2023 ANNUAL QUALITY INFRASTRUCTURE REPORT INVESTMENT PARTNERSHIP JapanGov The Government of Japan About the QII Partnership The World Bank and the government of Japan established the Quality Infrastructure Investment (QII) Partnership to scale up attention to the QII Principles endorsed by the G20. Adhering to these principles maxi- mizes the economic, social, environmental, and development impact of infrastructure projects. The QII Partnership accomplishes these goals through grants that support World Bank-funded infrastructure projects in developing countries and by raising awareness of the QII Principles through research, analyses, and knowledge dissemination. Follow us on LinkedIn at linkedin.com/company/qii-partnership Learn more at worldbank.org/qii 2023 ANNUAL QUALITY INFRASTRUCTURE REPORT INVESTMENT PARTNERSHIP ACRONYMS & ABBREVIATIONS DRM Disaster Risk Management EAP East Asia and Pacific Region ECA Europe and Central Asia Region EMDE Emerging Market and Developing Economy G20 The Group of 20 (a group of the world’s major economies) GFDRR Global Facility for Disaster Reduction and Recovery GIF Global Infrastructure Facility GRID Green, Resilient, Inclusive Development IPG Infrastructure Finance, PPPs & Guarantees Global Practice JICA Japan International Cooperation Agency JIT Just-In-Time LCC Life-Cycle Costing M&E Monitoring and Evaluation MDB Multilateral Development Bank MENA Middle East and North Africa Region PGII Partnership for Global Infrastructure and Investment PPIAF Public-Private Infrastructure Advisory Facility PPP Public-Private Partnership QII Quality Infrastructure Investment SAR South Asia Region SDGs Sustainable Development Goals SSA Sub-Saharan Africa Region TDLC Tokyo Development Learning Center All dollar amounts in this report are in U.S. dollars unless otherwise indicated. ii    Quality Infrastructure Investment Partnership CONTENTS Foreword from the Global Director ........................ 2 Perspective from the Ministry of Finance, Japan ......................................... 4 A Message from the Program Manager ............... 6 Overview ............................................................................. 9 FY17–FY23 Portfolio ...................................................... 41 Review of FY23 ................................................................ 51 Annexes ............................................................................... 69 Annual Report 2023      1 Foreword from the GLOBAL DIRECTOR The past year has been a turning point in the mainstreaming of Quality Infrastructure Investment (QII) Principles on a global scale. The advocacy from Japan, through its G7 Presidency and leadership of the Partnership for Global Infrastructure and Investment (PGII), has elevated the status of the QII Principles to the highest levels of global discourse. This advancement was echoed under the Indonesian G20 Presidency, which saw the adoption of the Compendium of QII Indicators and an associated guidance note, positioning the QII Principles for a long-term role in global infrastructure development. The QII Partnership has been instrumental in raising awareness of what these principles mean in practice and in achieving tangible results. By the end of FY 2023, the QII Partnership approved 229 grants worth $64.1 million, influencing over $50 billion in World Bank operations. 2    Quality Infrastructure Investment Partnership Knowledge dissemination and capacity building $2.4 trillion needed annually by initiatives have been key components of our developing countries between 2023 approach. Collaboration with the Global and 2030 to meet the Sustainable Facility for Disaster Reduction and Recovery Development Goals (SDGs). (GFDRR), the World Bank Tokyo Disaster Risk Management (DRM) Hub, the Tokyo We stand at a pivotal moment to further the Development Learning Center (TDLC), the reach and influence of the QII Principles. As we Global Infrastructure Facility (GIF), and the venture forward, we aim to meet the escalating Cybersecurity Trust Fund has significantly demand for QII support and establish the QII bolstered our efforts. It was an honor for me Partnership as a global center of excellence. to participate in the first Technical Deep Dive We are dedicated to promoting QII both within on Quality Urban Infrastructure at the TDLC. World Bank operations and on the global stage. I was struck by the enthusiasm of the partici- pants in integrating all aspects of quality into This report provides a comprehensive overview infrastructure development projects in cities of our progress so far, our goals for the future, around the world. and the impact of our partnerships. We are committed to building a resilient, inclusive, The World Bank’s Evolution Roadmap and sustainable future for all. underscores the strategic relevance of QII. The roadmap prompts us to question how we can leverage the World Bank’s capacity to address global challenges such as climate change, resilience, and fiscal management— issues that lie at the heart of the QII Principles. Imad N. Fakhoury is the Global Director Moreover, facilitating private finance is recog- of the World Bank’s Infrastructure Finance, nized as an urgent priority, given the staggering PPPs & Guarantees (IPG) Global Practice Annual Report 2023      3 Perspective from THE MINISTRY OF FINANCE, JAPAN In addressing the immense demand for global infrastructure and achieving sustainable growth and inclusive development, Quality Infrastructure Investment, which aims at both the “quality” and “quantity” aspects of infrastructure, is essential. QII Principles serve as a driving force to advance this concept. Through the QII Partnership, we are committed to collaborating with the World Bank to promote the implementation and dissem- ination of the QII Principles into infrastructure projects and contribute to eco-friendly, inclusive, and sustainable infrastructure development in recipient countries. Infrastructure assets such as water supply, roads, and power plants are indispensable for self-reliant development in developing countries. 4    Quality Infrastructure Investment Partnership Such infrastructure supports the lives and in consideration of biophysical aspects such as economic activities of citizens, forming the water flow and economic efficiency in view of foundation for a nation’s development. life-cycle cost, (b) establishing a digital platform However, significant infrastructure demand with a focus on flood and erosion information, remains in developing countries, with an and (c) facilitating the sharing of obtained estimated gap of around $15 trillion by 2040. information with watershed communities. Through these activities, the project has In order to address this substantial infrastructure contributed to environmentally and socially gap, it will not be adequate to create infrastruc- sustainable infrastructure investments that ture merely focusing on quantity or size. We are economically feasible and accessible to need resilient infrastructure that can address various people. specific development challenges, including climate change and digitalization. It must also The QII Principles are now spreading beyond be inclusive and sustainable. the World Bank. Notably, the QII Partnership has promoted the engagement of the private sector. At the G20 Osaka Summit in 2019 under the The public sector alone cannot address multiple Japanese Presidency, the G20 Principles for development challenges. It is critical to mobilize Quality Infrastructure Investment (QII Principles) private capital, technology, and expertise. We were endorsed, elaborating on the elements expect the QII Principles to be more widely required for such “quality.” These principles recognized and adopted in the private sector, reconfirm essential components of “quality” serving as a driving force for sustainable such as openness, transparency, life-cycle development. cost, and debt sustainability. Japan’s Ministry of Finance extends its grati- The QII Partnership has been acting to incor- tude to all stakeholders engaged in the QII porate the QII Principles into infrastructure Partnership’s activities. We will continue our projects worldwide. The ongoing project in efforts to achieve sustainable development India, Modernizing Water Resources Manage- and comprehensive prosperity. ment and Water-Related Disaster Risk Manage- ment through Innovative Tools in Assam, is a prime example. This project, conducted in Daiho Fujii is the Deputy Vice-Minister the flood-prone State of Assam, involves (a) of Finance for International Affairs at developing an integrated basin planning system the Ministry of Finance, Japan Annual Report 2023      5 A message from THE PROGRAM MANAGER In FY23, we worked to further align the QII Partnership’s strategic priorities with the G7 and G20 agendas and the World Bank’s Evolution Roadmap. We focused on promoting green, resilient, and inclusive infrastructure develop- ment and addressing climate change. Nearly half of our projects have been specifically designed to incorporate a climate focus. Moreover, 88 percent of the 144 operations directly supported by our grant activities, which were assessed for climate co-benefits using the Joint Multilateral Development Bank (MDB) Methodology for Tracking Climate Finance, delivered positive benefits for climate mitigation, adaptation, or both. In addition, over a quarter of our projects are centered on digital development or private capital mobilization. Demand for our services is strong and increasing rapidly. The QII grant portfolio continues to grow, with $14.2 million approved in FY23 for 54 grants across all regions, which supports the delivery of $11 billion in World Bank infrastructure investments. This high demand results from increased outreach across the Bank, allowing the Secretariat to adopt a more selective screen- ing approach that prioritizes applications that most strongly align with the QII Principles. The activities we support are wide-ranging in nature. Highlights for FY23 include the develop- 6    Quality Infrastructure Investment Partnership ment of technical guidelines for resilient urban sanitation infrastructure in India, climate risk assessments for selected Yemeni cities, and a diagnostic report providing the basis for promoting innovative e-government approaches in Kosovo. All have the goal of building more sustainable, resilient, and inclusive low- carbon development. We have progressed in promoting the QII Principles Regarding the sectoral portfolio, FY23 saw through better utilizing our website and steady growth in energy, digital development, LinkedIn platforms, publishing our analytical and governance, with an increased focus on reports and case study series, and dissemi- enhancing cybersecurity. Across all sectors, nating blogs and materials in both English and we are tapping innovation and technology to Japanese. We have also strengthened partner- improve efficiency, resilience, and transparen- ships with other institutions to complement each cy. Around 50 percent of QII standard grants in other’s activities, share knowledge, and leverage FY23 have a digital component, which is trans- Japanese expertise to promote quality infra- forming the way we deliver and access services. structure, climate adaptation, sustainable development, private capital mobilization, The Partnership has a substantial global and digital transformation. reach. The portfolio focuses most significantly on Sub-Saharan Africa, South Asia, and East As I look to FY24, the QII Partnership is well Asia. The top recipient countries have been positioned to continue making valuable contri- India, Bangladesh, Indonesia, Mozambique, butions towards promoting quality infrastructure, and Brazil, with a good balance between low- sustainable development, and private capital mo- and middle-income countries. bilization for a brighter and more resilient future. FY23 results show strong demand for standard This report aims to share the diverse and im- grants, just-in-time grants, and analytical work. pactful accomplishments of the Partnership. We To manage the growing portfolio and increased look forward to continuing this important work workload, the QII Secretariat has strengthened with the government of Japan and our partners. its human resources, hiring a full-time Monitoring and Evaluation (M&E) Specialist and welcoming an intern from the Japan International Jane Jamieson is the Program Manager Cooperation Agency (JICA). of the QII Partnership Annual Report 2023      7 OVERVIEW Elevating the QII Principles in International Partnerships EFFORTS & OUTCOMES The QII Principles emphasize the importance on opportunities to promote QII as a global of building economically efficient, sustainable, standard for infrastructure development. resilient, inclusive, and well-governed infra- structure. QII—a comprehensive approach to Governments and stakeholders also recognize infrastructure development that prioritizes these the value of establishing common QII indicators qualities—aims to maximize the positive impact and tools to measure and monitor the quality of infrastructure on economic growth, social of infrastructure projects. At the 2023 G7 development, and environmental protection, Summit in Hiroshima, Japan, G7 leaders re- while minimizing the negative effects, such as affirmed their commitment to scaling up PGII, climate impacts, debt distress, corruption, and attracting major investors to meet the global de- security risks. mand for high-quality infrastructure financing in low- and middle-income countries. PGII aims to The need and relevance of QII is significant mobilize hundreds of billions of dollars for ener- and is growing stronger, in particular for devel- gy, physical, digital, health, and climate-resilient oping countries. According to the World Bank, infrastructure while prioritizing gender equality, the global infrastructure gap is estimated to be labor and environmental standards, transparen- $15 trillion by 2040. Low- and middle-income cy, governance, and anti-corruption measures. countries must invest 4.5 percent of their GDP annually to achieve the SDGs by 2030. However, IFC is supporting the G20 Infrastructure Working many countries face challenges in mobilizing Group in the development and piloting of the sufficient public and private resources to meet Compendium of QII Indicators, which provides a their infrastructure needs and ensure the quality menu of voluntary, non-binding, non-prescriptive and sustainability of their investments. indicators relevant to the QII Principles. These in- dicators, combined with other tools and resourc- There is also a need for a values-driven and es, can help countries assess their infrastructure transparent approach to infrastructure develop- performance, identify gaps and opportunities, ment that emphasizes environmental and social and improve their decision making processes. standards, debt sustainability, and governance practices. In 2019, under Japan’s presidency, QII is a relevant concept today because it G20 members endorsed the G20 Principles addresses the challenges and opportunities of for Quality Infrastructure Investment, which infrastructure development in the 21st century. provide a common framework for advancing By adopting the QII Principles and practices, the concept of quality in infrastructure devel- countries can enhance their economic opment. Building on this momentum, the World competitiveness, social well-being, environ- Bank, Japan, and their partners have seized mental sustainability, and global cooperation. 