Infrastructure brochure

Infrastructure Development

Connecting communities and enabling economic growth

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Contents The Importance of Infrastructure Development

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Our Global Experience Strategy & Policy

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Institutional Reform & Strengthening

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Enabling Environment Reform

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Infrastructure Finance

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Energy

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Roads

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Transport

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Urban Development

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Rural Infrastructure Development

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Water, Sanitation & Hygiene

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Focus on Nigeria

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Focus on Sustainability

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Infrastructure Development

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“ Adam Smith International deserves credit for its innovative approach to infrastructure. It is a great support to DFID in its policy thinking, dedication to strengthening governance and political commitment to sound policy.�

International Development Select Committee Report

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The Importance of Infrastructure Development Durable, high quality and context-appropriate infrastructure will deliver a brighter future economically and socially for developing nations, and is a key response to climate change, in both abatement and adaptation.

Adam Smith International has worked at the cutting edge of infrastructure development for over 20 years and has assisted the economic growth and governance reform programmes of many developing and transitional economies.

The effect of infrastructure investment is exponential, enabling fundamental growth through employment, empowerment, poverty reduction and improved health.

High quality, resilient infrastructure lowers the cost of goods and services, particularly benefiting women and less affluent communities.

If the private sector is to become an engine of economic growth then it must be supported by durable infrastructure which has been built, maintained and regulated with the future in mind. High quality, context-appropriate infrastructure builds the productivity of business as well as its willingness to plan, producing a transformation in the investment landscape.

Our infrastructure development programmes have been singled out for numerous awards:

Our long-running Nigeria Infrastructure Advisory Facility programme was awarded Development Project of the Year 2011 from British Expertise

NIAF was also runner up for the Association for Project Management Overseas Project of the Year in 2011

NIAF’s Programme Manager was Highly Commended as Young Consultant of the Year 2014 by British Expertise

CRIDF was shortlisted for the Association of Project Management Overseas Project of the Year in 2014

Infrastructure Development

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Our Global Experience We have worked across the world with many clients and governments on an award-winning portfolio of projects, connecting communities and enabling economic growth. Throughout this brochure, you will find examples of our work – you can see a small selection here. For further information on our wider portfolio, visit www.adamsmithinternational.com/exploreourwork.

Dominican Republic: Power Sector Reform We created an action plan and were asked by the International Monetary Fund to monitor the power sector’s progress against that plan by leading the Electricity Sector Monitoring Committee. The programme has achieved significant tangible results - a 10% increase in the payment collection rate of billed electricity since 2004, a 16% decrease in financial losses of electricity distribution companies since 2006 and a decrease in the cost of generating electricity.

Our Offices London | United Kingdom New Delhi | India Nairobi | Africa Sydney | Australia

Regions: Infrastructure Projects The Americas & Caribbean Central & Southern Africa West Africa East Africa Middle East & North Africa Europe & Former Soviet Union Central Asia South Asia & Asia Pacific

Regions: Other projects Various

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Nigeria Infrastructure Advisory Facility We manage DFID’s award-winning Nigeria Infrastructure Advisory Facility, which advises on the development of transformational infrastructure projects at state and federal level across the power, infrastructure finance, urban, road and climate change sectors.

Sierra Leone: Supporting National Water and Sanitation Policy We provide technical expertise in various government bodies and have developed and implemented a £5m WASH (Water, Sanitation & Hygiene) Facility to provide an integrated and cross-sectoral approach to water management.

Papua New Guinea: Transport Sector Support Programme

Nepal: Centre for Inclusive Growth We established the Nepal Centre for Inclusive Growth to identify new ways of tackling Nepal’s growth constraints and promoting social inclusion. We manage a series of policy projects, and currently focus on hydropower development.

We provide strategic direction to the Papua New Guinea-Australia Transport Sector Support Programme, which aims to achieve a well-maintained transport infrastructure network and ensure that there is effective agency and sector engagement, performance and accountability.

Kenya: Procurement review for TradeMark East Africa TradeMark East Africa will procure US$200 million of infrastructure projects in 2012-16 in an effort to rectify the infrastructural problems inhibiting trade in East Africa. We recommended appropriate value for money procedures to be put in place which adhere to international standards, and equally strong procurement processes.

Uganda: National Roads Authority Reform Through a combination of technical training, soft skills capacity building, and the implementation of accountable and transparent systems, we have overhauled the Ugandan National Roads Authority’s (UNRA) core functions to improve value for money throughout the life cycle of procurement. We are assisting the UNRA in reaching its target of halving the average contract completion delay.

Southern Africa: Climate Resilient Infrastructure Development Facility CRIDF assists stakeholders in the preparation of infrastructure projects, finding the finance for the infrastructure to be put in the ground and maintained, and ensuring that communities adapt to the effects of climate change.

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Strategy & Policy In partnership with our clients, we build development strategies and policies that release potential. Our strategies identify where infrastructure can be improved to further growth, efficiency, employment and a wide range of social and economic aims.

