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Primer: Extractives-Linked Infrastructure

  • Briefing

  • 27 April 2015

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Extraction projects may also require substantial infrastructure which can provide significant benefits in regions where the infrastructure is built. To enhance these benefits, the government, in discussion with companies, should consider making the infrastructure open to multiple users.

KEY MESSAGES

  • Extractive industries often require investment in large infrastructure projects (e.g., ports and railways) to be able to successfully bring the resource to market.
  • Unless there is active intervention by the government, enclave infrastructure investments may only benefit the extraction site, missing the opportunity to leverage economies of scale in the sector or meet the development needs of the community.
  • In order to be successful, the possibility of shared use of infrastructure should be considered in the early stages of the extractive project.
  • Governments also often use resource revenues to invest in large infrastructure projects, which must be closely monitored to avoid waste.

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