10    Quality Infrastructure Investment Partnership Measuring Quality Widely applicable and standardized QII The indicators cover energy, water, indicators will drive progress in incorporating information and communications technol- the QII Principles in infrastructure projects ogy (ICT), transport, and urban infrastructure, across the globe. They will enable stakeholders including public transit and solid waste, and are to include quality considerations in project organized into cross-cutting and sector-specific development, assess whether infrastructure matrices, which are designed as a non-prescrip- projects align with QII goals, and track tive menu from which stakeholders can select progress toward targeted outcomes. indicators based on their relevance to project objectives. The nearly 150 indicators are catego- The QII indicators—which are voluntary rized into two tiers: Tier 1 indicators, which have and non-binding—were compiled from a recognized methodology and readily available metrics already used by international organ- data, and Tier 2 indicators, which are also con- izations, including multilateral and regional ceptually clear but have uneven data coverage. development banks and governments. They draw from frameworks such as the Harmonized Stakeholders can apply relevant indicators Indicators for Private Sector Operations, or throughout the project life cycle, from design HIPSO, used by 28 development finance to implementation and ex-post impact measure- institutions, including the Asian Development ment. The indicators can inform decision making Bank, the Overseas Private Investment and system-level planning and offer opportuni- Corporation, and the Private Infrastructure ties to increase transparency, facilitate appraisal Development Group. of infrastructure investments, and accelerate progress towards sustainability goals. Annual Report 2023      11 The Quality Infrastructure INVESTMENT PRINCIPLES Infrastructure plays a crucial role in fostering economic prosperity and supporting sustainable, balanced, and inclusive growth, which is essential for achieving the SDGs by 2030. The QII Principles offer a roadmap that focuses on the quality aspects of infrastructure. These voluntary principles empower countries to pursue investments that maximize infrastructure’s economic, social, environmental, and developmental impact. QII.1 Maximizing the positive impact of infrastructure QII.1   to achieve sustainable growth and development SUSTAINABLE GROWTH Infrastructure investment leads to economic growth by generating jobs, transferring technology, and enhancing capacity building, productivity, and private sector investment. This approach fosters sustainable development, strengthens connectivity, and aligns with national development strategies and international commitments such as the SDGs. QII.2 QII.2  Raising economic efficiency in view of life-cycle costs ECONOMIC EFFICIENCY Value for money is a fundamental aspect of quality infrastructure investment. It considers the total cost of an infrastructure asset’s life cycle, including operations, maintenance, and construction. Applying QII.2, for example, would consider the value of innovative technologies and the potential impact of risks of delays and cost overruns of infrastructure projects. 12    Quality Infrastructure Investment Partnership QII.3 QII.3  Integrating environmental considerations in infrastructure ENVIRONMENT When designing infrastructure projects, careful consideration must be given to their impacts on ecosystems, biodiversity, and climate. Encouraging the use of green financial instruments can be achieved through transparent disclosure of environment-related information. QII.4 QII.4  Building resilience against natural disasters and other risks RESILIENCE When designing infrastructure, it is essential to incorporate strategies for managing natural disasters and human-made risks. Integrating well- designed disaster risk finance and insurance mechanisms incentivizes the development of resilient infrastructure. QII.5 QII.5  Integrating social considerations in infrastructure investment SOCIAL Infrastructure projects should ensure that social and economic benefits reach all segments of society, particularly vulnerable and excluded groups and those in remote communities. Prioritizing open access to infrastructure services, addressing safety concerns, and integrating gender considerations are vital elements to be considered during the development of infrastructure initiatives. QII.6 QII.6  Strengthening infrastructure governance GOVERNANCE Promoting good governance, demonstrated by transparency in procurement, anti-corruption measures, and access to relevant information and data, enhances the positive impact of infrastructure. Additionally, ensuring the sustainability of infrastructure is crucial at both the national and project levels. Annual Report 2023      13 QII.1 QII.2 SUSTAINABLE ECONOMIC GROWTH EFFICIENCY QII.3 QII.4 ENVIRONMENT RESILIENCE THE QII QII.5 QII.6 PARTNERSHIP SOCIAL GOVERNANCE The QII Partnership, a collaborative effort and update its vision, mission, operations mod- between the World Bank and the government el, and financial capacity. Incorporating the QII of Japan, was established in 2016 to provide Principles when designing, implementing, and grant support to incorporate the QII Principles operating infrastructure assets will strengthen in World Bank infrastructure projects and their contribution to the World Bank’s mission, raise awareness of the quality dimensions especially in low- and middle-income econo- of infrastructure. mies. This, in turn, contributes to the creation of a world free of poverty on a livable planet. The Partnership operates as a single-donor trust fund housed within the World Bank's The QII Partnership works through three Infrastructure Finance, PPPs & Guarantees windows: Group. The Ministry of Finance of Japan has contributed $84 million to finance the QII • Standard grants enhance QII elements in Partnership’s work through FY 2025. It also the project preparation and implementation provides strategic guidance on the phases of infrastructure projects. Partnership's activities. • Just-in-time (JIT) grants support targeted, Infrastructure underpins achieving the World short-term interventions that promote the Bank’s twin goals—end extreme poverty and QII Principles. boost shared prosperity on a livable planet. The Partnership’s work has taken on greater • The Analytical Window supports stand- significance since the World Bank began imple - alone research, analysis, and activities menting its Evolution Roadmap, a framework that that advance global knowledge of the outlines a process for the institution to review QII Principles. 14    Quality Infrastructure Investment Partnership QII & CLIMATE-SMART INFRASTRUCTURE DEVELOPMENT The relationship between climate and The Partnership’s work aligns climate and devel- infrastructure is increasingly important opment goals, prioritizing transitions to a low- in the context of global climate change. carbon future and promoting innovative financial Infrastructure—particularly transport and solutions. This includes designing infrastructure energy—is both a significant contributor to that reduces environmental impact and builds greenhouse gas (GHG) emissions and resilience across all phases of the asset life vulnerable to climate-induced threats. The cycle. Comprehensive risk management plans QII Partnership’s activities address this dual and strategies that incorporate sustainability challenge by integrating environmental upfront are crucial for new infrastructure considerations into infrastructure projects projects. Climate-adapted and resilient infra- (QII.3) and advancing green infrastructure structure can have transformative effects on to foster low-carbon, climate-resilient economic development in low- and middle- development (QII.4). income countries, underscoring the urgency and importance of the QII Partnership’s work. Advancing the climate agenda 144 The Climate Change Action Plan and Evolution WB Operations Assessed for Roadmap commit the World Bank and the QII Climate Co- Partnership to incorporate climate and resiliency Benefits considerations in infrastructure investments. Consequently, adapting to and mitigating climate change are key elements of QII Partnership support. The QII Partnership portfolio is being assessed to ensure that climate change benefits are aligned with the climate co-benefit metho- 88% dology adopted by MDBs. Of the 144 World Demonstrating Climate Co-Benefits Bank projects linked to QII Partnership grants 12% that were assessed, 127 (88 percent) demon- Demonstrating No Climate Co-Benefits strated positive climate co-benefits. Annual Report 2023      15 QII & LOW-CARBON DEVELOPMENT Infrastructure has an outsized impact on GHG emissions, particularly in transportation and energy. But infrastructure is also susceptible to climate change impacts like extreme weather, sea level rise, and shifting climate patterns. QII Principle 3, integrating environmental consider- ations in infrastructure, is especially relevant as climate change accelerates. As climate impacts escalate, infrastructure projects must be designed to mitigate them. This includes actions such as improving the collection and disclosure of envi- ronmental information, enabling the use of green finance instruments in tandem with private capital, and aligning infrastructure projects with national strategies and nationally determined contributions (NDCs) to facilitate the implementation of long- term, low-emissions plans. Applying the QII Principles ensures that infrastruc- ture reduces its contribution to GHG emissions. Pursuing a low-carbon strategy when developing infrastructure will become increasingly important as countries aim to curb emissions in line with their obligations under the Paris Agreement. 16    Quality Infrastructure Investment Partnership CASE STUDY QII.1 QII.3 SUSTAINABLE CHILE ENVIRONMENT GROWTH Building a Path to a Green QII.6 GOVERNANCE Hydrogen-Powered Future Chile's energy sector heavily depends on A grant from the QII Partnership will support imported fossil fuels despite regulatory changes the initial implementation phase of Chile's to promote clean energy. Although the share GHF by strengthening governance frameworks of non-conventional renewable energy has and technical capacities within CORFO. A increased to one-third of the power matrix, governance framework will allow for more the sector still relies on imported coal and efficient financial support to GH sub-projects gas. There is a need to further reduce fossil through a one-stop-shop platform. A water fuel dependency to meet carbon neutrality use and reutilization analysis will provide commitments by 2050. Green hydrogen (GH) critical information to help CORFO and other production, identified in Chile's Long-Term stakeholders understand and mitigate environ- Climate Strategy and the National Green Hydro- mental and social impacts and ensure the gen Strategy, is seen as a resource to reduce development of a sustainable GH industry. GHG emissions. The GH industry is expected These efforts will be complemented by focused to attract private investments of up to $8 billion capacity building and training. These activities by 2025 and $330 billion by 2050, creating align with QII.1, maximizing the positive impact opportunities for local economic development. of infrastructure; QII.3, integrating environmental considerations; and QII.6, strengthening Developing Chile's nascent green hydrogen infrastructure governance. industry requires innovative financing mecha- nisms, strategic public interventions, and build- These efforts will facilitate access to diverse ing local capacity. The World Bank is addressing sources of financing, promote efficient water this need through a $150 million loan to support infrastructure, and build the necessary skills the Green Hydrogen Facility (GHF), which will to assess GH projects. The project's impact be implemented by Chile’s National Development will extend to informing public policies and Agency (CORFO). The objective of the facility raising awareness among key stakeholders, is to mobilize private financing, foster the thereby contributing to the sustainable enabling environment, enhance local capacity, development of Chile's GH