Infrastructure is essential for cross-border connectivity. Given the growing importance of resilient cross-border connections for everything from critical supply chains to virtual connectivity, energy transmission and more, governments will need to be prepared to deliver cross-border infrastructure.

Yet, infrastructure projects that traverse countries present unique challenges in planning, management, finance and execution. These challenges have been extensively investigated and widely shared. In this reference guide, the GI Hub collates the body of knowledge and analyses project examples to answer the question: how can these challenges be addressed to implement successful cross-border infrastructure?

"This reference guide is landmark and rich in content, insights and ideas. The amount of best practice and number of project cases are invaluable." – Russia PPP Center

The guide draws key learnings and practices from a comprehensive literature review and the input of international infrastructure experts with in-depth experience in cross-border projects and infrastructure connectivity. The result is a new resource, informed by dozens of projects at every lifecycle stage from concept to planning, delivery and management of cross-border infrastructure.

1. Adopting policy, planning and prioritisation frameworks for efficient regional cooperation

Use of specific cross-border frameworks is essential to align the project with national and regional infrastructure plans and ensure appropriate institutional capacity to deliver broader development strategies.

Key learnings point toward these global practices:

• Higher-level frameworks should be implemented within the development strategies of the countries or regions involved, to identify priority projects and consider the bilateral and multilateral trade agreement implications of these projects. This will optimise the coordination between countries.
• Cross-border projects require a shared vision that addresses mutual goals. Project ‘champions’ can help advocate for the project using this vision, and can be effective avenues for developing the project.
• Cross-border projects require dedicated resources and coordinated planning between countries. Institutional capacity and coordination needs to be maintained throughout the project lifecycle. International bodies, such as multilateral development banks (MDBs) and international organisations (IOs), can help supplement and develop the institutional capacity of countries to deliver cross-border projects.

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2. Creating legal, regulatory and stakeholder alignment to enable cross-border delivery

An enabling environment is key to success and, for cross-border projects, it particularly includes intergovernmental project agreements and harmonisation of rules and regulations to align interests.

Key learnings point toward these global practices:

• Where possible, intergovernmental agreements should be used to help align governments on project objectives and ensure the project is not adversely affected by changes in national policies or legal and regulatory frameworks.
• All relevant stakeholders, including relevant affected industries and communities, should be involved to establish the ‘win-win perspective’ and accomplish durable benefits. Multi-level governance mechanisms can be effective in facilitating involvement of stakeholders.
• It is essential to quantifiably assess the costs and benefits – including environmental, social and governance considerations – for each party to the project. Given the complex nature of cross-border projects and low visibility on the counterparts, scenario analysis incorporating more extreme cases is essential to understand risks and draft multi-lateral agreements.
• Binational or multinational frameworks can be put in place to harmonise rules and regulations (including tariffs, customs and border crossings procedures) as well as technical operability and safety standards, to enable smooth planning, delivery and operation.

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“The guide aligns with several elements of ICE’s work on planning and prioritising infrastructure investment and mega joint ventures for delivering infrastructure projects. ICE commends GI Hub for developing this guide.” – Mark Hansford, Director of Engineering Knowledge, Institution of Civil Engineers

3. Optimising the financial structure to properly allocate risks and benefits

Financial structures can be particularly difficult on cross-border projects, given these projects' unique complexities and risks. The optimal financial structure is one that is viable in the project environment and properly allocates risks and benefits.

Key learnings point toward these global practices:

• Given the unique risks cross-border projects face in their financing, governments should be prepared to assume more risk than they would on comparable national projects.
• Financial structures for national projects can also be used on cross-border projects, with consideration of risks specific to cross-border projects.

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4. Establishing effective governance structures

The governance approach should reflect the project specificities, but will likely include a governance body that sets the agenda and collaboration format for development and beyond, and ensures capacity and competency across the lifecycle.

Key learnings point toward these global practices:

• The project collaboration format needs to correspond to the stakeholder community.
• Governance decisions should be made in agreement between all stakeholders, irrespective of size, power and interests.
• The governance structure and contractual model chosen should be appropriate to the context of the project and evolving requirements through the project lifecycle. At government level, the multilateral governance body should have equal representation of governments involved to ensure that the decisions made are mutually agreeable.
• Competent staff and resources should be assigned by all countries involved, assisted by external help where required and augmented by capacity building and training.

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5. Managing efficiently throughout the project lifecycle

Governance and monitoring mechanisms need to build in flexibility to adapt to the greater likelihood on cross-border projects of significantly changing circumstances and risks. Another key requirement for cross border projects is establishing management mechanisms to maintain social licence.

Key learnings point toward these global practices:

• The governance structure of a cross-border project should, where possible, be flexible enough to adapt to changes in government mandates or institutional reforms.
• For the purposes of performance review, compliance and dispute resolution across the life of the project, an effective mechanism should be implemented that is compatible with the legal and regulatory frameworks of the entities and countries involved.
• Social licence should be achieved and maintained by practising effective public consultation throughout the project lifecycle, and providing opportunities for local communities through technical and institutional capacity-building measures.

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“The reference guide highlights important considerations for cross-border infrastructure. Its case study on the Coral Sea Cable System provides a useful summary of the objectives, opportunities and challenges in delivering cross-border telecommunications infrastructure.” – Pacific Infrastructure Branch, Australian Department of Foreign Affairs and Trade