Impactful infrastructure is well planned infrastructure. Our attention to detail means that we help deliver the right projects, well budgeted and at lower risk. We understand that transformational change hinges on effective planning and a clear strategy around which we can build coalitions to support reform.

From the development of a railway network to a long-term plan to increase investment in renewable energy, our work is based on rigorous technical analysis, political awareness and economic modelling.

Our approach is known for being pragmatic and adaptable and each strategy we produce is carefully tailored to a country’s specific circumstances. Our experience in strategy formulation and delivery has given us the flexibility to adapt our plans to meet the challenges of the area we are engaged in. Rigorous, stress-tested monitoring and evaluation systems ensure that we build this experience into projects as they develop.

“ NIAF’s professional but practical approach to delivering expert support has proved extremely effective. NIAF has succeeded in achieving a direct impact on our country’s economic reform efforts.”

Arch. Nuhu Wya, Former Minister of State for Power, Government of Nigeria

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Maximising value for money in infrastructure programming Developing modern infrastructure is crucial to tackling poverty. Infrastructure projects also have a disproportionately high impact on marginalised social groups.

Infrastructure spending constitutes up to half the total resources of many international donors; The UK’s Department for International Development (DFID) spent £1 billion on infrastructure in 2009-10. Ensuring these projects best achieve value for money is vital.

Helping DFID achieve good value for money

We completed a research project for DFID on how best to measure and maximise value for money across infrastructure projects. We recommended the use of the 3Es framework, analysing value for money in terms of economy (largely covering cost control within a project), efficiency (covering the conversion of input variables to outputs through quality and approach control), and effectiveness.

Global

Poverty impact assessment guidelines for south east Africa We worked with the Mozambique Regional Gateway Programme (MRGP) and DFID to design an approach to poverty impact assessment. The MRGP prepares major transport and energy projects for implementation and needed assistance to develop a strategy for assessing the impact its projects have on poor communities.

We found that many facets of Mozambique, Malawi, Botswana, Zambia and Zimbabwe’s regional poverty were shaped by infrastructure developments.

Trunk transport infrastructure was identified as presenting risks and opportunities to the economic livelihood and wellbeing of the region’s poorest.

We developed operational guidelines for MRGP’s procurement strategy. Now, contractors on an MRGP assignment must analyse the poverty structure in the communities affected by planned projects to facilitate better poverty impact in infrastructure development throughout the region.

Ensuring better project planning to benefit the poorest communities

Mozambique, Botswana, Malawi, Zambia and Zimbabwe

Designing an infrastructure procurement strategy for TradeMark East Africa TradeMark East Africa will procure US$200 million of infrastructure projects in 2012-16 in an effort to rectify the infrastructure problems inhibiting trade in East Africa. The organisation needs appropriate value for money procedures in place which adhere to international standards, and equally strong procurement processes.

In 2012, we designed standard bid documents for the procurement and management of infrastructure suppliers. We then provided advice to the organisation on this, as well as on interacting with Country Procurement Systems in client states, and on resource allocation in order to administer these changes and minimise risks in procurement.

Enabling value for money in line with international standards and processes

East Africa East Africa Infrastructure Development

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Institutional Reform & Strengthening The ability of governments to achieve economic and social aims with limited resources is dependent on the efficiency and focus of the government itself.

Ministries, departments and agencies are the cornerstones of reform and must be professional, efficient, flexible and transparent.

Governments play a key role in providing the right infrastructure. Adam Smith International has worked with governments around the world to develop the plans and methods for achieving this, often assisting them in harnessing the expertise and financial ability of the private sector.

The priority for improving internal capacity is often within planning and regulatory institutions, where the greatest shortfalls in ability often exist. By improving this part of the delivery process, we enable private sector participation.

Adam Smith International is experienced in designing, setting up and reforming government bodies.

Equally important is the need to address technical skill deficits in project delivery. These exist from project design, planning, management, procurement, financing and operation. A skills deficit hinders the organic and sustained development of infrastructure. Institutional reform is often required to enable this increase in technical skills – for example, to create a new and professionally managed agency outside the civil service and thus be able to pay market rates for the skills required.

“ The NIAF programme is certainly the best managed and most effective programme of donor support we have experienced in Nigeria.

No other development agency comes a close second in our rankings of important partners.�

Uche Orji, CEO, Nigeria Sovereign Investment Authority

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Assessing the viability of multi-sector regulation in Malawi We examined options for combining Malawi’s infrastructure under a multisector regulator, to regularise and improve regulatory standards, establish appropriate sector competition and standardise service provision.

Our team conducted an exhaustive review of the options for the sector, analysing the competition and operational state of utility and infrastructure services, as well as the nature and effectiveness of existing regulatory bodies.

We also assessed comparable regulatory environments in other international locations, in order to consider the appropriateness of merging the various regulation functions into a single agency.

Improving regulatory standards

Malawi

Reform of utility regulation in the Caribbean Many Caribbean countries have privatised their infrastructure utility companies to attract new investment, however these companies all had some degree of monopoly, requiring stable regulation. Many islands were also too small to maintain their own regulatory bodies.

