The World Bank (WB) has said that it would increase infrastructure investments to 45 billion USD over the next three years, an increase of 15 billion USD over the three years preceding the crisis, to provide the foundation for rapid recovery from the global economic crisis.
“Investments in infrastructure can provide the platform for job creation, sustainable economic growth and overcoming poverty, and help jump start a recovery from the crisis,” WB President Robert B. Zoellick was quoted by news agencies as saying at the WB/IMF Spring Meetings.
The Latin American and Asian crisis showed how countries can suffer from a decline in infrastructure, leaving a weaker foundation for long-term economic growth that hits the poorest the hardest, said the World Bank chief, adding that infrastructure is also crucial to supporting agriculture.
In addition, IFC, the World Bank's member focused on private sector investments, set-up an Infrastructure Crisis Facility (ICF), which was developed to bridge the gap in available financing for viable, privately-funded or public private partnership infrastructure projects in emerging markets that are facing financial distress as a result of the financial crisis.
IFC will contribute up to 300 million USD in equity with other sources expected to bring in at least 2 billion USD more to co-finance infrastructure projects./.