industry. and stimulate local demand. The loan was approved by the World Bank in June 2023. Annual Report 2023      17 CASE STUDY QII.2 QII.3 ECONOMIC EGYPT ENVIRONMENT EFFICIENCY Building a Sustainable QII.5 SOCIAL QII.6 GOVERNANCE and Inclusive Railway Egypt faces infrastructure bottlenecks that The QII Partnership is providing a grant to fund constrain economic growth and hinder climate activities to support the implementation of the action. The country's railway sector is no CATLDP across three priority areas: enabling exception. Outdated technology, limited private participation, decarbonization, and capacity, and the lack of private investment gender inclusion. have left railways struggling to meet rising demand for passenger and freight services. Activities include: Severe railway congestion around Cairo • Creating an enabling environment to stim- causes delays, while poor infrastructure and ulate private investment in rail operations. operations contribute to a mediocre safety Workshops with Japanese experts will lead record. With limited public funding, attracting to recommendations to strengthen Egypt's private capital is essential to modernize and railway safety governance based on global decarbonize Egypt's railways. Despite legislative best practices. The activity will also support reforms, however, substantive private participa- upgrading the railway's enterprise manage- tion has yet to materialize. ment system to optimize asset maintenance and operational safety. These improvements To address these needs, the World Bank are expected to incentivize private freight approved a major railway development project in operators to utilize new infrastructure September 2022. The $1 billion Cairo Alexandria capacity once completed. Trade Logistics Development Project (CATLDP) • Developing a roadmap to reduce railway aims to improve performance and support the emissions that includes assessing low- decarbonization of freight transport along the carbon technologies, such as hydrogen- vital corridor between Alexandria's ports and powered trains and other renewable Cairo. The project includes constructing a energy options, and conducting work- new rail link to bypass Cairo's congestion and shops to facilitate knowledge exchange upgrading signaling, electrification, and track. with Japanese experts on cutting-edge 18    Quality Infrastructure Investment Partnership initiatives like hydrogen locomotive pilots. government of Egypt The decarbonization strategy will align in developing an infra- with Egypt's larger climate commitments. structure access charge • Making recommendations to improve regime and use public-private gender equality and women's economic partnerships (PPPs) in improving rail participation related to the railway sector. infrastructure and railway operations. With women comprising only 3 percent of Egypt’s railway staff, targeted actions are The QII activities are expected to accelerate needed to address this gap. An assessment reform and introduce global best practices of barriers faced by female passengers and across these priority areas: the project incorpo- employees will inform policy recommenda- rates QII Principles covering economic efficiency tions, while lessons from Japan’s experience (QII.2), integrating environmental and social in increasing women's access to public considerations in infrastructure (QII.3 and QII.5), transport and participation in the rail and strengthening infrastructure governance workforce will provide global perspectives. (QII.6). Furthermore, the application of Japanese expertise in safety regulation, hydrogen trains, The QII Partnership collaborated with the and gender inclusion will allow for knowledge Public-Private Infrastructure Advisory transfer to Egyptian stakeholders. Facility (PPIAF) in this project. PPIAF assessed the potential for private sector participation in With support from the World Bank and the the freight railway sector by conducting a pre- QII Partnership, Egypt has the potential to feasibility study for the railway section between transform its rail network into a model of the Alexandria Port complex to the 6th of quality infrastructure. This, in turn, offers a October Dry Port in the Greater Cairo Metro- pathway for sustainable economic growth, politan Area and helping to inform the prepara- better environmental protections, and social tion of the CATLDP project. This will aid the inclusion for the country and region. Annual Report 2023      19 QII & RESILIENCE Infrastructure is a major contributor to GHG emissions, especially in the transport and energy sectors. But it is also vulnerable to climate impacts. QII Principle 4, Building resilience against natural disasters, is particularly relevant in the context of climate change. As the world grapples with the mounting impacts of climate change, such as extreme weather events, sea-level rise, and shifting climate patterns, infrastructure projects must be designed to meet present needs and withstand future climate challenges. QII.4 ensures that infrastructure is adaptive to these uncertainties and reduces long- term costs related to repairs and reconstruction. Climate-resilient infrastructure also safeguards communities, ensures the continuity of essential services, and fortifies economies against climate-induced disruptions. 20    Quality Infrastructure Investment Partnership CASE STUDY QII.2 QII.3 ECONOMIC INDIA ENVIRONMENT EFFICIENCY Tackling Floods and Erosion QII.4 RESILIENCE QII.5 SOCIAL in a Changing Climate The Indian state of Assam suffers from recur- effectiveness of nature-based solutions as ring natural water-related disasters, such as alternatives to traditional infrastructure through devastating floods and erosion. Climate change an integrated river basin planning framework, is worsening the problem, which threatens the supporting QII.2, raising economic efficiency livelihoods of millions while straining the state's in view of life-cycle cost. The focus on green infrastructure, natural resources, and economic infrastructure and emphasis on environmental growth. The inability to predict, manage, and sustainability in planning align with QII.3, mitigate these challenges effectively has left integrating environmental considerations. QII.4, the region highly vulnerable. building resilience against natural disasters, is addressed by activities to improve flood fore- The World Bank is working with the government casting, early warning systems, and embank- of Assam to address these challenges through ment asset management. Training programs for the Assam Integrated River Basin Management communities will integrate social considerations Program, which aims to strengthen Assam's (QII.5) and ensure inclusive access to project institutional capacity to improve integrated water benefits. And finally, governance (QII.6) is resources planning and management and build supported through access to transparent data. resilience to flood and erosion risks. A grant from the QII Partnership supports this initiative The project is expected to achieve key by building capacity at institutional, community, outcomes, including guidelines for integrated and individual levels in modernized flood and river basin planning and sustainable infrastruc- erosion management and adopting integrated ture design, a hydro-informatics data platform basin planning and management through the tailored for Assam, enhanced institutional ca- application of innovative technologies and tools. pacity through training programs, and increased This will enable the government to not simply community resilience built through inclusive respond to disasters but to preemptively engagement. Applying the QII Principles will manage them. ensure the project maximizes sustainability and quality. The innovative solutions piloted in the The activities support many of the QII Principles. first phase will provide a strong foundation for For example, the project analyzes the cost- subsequent phases of the longer-term program. Annual Report 2023      21 CASE STUDY QII.2 QII.3 ECONOMIC ARGENTINA ENVIRONMENT EFFICIENCY Applying Nature-based QII.4 RESILIENCE QII.5 SOCIAL Solutions in Buenos Aires Recurrent urban flooding in Buenos Aires has Time grant from the QII Partnership supported had significant negative economic impacts feasibility studies and community engagement and disproportionately affects the poor and for an NBS intervention in the city. This involved vulnerable. The city seeks to balance invest- further development of the city’s Indoamerican ments in traditional gray infrastructure like Park into a multifunctional integrated flood tunnels and canals with nature-based solutions resilience green space. Funded activities include (NBS) such as green spaces, restored wetlands, leading an inclusive, participatory process with and uncovered streams to mitigate flood risks citizens to optimize the design of the interven- in a more sustainable, cost-effective manner. tions and support the evaluation of the economic The municipality is developing the technical costs and benefits of the pilot and potentially design and evaluation capacity to integrate scaling up NBS citywide. NBS with gray infrastructure. The grant focused on building resilience to natu- A $200 million World Bank project, the Argentina ral disasters (QII.4) by helping Buenos Aires miti- Flood Risk Management Support Project, aims gate flooding through its first major urban stream to strengthen Buenos Aires’ systems for flood restoration project. In addition, it provided input risk management by improving drainage infra- to the economic efficiency over the infrastructure structure in priority basins. A $70,000 Just-In- life cycle (QII.2), incorporated environmental 22    Quality Infrastructure Investment Partnership considerations for sustainability (QII.3), and integrated inclusive social engagement to collect citizen perceptions and priorities (QII.5). The technical analyses demonstrated how optimally balancing targeted green and gray investments can improve overall resilience and sustainability in a local context. Knowledge sharing workshops with other cities in Argentina will dissem- inate NBS approaches. Together with funding provided by the Water Expert Fund of the Global Water Security and Sanitation Partnership, the study improved the understanding of how to quantify local costs and benefits to make a case for scaling up NBS alongside gray infrastructure citywide to reduce flood impacts. The pilot won gov- ernment and citizen support by substantiating technical, social, environmental, and econom- ic benefits. It also built municipal capacity to replicate the NBS approach more widely. The participatory process created commun- ity ownership of the restored urban lagoon. NBS integration could expand beyond Buenos Aires if implemented at scale as envisioned. The pilot also provides a model for cities globally seeking more sustainable, equitable, and cost-effective approaches to mitigate urban flooding and enhance community climate resilience. QII & INCLUSION Infrastructure doesn’t always offer equal benefits to different groups. For instance, the elderly and disabled are often unable to take advantage of the benefits infrastructure offers. Moreover, infrastructure-related job opportunities are often male-dominated. QII.5, integrating social consider- ations in infrastructure investment, aims to ensure all social groups benefit from infrastructure devel- opment. This extends beyond basic services to include access to markets, healthcare, education, and employment. The focus is on being inclusive and preventing discrimination throughout the project cycle. Effective communication with communities and marginalized groups from the project’s outset is key, as is ensuring equal job opportunities and safe working conditions. In this context, the World Bank’s Green, Resilient, Inclusive Development (GRID) approach emphasizes the importance of inclusive growth. 24    Quality Infrastructure Investment Partnership CASE STUDY QII.3 QII.4 VIET NAM ENVIRONMENT RESILIENCE Upgrading Infrastructure QII.5 SOCIAL for Universal Accessibility Viet Nam’s Mekong Delta Region is rapidly recommendations to improve investment designs urbanizing, yet infrastructure and basic services focusing on universal accessibility and mobility. have not kept pace with the growing population, The TDLC and Mirairo, a Japanese firm, took an especially for people with limited mobility. active part in discussions and advisory support. The Vietnamese government has emphasized a need for universal accessibility in its infra- The project aligned with QII Principles, focus- structure, particularly for the elderly and people ing on integrating social and environmental with disabilities. Addressing accessibility issues considerations (QII.3 and QII.5), and building could significantly promote a more inclusive resilience against natural disasters (QII.4) to approach to human development in Viet Nam. benefit disabled and elderly populations. In response to these challenges, the World The project is expected to lead to significant Bank’s Viet Nam Scaling Up Urban Upgrading benefits such as strengthening the planning Project was launched in 2017 to develop high- capacities of city officials, enhancing infra- quality, sustainable urban infrastructure integrat- structure design with a focus on universal ing green, resilience, and accessibility measures. accessibility, raising public awareness, The six-year project covered seven rapidly encouraging green and resilient infrastructure urbanizing cities. It improved inter-departmental development, and improving the livelihoods coordination, leveraged ICT in planning, imple- of disabled and elderly populations. Direct mented green and resilient infrastructure, and beneficiaries of the green infrastructure supported universal accessibility design. components include approximately 500,000 individuals across seven cities, while universal A standard grant from the QII Partnership played accessibility design is expected to benefit a crucial role in supporting the project. It facili- 90,000 people in low-income areas. tated the application of principles for universally accessible, green, and resilient infrastructure The model developed through this project is design. Japanese consultants, leaders in univer- currently being replicated in other regions, sally accessible infrastructure design, provided including Indonesia and Sub-Saharan Africa. Annual Report 2023      25 QII & INFRASTRUCTURE GOVERNANCE Infrastructure projects are expensive long- taining financial and debt sustainability at both term investments that are vulnerable to waste, project and macroeconomic levels. The World inefficiency, and corruption. Transparency Bank has created frameworks to help countries throughout the infrastructure project life cycle navigate infrastructure governance. Aligned can mitigate these risks. QII Principle 6 (QII.6), with QII.6, these frameworks guide practitioners strengthening infrastructure governance, through critical aspects of infrastructure develop- advocates for clear and fair decision-making ment, including life cycle-based project selec- from project inception to completion. tion, design, procurement, and implementation; integration of social, environmental, and climate Good infrastructure governance relies on solid, considerations; and ensuring regulatory well-structured institutions. This includes main- frameworks are in place. 