We reviewed utility regulation in 14 countries of the Caribbean Community and recommended a strategy to strengthen their telecommunications, electricity and water regulatory capability and policy.

Our team reviewed regulatory arrangements and advised on policy reforms in each of these countries. A critical product of this work was a plan for the creation of a regional regulatory entity, in which some of the smaller Caribbean countries will combine to share expertise in what would be the first multi-country, multi-sector regulatory body, making it significantly easier for them to regulate their utility sectors.

A plan for the creation of a pan-regional regulatory body

Caribbean

Establishing the Nigeria Sovereign Investment Authority NIAF has provided significant support to the establishment of the Nigeria Sovereign Investment Authority (NSIA). The objective has been to accelerate the delivery and improve the return on infrastructure. NIAF provided legal advice from the outset of the fund to establish its governance structure, the resource allocation and three ‘sub-funds’ to leverage available capital.

Once this operational framework was designed and implemented, NIAF focused on transactions; it provided majority support on a number of flagship projects, notably the vital Second Niger bridge. Through NIAF’s legal, advisory and transaction support, NSIA recovered the project from collapse, restructured the private sector consortium, and drove through cost savings of £100m. President Jonathan presided over the ground-breaking ceremony in March 2014.

Strengthening institutions for better delivery of largescale infrastructure

Nigeria

Nigeria

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Enabling Environment Reform An enabling environment is a prerequisite to successful infrastructure development. This is because developing new infrastructure often demands ‘new ways of doing business’, requiring governments to improve regulation, legislation or policy.

Adam Smith International develops healthy enabling environments across disparate sectors, geographies and circumstances. We design regulatory frameworks and bodies, and have worked with our clients to establish these legislations and institutions by assisting with recruitment and organisational planning. As well as conception, we can draft follow-up and supporting legislation, and ensure that regulations are relevant and workable.

Involving communities, populations and businesses is vital - from community road maintenance schemes, to sophisticated

“ Performance has been outstanding, particularly with regard to progress on hydropower development.”

DFID Annual Review 2012, Centre for Inclusive Growth

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public-private partnership airport projects. Private sector participation can take many forms and is powerful when engaging smaller scale businesses or communities in infrastructure delivery.

With our support, governments can involve key participants and groups in infrastructure projects, including lower income communities, women, and the small business community.

This enables infrastructure with far-reaching impact to be completed by sponsoring representation or assisting at the project design to draft an inclusive design brief.

Strengthening policy-making to unlock infrastructure constraints in Nepal We established Nepal’s Centre for Inclusive Growth as an independent organisation mandated to identify new ways of tackling Nepal’s growth constraints and promote social inclusion.

The Centre works by managing a series of policy projects that yield tangible and sustainable results by pioneering new approaches, identifying overlooked opportunities and introducing fresh thinking to the country’s development programme.

The work has focused on providing support to hydropower development.

The Centre is also improving macro-economic policymaking, strengthening governance at the apex of the bureaucracy and piloting municipal level public-private partnership investments to help Nepal move closer to middleincome status.

Pioneering new approaches to address Nepal’s growth restraints

Nepal

Private solutions for infrastructure in Rwanda We produced a Country Framework Report as a route-map for how the government of Rwanda could best develop its infrastructure needs.

The report provided a comprehensive study of Rwanda’s infrastructure in transport, energy, water and sanitation, and telecommunications. It set out a map for reform, highlighting opportunities for the private sector and donors to assist Rwanda in realising its infrastructure priorities, and the supporting policies and actions required for implementation.

We also provided follow-up support to organise a high-level conference to discuss our recommendations for the energy and water sectors, and identify investment opportunities for the private sector.

Assisting Rwanda in realising its infrastructure priorities

Rwanda

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Infrastructure Finance Finding workable solutions for private sector participation in infrastructure and public-private partnerships is our core strength.

Adam Smith International’s reputation is built on 20 years of innovative advice on infrastructure finance.

As a leader in public-private partnership provision, we assist countries in constructing a robust strategy and prospectus.

We develop the most appropriate form of private sector participation and public-private partnerships for the context.

Our financing structures consider value for money, affordability, risk allocation, competition, transparency, stakeholder engagement, political will and pragmatism.

This experience has earned us the opportunity to create federal and public-private partnership units across the developing world. Finding the appropriate model depends on project objectives, the host country environment and building trust between contracting partners.

For a successful public-private partnership approach, government institutions must be equipped with sufficient skills to design, negotiate and manage contracts. Without these, public-private partnerships can be a costly and risky source of infrastructure financing. We provide technical assistance and capacity building to level the playing field and improve the public-private partnership options available to governments.

Pragmatism

Value for Money

Risk Allocation

Affordability

Our Financial Structures

Political Will

Stakeholder Engagement

Competition

Transparency

“ The assistance provided by NIAF in the design of the PPP framework for Nigeria has been unparalleled.� r. Yemi Kale, Former Special Advisor to the Honorable Minister of D Finance, Government of Nigeria

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Accelerating the delivery of new infrastructure projects in Nigeria Nigeria has an extensive infrastructure gap. However, channelling private capital through public-private partnerships (PPPs) can help to bridge it, improving project delivery and operation.

