WB to increase investments in infrastructure, agriculture
Saturday, 25 April 2009
FE Report
The World Bank (WB) will increase infrastructure investments to $45 billion over the next three years to provide the foundation for rapid recovery from the global economic crisis, WB Group President Robert B. Zoellick announced Thursday at the WB and IMF Spring Meetings.
In the wake of last year's food crisis, the Bank Group is also boosting support for agriculture from $4 billion in 2008 to $12 billion over the next two years to help ensure vital food security.
"Investments in infrastructure can provide the platform for job creation, sustainable economic growth and overcoming poverty, and help jump start a recovery from the crisis," said Zoellick.
"The Latin American and Asian crisis showed how countries can suffer from a decline in infrastructure, leaving a weaker foundation for long-term economic growth that hits the poorest the hardest. Infrastructure is also crucial to supporting agriculture. Without good infrastructure a lot of agricultural production can go to waste," he added.
A new WB Infrastructure Recovery and Assets Platform (INFRA) will provide $45 billion in infrastructure lending over the next 3 years, an increase of $15 billion over the three years preceding the crisis.
In addition, IFC, the World Bank Group's member focused on private sector investments, set-up an Infrastructure Crisis Facility (ICF), which was developed to bridge the gap in available financing for viable, privately-funded or public private partnership infrastructure projects in emerging markets that are facing financial distress as a result of the financial crisis.
IFC will contribute up to $300 million in equity with other sources expected to bring in at least $2 billion more to co-finance infrastructure projects.
This is likely to help mobilise additional funding worth three times that, covering around $10 billion worth of infrastructure projects.
In the wake of last year's food crisis, the Bank Group will also increase support to agriculture to boost productivity and production over the next two years to $12 billion, up from $4 billion in 2008.
Increases over this two-year period include a near doubling in agricultural support to Africa from $450 million to $800 million, and to Latin America from $250 million to $400 million, while supporting more than $1 billion in new projects in agriculture and rural development in South Asia.
The World Bank (WB) will increase infrastructure investments to $45 billion over the next three years to provide the foundation for rapid recovery from the global economic crisis, WB Group President Robert B. Zoellick announced Thursday at the WB and IMF Spring Meetings.
In the wake of last year's food crisis, the Bank Group is also boosting support for agriculture from $4 billion in 2008 to $12 billion over the next two years to help ensure vital food security.
"Investments in infrastructure can provide the platform for job creation, sustainable economic growth and overcoming poverty, and help jump start a recovery from the crisis," said Zoellick.
"The Latin American and Asian crisis showed how countries can suffer from a decline in infrastructure, leaving a weaker foundation for long-term economic growth that hits the poorest the hardest. Infrastructure is also crucial to supporting agriculture. Without good infrastructure a lot of agricultural production can go to waste," he added.
A new WB Infrastructure Recovery and Assets Platform (INFRA) will provide $45 billion in infrastructure lending over the next 3 years, an increase of $15 billion over the three years preceding the crisis.
In addition, IFC, the World Bank Group's member focused on private sector investments, set-up an Infrastructure Crisis Facility (ICF), which was developed to bridge the gap in available financing for viable, privately-funded or public private partnership infrastructure projects in emerging markets that are facing financial distress as a result of the financial crisis.
IFC will contribute up to $300 million in equity with other sources expected to bring in at least $2 billion more to co-finance infrastructure projects.
This is likely to help mobilise additional funding worth three times that, covering around $10 billion worth of infrastructure projects.
In the wake of last year's food crisis, the Bank Group will also increase support to agriculture to boost productivity and production over the next two years to $12 billion, up from $4 billion in 2008.
Increases over this two-year period include a near doubling in agricultural support to Africa from $450 million to $800 million, and to Latin America from $250 million to $400 million, while supporting more than $1 billion in new projects in agriculture and rural development in South Asia.