26    Quality Infrastructure Investment Partnership CASE STUDY QII.1 QII.2 QII.3 SUSTAINABLE ECONOMIC PAKISTAN ENVIRONMENT GROWTH EFFICIENCY Developing Affordable, QII.5 SOCIAL QII.6 GOVERNANCE Quality Housing in Punjab Punjab, the most populous province in Pakistan government's capacity to provide high-quality, and home to an estimated 110 million people, climate-resilient, socially inclusive, and cost- is grappling with a pressing housing deficit. As effective infrastructure investments for affordable of 2017, the province required an additional housing. It funds technical assistance to the Pun- 2.3 million housing units—a significant issue jab Housing and Town Planning Agency (PHATA) compounded by several challenges. and the Urban Unit to improve its project review, prioritization, and approval processes, as well as Of the obstacles that lead to a shortage in strengthen its planning, operating, and budgeting affordable housing supply, the most noticeable capabilities. These activities will strengthen part- is the sole dependence on the public sector for nerships between PHATA and the private sector. housing and the lack of private sector participa- tion. Key issues are inadequate infrastructure, The activities integrate the QII Principles into lengthy project approval processes, and distrust PAHP in several ways. Improved processes of government-led initiatives. In addition, there is maximize the positive impacts of housing infra- room for improving the quality of government- structure (QII.1) while optimizing life-cycle sponsored public housing development. This costing (LCC) for basic urban infrastructure could be realized by focusing on locations with and services (QII.2). The process incorporates the greatest needs and incorporating climate green, resilient, inclusive development princi- resilience, gender equity, and green design. ples in planning and design (QII.3). Increasing Applying the QII Principles provides support citizen engagement in the planning and design for addressing these issues. process of housing projects integrates social considerations in the process (QII.5). Finally, the To address these challenges, the World Bank refinement of PHATA's project screening criteria approved a five-year Punjab Affordable Housing and the establishment of a streamlined planning Program (PAHP) in 2022. The program aims to review and approval processes are expected support the government of Punjab in strength- to improve transparency and efficiency (QII.6), ening its housing institutions, increasing the fostering greater private sector participation. supply of affordable housing from both public and private sectors, and promoting alternative PAHP aims to serve as a model for other regions low-cost housing solutions with green, resilient, grappling with similar housing issues, demon- and inclusive design. strating how affordable, green, and inclusive public housing projects can promote sustainable, A grant from the QII Partnership supports the resilient, and inclusive urban development implementation of PAHP by building the Punjab in Pakistan. Annual Report 2023      27 CASE STUDY QII.1 QII.2 QII.4 SUSTAINABLE ECONOMIC EL SALVADOR RESILIENCE GROWTH EFFICIENCY Planning Resilient, QII.5 SOCIAL QII.6 GOVERNANCE Regional Connectivity Countries in Central America, including El The QII Partnership grant will support ESTRIP Salvador, have continuously pursued regional in several ways. First, it will finance an analysis trade integration efforts, yet trade integration to identify a set of priority infrastructure invest- remains below its potential. In El Salvador, one ments for the development of regional economic impediment is the country’s road infrastructure. corridors in El Salvador, drawing on international While more extensive than in other Central best practices and considering regional value American countries, it has been deteriorating chains. These investments will include long-term due to insufficient maintenance over the past infrastructure maintenance needs. In this regard, 15 years and this decline in quality threatens the grant will fund a disaster risk analysis to the country's competitiveness and economic inform resilient maintenance planning through development. In addition, the lack of resilient performance-based contracts. ESTRIP will transport infrastructure severely affects the then finance the selected investment designs country´s connectivity during the rainy season, to create a pipeline of resilient infrastructure especially in the poorest rural areas. projects ready for implementation and further financing. To address this, the World Bank has approved a lending project called the El Salvador Transport The grant will also support additional studies and Resilient Infrastructure Project (ESTRIP). Its to identify possible improvements and com- objectives are to improve resilient connectivity in plementary interventions to the project's main targeted areas of the northern Metropolitan Area investment: the construction of a strategic road of San Salvador (MASS), enhance sustainable bypass that will enhance infrastructure efficien- national road sector management, and provide cy in the northern MASS. These interventions effective emergency response. will aim to maximize the impact on road safety 28    Quality Infrastructure Investment Partnership improvements, enhance access for pedestrian and public transport, and build resilience. Finally, the grant will facilitate research into the conditions necessary for enabling private sector participation in future bypass and road construction projects. QII Partnership support will promote sustainable growth and economic efficiency (QII.1 and QII.2) by ensuring ESTRIP’s investments maximize positive impacts on regional connectivity and value chains. It will also mainstream resilience (QII.4) by assessing climate risks and prior- itizing adaptation to climate change in road development. Additionally, it will strengthen infrastructure gover- nance (QII.6) by building capacity for PPPs. Through this multidimensional approach, the QII Partnership will set a valuable example for maximizing sustainable, inclusive development through infrastructure investments in economic corridors. The grant will also enable the World Bank team to engage JICA’s ongoing regional infra- structure planning efforts and build on previous activities in El Salvador. QII & DIGITAL TRANSFORMATION Digital transformation has proven vital during cybersecurity and data privacy build resilience the COVID-19 pandemic, enabling businesses, (QII.4, building resilience against natural hazards schools, hospitals, and public services to and human-made risks); and digital solutions function. In developing countries, this transfor- promote procurement transparency and mation is a catalyst for progress in all infra- accessibility (QII.6, strengthening infrastructure structure sectors and could allow these countries governance). Moreover, a robust cybersecurity to “leapfrog” into an efficient, connected future. strategy raises the economic efficiency of These developments, however, have led to new infrastructure (QII.2) and builds resilience challenges: digital services risk cyberattacks; against risks (QII.4). disadvantaged groups, particularly women and girls, can face increased exclusion due to limited QII Partnership grants are supporting digital access; and the high energy demands of data transformation across the globe. For example, in management affect climate change. Rwanda, the implementation of smart charging and grid solutions for electric buses. In Albania, The QII Principles can help navigate the efforts are focused on enhancing digital skills challenges of digital transformation. For and inclusion to better governance. Ethiopia example, technology transfer reduces infra- leverages digital tools for data collection and structure costs (QII.1, maximizing the positive quality control in urban infrastructure projects. impact of infrastructure); innovative technolo- Meanwhile, the Dominican Republic is prioritiz- gies enhance economic efficiency (QII.2, raising ing digital advancements in monitoring perfor- economic efficiency in view of life-cycle cost); mance in the water sector. 30    Quality Infrastructure Investment Partnership CASE STUDY QII.2 QII.3 ECONOMIC ENVIRONMENT INDONESIA EFFICIENCY Assessing Irrigation Performance QII.6 GOVERNANCE through Remote Sensing Agriculture is critical for economic growth and of irrigation infrastructure through digital poverty alleviation in Indonesia, with 60 percent technologies, promoting climate-smart of the poor relying on it for income. However, development, and improving the governance poor governance and performance monitoring of irrigation infrastructure. of irrigation infrastructure have constrained the country’s agricultural productivity. Manual First, a methodology for monitoring irrigation monitoring methods are costly, inaccurate, and performance will be developed using innovative provide limited data. This has hindered account- remote sensing technologies specifically tailored ability and efficiency in irrigation management. to Indonesia's climatic conditions. Introducing Modernization is urgently needed to strengthen remote sensing aligns with QII.2, raising econom- infrastructure, enhance transparency, and adopt ic efficiency. It introduces performance-based climate-smart approaches. management and benchmarking, facilitating accountability and the potential outsourcing of The World Bank’s Strategic Irrigation irrigation operations and maintenance to the Modernization and Urgent Rehabilitation private sector. The activity will be complemented Project aims to improve irrigation services by stakeholder workshops to build their capacity. and strengthen the management of irrigation programs in selected areas. A just-in-time grant Second, the grant will enable the development from the QII Partnership is supporting the project of a methodology for monitoring Alternate by helping the Ministry of Public Works improve Wetting and Drying (AWD), a water manage- the governance of irrigation infrastructure. The ment approach that can significantly reduce support focuses on developing a methodology methane emissions from irrigated rice. The for performance assessment and monitoring activity will define key indicators for AWD climate-smart water management practices monitoring, identify pilot locations, and present using remote sensing. This will provide cost- the findings in a national workshop, ensuring effective, timely, and accurate water supply stakeholder ownership. It aligns with QII.3 and measurements. QII.6, supporting environmental considerations by reducing methane emissions through Activities financed by the grant apply QII AWD and promoting governance through Principles by maximizing the economic efficiency performance-based AWD service delivery. Annual Report 2023      31 QII & ECONOMIC EFFICIENCY QII Principle 2 promotes the LCC approach as a vital strategy for managing the immediate and long-term results of infrastructure investments. This approach considers the total costs, benefits, and related risks of infrastructure investment over the asset’s entire lifespan instead of focusing on the upfront costs. In doing so, it facilitates informed decisions about the total economic value of a given project. This approach encourages sustainable infrastruc- ture development by balancing short-term needs with long-term financial, environmental, and social outcomes. This approach can prevent situations where low initial costs lead to higher costs down the road due to maintenance or other issues. In this way, the LCC approach ensures more effective, efficient, and sustainable infrastructure investments. 