lifecycle analysis
• plan backwards from the end of an asset’s life
• modernisation and upgrade within its expected lifetime
• integration of future digital technologies
3
Building quality into infrastructure assets

4. • Macroeconomic stability - supportive investment environment
• Regulatory certainty - adequate policies
• Good governance
• Disciplined strategic infrastructure planning at country level – identifying
country needs and priorities, including alignment with SDGs
• Building credible pipelines of investable projects
• Appropriate procurement – effective cost management to allow larger
investments
• Embedding environmental, social and governance (ESG) criteria
4
Scaling up quality infrastructure: effective conditions

5. EIB: committed high quality financing…delivering impact
245 230
280
250
230
0
50
100
150
200
250
300
2014 2015 2016 2017 2018
(€ bn)
EIB Group signatures Total investment supported
5
JOBS
5 million jobs in
small businesses
HEALTH
27.3 million people
with access to
improved health
services
TRANSPORT
290 million
additional
passengers
ENERGY
34.3 million
households
powered by EIB
projects
DIGITAL
29 million people
with new or
upgraded
connections
WATER
20 million people
benefiting from safer
drinking water

6. EIB’s methodology to identify and assess quality investment
6
• Ex-ante due diligence structured around 3 pillars
‣ The project contribution to policy objectives
‣ The quality and soundness of the project
‣ The EIB’s technical and financial contribution to
advancing the project
• Identify and assess Expected Results based on monitorable, standard
indicators with baselines, timelines and targets
• Used ex-post to :
• Monitor of results indicators against expected results
• Lessons learned – how to improve in the future

7. Collaboration between Multilateral Development Banks
7
‣ IDI (Infrastructure Data Initiative) seeks to improve data
availability, transparency and quality through harmonization
‣ Identify and consolidate existing repositories of data, by sharing
definitions and methodologies;
‣ Common portal harmonized aggregation and reporting;
‣ Leverages existing initiatives
‣ Iterative approach with multiple beneficiaries of end results
Standardised MDB input:
Loan portfolio default and loss data
Standardised MDB input:
Project quality indicators:
ESG and project preparation

8. • Infrastructure financing: tackling a wide investment gap
• Untapped potential: institutional investors, representing 100 trillion USD, but only a fraction – 0.7% - of
current volumes of infrastructure investment in emerging markets
• Contribution to the SDGs: infrastructure cuts across the SDG universe affecting education, health,
climate action, clean water and sanitation – all the way to poverty reduction and gender equality
Direct:
Indirect:
8
G20: infrastructure as an asset class
From standardization to quality
G20 PRIORITIES FOR 2018-2019
 Argentina compiled a roadmap to infrastructure as an
asset class in 2018
 Japan has adopted a focus on quality in 2019

9. Thank you
9