We concentrated on easing constraints to Nigerian PPPs, such as coordinating policy across government agencies, developing a bankable project pipeline and reaching financial closure on landmark transactions to build broad investor support. We have offered project-specific support to two federal agencies, embedded advisors in the Lagos State PPP office, offered start-up and project support to the Sovereign Investment Authority and provided assistance to the Ministry of Finance on policy coordination.

Our advisors have helped the government develop $3bn of Infrastructure projects in Lagos alone

The results of our intervention have been significant and were recognised in 2010 when we won the African Investor PPP Champion of the Year award.

Nigeria

Nigeria

Financing the development of small-scale water infrastructure in southern Africa The development of small-scale water infrastructure in southern Africa is characterised by sluggishness. It is estimated that the investment shortfall in the regional water sector is £600m per year for the next 15 years. The region needs a catalytic intervention to mobilise wider investment to make inroads into the infrastructure backlog.

We are filling this need. We offer a live programme of support to stakeholders throughout southern Africa for the development, implementation, operation and maintenance of water infrastructure that benefits the region’s poorest. To do so, we broker relationships between funding partners to bring infrastructure to implementation. We also investigate innovative finance solutions – such as micro-financing and revolving credit facilities – and build these into plans to ensure that communities have access to the finance required to maintain the infrastructure long after it is put in the ground.

Catalysing infrastructure development through leveraging finance Southern African Development Community SADC

Our assistance is leveraging maximum support to catalyse a fundamental change for some of the 94 million inhabitants of the region.

Offering public-private partnership assistance for India’s roads We advised the government of Chattisgarh on establishing the foundation for successful PPP projects. We set up institutional, regulatory and legal frameworks and considered opportunities in the road sector. We created standardised bidding documents for different PPP models which we implemented in previously identified projects.

We also built capacity within local offices, enabling employees to structure, deliver and monitor PPP projects.

Enabling the development of 25,000km of national highways

India

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Energy Adam Smith International is an innovator in the design of effective energy policies.

We specialise in the provision of technical assistance across policy, legal, regulatory, institutional and organisational reform.

From electricity sector reform to policies for the provision of sustainable domestic fuel, we have established ourselves as a centre of excellence to which governments turn when answering the energy challenges they face.

We are known for our experience across the energy value chain, from major hydropower yield management to rural energy access. We have provided leadership on tariff management, privatisation approaches, project finance and stakeholder engagement.

Through all of this, we have been recognised for our pragmatic approach, bringing rapid as well as lasting access to better energy to millions of citizens.

“ NIAF’s assistance has been key in helping the Presidential Task Force on Power drive forward the power reform programme.�

His Excellency Goodluck Jonathan, President of Nigeria

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Supporting the privatisation of the Nigerian power sector Our NIAF programme provides technical, organisational, financial and legal assistance to Nigeria’s electricity sector and played an instrumental role in the recent privatisation of the country’s distribution and generation companies.

Close relationships with the Ministry of Power, Bureau of Public Enterprises, Transmission Company of Nigeria and the Nigerian Electricity Regulatory Commission have helped us target our interventions, and NIAF sits on the board of the Presidential Task Force.

NIAF support was pivotal to the privatisation of distribution and generation companies, attracting investment by independent power producers, establishing a competitive electricity market and introducing a new tariff structure which will benefit the poor and provide a reliable source of power which will act as a spur to economic diversification and growth.

Power output has risen 50% from 2008 to 2013 Nigeria

Many challenges remain, but independent ownership of assets and the consequent investment in infrastructure is now a reality: the first independent power producers are under construction, and power output has risen over 50% from less than 20,000GWh in 2008 to 30,000GWh by the end of 2013.

Nigeria

Realising Nepal’s growth potential through hydropower Nepal has three areas of growth potential – hydropower, tourism and agricultural products – but is hindered by growth constraints such as lack of expenditure on infrastructure and a prohibitively high electricity tariff.

Our non-partisan Centre for Inclusive Growth has focused on five projects supporting hydropower development. We have helped develop a project development agreement template for hydropower concession agreements and supported the negotiation of six specific hydropower ‘megaprojects’, worth $8bn, whilst protecting social issues in the negotiations.

The Centre also works on macro-economic planning and is enabling a significant increase in living standards.

Delivering practical solutions to address Nepal’s growth constraints

Nepal

Electricity sector reform in the Dominican Republic The Dominican Republic’s electricity sector faced widespread non-payment by customers (nearing 25%), and extensive theft, with 20% of power stolen.

It also suffered from frequent power outages because the distribution companies could not cover their costs.

We drafted an action plan for government, and monitored the sector’s progress against that plan for the IMF by leading the Electricity Sector Monitoring Committee.

Results included a 10% increase in payments collections, a 16% reduction in losses, a decrease in production costs and a reduction in oil-fired electricity dependence.

Enabled a 10% increase in payment collections since 2004

Dominican Republic

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Roads Roads are national arteries, providing the commercial flow of a country.

