DFID’s transport and urban infrastructure investments

Review

This review found there to be good performance on strategic approach and supporting multilateral finance, but a mixed record in the delivery of bilateral programmes. We made four recommendations and awarded a green-amber score.

Findings

• DFID’s transport and urban infrastructure work clearly supports three out of four strategic objectives in the UK aid strategy: promoting global prosperity, strengthening resilience and response to crisis, and tackling extreme poverty and helping the world’s most vulnerable.
• DFID has identified its comparative advantage alongside other development actors but its strategy needs further articulation, including how its infrastructure work fits alongside other UK aid spending departments’ activities.
• While some of DFID’s transport and urban infrastructure work has a pro-poor focus, its larger economic growth-focused programmes lack a systematic approach to including the poorest and most vulnerable groups.
• Programme performance has been mixed, with some strong results offset by frequent delays.
• DFID’s research and technical assistance has been very effective, in influencing both host country and multilateral programmes.
• DFID relies on the safeguarding policies of its multilateral partners, but is not active enough in ensuring that these are effectively implemented.
• DFID is increasing its engagement with China on infrastructure issues, but could do more to help partner countries make informed infrastructure finance choices.

Recommendations

1. DFID should have a more rigorous approach to project selection, a stronger focus on identifying and addressing governance and market failures, more realistic timetables, stronger programme supervision and risk management processes and a more systematic approach to supporting the poorest and most marginalised.
2. DFID should ensure multilateral partners have adequate safeguarding systems and the capacity to implement these at country level.
3. To improve its ability to manage complex transport and urban infrastructure programmes, DFID should make more use of staff from regional departments and centrally managed programmes to supplement capacity in country offices.
4. DFID should clarify how it will work with China and other new donors on infrastructure finance.