32    Quality Infrastructure Investment Partnership QII.1 QII.2 CASE STUDY SUSTAINABLE GROWTH ECONOMIC EFFICIENCY Utility of the Future QII.5 QII.6 SOCIAL GOVERNANCE Modernizing electricity infrastructure and adopt- cybersecurity, which will inform a guidance ing innovative technologies can improve pro- note on good practice for utility performance ductivity, lower costs, and enhance the quality of improvement. These are complemented by service. Realizing these benefits requires sound videos and knowledge exchange events. governance, management efficiency, technical capacity, and supportive policies and regulations. Specifically, the India case study is on smart grid, renewable energy, and energy efficiency To help countries step up to the task, the technologies adopted by Tata Power DDL, a World Bank launched the Utility of the Future— distribution company. The case from Peru Knowledge Exchange Platform, or UKEP, an explores how the national system operator initiative supported by an analytical grant from COES has implemented advanced technolo- the QII Partnership and the Energy Sector gies to support real-time system operation and Management Assistance Program (ESMAP). planning as Peru integrates more renewables. UKEP emphasizes the use of knowledge and The case in Viet Nam assesses how the national appropriate regulations to harness technologies transmission company, NPT, has applied that can accelerate affordable, reliable, and technologies such as AI, drones, digital sustainable access to electricity. substations, and asset management. UKEP focuses on knowledge sharing to identify These activities apply several QII Principles. First, high-impact technologies and best practices they maximize the economic impact of infrastruc- that can help utilities in developing countries ture (QII.1) by showcasing emerging digital and improve performance, lower costs, and provide energy solutions that can substantially strength- better service. To do this, it developed in-depth en utility operations. Case studies will provide in- case studies on utilities that have successfully depth analyses of the governance, management, adopted innovative digital and energy solutions. regulations, and skills that successful utilities It also encourages knowledge exchange among need. Second, they promote economic efficiency utilities and global leaders to build their capacity (QII.2) by investigating how technologies such and is distilling key insights into a guidance note as smart grids, artificial intelligence, drones, and for client countries and the World Bank staff that advanced cybersecurity can boost resilience, work with them. integrate renewables, and drive efficiency gains. Third, they foster inclusivity (QII.5) through open The QII Partnership is supporting UKEP by access to state-of-the-art information tailored funding several case studies. These include to local needs. Finally, they provide up-to-date lessons from the experience of electric utilities information about the policies and regulations in India, Peru, and Viet Nam, as well as one on necessary for good governance (QII.6). Annual Report 2023      33 QII & ENABLING PRIVATE SECTOR PARTICIPATION Engaging the private sector in infrastructure projects aligns with QII Principles by enhancing the effectiveness, sustainability, and governance of infrastructure projects. It can bring financing as well as technical, managerial, and business expertise into infrastructure projects. In line with QII.1, private sector engagement can optimize infrastructure investments, as the private sector often introduces innovative, cost-effective solutions due to its tech- nical knowledge and business acumen. Moreover, private sector financing can supplement public funds and accelerate infrastructure development. QII.6, which focuses on strengthening infrastruc- ture governance, also encourages private sector involvement by providing better business environ- ments that emphasize transparency, efficiency, and accountability, thus reducing risks of corruption and mismanagement. Their participation ensures the procurement process is competitive and that the value-for-money proposition is realized. 34    Quality Infrastructure Investment Partnership CASE STUDY QII.1 QII.2 QII.3 SUSTAINABLE ECONOMIC ENVIRONMENT CHAD GROWTH EFFICIENCY Connecting the Unconnected QII.4 QII.6 RESILIENCE GOVERNANCE for a Digital Future Broadband access remains out of reach for design and implementation, focusing on ensuring many in Chad, a fragile, post-conflict country, quality, resilience, good governance, environ- limiting access to opportunities and services. mental sustainability, and positive social impact. With the price for data services in Chad The assessments and stakeholder consultations being among the highest in West and Central across Chad's public and private sectors will Africa, less than half the population has access inform strategies tailored to the country's unique to affordable broadband. Furthermore, Chad is context and priorities, including cybersecurity, a large, sparsely populated country, which makes and create conditions for attracting private sector digital infrastructure costly to build and operate. participation to the sector. Lessons learned from Private sector participation is therefore critical to similar connectivity initiatives in other develop- bringing affordable, climate-resilient broadband ing countries will help shorten Chad's learning to underserved communities nationwide. curve, emphasizing innovative approaches that maximize development impact. To meet this challenge, the World Bank’s Chad Digital Transformation Project aims to lay the The integrated technical and financial support foundations for digital transformation at scale, aligns with multiple QII Principles. Reverse focusing on extending last-mile connectivity in auctions will incentivize private sector invest- rural and urban areas. It will provide support ments to expand broadband infrastructure through reverse auctions—a competitive bidding (QII.1), while tenders for the selection of opera- process where suppliers bid down prices for a tors will raise economic efficiency by mobilizing specified product or service—to help private the private sector through the reverse auction telecom operators bridge the infrastructure mechanism (QII.2). Last-mile infrastructure will gap. This involves building fiber optic networks be required to use renewable energy (QII.3). and next-generation mobile systems to reach Studies for infrastructure investments will incor- schools, health centers, and households. porate potential risks of natural disasters (QII.4), and dialogues with key public stakeholders will The project will also establish shared digital in- improve infrastructure governance (QII.6). frastructure to enable governments to deliver key public services online. Integrating systems and The end goal is to enable Chad’s digital economy data from civil registries to payments will stream- by providing access to affordable, sustainable, line operations and close the digital divide. and universal broadband access. This will yield long-term benefits for individuals, businesses, The QII Partnership supports these efforts and government by propelling digitally powered through grant financing to optimize project growth and expanding opportunities. Annual Report 2023      35 QII & LIFE-CYCLE COSTING Life-cycle costing, or LCC, is an approach that considers the total cost incurred over an infra- structure asset's life cycle, along with its economic, environmental, and social benefits. QII Principle 2 emphasizes the application of LCC to increase the economic efficiency of infrastructure investments. This principle guides investors, developers, and policymakers in prioritizing value for money and affordability using LCC throughout all stages of an infrastructure project—planning, design, financing, construction, operations, maintenance, and dispos- al. This approach emphasizes the importance of risk mitigation, particularly against delays and cost overruns in post-delivery phases. It advocates for broad stakeholder engagement, utilization of 36    Quality Infrastructure Investment Partnership planning expertise and technology, and enforce- ment contracts. The grants funded activities ment of safeguards. LCC considerations should such as developing training materials, work- be incorporated into a robust financial plan. shops, cost analysis models, and practice manuals to incorporate LCC principles into How we procure infrastructure is critical in procurement processes. ensuring we get the best value from our invest- ment, and incorporating LCC at this stage can • In Poland, the QII Partnership funded ensure long-term sustainability. An ongoing activities to advocate for the use of LCC QII grant has developed a Practice Manual for criteria in contracts granted under the applying LCC in World Bank operations and built World Bank’s Odra Vistula Flood Manage- capacity in LCC procurement of World Bank staff ment Project. These measures aimed to and clients. The practice manual guides teams decrease long-term operating expenses and through the concepts and applications of LCC, build the capacity of Polish Waters, the pub- including case studies and guidance for sectors lic entity responsible for water management like water, power, and ICT. The goal is to create in the country. Activities included developing a knowledge base and enhance skills to main- training materials and conducting workshops stream LCC use in infrastructure procurement, to train management and staff on sustainable leading to reduced operating costs and improved procurement practices. The grant supported infrastructure quality over the long term. the inclusion of LCC criteria in a $15 million tender for the procurement of high- These resources have been used in courses performance computers. and training events across the globe. Over 600 participants, including Bank and client • In Pakistan, a QII Partnership grant financed staff, participated in virtual training. An in-person an LCC cost analysis of four e-procurement training session on LCC was conducted in Kuwait models in support of the World Bank’s Public for 24 staff from the Middle East and North Africa Financial Management and Accountability (MENA) region. Two workshops attended by over to Support Service Delivery Project. The 100 staff each were held for case studies on LCC analysis reviewed four e-procurement in infrastructure projects. More training events, models: fully outsourced, PPPs, govern- workshops, and an e-learning module on LCC ment-owned and operated, and hybrid. The are planned. government-owned and operated model was recommended. The regulatory Public The QII grants focused on LCC have also provid- Procurement Regulatory Authority incor- ed county-level support to build the capacity of porated this model into the country’s new public entities to apply LCC practices in procure- national e-procurement system. Annual Report 2023      37 CASE STUDY PERFORMANCE BASED-CONTRACTS Promoting Quality Road Construction Traditional road construction contracts have of PBCs in six countries— Argentina, Botswana, long been used despite a significant drawback: the Lao People’s Democratic Republic (PDR), Because they are based on the amount of work Liberia, New Zealand, and the state of Florida in executed, contractors could have an incentive to the United States—to compare the economic maximize profits by inflating the volume of work efficiency of PBCs to traditional contracts. The without prioritizing quality. Moreover, long-term study revealed that PBCs can increase economic maintenance is not included. As a result, roads efficiency, strengthen infrastructure governance, deteriorate, leading to higher costs, which are and offer long-term benefits despite some passed on to road users. implementation complexities and data gaps. There is a better way to align the interests of PBCs bring about several potential positive governments and contractors—performance- outcomes. For road agencies, PBCs can based contracts, or PBCs. First introduced improve budget forecasting and provide in the 1980s, PBCs offer fixed, lump-sum more consistent results. They allow for quicker payments that encourage contractors to completion of emergency repairs and transfer minimize the volume of work and take preven- risk to the private sector. Additionally, they tative steps to maintain good road conditions. lower long-term procurement costs and In doing so, PBCs emphasize service levels simplify contract administration. and transfer the bulk of the risks to contractors. From a governance perspective, PBCs prompt A World Bank study supported by an analytical governments to weigh infrastructure service grant from the QII Partnership analyzed the use levels against available funding resources. 