An efficient road network is an essential  method of transportation for society, moving workers to their jobs, carrying goods and helping people to reach basic services.

Adam Smith International provides comprehensive assistance to effectively plan, manage and maintain road networks.

Improving the urban and rural roads through targeted technical assistance allows developing economies to work cohesively.

The private sector can reap the benefits of an extended supply chain, while goods and services are unchained and able to find national markets at a lower cost and with greater reliability.

Additionally, better road networks contribute to a lower mortality rate and greater mobility and opportunity for all.

Managing road networks through regulatory bodies and with cohesive planning tools ensures that road development contributes to national environmental, social and economic goals.

Access to work in a wider economic area

Roads

Promote

Ability to transport goods

Reach basic services

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Economic Growth

“ Adam Smith International’s project to reform procurement procedures for the Uganda National Roads Authority will have a real impact on the effectiveness of the efficiency and management of the roads sector in Uganda.”

Ayalew Belew, Director of Procurement, Uganda National Roads Authority

Reforming the Ugandan National Roads Authority Roads are vital to growth in Uganda, which is land-locked and has few navigable waterways.

The government created the Ugandan National Roads Authority (UNRA) to procure the services of private firms, but the sector remained affected by inefficiency in the procurement process, poor contract management and project monitoring. We are assisting UNRA in halving the average contract completion delay.

Through a combination of technical training, soft skills capacity building, and the implementation of accountable and transparent systems, we have overhauled UNRA’s core functions to improve value for money throughout the lifecycle of procurement.

Halving contract completion times in roads development

Uganda

Enhancing management of the road sector in Nigeria We are implementing a Road Management Framework in Nigeria to support the sustainable funding of road maintenance. We are helping the Federal Ministry of Works, Federal Roads Maintenance Agency and the Roads Sector Development team manage problems by establishing an effective Road Asset Management System, including a Bridge Management System.

We will demonstrate the cost effectiveness of a consistent programme of funding at a local government level. We are also supporting a programme of public sector job creation schemes, which focus on maintaining rural roads by training residents to maintain their own road network. They are taught through direct engagement with state governance.

Establishing a robust and transparent road management framework

Nigeria

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Transport Our experience in transport spans sectors as diverse as shipping and urban bus networks, offering technical assistance in disciplines ranging from climate proofing to procurement.

Transport strategies are crucial to the health of developing economies, allowing the movement of workers, goods and ideas between locations.

We have worked across Africa’s transport sectors, on bus mass transit, bus rapid transit, light rail, long-distance rail and public ferries, as well as providing technical assistance in areas such as supporting the haulage industry to deliver promptly.

Policy Development

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Planning: Transport Master Plans

Our teams balance the efficient solution for transport concerns with the ethical solution for climate resilience. We also enhance existing transportation systems by emphasising scheduling and maintenance, maximising the efficiency of what is already in place.

Combined, our approaches deliver a mixture of context specific support and future consciousness to drive continual improvement in transport infrastructure.

Legislation & Legal Instruments

Private Sector Participation

Developing the transport sector in Papua New Guinea The Papua New Guinea-Australia Transport Sector Support Programme aims to achieve a well-maintained transport infrastructure network. It will contribute to a safe, reliable transport system that enables economic and social development, encompassing maritime, aviation and land transport.

The programme works to ensure that priority land transport assets are maintained, safety and security systems operate effectively and that there is effective agency and sector engagement, performance and accountability.

The programme provides policy, performance advice and support to the transport sector to develop infrastructure links for economic benefit.

Enabling an efficient and well maintained transport sector

Papua New Guinea

Papua New Guinea Supporting TradeMark East Africa to speed up trade across the region TradeMark East Africa (TMEA) promotes regional and economic integration in East Africa by working closely with national government, business and society organisations.

We provide institutional and capacity building support to TMEA and its partners across several sectors. We aim to source projects to reduce the cost of transportation and increase trade competitiveness along the key trade corridors in East Africa.

Our target by 2016 is a 30% decrease in the time a truck takes to cross borders, and a 15% decrease in time taken to move goods.

Reducing time taken to cross borders and move goods between countries

East Africa East Africa

“ Adam Smith International delivered a welldeveloped, comprehensive and high quality National Urban Transport policy for Sierra Leone.�

Ministry of Transport & Aviation, Government of Sierra Leone

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Urban Development Rapid urbanisation is a sign of rising prosperity.

Our urban development experience enables us to provide technical assistance which shapes cities to act as economic hubs and centres of excellence.

Urban development includes a number of disciplines, including the provision of climate friendly, economically vital urban transport and supporting planning systems, providing water and sanitation support and managing solid waste.

Adam Smith International’s approach to urban development is based on firstly understanding the constraints of the institutional environment and building on this to provide institutional and capacity support. This enables clients to make coordinated decisions according to master plans developed with tomorrow’s world in mind without constraint.

Our urban expertise spans some of Africa’s largest and most dynamic cities – Lagos, Abuja, Freetown and Dar Es Salaam. Our interventions are proven to improve municipal services, enhancing capacity and the institutional environment necessary to sustain improvements long-term.

