A practical guidance tool informed by more than 40 examples worldwide
The reference guide contains key learnings from over 40 examples, including detailed case studies of seven infrastructure projects crossing national borders. The learnings span five areas: policy and planning, legal and regulatory considerations, stakeholder engagement, finance and risk allocation, and governance and management.
The reference guide contains key learnings from over 40 examples, including detailed case studies of seven infrastructure projects crossing national borders. The learnings span five areas: policy and planning, legal and regulatory considerations, stakeholder engagement, finance and risk allocation, and governance and management.
This guide presents global practices for cross-border infrastructure projects. In its scope and contents, it aims to be a practical compendium of information about how to effectively and efficiently implement cross-border infrastructure.
Full Report: Connectivity Across Borders reference guide and case studies
The USD 508.62 million CLSG Interconnector Project is a landmark cross-border project involving the construction of a transmission line of over 1,300km, with the aim to interconnect the CLSG countries’ energy systems into the West Africa Power Pool (WAPP) regional energy network.
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Over the last decade, much has been written about globalisation and how we’re more connected than ever before. In the infrastructure world, we think of connectivity as the “linkages of communities, economies and nations through transport, communications, energy, and water networks across a number of countries” .
When we as consumers decide to invest our money—whether through shares, bonds, or other instruments—we look at whether our investment will deliver a solid financial return. It makes sense then that the same risk-return principle is applied to investments in infrastructure.
'What is bankability?'
Infrastructure can often be used as a pawn in the political chess game, not only at a federal level between political parties, but at a foreign policy level too. It’s crucial that a cross-border infrastructure project has political support and cooperation from all parties involved, and that it’s being supported not for political gain, but to further regional development. A lack of strong political leadership can be detrimental to a cross-border project, and weak capacity can be a deterrent to investors.
As outlined earlier in this blog series, private investors are looking for reliable returns to justify the risks that they are taking. Financing and procurement of cross-border projects will often be more complex than national projects due to the scale of the project and compounded risks, and the financial returns may be more uncertain than for national projects.
Risks can be hard to define, manage and mitigate. In infrastructure projects that cross regional or national borders and involve multiple parties from both the public and private sector, these risks may be amplified.
Investors need certainty of the division of responsibilities between the various parties involved in the project, as well as a clear commitment of payment from the parties, before becoming involved in the project themselves. This requires countries to have reached a clear and durable commitment to their respective responsibilities.
