Understanding What is at Stake

At a Glance
  • The first step for governments is to assess the players involved and determine how extractive industry financed infrastructure investments fit into local, national, and regional infrastructure plans. 
  • Spatial development initiatives that use Geographic Information Systems (GIS) to map out potential economic activities should be done with industries linked to the extractive industry project itself – analyzing the potential for upstream, side-stream, and downstream industries.
  • Identifying shared infrastructure platforms can promote economies of scale, potentially reduce environmental disruption, and create the basis for engaging other partners, designing cost-sharing arrangements or informing policy.
  • A well-functioning resource corridor not only requires shared-use access regulation to the transport infrastructure, but significant hard and soft infrastructure investments by the various stakeholders including the government.

Similarly, to the transport infrastructure section, the first step for the government is to assess who are the players involved, and how extractive industry financed infrastructure investments fit into the local, national, and regional infrastructure plans. Government must review with care whether the geographic area surrounding the transport infrastructure has growth pole potential and what resources need to be used by the various stakeholders to unlock this potential.

Spatial development initiatives that use Geographic Information Systems (GIS) to map out potential economic activities can be useful as a support. This should be done with industries linked to the extractive industry project itself – analyzing the potential for upstream, sidestream, and downstream industries; and economic activity that is not necessarily linked with the extractive industry project but can benefit from improved access to infrastructure. Such analyses should also take into consideration population centers and how infrastructure access could lead to increased mobility between cities. Furthermore, options for linking these transport solutions to neighboring countries leading to increased trade should be assessed.

GIS can be used to support corridor planning. An aspirational plan should be developed that indicates the infrastructure necessary for national development within 10 years (including power, roads, rail, energy, ports, fiber-optic cables, and mobile telephone networks) and how the various infrastructure networks (transport, ICT, energy), overseen by different ministries, interact to promote corridor development. The goal of this map is to help identify the potential for shared-use infrastructure platforms between natural resource concessionaires and other users. Identifying shared infrastructure platforms can promote economies of scale, potentially reduce environmental disruption, and create the basis for engaging other partners, designing cost-sharing arrangements or informing policy.

As outlined in the overview of this subtopic, a well-functioning resource corridor not only requires shared-use access regulation to the transport infrastructure, but significant hard and soft infrastructure investments by the various stakeholders including the government. Therefore, a detailed cost-benefit analysis needs to be undertaken that also assesses the opportunity cost of government spending in other areas (or along other infrastructure corridors). Negative social and environmental externalities should also be included in such assessment with appropriate costing methodologies. The documents prepared for the Nacala case study which can be found in the key resources of Creating Resource Corridors  provide a good illustration of what details should be included in plans.

 

 

 

 

 

Key Resources