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Population Shift

Rural

Urban

“ We appreciate the quality of support and professionalism in an area we consider extremely important to the future of transportation in Lagos”.

Babatunde Disu, CEO, Lagbus

Delivering a national urban transport policy for Sierra Leone Sierra Leone has struggled to adapt its infrastructure to modern needs, weakening its chance to attract international investment and causing traffic chaos in urban areas across the country.

Our Sierra Leone Urban Transport Project delivered a national urban transport policy to improve urban mobility for millions of citizens. We proposed infrastructure investments to the Ministry of Transport and Aviation. These included new projects, refurbishments, improving works already underway, addressing the sustainability of current infrastructure, and operations and maintenance to improve the efficiency and effectiveness of existing infrastructure.

Our team also delivered a mobility plan specific to Freetown: a city whose citizens rely heavily on struggling public transport services. We proposed that such services should be developed alongside efforts to restrict the use of private vehicles and improve facilities for pedestrians.

Improving urban mobility for millions of citizens

Sierra Leone

Sierra Leone Future-proofing Nigeria’s cities Poor urban infrastructure is a major obstacle to Nigeria’s growth, a problem that stems from a lack of delegated authority to individual cities, with decisions being made at a state level.

The effective city needs to act as an incubator of growth, enhancing economic outcomes by using scale to deliver better infrastructure, healthcare and education. Our vision for Nigeria’s cities sees them leading the re-balancing of Nigeria’s economy.

The Urban Development component of NIAF’s Effective Cities project increases the area of serviced land available in urban areas, as well as improving municipal service delivery in the areas of water supply, sanitation and solid waste management. It works with state governments to establish city development authorities, which act swiftly in urban planning matters. Urban Development currently provides assistance to the state governments of Kano, the Federal Capital Territory, Enugu and Kaduna.

Planning and developing bus and rail transit systems across Nigeria

Nigeria

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Rural Infrastructure Development We connect rural areas with markets to provide resilient infrastructure, spreading economic opportunity across communities.

We combine our total experience of infrastructure development to offer reform packages for rural areas, seeking to address barriers to their full participation in the economy. Barriers can be the physical infrastructure of an area – for instance, the requirement for a specific rural road maintenance programme. They can also be a result of specific climate hazards affecting rural areas, which tend to be more agrarian and sensitive to weather changes.

In addition, challenges for power, potable water access and local institutional capacity vary so greatly between locations that a locally sensitive approach to infrastructure is required. Our expertise in rural infrastructure development enables a package of solutions to address all of these issues.

Improved Roads & Rural Access

Renewable & Distributed Energy

Potable Water Access & Agriculture

Access to Markets

Access to Health & Education Services

Improved Water, Food & Energy Availability

Economic Growth & Poverty Reduction

“ It is a pleasure to have CRIDF as a partner because it ensures that poor communities’ needs are addressed.” irector General, Regional Water Administration – Central Mozambique, D Government of Mozambique

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Securing water for livelihoods in Southern Africa Climate Change in southern Africa is projected to dramatically affect water, food and energy availability. Southern water basins are likely to become water stressed, whereas northern basins are likely to become even wetter.

Our live programme of support to stakeholders in Southern Africa focuses on developing infrastructure solutions to protect the livelihoods of the most poor and vulnerable communities in the region. We help to build climate resilient principles into existing infrastructure plans. For example, in Namibia we have taken plans for community gardens schemes and added a small-scale irrigation component, which will enable households to move away from dangerous floodplains while still having guaranteed access to water for growing crops.

Developing infrastructure to improve livelihoods of the rural poor Southern African Development Community SADC

Analysis of small-scale infrastructure investment options in the Mekong Region A key component of Australia’s approach to regional development in the Mekong region is to focus on increasing regional integration to accelerate economic growth, create jobs and reduce poverty. In order to maximise the impact of the infrastructure projects it finances, we undertook a detailed study of infrastructure project financing options in the Mekong and further programming recommendations, focusing on the feasibility and impact of supporting small-scale infrastructure projects in the transport and energy sectors.

Improving the effectiveness of rural development efforts

We assessed the type of small-scale infrastructure investments which had the greatest impact on economic growth and poverty reduction and identified potential points of future engagement for Australia.

Vietnam, Cambodia and Laos PDR

On the road to rural reform in Nigeria Nigeria has the largest road network in West Africa, but of its 194,000km of roads, less than 30% are paved, hindering economic growth. Our programme trains residents of rural communities to maintain their road network using labour-based techniques. We support the Subsidy Reinvestment and Empowerment Programme (SURE-P), which funds payments of trainees, provision of hand tools and monitoring devices using biometric technology.

A labour-based road maintenance programme across Nigeria will bring better rural access, sustainable roads maintenance and improved livelihoods by improving road links. The programme also results in skills transfer through training, building the capacity of rural workers.

Helping communities to maintain their roads to enable prosperity

Nigeria

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Water, Sanitation & Hygiene In the water sector, Adam Smith International builds capacity within service providers, ensuring effective management of water resources.

