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Africa’s economic growth during the last decade has remained relatively robust despite some countries facing strong headwinds – from the Ebola epidemic to the weakening of global commodity prices and capital flows.This trend is likely to continue in 2016, according to the economic forecast, particularly for sub-Saharan Africa. However, growth is expected at a level below the region’s potential which is compounded by continuing global challenges. The contribution of infrastructure to this economic resilience is significant; yet as noted by the African Development Bank “the poor state of infrastructure in sub-Saharan Africa—electricity, water, roads, and information and communications technology—cuts national economic growth by two percentage points every year and reduces productivity by as much as 40 percent.”Additionally, the number of Africans who will be living in urban areas by 2030 is expected to rise from 36 percent in 2010 to 50 percent. This bourgeoning urbanization presents economic opportunities, but it also serves as a reminder of the infrastructure challenges that it could face, such as those in Asia and Latin America. For instance, in 2010 an estimated 60 percent of the urban population in sub-Saharan cities lived in slums with no access to basic services.During the next decade, African governments should embark on a sprint to bridge infrastructure gaps that could help position their countries toward more sustained growth. The region will need $93 billion per year to fill the infrastructure gap. What are the right projects? Where will the funding come from? Who are the right partners to help deliver the projects? These are looming issues that are not mutually exclusive.Infrastructure projects take time to deliver. For this reason, they must be bankable—having the right policies, projects, and partners—and be a priority for governments, as infrastructure projects can be the bottleneck to broader sustainable development. They play a key role by having in place domestic policies and functioning institutions that promote capacity, dialogue, and coordination.Because every country has unique business environments, policies, and ambitions, we always look for strong decisive leadership and a political champion for a specific infrastructure project. There are a number of projects critical to each country, which can be very complex in size and scope. Focusing on a shortlist of no more than three to five large infrastructure projects each year improves the likelihood that they can be delivered.Moreover, governments should take the lead on large infrastructure projects—such as major highways, greenfield freight rail, and urban light rail—and the initial greenfield port project. When there are lots of project unknowns and associated risks, relying solely on the private sector to deliver under a Public Private Partnership (PPP) or Build-Operate-Transfer (BOT) model can result in countries falling short of the expected socio-economic benefits. Private investments, on the other hand, should focus on projects that are bankable and can quickly reach financial closure—power projects, expansion of existing airports and marine ports, and manufacturing/service industries.Governments are also better positioned to secure external funding, including international export credit, which is significantly cheaper than what private equity firms would be able to provide. When these projects are being developed, private funding institutions require a high conservative contingency allowance for all the elements of the project making capital expenditure (capex) too high and the projects no longer bankable.One of the important benefits of infrastructure projects is building national capabilities—local content—within government institutions and employment sectors through knowledge transfer, skills building, direct employment, and building private-sector development. Bechtel has a long history of optimizing and maximizing local capabilities through our projects around the world. We have also seen the downside of these projects when governments impose unrealistic local content requirements. In the absence of critical local knowledge and know-how, or when governments restrict non-nationalist, the project may be delivered with reduced quality, more schedule delays, and increased costs.While many African governments continue to face a number of financing constraints, including budgetary restrictions and backlogs of yet-to-be-approved projects, external funding from private and public financial institutions is essential. This is why bankability is so important, as it is unlikely that external financiers will invest in an environment marred by uncertainty.Partners, such as Bechtel, can play a strategic role. In Gabon, Bechtel’s approach to help the government deliver a $25 billion infrastructure plan consists of organizing and co-managing the l’Agence Nationale des Grands Travaux, a government agency that oversees the execution and delivery of the plan with various ministries and government agencies. As part of this program, Bechtel supports the government in reviewing and prioritizing the projects for their social and economic benefits, and developing the best delivery model for each individual project.As African governments are formulating legislation to boost infrastructure, it is important to understand other international policies, projects, and partnerships that have been successful. Bechtel has worked in 160 countries and delivered 25,000 projects. We have seen the extraordinary benefits that infrastructure can deliver to global development.

Access to water is a global issue that, according to the World Resources Institute, affects more than a billion people. By 2025, it is estimated that 3.5 billion people may live with extreme water scarcity. Bechtel colleagues and partners today work with vulnerable communities around the world to build resilient infrastructure and improve access to safe, reliable drinking water.UgandaThirty-seven percent of the world’s population without access to clean water lives in sub-Saharan Africa. The region is facing significant challenges to provide safe drinking water for families and communities.One such community is the village of Mikomago, located in the Kyanamukaaka county of Uganda. Families, particularly young children, walk long distances across steep terrain to collect water from open pits and shallow wells. The water that they collect from these unprotected sources is contaminated with bacteria, which is contributing to severe community health issues.Engineers Without Borders (EWB)-USA and several Bechtel volunteers are working with the Mikomago Water Committee, which Bechtel helped re-establish, and the Mwangwe Rural Development Association to assess the community’s current needs and future uses for water. Together, we will help develop, design, and construct a sustainable water system that will include a deep well and submersible pump. We will then transfer this knowledge and know-how to the community. This project will affect about 1,700 people.HondurasCentral America faces a number of extreme weather events, including hurricanes, floods, and droughts, that affect water access and quality.In El Sauce, a remote village in Cortés, Honduras, more than half of the community’s residents highlighted the challenges they face with the current water supply system. The initial assessment of the community’s water distribution network showed insufficient water availability for the residents. In addition, quality tests revealed bacterial contamination throughout the entire system.Today, Bechtel and our partners are delivering a project to improve water development, storage, treatment, and distribution to the existing system. We will also train the residents on how to maintain the system after it is complete. The project will affect nearly 600 people.South DakotaA study by the Natural Resources Defense Council found that drinking water in 19 cities in the United States is affected by pollution, old pipes, or outdated treatment systems.Cedar Gulch, a community outside of Rapid City, received a notice of violation in connection to the United States Safe Drinking Water Act for excessive radium content in the water supply. The community of 27 residents in 10 homes obtain their water from an offsite, 2,500-foot-deep well on a neighboring ranch. In partnership with the South Dakota State University (SDSU) EWB chapter and the Community Engineering Corps, Bechtel colleagues are developing an assessment of the water supply treatment options in order to meet the requirements of the Act. We will also mentor SDSU students to help them conduct their own alternative analyses and designs.Whether we are delivering a 695-megawatt hydropower project in Canada or a clean water system for a Ugandan village, Bechtel colleagues are committed to building resilient communities and helping people access safe, reliable water.