38    Quality Infrastructure Investment Partnership They encourage contractors to manage risks and costs rather than passing them on to the govern- ment, which improves the long-term efficiency of road investments. PBCs directly support two QII Principles. By defining service levels and transferring risks to contractors, they encourage long-term road main- tenance, thus improving economic efficiency over the life cycle of a road (QII.2). Second, PBCs strengthen infrastructure governance (QII.6). Despite their complexities and the need for more extensive training, the analysis suggests that the long-term benefits of PBCs make them a worth- while investment. Furthermore, the study underscores the value of consis- tent data collection and management practices in line with best practices. Well-executed PBCs may revolutionize traditional road construction contracts, thus delivering more sustainable and economically efficient infrastructure. Annual Report 2023      39 FY17–FY23 PORTFOLIO FY17–FY23 THE QII PARTNERSHIP PORTFOLIO Demand for QII Partnership funding remains strong. By the end of FY23, an additional 54 grants were approved for a total of $14.2 million, bringing the total number of grants awarded throughout the QII Partnership’s tenure (FY17–FY23) to 229 for a total value of $64.1 million. QII Grant Portfolio Value, FY17–FY23 Total Grant Value (US$, millions) Number of Grants $70 250 $60 200 $50 150 $40 $30 100 $20 50 $10 $0 0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Cumulative Grants Approved (US$, millions) Cumulative Number of Grants 42    Quality Infrastructure Investment Partnership More than half of the grants approved in FY23 are in active implementation, reflecting a robust ongoing portfolio. Dollar Value of Grants 26% $16,597,179 229 Completed TOTAL GRANTS $64.1 MILLION 74% $47,531,844 In Progress Annual Report 2023      43 SECTOR IMPACT Priority sectors continue to be urban infrastructure (30 percent), transport (25 percent), and water (20 percent). FY23 also saw steady growth in energy (11 percent), digital development (5 percent), and governance (9 percent). About 50 percent of QII standard grants in FY23 include a digital component related to the planning, design, implementation, and management of infrastructure projects, with an increased focus on enhancing cybersecurity as well as efficiency and transparency. Allocation of QII Funding by Sector, FY17–FY23 5% $3,090,480 Digital Development 9% $5,708,070 Governance 30% 11% $19,122,630 229 Urban $7,397,310 Energy TOTAL GRANTS $64.1 MILLION 20% 25% $12,927,790 $15,882,743 Water Transport 44    Quality Infrastructure Investment Partnership The distribution of projects by sector since inception has been evening out in recent years. From FY17–21, the urban and water sectors accounted for well over half of the portfolio. Today, they account for about half, with digital development, energy, governance, and transport steadily growing. Growth of QII Grant Portfolio by Sector, FY17–FY23 TOTAL FY17 $1,559,784 TOTAL FY18 $8,402,820 TOTAL FY19 $11,230,098 TOTAL FY20 $16,525,277 TOTAL FY21 $25,017,073 TOTAL FY22 $49,933,523 TOTAL FY23 $64,129,023 millions $0 $10 $20 $30 $40 $50 $60 Digital Development Energy & Extractives Governance Transport Urban Water Annual Report 2023      45 GEOGRAPHICAL REACH The number of countries reached by the QII Partnership continues to grow. By the end of FY23, QII Partnership grants reached 75 countries across all regions, up from 66 in the prior fiscal year. The top five recipient countries, each with over $2 million in grants, are India ($5.2 million), Bangladesh ($3.2 million), Indonesia ($2.4 million), Mozambique ($2.2 million), and Brazil ($2.1 million). Argentina, Djibouti, Mongolia, Nepal, Peru, Philippines, Tanzania, and Viet Nam each received more than $1 million. Dollar Value of Grant Approvals ($) $37,000 $5.2 million 46    Quality Infrastructure Investment Partnership Sub-Saharan Africa (SSA) has become the biggest beneficiary region, receiving nearly $17 million— over one-quarter of total funding—since FY17. The South Asia Region (SAR) follows with $11.5 million (18 percent), with Europe and Central Asia (ECA) in third place with $8.7 million (14 percent). Activities implemented, FY17–FY23 EAP SSA 12% | $7.4 m 26% | $16.9 m ECA 229 14% | $8.7 m TOTAL GRANTS $64.1 MILLION SAR GLOBAL 18% | $11.5 m 9% | $5.9 m LAC 13% | $8.2 m MENA 9% | $5.5 m EAP ECA GLOBAL LAC MENA SAR SSA Annual Report 2023      47 The QII Partnership's IMPACT ON WORLD BANK OPERATIONS Since its inception, the QII Partnership has preparation and implementation of World approved about $57.8 million for 201 standard Bank operations in equal measure. and JIT grants, up from $47 million approved by the end of FY22. These grants help World QII Partnership grants add significant value Bank operational teams incorporate the QII to World Bank infrastructure operations: every Principles in infrastructure projects valued dollar of QII Partnership funding supports ap- at almost $50 billion. Grants support the proximately $850 in World Bank investments. Preparation: Standard Grant $27.9 million $22.7 billion QII Approved WB Operations Preparation: JIT 49% $0.5 million $1.3 billion 201 Preparation QII Approved WB Operations TOTAL STANDARD & JIT GRANTS 51% Implementation: Standard Grant $57.8 MILLION Implementation $27.6 million $18.1 billion & Supervision QII Approved WB Operations Implementation: JIT $1.8 million $7.3 billion QII Approved WB Operations Preparation Total Implementation & Supervision Total $28.4 million $24 billion $29.4 million $25.4 billion QII Approved WB Operations QII Approved WB Operations Grand Total QII Approved  |  $57.8 million WB Operations  |  $49.4 billion 48    Quality Infrastructure Investment Partnership CASE STUDY QII.3 QII.4 BENIN ENVIRONMENT RESILIENCE Improving Cotonou’s QII.6 GOVERNANCE Drainage Infrastructure Cotonou, the economic capital of Benin with The project integrated key QII Principles such over 1 million residents, suffers from severe and as environmental considerations (QII.3), resil- recurrent flooding due to its unique geography ience (QII.4), and governance (QII.6) into the of having a low-lying coastline, shallow water design of activities and expected outputs. It table, and exposure to coastal erosion and sea brought in technical mapping and modeling level rise. This flooding exacerbates poverty expertise to inform the development of a and stunts the city’s economic potential. A key drainage maintenance plans. It focused on factor worsening the flooding is Cotonou’s transferrable three-year maintenance plans poor operation and maintenance of its urban that can serve as a model across all 50 of drainage infrastructure. Cotonou’s drainage basins. Independent technical support provided to the municipality A $100 million World Bank project, the Benin aims to strengthen its capacity to negotiate Stormwater Management and Urban Resilience infrastructure management responsibilities Project, aims to reduce flood risk and strengthen with the national government for greater resilience in selected areas of Cotonou. A grant resilience. from the QII Partnership targets the operation and maintenance systems for Cotonou’s drain- QII Partnership support has already influenced age infrastructure. Activities include developing the design of the larger World Bank operation, three-year rolling plans and annual budgets for ensuring the incorporation of robust operation drainage asset management and maintenance, and maintenance processes. The three-year building the technical capacity of municipal staff maintenance plans and partnership agreement responsible for drainage upkeep, designing a offer replicable models for Cotonou’s drainage performance assessment system to monitor the infrastructure and have inspired a new $400 municipality’s maintenance capabilities, and million World Bank resilient cities program. preparing a framework agreement detailing Pending capacity building activities will further responsibilities between the city and national enhance the municipality’s technical expertise government. The grant also funded the develop- for sustainable drainage management. There ment of a geographic information system data- is significant potential for replicating this flood base and related training for the municipality of risk management approach in other sectors Cotonou, implemented by the 2iE Institute. and countries. Annual Report 2022      49 REVIEW OF FY23 Review of FY23 FY23 saw continued growth of the QII Partnership grant portfolio. A total of $14.2 million was approved for 54 new grants across all regions, which is expected to leverage $10.8 billion in World Bank investments. Despite this, demand for QII Partnership services remains strong, reflecting the growing experience and awareness of the value of the QII Principles in World Bank infrastructure projects. Better outreach and the success of targeted Call for Proposals contribute to this success. QII Partnership grants contribute significantly to World Bank operations. In FY23, each dollar of QII Partnership grants leveraged over $850 in World Bank infrastructure operations. 52    Quality Infrastructure Investment Partnership GRANT TYPE As in previous years, FY23 results indicate that demand for standard grants remains the highest, accounting for 81.7 percent of the total by value. Analytical work accounted for 10 grants (16.2 percent) and JIT grants for the remaining five (2.1 percent). Number of Grants 39 5 10 Grant Value $11.6 million $2.3 million 81.7% 2.4% |  $0.3 million 15.8% 100% Standard Grants JIT Analytical Annual Report 2023      53 SECTOR The sectoral breakdown for FY23 reflects a more even distribution than in FY22. The top four sectors—water, transport, energy, and urban infra- structure—account for 17–21 percent of each of the total portfolio by grant value. Digital accounts for 11 percent of the total portfolio by value (see next section). It is worth noting that these consist of projects generated by the Digital Global Practice. Many projects in other sectors also include digital components. Energy and water together account for 41 percent of the portfolio by value. These are followed by governance (11.3 percent), up slightly from FY22. The growth in grants for digital development reflects the QII Partnership’s strategic priorities. An independent review by Steer found that the QII Partnership has a comparative advantage in integrating digital solutions across critical infrastructure. Number of Grants 15 8 11 10 6 4 Grant Value $2.9 $2.9 $2.8 $2.4 $1.6 $1.6 million million million million million million 20.4% 20.4% 19.7% 16.9% 11.3% 11.3% 100% Water Energy & Extractives Transport Urban Governance Digital Development 54    Quality Infrastructure Investment Partnership Pioneering Digital Transformation The QII Partnership’s digital portfolio includes is intensifying its focus on incorporating digital grants supporting projects in the World Bank’s innovation with an emphasis on cybersecurity Digital Global Practice. Cross-sectoral opportu- across all infrastructure sectors. QII.4 (emphasiz- nities between digital development and other ing resilience) and QII.6 (improving infrastructure infrastructure sectors is increasing, including governance) serve as blueprints for teams to areas such as machine learning, artificial intelli- strengthen cybersecurity measures. gence, machine learning, and cybersecurity. Specific projects under consideration include In FY23, about half of QII Standard Grants offering technical support to electricity trans- include a digital component related to the mission system operators in Kazakhstan with planning, design, implementation, and manage- a focus on robust cybersecurity practices, ment of infrastructure projects, with an increased conducting a comprehensive analysis in focus on enhancing cybersecurity as well as Cameroon to identify strengths and weaknesses efficiency and transparency. in cybersecurity and advising the government on formulating effective digital security frame- Cybersecurity is also a top priority. With the works, and in energy analytics, leading the additional $2 million provided by Japan in FY23 way by integrating premier cybersecurity for digital development grants, the Partnership methods within energy utilities. Growth of Digital Development Grants Percent of Portfolio by Value 16 12 11.3% 8 7.1% 4 0.8% 0% 0 FY20 FY21 FY22 FY23 Annual Report 2023      55 REGION The QII Partnership has a substantial global reach, with programs across all regions. The portfolio focuses on Sub-Saharan Africa (28 percent), Eastern Europe and Central Asia (18 percent), and Latin America and the Caribbean (15 percent). The main difference is in South Asia, which accounts for 8 percent of projects in FY23 compared to 15 percent in FY22. Global activities, how- ever, increased to 15 percent from 5.5 percent in FY23. Number of Grants 25 16 13 10 8 6 6 Grant Value $4 $2.6 $2.2 $2.1 million million million million 28% 18% 15% 15% 8% |  $1.2 million 8% |  $1.1 million 7% |  $1 million 100% SSA ECA LAC GLOBAL EAP SAR MENA 56    Quality Infrastructure Investment Partnership Partnering for Impact The QII Partnership has been strengthening its by TDLC on nature-based solutions, where collaboration with other World Bank trust funds clients agreed on the direction of the to complement each other’s activities, share Nature-Based Solutions Manual. knowledge, and leverage Japanese expertise to promote quality infrastructure, climate GFDRR is another important partner. Given the adaptation, sustainable development, project intersection of the QII Principles with resilient cycle management, and digital transformation. infrastructure, the Partnership closely aligns with GFDRR and the DRM Hub to ensure the For example, in Ecuador, the QII Partnership is complementarity of our proposed activities and collaborating with PPIAF to develop a capital partnering for greater results. investment plan for potential transport infra- structure projects. PPIAF's expertise in capacity One of many examples is an activity entitled building and PPP regulation development is Enhancing Climate Adaptation & Resilience in vital to attract international private investment. Transport. The objective of the proposed grant Additionally, with involvement from the GIF, the is to standardize the processes of conducting Project Readiness Assessment methodology is climate risk assessments of transport networks being refined based on project screening results and systems and economic assessments for to enhance PPP regulations. transport resilience investments. The team collaborated closely with GFDRR on the project's In Kazakhstan, the QII Partnership is also team- development and will jointly lead the work. This ing up with PPIAF to perform a digital infrastruc- partnership ensures that both GFDRR's expertise ture gap analysis, providing recommendations and insights from the Transport Global Practice for a private capital mobilization mechanism are effectively leveraged. tailored for rural areas. Further collaboration with GIF strengthens the initiative by funding A QII Partnership initiative to develop quality pre-feasibility studies and market research, infrastructure diagnostic and planning toolkits aiming to leverage international channels to for water supply systems in India was informed boost domestic internet quality. by insights from the GFDRR-funded study, Resilient Water Supply and Sanitation Services: Collaboration with TDLC has also yielded fruitful The Case of Japan. QII collaborated with the results. The Partnership jointly implemented a Tokyo DRM Hub on an activity in South Sudan comprehensive technical deep dive, Advancing to strengthen disaster-resilient and inclusive Quality Urban Infrastructure, attracting over community infrastructure. The DRM Hub reached 30 participants from all six regions. Clients from out to 82 selected Japanese firms to encourage Yemen and Senegal participated in a TDD held them to participate in the bidding. 