We also develop government institutions to formulate policies and enforce regulations.

We have adapted international best practice in water supply management and water regulation reform in some of the most challenging environments in Africa, delivering contextspecific results that have long-lasting sustainable impact.

Our interventions address the structural and regulatory barriers to investment, managing private sector participation in water to produce solutions that maximise investment and access, without impacting on less affluent communities.

Our technical assistance enables countries to manage the integration of shared water resource management and we specialise in the management of transboundary basins.

Our Intervention

Strengthened Institutional Capacity Essential Regulatory Reform Improved Sector Coordination Better Water Resources Management Effective Private Sector Participation

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Improved Water, Sanitation & Hygiene Service Delivery

“ The embedded technical assistance provided through Adam Smith International has been instrumental in the significant progress of the WASH sector in Sierra Leone.” .E. Momodu Maligi III, Minister of Water Resources, Government H of Sierra Leone

Supporting national water & sanitation policy in Sierra Leone Following the establishment of the National Water and Sanitation Policy by the government of Sierra Leone, we helped address the urgent need for an integrated and cross-sectoral approach to water management, and to improve the financing, management and delivery of sustainable water services.

Our team provide technical assistance in key strategic points of the Ministries of Water Resources, Health and Sanitation and District Councils, along with developing and implementing a £5m WASH Facility. We combat key problems across society and work closely with the ministries to focus on many permanent and lasting solutions by way of legislative reform, building the capacity of key institutions, and coordinating responses across sectors.

Our programme of support to the main municipal water companies has increased revenues by 125% and provided lasting services to over 60% of the population.

Delivering sustainable water services

Sierra Leone

Sierra Leone

Improving water services to Southern Africans Almost 154 million people in Southern Africa still have no access to adequate drinking-water and sanitation facilities. In the face of a variable climate, existing infrastructure for community access to potable water or wastewater treatment has in many cases been rendered unfit for purpose.

We are currently working to support the water services sector in poor communities across the region. We help stakeholders design tailored infrastructure solutions that are resilient to the likely impacts of climate change, conferring water security and good quality for years to come.

Working towards water security for vulnerable communities Southern African Development Community SADC

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Focus on Nigeria: NIAF The Nigeria Infrastructure Advisory Facility II DFID’s five-year, £95m Nigeria Infrastructure Advisory Facility II (NIAF) programme provides demand-led advice and assistance to Nigerian government bodies at federal and state level as they meet national infrastructure challenge across the power, infrastructure development finance, roads, effective cities and climate change sectors.

NIAF provides independent policy, planning, economic and financial advice aimed at removing infrastructure bottlenecks to support the growth of the non-oil economy and help Nigeria accelerate its poverty reduction programme. NIAF’s award-winning management structures allow it to operate flexibly, mobilising support at key windows of opportunity, while retaining a strategic direction which ensures that infrastructure benefits the poorest in society.

In the Power Sector, NIAF’s headline achievement has been its role in the privatisation process, the most complex in West Africa. At the end of 2013, over 70% of Nigerian power was generated and over 40% distributed by privately owned companies, and NIAF provided the technical support needed to complete the privatisation process.

The NIAF Roads Sector has allowed the Federal Roads Maintenance Agency to complete a Centralised Roads Database and supervise the beginning of survey work to implement it. Additionally, a roads pavement management system embedded international best practice, a formal Bridge Management System was instituted and the Federal Ministry of Works will adopt NIAF-designed technical construction standards.

In the Capital Projects area, NIAF supports the infrastructure finance delivery mechanisms of the federal government, building institutional capacity and ensuring that funding for infrastructure projects, through public-private partnerships and other access to capital markets, achieve the best

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value for money. Thanks to our technical assistance, over $300m of capital projects were screened for cost variances in the 2014 budget, achieving significant savings. Three NIAF-supported public-private partnerships infrastructure projects additionally reached financial close.

The Effective Cities team supports cities through state governments across urban transport and development.

NIAF’s urban transport work supported the launch of formal bus rapid transport in Lagos and is supporting Lagos and Abuja’s light rail construction schemes, which will provide reliable commuter services, taking cars off the road and enabling greater labour mobility. NIAF is also supporting the first ever public transport scheme in Kano, and the existing bus mass transit scheme in Abuja. In addition, we are promoting rubbish collection schemes to reduce pollution and disease in Kaduna and Kano, provided lighting for Lagos’ largest market and are developing trailer parks which will reduce roadside parking.

Mitigating the effects of climate change is an important part of the NIAF programme. NIAF runs programmes directly tailored to Nigeria’s climate change challenges.

The NIAF clean-cook stoves programme has so far produced two pilot areas to produce fuel efficient, less pollutant and cheaper methods of heating food in rural areas. We have also agreed an action plan for the promotion of on-grid clean power generation.

“ DFID through NIAF is our best development partner. The contrast between NIAF and others is like day and night in terms of timeliness and effectiveness of support.”

