Partnering with multilateral development banks to create more sustainable roads in emerging markets
In partnership with multilateral development banks (MDBs) from around the globe, the GI Hub is helping governments and investors make roads in emerging markets more sustainable by providing access to a pipeline of InfraTech solutions that can be deployed at scale, and by helping InfraTech providers break into new markets.
How MDBs can support sustainable roads in emerging markets
MDBs are key investors and supporters for infrastructure and roads in emerging markets. As global leaders in developing and financing sustainable infrastructure projects, MDBs have firsthand knowledge of infrastructure projects in emerging markets and mandates to invest in and support sustainable infrastructure.
The GI Hub’s Infrastructure Monitor 2022 found MDBs play a major role as financiers of private investment in infrastructure throughout middle- and low-income countries. As well as financing infrastructure projects and providing technical support, MDBs can help crowd in more private capital to infrastructure directly and indirectly.
The need for technology to transform roads
Roads are among the most strategic development opportunities in the infrastructure sector. Globally, about USD218 billion (0.45% of global GDP) is spent on roads each year. This creates a sizable opportunity to shape more sustainable systems and ensure large investments in roads result in outcomes that align with the United Nations Sustainable Development Goals.
Technology maximises investments in infrastructure and enables us to do more with less by:
- Improving the efficiency of infrastructure investment and reducing cost overruns
- Enabling infrastructure to decarbonise and transition to net zero
- Bridging the infrastructure investment gap
- Creating social value through infrastructure.
A Call for Submissions for InfraTech solutions for sustainable roads in emerging markets
In 2023, the GI Hub partnered with eight MDBs to issue a Call for Submissions for solutions for sustainable roads in emerging markets, giving selected InfraTech providers the opportunity to present their solutions to MDBs to help them scale up the implementation of their solutions. Collectively, the countries served by these eight MDB partners represent about USD80 trillion in GDP (2015), or 99% of global GDP.
The Call for Submissions received a total of 42 submissions. Through an extensive prioritisation and evaluation process conducted by the GI Hub and an MDB expert panel, we identified the five solutions that best met the use cases set out by the expert panel. These top five were then given the opportunity to pitch their solution to MDBs for consideration on current and future road projects.
The top five solutions were:
Early data from this successful program indicate these technologies could be applied on a potential pipeline of 40-80 projects with an identified valued between USD800 million and USD1 billion.
Case studies for other short listed solutions are currently being developed and will be added to the GI Hub’s InfraTech Knowledge Hub.
African Development Bank Group (AfDB)
Asian Infrastructure Investment Bank (AIIB)
Asian Development Bank (ADB)
European Bank for Reconstruction and Development (EBRD)
Inter-American Development Bank (IADB)
Islamic Development Bank (IsDB)
The World Bank Global Infrastructure Facility (GIF)
The World Bank
The need for greater investment in InfraTech
The growth opportunities for InfraTech are significant. InfraTech is a long-term priority for the G20 under the G20 Riyadh InfraTech Agenda. In 2022 the GI Hub found that all G20 economies have long-term infrastructure plans and strategies that require the scalable adoption of InfraTech, and on average G20 economies are committing around 0.6% if their country's GDP annually to InfraTech-related investments.
However, even though InfraTech is a growing investment area, infrastructure continues to significantly underuse technology. Emerging markets are most impacted by climate change but have less capacity to invest in sustainable infrastructure and InfraTech.
More effort and investment are needed to help InfraTech solutions break into the infrastructure market; it is a monumental challenge for technologies to progress to their first commercial operation.
What's next?
To continue our efforts to scale up investment in InfraTech in emerging markets, the GI Hub is looking to replicate the successful 2023 Call for Submissions across other infrastructure sectors. We are interested in hearing from MDBs, governments, and other multilateral organisations to discuss future partnership opportunities.
We are also interested in hearing from InfraTech providers who wish to submit a case study to our knowledge hub.
For partnership opportunities or to suggest a case study, please contact us.