2023      57 Annual Report 2022  CASE STUDY QII.1 QII.2 QII.3 SUSTAINABLE ECONOMIC HAITI ENVIRONMENT GROWTH EFFICIENCY Improving Transport QII.4 RESILIENCE QII.5 SOCIAL QII.6 GOVERNANCE Infrastructure Haiti’s transport infrastructure is highly suscep- and community needs. The grant facilitated the tible to extreme weather, which has a significant development of a robust appraisal methodology impact on human development—it impairs to steer rural and urban transport infrastruc- access to vital services and limits economic ture investments, along with an online tool for opportunities, particularly in rural areas. Faced prioritizing and planning road interventions to with institutional fragility and limited financial maximize benefits for local communities. A study resources, the Haitian government recognized pinpointed infrastructure elements that promoted that enhancing transport infrastructure invest- increased road usage by women, ensuring wider ments would be crucial for national economic social benefits and prioritizing inclusivity for development. Subpar rural road networks women and other vulnerable groups. Finally, the obstruct access to markets and essential grant supported the development of pilot studies services, notably in impoverished rural areas. for urban transport corridors in Cap-Haitien, Haiti’s second-largest city, using satellite imag- The World Bank launched the five-year Haiti ery, local surveys, and aerial data from drones. Rural Accessibility and Resilience Project to These will enable the Haitian government and tackle these issues in 2018. It aimed to improve the city to design future urban transport policies all-weather road access to markets and vital more effectively. services in targeted regions and strengthen the resilience of 480 kilometers of road The activities applied all six QII Principles. They selected with input from local communities. maximized the positive impact and economic efficiency (QII.1-2) of infrastructure through A QII Partnership grant supported the project by enhanced decision making and prioritizing addressing institutional fragility, gender issues, efficient road rehab. They addressed environ- 58    Quality Infrastructure Investment Partnership mental sustainability (QII.3) via climate-resilient approaches. They built resilience against disasters (QII.4) by incorporating climate factors into cost-benefit analyses that informed transport policies. By engaging communities to identify needs and address road safety, they integrated social considerations (QII.5), prioritiz- ing roads used by women for eco- nomic activities and health access. Moreover, the government benefited from greater infrastructure gover- nance capacity (QII.6). These activities deepened the under- standing of Haiti’s transport issues, paving the way for the development of a resilient, sustainable, safe, gender-inclusive, and reliable trans- port system. They also informed a new lending operation aimed at improving Haiti’s urban transport resilience— the Resilient Connectivity and Urban Transport Accessibility Project, approved in May 2022. Annual Report 2023      59 Knowledge & OUTREACH A key role of the QII Partnership is to spread knowledge and awareness about the QII Principles and their contributions to sustainable infrastructure development. Given the growing relevance of QII, outreach has become even more critical. During FY23, the Partnership expanded its work in this area, leveraging its unique data and insights to disseminate lessons learned and advance understanding of QII Principles. 10 Approved Activities Totaling $2.25 Million Total Grant Value (US$) Number of Grants $600,000 4 $500,000 3 $400,000 $300,000 2 $200,000 1 $100,000 $0 0 Energy Governance Transport Urban Water Grant Amount (US$) Number of Grants 60    Quality Infrastructure Investment Partnership CREATING AND SHARING KNOWLEDGE The Analytical Window (AW) creates Preparing Water Sector Utilities valuable knowledge assets based on stand- to Initiate their Digital Transition alone research, analyses, and activities that builds on the World Bank's digital maturity advance global knowledge on the QII Principles. assessment tool. It offers a practical approach The AW presents an opportunity to increase to expanding knowledge of digital solutions and awareness of the QII Principles beyond projects introduces resilience and efficiency across the funded by the Standard Grant window and water and sanitation value chain. It emphasizes expands the available evidence base of the sustainable growth (QII.1) and environmental successful application of QII Principles across considerations (QII.3). the globe. It also positions the QII Partnership at the forefront of global knowledge and best The Guide to Access to Land for Sustainable practice on the QII Principles. Climate Action and Infrastructure will focus on building a bridge between the growing demand As the QII Partnership matures and the for land and the fulfillment of national climate number of funded activities increases, the pledges, which serve as a key foundation of the program is developing a unique body of World Bank’s approach to aligning with the Paris evidence and knowledge that can be leveraged Agreement. This work focuses on economic to support the QII Partnership analytic and efficiency (QII.2) and resilience (QII.4). knowledge agenda. In addition to the activities funded by the AW, the QII Secretariat is ramping Guidance and tools on the Adequate up its outreach and dissemination to promote Management of Fiscal Commitments and the QII Principles. In FY23, the QII Partnership Contingent Liabilities in infrastructure life- approved 10 grants totaling $2.25 million for cycle decisions will be developed and embed- analytical work. For example: ded in the broader fiscal management frame - works of countries to mitigate fiscal risks and reinforce debt sustainability. This initiative highlights governance (QII.6). Annual Report 2023      61 ACTIVITY REPORTS Numerous activity reports have been produced through QII-funded projects and are disseminated through blog posts, social media, and online. These are shared with the public through the QII website, blog posts, and social media. For example: Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized TechnicalG uidance Note Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Japa nGov TheG overnmento f Japa n Japa nGov The Government of Japa n � Assessing Economic Gender Dimensions Implementation of Efficiency of Long-term Road of Cross-Border Trade Innovative Bridge Asset Management Strategies in Tajikistan Technologies 62    Quality Infrastructure Investment Partnership EVENTS The QII Partnership held three events promoting the QII Principles in FY23: In October 2022, a panel discussion was held entitled Sustainable Quality Infrastructure Investment in a Time of Crisis: The Role of the Private Sector, Governments, and MDBs. The discussion focused on how governments and donors can promote QII and mobilize private finance. Policymakers, the World Bank, and the private sector offered insights on the driving factors needed to scale up long-term private capital for sustainable, quality infrastructure investments in emerging markets and developing economies (EMDEs). Kentaro Ogata, Deputy Vice Minister of Finance of the government of Japan, EVENTS delivered a video message. EQUITABLE GROWTH, FINANCE & INSTITUTIONS Governance A training event, Use of Life-Cycle Costing in Procure- ment of Infrastructure Projects: How to Achieve Value for Money, was held in November 2022. It captured the basic principles on the use of LCC at all stages of the procurement process with practical sector-specific case examples and recommendations. The training drew from the draft Practice Manual, which is being developed with support from QII. Another training event, Technical Deep Dive: Advancing Quality Urban Infrastructure, was held in early 2023. Participants learned how infrastructure investment follow- ing QII Principles can deliver value for money, sustain- ability, resilience, social inclusion, and sound governance. They also learned about innovative approaches for mobilizing finance and leveraging digital technology. These events were effective in bringing the discussion about QII to a high level among representatives and experts from governments, development institutions, the private sector, and other stakeholders. In addition to facil- itating knowledge sharing about QII, they gave participants opportunities for networking, increased the visibility of QII, and enabled practical learning about the application of QII. Annual Report 2023      63 COMMUNICATIONS Online outreach was strengthened to further promote the QII Principles. The QII Partnership website has expanded to include more blog posts, project briefs, and reports. In FY23, Japanese language content was added. The site allows readers to learn about the QII Principles, the Partnership, and access case studies, blog posts, reports, and other resources that show how the QII Principles are being applied in World Bank operations. In FY23, the QII website was viewed more than 10,200 times by over 4,000 people—a 21 percent increase over FY22. Of these visitors, 78 percent discovered the site via search, with the QII Partnership site ranking first when searching for "Quality Infrastructure Investment" in Google or Bing. Forty- two percent of visitors came from developing countries, mainly India, Indonesia, China, Brazil, and Türkiye. User engagement is excellent—66 percent of visitors are return visitors, suggesting that the website is providing value to its visitors. The average visitor spends about 2.5 minutes on the site. 64    Quality Infrastructure Investment Partnership The Partnership produced six blog posts in FY23, the majority of which exceeded 1,000 views within six months: • How battery storage PPPs are powering up the global energy transition • Making Yemen’s urban centers climate resilient (also in Japanese) • Performance-based contracts: Promoting quality road maintenance and economic efficiency  • Modular bridges: A climate-resilient solution for small bridges in the Pacific (also in Japanese) • From conflict to cooperation: Building a digital highway across the Western Balkans • Tajikistan: Empowering women in cross-border trade Multiple World Bank blogs have shown interest in QII-themed posts and welcome content provided by the Partnership. These include Getting Infrastructure Finance Right, the blog of the IPG, where the QII Partnership resides, as well as Sustainable Cities, Transport for Development, Voices: Perspectives for Development, and regional blogs. The Partnership also launched a series of project briefs entitled The QII Principles in Action, which highlight the impact of activities THE QII PRINCIPLES IN ACTION YEMEN supported by the QII Partnership. Seven were produced in FY23 for projects in Bangladesh, the Democratic Republic of Congo (DRC), YemenÕ s urban infrastructure is highly vulnerable to floods and other QII.3 ENVIRONMENT QII.4 RESILIENCE climate shocks. The World Bank is helping the country restore critical urban infrastructure and services resilient to climate challenges through the Yemen Integrated Urban Services Emergency Project (YIUSEP), Lao PDR, Mozambique, Tajikistan, Viet Nam, and Yemen. Project briefs are published on the QII website in both English and Japanese. now in its second phase. With a grant from the Quality Infrastructure QII.5 Investment (QII) Partnership, the project conducted climate risk assess- SOCIAL ments in 16 cities and built local capacity in disaster risk management, urban resilience, and quality infrastructure design. These activities are laying the foundation for climate adaptation in Yemeni cities. THE DEVELOPMENT CHALLENGE The conflict in Yemen has now raged for seven years. War-damaged urban infra structure, water shortages, flood damage, and limited government capacity have left two-thirds of a population of about 30 million without access to safe water, sanitation, and other essential services. These challenges are compounding a humanitarian crisis fueled by extreme poverty, food and water shortages, a cholera epidemic, The value of the project briefs is in illustrating how the QII Principles are applied in real-life infrastructure projects. They prove that QII is and disrupted healthcare services. Discussing climate action in Yemen may seem untimely given these crises, but the country is highly vulnerable to the most dangerous extremes of a changing climate. Rising sea levels, water scarcity, heat waves, dust storms, landslides, and flooding not just a theory; it is practical and usable in development contexts. threaten the country as climate change accelerates. The projected rise in the intensity and frequency of extreme temperatures will exacerbate the heat island effect in urban areas. Meanwhile, Yemeni cities struggle to provide even basic services. Disadvantaged . Progress is also underway in social media, where the QII Partnership’s online outreach is strongest. In January 2023, the Partnership launched a new LinkedIn page to replace a LinkedIn group established in FY22. The advantage of the page is that it can be accessed by any LinkedIn user seeking information about QII. The page also appears in searches. Within five months, it attracted over 1,000 followers—nearly double the number of members in the LinkedIn group. The site is useful for sharing information about QII and highlight- ing development challenges where the QII Principles could make a valuable contribution. Annual Report 2023      65 Monitoring & Evaluation A DEEPER LOOK AT THE QII PARTNERSHIP’S IMPACT A key function of the QII Partnership is to key emerging trends, develop knowledge materi- raise awareness and scale-up attention to als to