Nwanze Okidegbe, Chief Economic Adviser to the President of Nigeria

We have increasingly concentrated resources in the north of Nigeria, which is at risk of conflict given its higher concentration of urban and rural poverty, poor existing infrastructure and lack of institutional capacity.

Our work to promote Northern Growth has had extensive impact. Over 7,000 GWh of electricity has been supplied through the northern power distribution companies. Kano and Kaduna have implemented solid waste management projects to remove street refuse, a major NIAF-supported solar power pilot programme is underway and over 1,000 people in Northern Nigeria have been employed under the NIAF-supported propoor labour based restoration and maintenance of rural roads programme.

“ NIAF’s professional but practical approach to delivering expert support has proved to be extremely effective. We believe that DFID’s NIAF project is rightly regarded as one donor assistance programme that has truly succeeded in delivering a direct impact on our country’s economic reform effort.”

Arch. Nuhu Wya, Former Minister of State for Power, Government of Nigeria

Nigeria has the demographics, natural resources and economic potential to become Africa’s powerhouse in the coming decades. NIAF’s support will ensure that this happens in a way which will benefit all Nigerians and prove sustainable, leaving a legacy of improved capacity and resilient infrastructure.

Nigeria

Nigeria

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Focus on Sustainability: Climate Resilient Infrastructure Development Facility Economic growth throughout Southern Africa is driving rapid demographic change and an increase in demand for water, food and energy. The problems associated with resource availability are being exacerbated by climate change, in a region already affected by a dramatically variable climate.

Adam Smith International’s Climate Resilient Infrastructure Development Facility (CRIDF), funded by the Department for International Development since 2013, recognises the link between economic development and sustainable, equitable use of Southern Africa’s transboundary water resources. The Facility therefore aims to catalyse the development of projects that increase the ability of communities, policy makers and planners to cope with climate extremes.

CRIDF targets infrastructure development in transboundary water basins. By doing so, we improve the conditions for enhanced cooperation between stakeholders in shared river basins, and strengthen the evidence base for demonstrating the national benefits of cooperation on shared waters. In this way, CRIDF aims to contribute to peaceful, climate resilient and sustainable planning and management of southern Africa’s shared waters, and generate current and future benefits for the region’s poorest.

To achieve this we work through three linked channels:

2. Infrastructure Finance In addition to providing a small amount of capital finance for our chosen projects, we mobilise infrastructure finance interventions to complement our infrastructure preparation activities. This work is focused on investigating and securing innovative finance arrangements and funding partners for the implementation of our infrastructure projects. By doing so, we can leverage maximum regional support to catalyse a fundamental regional change.

3. Technical Assistance to Stakeholders We provide extensive technical assistance to our stakeholders, ranging from long-term advice to key institutions, to a rapid advisory service to respond to ad hoc requests for support. Such technical assistance can gain us a ‘seat at the table’ from which to influence the planning and management of infrastructure in shared water basins.

We are on the road to achieving real change for some of the 94 million inhabitants of Southern Africa, including:

1. Small-scale Infrastructure Projects We are invited by stakeholders to participate in the preparation of infrastructure projects at any point in the project cycle. Our team supports the in-country procurement, subsidy and supervision systems for infrastructure that will be, once complete, owned and managed by Local Authorities, Water User Associations, or energy suppliers. We use these projects as a platform to engage further stakeholders, introducing climate resilience and transboundary concepts into national and regional policies. We then disseminate the lessons and evidence from all our projects through stakeholder networks in an effort to replicate success, and mainstream climate resilience and propoor considerations into water management practices.

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Broadening the scope of the Ruhuhu scheme in

Tanzania to allow 18,000 poor beneficiaries access to improved water security, climate adaptation, clean energy generation and new transport links; Improving the health of poor communities in Malawi

with a safe water supply by way of an integrated public private partnership; and Securing better livelihoods for flood-afflicted

communities in Namibia through development of a small-scale irrigation scheme.

CRIDF was shortlisted for the Association of Project Management Overseas Project of the Year in 2014

“ CRIDF is an important facility to support SADC member states with infrastructure development and will play a key role in fostering mutual cooperation towards the realisation of regional integration for water resources management and development in SADC.�

SADC Water Division

Southern African Development Community

SADC

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Adam Smith International is an award-winning professional services business that delivers real impact, value and lasting change through projects supporting economic growth and government reform internationally.

We specialise in the design, management and delivery of complex projects. Our wideranging experience can be grouped into two main areas: Government Reform and Economic Growth. Government Reform includes Civil Society and External Accountability; Education Development; Justice, Security and Peacebuilding; Public Administration Reform; Public Financial Management; and Revenue Reform. Economic Growth includes services in Extractive Industries Governance, Infrastructure, Climate Change and Private Sector Development.

Often working in challenging environments and conflict affected areas, we have a proven track record for achieving tangible results.

Find out more For an in-depth look at any of these projects and more of our Infrastructure Development experience, visit www.adamsmithinternational.com.

For assistance, please contact: Matt Uzzell Head of Infrastructure Development T: +44 207 091 3517 E: matt.uzzell@adamsmithinternational.com

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