Private Solutions for Infrastructure in Lesotho : A Country Framework Report

The report looks at Lesotho, a predominantly mountainous, land-locked, poor country with a small population, limited natural resources, and a very fragile ecology. It has low gross national income, and a significant poverty level. To ameliorate this condition, the government has embarked on a pro-poor, growth strategy that includes public, and private investment in infrastructure. It explores the level of private participation at this phase in the evolution of the reforms, which is considerable, given the country's small size, limited institutional capacity, and lack of public and private investment capital. Telecommunications has recorded the most significant reform of any of the infrastructure sectors. Other than telecommunications, reforms in other sectors have not advanced significantly. Not surprisingly, the report identifies specific lessons learned from the telecommunications sector, and examines their relevance to reform efforts under way in the other sectors. In summary, this report finds that private participation in infrastructure could offer Lesotho three key advantages: 1) augmenting budget resources in cases where the private sector undertakes to finance projects, or services that would not otherwise be funded, 2) improving the quality and efficiency of service delivery, and, 3) accelerating investments in infrastructure. By the same token, the report makes clear that private participation in infrastructure (PPI) carries significant down-side risks that, despite the best of intentions, could lead to negative fiscal impacts, lower than expected service quality, disruptions to service, or more dire consequences. The report presents an action plan with three primary elements: 1) the creation of a PPI Facilitation Unit to assist line ministries in implementing PPI projects; 2) specific priorities pertinent to each respective infrastructure sector; and, 3) cross-cutting reform measures addressing policy, regulatory, and legal actions needed to provide an enabling framework, and facilitating environment for PPI projects.

Bibliographic Details

Main Author:	Public-Private Infrastructure Advisory Facility
Language:	English en_US
Published:	Washington, DC: World Bank 2004
Subjects:	ACCESS TO CAPITAL, ACCESS TO INFORMATION, BASIC INFRASTRUCTURE, BASIC SERVICES, BOT, BROAD STAKEHOLDER, BUSINESS ENVIRONMENT, CAPACITY BUILDING, CAPITAL EXPENDITURE, CENTRAL GOVERNMENT, COMMUNICATIONS SERVICES, COMMUNITY DEVELOPMENT, COMPETITIVE BIDDING, COMPETITIVE BIDDING PROCESS, COMPETITIVE PRESSURE, CONNECTION CHARGE, CONNECTION FEE, CONTRACT PERIOD, CORPORATION, COST RECOVERY, COST RECOVERY LEVELS, COSTS OF SERVICE, DISPUTE RESOLUTION, DISTRIBUTION UTILITIES, DIVERSIFICATION, ECOLOGY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EFFICIENCY OF SERVICE, EFFICIENCY OF SERVICE DELIVERY, EFFLUENTS, ELECTRICITY, ELECTRICITY DEMAND, ELECTRICITY SECTOR, ELECTRICITY TARIFF, EMPLOYMENT, ENVIRONMENTAL, ENVIRONMENTAL ISSUES, ENVIRONMENTAL POLICY, EXCLUSIVE LICENSE, EXPANSION, EXPENDITURES, FIXED COSTS, FOREIGN DIRECT INVESTMENT, FREIGHT, GNP, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, HOUSEHOLDS, HUMAN CAPITAL, IMPORTS, INCOME DISTRIBUTION, INCOME LEVELS, INDUSTRIAL WATER, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PROJECTS, INFRASTRUCTURE REFORM, INFRASTRUCTURE SECTORS, INFRASTRUCTURE SERVICES, INVESTMENT CAPITAL, KEY INFRASTRUCTURE, LAND USE, LEASING, LEGAL STATUS, LEGISLATION, LEVIES, LICENSES, LICENSING, LOCAL CONTRACTORS, LOCAL GOVERNMENTS, MACROECONOMIC CONDITIONS, MARKET LIBERALIZATION, NATIONAL INCOME, NATURAL RESOURCES, OLIGOPOLY, OPERATIONAL FUNCTIONS, PERFORMANCE AGREEMENT, PERFORMANCE CONTRACTS, PERFORMANCE TARGETS, PIT LATRINES, POLLUTION, POTABLE WATER, PRIVATE INFRASTRUCTURE, PRIVATE INVESTMENT, PRIVATE INVESTMENT IN INFRASTRUCTURE, PRIVATE INVESTORS, PRIVATE OPERATORS, PRIVATE PARTICIPATION, PRIVATE PARTNERSHIP, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR INVOLVEMENT, PRIVATE SECTOR PARTICIPATION, PRIVATIZATION, PRIVATIZATION EFFORTS, PRIVATIZATION PROGRAM, PUBLIC, PUBLIC FINANCE, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC TRANSPORTATION, PUBLIC WORKS, PURCHASING POWER, RAW WATER, RECLAMATION, REGULATORY AGENCY, REGULATORY CAPACITY, REGULATORY CHANGES, REGULATORY COMMISSION, REGULATORY FRAMEWORK, REGULATORY INDEPENDENCE, REGULATORY PROCESSES, REGULATORY REFORM, REGULATORY REFORMS, ROAD SECTOR, ROADS, RURAL WATER, RURAL WATER SUPPLY, SANITATION, SANITATION AUTHORITY, SANITATION SECTOR, SERVICE DELIVERY, SERVICE PROVIDER, SERVICE PROVIDERS, SERVICE QUALITY, SERVICE STANDARDS, SOLID WASTE, SUPPLY CHAIN, SUPPLY SITUATION, TARIFF ADJUSTMENTS, TARIFF REGULATION, TAX, TECHNICAL ASSISTANCE, TELECOMMUNICATIONS, TELECOMMUNICATIONS POLICY, TELECOMMUNICATIONS SERVICES, TOTAL COSTS, TRAFFIC, TRANSPORT SECTOR, TRANSPORTATION, UNIVERSAL SERVICE FUND, URBAN AREAS, URBAN PLANNING, URBANIZATION, UTILITIES, UTILITY MANAGEMENT, UTILITY SERVICES, VOIP, WASTE MANAGEMENT, WASTEWATER COLLECTION, WASTEWATER TARIFFS, WASTEWATER TREATMENT, WATER, WATER ABSTRACTION, WATER COMPANY, WATER CONSUMPTION, WATER DEPARTMENT, WATER RESOURCE, WATER REUSE, WATER SANITATION, WATER SECTOR, WATER SECTOR REFORM, WATER SUPPLY, WILLINGNESS TO PAY,
Online Access:	http://documents.worldbank.org/curated/en/2004/01/6431305/private-solutions-infrastructure-lesotho https://hdl.handle.net/10986/14837
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