enhance the sharing of lessons learned, quality dimensions of infrastructure in and propose refinements to the Partnership’s developing countries through financial business model, monitoring, and knowledge support for project preparation, implemen- management approach as necessary. tation, and analytical works. Extensive analysis was undertaken on 107 During FY23, the QII Partnership conducted a QII Partnership-funded grants approved as comprehensive review of its project portfolio of December 31, 2021. This involved thoroughly from 2017–21. The goal was to review the examining project documents, mapping each impact of the QII Partnership portfolio, identify activity against QII's detailed results indicators, 66    Quality Infrastructure Investment Partnership and spotting common cross-cutting themes for the collection and analysis of data, often using further examination. new technologies, enabled better data-driven and evidence-based project design. Third, The methodology specifically looked at which capacity building supported by the QII QII Principles were addressed most significantly, Partnership was instrumental in the success the use of Japanese expertise, the inclusion of of specific initiatives and in increasing the digital and climate components, activities in governance capabilities of client institutions. fragile countries, anticipated impacts, infra- Finally, the Partnership places an important structure sectors involved, and approaches emphasis on developing partnerships and for increasing private capital mobilization and collaborating with diverse stakeholders, includ- public-private collaboration. This methodology ing other development agencies like JICA and was developed to better mainstream the QII GFDRR, as well as national and subnational Principles in infrastructure development as well governments. This facilitates coordination as assess alignment with the priorities of both and integration. Japan and the World Bank. At the portfolio level, $31 million in QII The review also included deep dives on 24 Partnership grants influenced 95 World Bank selected projects, gathering insights on the operations valued at $18 billion, demonstrating tangible impacts of QII grants and lessons high impact and influence for the amount learned implementing QII Principles. This invested. Evidence from the 24 deep dives included in-depth interviews with task teams shows that it led to an additional $3 billion in and thematic analysis across key principles new World Bank lending operations. As a result, like sustainability, resilience, governance, the Partnership has had a high level of influence and inclusiveness. relative to its financial input. Findings QII provides an invaluable source of funding for critical aspects of quality in infrastructure design Overall, the analysis showed that the QII and implementation and supporting World Bank Partnership’s activities are effective, as operations so that they align with the GRID demonstrated by the level of influence on approach (incorporating environmental and targeted World Bank operations as well as gender consideration in project design, in generating new ones. The flexible nature governance, and LCC). of the QII Partnership’s activities, working across all regions and six infrastructure The review also found that the QII Partnership’s sectors, contributes to its effectiveness. processes and procedures are fit for purpose. However, as the portfolio expands, M&E and First, the Partnership’s activities led to improved knowledge activities should be strengthened infrastructure design across sectors. Second, to maximize visibility and demonstrate results. Annual Report 2023      67 ANNEXES ANNEX 1 ACTIVITIES INITIATED IN FY23 The following is a complete list of the 54 projects approved in FY23 by sector. Total funds invested by the QII Partnership totaled $14.2 million and supported $11 billion in World Bank Operations. DIGITAL DEVELOPMENT PROJECT GRANT TYPE/AMOUNT Cameroon: Strengthening Cybersecurity Foundations Standard / $400,000 Chad: Resilient, Green, and Secure Digital Infrastructure Standard / $400,000 Gabon: Strengthening Cybersecurity Foundations Standard / $400,000 Philippines: Digital Infrastructure Assessments Standard / $400,000 TOTAL $1.60 MILLION 70    Quality Infrastructure Investment Partnership ENERGY PROJECT GRANT TYPE/AMOUNT Belize: Battery Energy Storage Standard / $250,000 Chile: Supporting the Enabling Environment for Green, Resilient and Standard / $400,000 Inclusive Hydrogen Industry Georgia: Enhancing Readiness for the Black Sea Undersea Cable Project Standard / $400,000 Global: Energy Data Integration and Innovation Hub Analytical / $500,000 Lebanon: Modernizing the Electricity Utility Towards Energy Transition Standard / $350,000 Rwanda: Exploring Enabling Energy Frameworks for Battery Standard / $350,000 Electric Buses South Africa: Battery Storage Value Chain Establishment and Standard / $250,000 Knowledge Enhancement Türkiye: Supporting the Scale Up of Distributed Renewable Energy Standard / $350,000 Investments in the Public Sector TOTAL $2.85 MILLION GOVERNANCE PROJECT GRANT TYPE/AMOUNT Albania: Building Quality Digital Infrastructure by Strengthening Program Standard / $375,000 Implementation, Accelerating Results, and Scaling Innovations Brazil: Strengthening Public Investment Systems to Advance Standard / $250,000 Climate-Smart Infrastructure Global: Guidance and Tools for the Adequate Management of Fiscal Analytical / $100,000 Commitments and Contingent Liabilities (FCCL) from PPPs Global: Hybrid PPP Framework Guidance Note and Toolkit Analytical / $100,000 Global: Infrastructure Governance (InfraGov) Assessment Analytical / $350,000 Framework-Update and Reference Guide Kosovo: Supporting Sustainable Digital Infrastructure through Innovation Standard / $400,000 TOTAL $1.58 MILLION Annual Report 2023      71 TRANSPORT PROJECT GRANT TYPE/AMOUNT Bosnia & Herzegovina: Supporting Low-emission Urban Mobility Standard / $280,000 Egypt: Decarbonizing the Rail Sector Standard / $280,000 El Salvador: Resilient Connectivity for Regional Economic Corridors Standard / $146,500 Global: Mainstreaming Innovative Economics for Transport Analytical / $200,000 Climate-resilient Investments Haiti and Saint Lucia: Nature-based Solutions for Resilient Airport Standard / $280,000 Infrastructure in the Caribbean Indonesia: Developing Sustainable Mass Transit (Phase 2) Standard / $200,000 Jordan: Integrating Public Transport and Urban Planning in Amman Standard / $350,000 Kenya: Green Transition and Land Value Capture for Nairobi’s Standard / $280,000 Commuter Rail Services Philippines: Trade-oriented Transport Connectivity and Port Standard / $280,000 Infrastructure Development South Sudan: Embedding Nature-based Solutions to Climate Standard / $280,000 Resilience in the Transport System SSA: Transport and Logistics for Food Security and Fertilizer Analytical / $200,000 Trade in Sub-Saharan Africa TOTAL $2.78 MILLION 72    Quality Infrastructure Investment Partnership URBAN INFRASTRUCTURE PROJECT GRANT TYPE/AMOUNT Dominica: Nature-based Solutions in Road Infrastructure Just-in-time / $70,000 Ethiopia: Technical Assistance for Infrastructure Quality Improvement Standard / $350,000 Global: Guide for Access to Land for Climate Action and Infrastructure Analytical / $200,000 Global: Japan Case Study on Advancing Quality Urban Infrastructure Analytical / $100,000 Investment and Services through Innovation and Digital Transformation Global: Land-use Planning Instruments and Controls Analytical / $200,000 Grenada: Enhancing Resilience for Critical Infrastructure and Standard / $250,000 Capacities of Key Implementing Agencies Indonesia: Technical Assistance for Sustainable Solid Waste Standard / $300,000 Management and Municipal Service Delivery Kenya: Support to Infrastructure Design and Service Delivery Standard / $350,000 Pakistan: Enhancing Quality Infrastructure Investments for Standard / $300,000 Affordable Housing and Urban Development in Punjab Uzbekistan: Piloting the Greening Master Plan for Namangan Standard / $300,000 Urban Agglomeration TOTAL $2.42 MILLION Annual Report 2023      73 WATER PROJECT GRANT TYPE/AMOUNT Bangladesh: Flood Risk Analysis and Environmental and Social Standard / $200,000 Vulnerability Identification for Dhaka Rivers Ecological Restoration Bosnia & Herzegovina: Climate-resilient Water Management Standard / $150,000 in the Trebizat River Basin Chile: Greener and More Participatory Infrastructure Standard / $275,000 Dominican Republic: Water Sector Modernization Program Standard / $250,000 Georgia: Resilient Agriculture, Irrigation, and Land Project Just-in-time / $70,000 Global: Preparing Water Supply & Sanitation Utilities to Initiate Analytical / $300,000 the Digital Journey India: Innovations in Strengthening Last-Mile Delivery Institutions Standard / $175,000 for Rural Water Supply India: Support to Sustainable, Efficient, and Inclusive Water Supply Just-in-time / $70,000 Services in Chennai India: Technical Assistance to Strengthen Community-led Just-in-time / $70,000 Groundwater Governance in India Indonesia: Irrigation Performance Assessment through Remote Sensing Just-in-time / $64,000 Pakistan: Improving Water Supply Services in Quetta, Baluchistan Standard / $300,000 SSA: Hands-on Support for Improving Infrastructure Planning and Operation and Sustainable Asset Management in Eastern Standard / $300,000 and Southern Africa SSA: Supporting Universal Access to Water Supply, Sanitation, and Standard / $300,000 Hygiene Services in Healthcare Settings in Multiple African Countries Tanzania: Development of a Data Monitoring and Visualization Tool for Supporting Universal Access to Rural Water Supply Standard / $150,000 and Sanitation Services Türkiye: Supporting the Marmara Sea Integrated Strategic Plan Standard / $300,000 with Wastewater Treatment Plants TOTAL $2.97 MILLION 74    Quality Infrastructure Investment Partnership ANNEX 2 ACTIVITIES COMPLETED IN FY23 BY SECTOR Twenty-four QII Partnership grants valued at $5.69 million were completed in FY23. These activities supported World Bank projects totaling $5.10 billion. ENERGY PROJECT GRANT TYPE/AMOUNT Central African Republic: Improving Infrastructure-based Standard / $403,000 Service Delivery ECA: Energy Sector Decarbonization Support Program Analytical / $150,000 Kyrgyz Republic: Energy Sector Financial Sustainability Just-in-time / $70,000 Seychelles: Transition to Renewable Energy Standard / $284,000 TOTAL $907,000 GOVERNANCE PROJECT GRANT TYPE/AMOUNT Indonesia: State-owned Enterprise Governance Reform Analytical / $250,000 TOTAL $250,000 Annual Report 2023      75 TRANSPORT PROJECT GRANT TYPE/AMOUNT Brazil: Smart Metrorail Development Standard / $489,000 Brazil: Support for the East-West Freight Rail Corridor Standard / $400,000 Global: Assessing the Economic Efficiency of Long-term Road Standard / $623,000 Asset Management Strategies Global: Reviving Suburban Rail for Green Development Analytical / $204,000 Indonesia: Developing Sustainable Mass Transit in Greater Standard / $390,000 Bandung & Medan Mongolia: Infrastructure Governance Diagnostics and Pre-feasibility Just-in-time / $70,000 of PSP in Logistics Infrastructure Philippines: Advancing Efficient and High-quality Public Transport Standard / $448,000 Development in Metro Manila TOTAL $2.62 MILLION URBAN INFRASTRUCTURE PROJECT GRANT TYPE/AMOUNT Djibouti: Support to Digitalization of Land Administration Systems Analytical / $240,000 in the MNA Region India: Technical Assistance for Resilient Sanitation Services in Kerala Standard / $449,000 Nepal: Support for Municipal Urban Infrastructure Investments Standard / $499,000 Yemen: Enhancing the Quality of Climate Resilient Infrastructure Standard / $400,000 Design Approaches in Yemeni Cities TOTAL $1.59 MILLION 76    Quality Infrastructure Investment Partnership WATER PROJECT GRANT TYPE/AMOUNT Argentina: Nature-based Solutions to Increase Resilience Just-in-time / $69,000 in Buenos Aires Bangladesh: Infrastructure Design Improvement and Institutional Capacity Strengthening for the Chattogram Water Supply Just-in-time / $60,000 Improvement and Sanitation Project Moldova: Investing in Quality Water Security Infrastructure Just-in-time / $65,000 Morocco: Resilient and Sustainable Water in Agriculture Just-in-time / $67,000 Türkiye: Technical Support for Innovative Priority WASH Infrastructure Just-in-time / $63,000 Interventions in Low-income Host and Refugee Communities TOTAL $324,000 Annual Report 2023      77 CREDITS Cover Maarten Zeehandelaar / shutterstock.com Page 34 Benoit Daoust / shutterstock.com Page i Khoi Dang Photography / shutterstock.com Page 36 g_art08 / shutterstock.com Page 1 hrui / shutterstock.com Page 39 Joa Souza / shutterstock.com Page 3 chuyuss / shutterstock.com Page 40 Abdul Razak Latif / shutterstock.com Page 4 Asian Development Bank Page 43 Sujitra Chaowdee / shutterstock.com Page 7 22 Images Studio / shutterstock.com Page 47 Sope Adelaja/ shutterstock.com Page 8 Alex Anton / shutterstock.com Page 50 asharkyu/ shutterstock.com Page 11 Asian Development Bank Page 52 Juice Flair/ shutterstock.com Page 16 r.classen / shutterstock.com Page 56 Fotos593/ shutterstock.com Page 19 Magdy Farouk / shutterstock.com Page 59 aawiseman / CC BY-NC 2.0 Deed Page 20 Prashanth Vishwanathan / IWMI Page 61 People Image Studio/ shutterstock.com Page 23 Yasemin Olgunoz Berber / shutterstock.com Page 62 Emily Marie Wilson/ shutterstock.com Page 24 Vietnam Stock Images / shutterstock.com Page 66 Asian Development Bank Page 26 Imran Khan's Photography / shutterstock.com Page 68 Globe Guide Media Inc / shutterstock.com Page 29 marako85 / shutterstock.com Page 70 Ashutosh Negi / UN Women Page 30 em faies / shutterstock.com Page 77 SpiritArt / shutterstock.com Page 32 GBJSTOCK / shutterstock.com Back Cover Nguyen Quang Ngoc Tonkin / shutterstock.com 78    Quality Infrastructure Investment Partnership JapanGov The Government of Japan