Contents -- Countries Covered by This Study -- Foreword -- Acknowledgments -- Abbreviations and Acronyms -- Executive Summary -- 1. The Infrastructure Challenge -- The economic story -- The spatial and demographic story -- The environmental story -- The political story -- The funding story -- Annex 1: Estimation of infrastructure needs -- 2. Inclusive Development -- Development, inclusiveness, and infrastructure -- What is so different about infrastructure anyway? -- Connecting growth, poverty reduction, and investment through infrastructure -- Making the links: Infrastructure, trade, and logistics -- Focus on Vietnam: Infrastructure and inclusive development -- 3. Coordination -- Infrastructure is hard to do -- The "high-flying geese" theory of infrastructure -- Coordinating infrastructure levels -- Coordinating infrastructure through subnational government -- Coordinating urban infrastructure -- The geese catching up: Four snapshots -- From coordination to accountability and risk management -- Spotlight 1. Coordination and a tale of three cities: Mass Rapid Transit in Bangkok, Kuala Lumpur, and Manila -- 4. Accountability and Risk Management -- When accountability and risk management fail -- Mechanisms to strengthen accountability -- Risk-sharing, accountability, and managing government support -- Concluding remarks -- Spotlight 2. Learning how to share risk: The case of Partnerships Victoria -- Spotlight 3. Consumer participation, regulators, and accountability -- 5. The Way Forward -- Spotlight 4. The way forward in Indonesia and the Philippines -- Appendix A. Statistical Annex: Infrastructure Indicators -- Notes -- Bibliography -- Index -- Boxes -- 1 Infrastructure and the Millennium Development Goals -- 1.1 The demographic dividend -- 1.2 Infrastructure challenges in the Pacific Island countries: A case apart.

1.3 Emerging urban infrastructure gaps in East Asia -- 1.4 Indications of the high cost of environmental pollution in China -- 1.5 Strategic environmental assessments: The Bali urban infrastructure project -- 1.6 What about efficiency? -- 1.7 So why didn't the private sector solve East Asia's infrastructure problems? -- 1.8 Risk, return, and private investment in East Asian infrastructure -- 2.1 Inclusive development with Chinese characteristics -- 2.2 Infrastructure and the Millennium Development Goals -- 2.3 The importance of infrastructure in particular poverty reduction programs varies -- 2.4 Inclusive development on a regional scale: Opportunities for landlocked Lao PDR -- 2.5 East Asia's logistics challenge-country differences -- 2.6 Integration of ports and land transport networks in Korea -- 2.7 Inclusive development: Transport access for the disabled -- 3.1 Poorly coordinated planning and finance in the Vietnamese roads sector -- 3.2 Infrastructure and fiscal space-arguments and counterarguments -- 3.3 Urban management in Vietnam -- 3.4 "Pork-Barrel" interventions in infrastructure in the Philippines -- 3.5 Indonesia's renegotiated power purchase agreements -- 3.6 Coordination from the bottom up in Indonesia: Community-driven development programs -- 3.7 Coordinating local government infrastructure, macroeconomic stability, and urban land use -- 3.8 Vision, infrastructure, and spatial planning in Thailand -- 3.9 MRT in a nutshell -- 4.1 Corruption in infrastructure in the Philippines -- 4.2 Public spending in Indonesia and the search for accountability -- 4.3 Infrastructure, accountability, and NGO perceptions: Survey results -- 4.4 Community action in rolling back environmental externalities in postwar Japan -- 4.5 Making a deal with the community: Water supply and accountability in Indonesia.

4.6 Putting accountability mechanisms into large infrastructure projects: The Nam Theun 2 dam project -- 4.7 Technology, competition, and regulation: The push and pull of accountability in the telecoms sector -- 4.8 Choice of power sector structure in East Asia -- 4.9 Manila water: The challenges of structuring competition for the market -- 4.10 Holding regulators accountable through transparency -- 4.11 Contracting out regulatory functions -- 4.12 Franchising in Fiji -- 4.13 Top-down turnaround: The Phnom Penh Water Supply Authority -- 4.14 Coordination failure: Regulators and subsidies in the Philippine electricity sector -- 4.15 "Now you see it, now you don't": The case of currency risk -- 5.1 Managing the contribution of infrastructure to inclusive development -- Figures -- 1 The "new framework": Inclusive development, coordination, and accountability and risk management -- 1.1 The association between infrastructure outcomes and per capita income levels varies -- 1.2 Savings and investment (percent GDP), average, 1993-2002 -- 1.3 Infrastructure quality ranking, World Competitiveness Report, East Asia -- 1.4 Poverty headcount index (2/day), percent, East Asia, selected countries -- 1.5 East Asia's urban population is not yet high by global standards, but it is rising exponentially -- 1.6 Urbanization and increasing income levels are correlated in East Asia -- 1.7 Changes in vehicle ownership and road lengths -- 1.8 East Asia has attracted significant levels of private sector investment in infrastructure, although largely concentrated in a small number of countries -- 1.9 Levels of cancelled private sector infrastructure investment in East Asia are among the highest in the world -- 1.10 Estimated annual infrastructure need, East Asia, 2006-10 -- 1.11 The circular flow of funds for infrastructure.

1.12 Few water utilities cover even operating and maintenance costs -- 1.13 Private sector investment in infrastructure (US billion) -- 1.14 Private sector intentions to invest in East Asian infrastructure -- 1.15 Cost of capital, by region, percent, 1998-2002 -- 1.16 East Asia, cost of equity versus returns on equity, percent, 1998-2002 -- 2.1 Links among infrastructure, poverty reduction, and growth -- 2.2 In the most open economies of the region, logistics costs are typically much lower -- 2.3 Interdependence of auto manufacturing within ASEAN -- 2.4 Vietnam: Poverty, growth, and infrastructure -- 3.1 Infrastructure development in the high-flying geese -- 3.2 Indonesia has gone through a period of fiscal contraction with important implications for infrastructure -- 4.1 Accountability as an obstacle -- 4.2 Level of stakeholder involvement -- 4.3 Corruption -- 4.4 Information -- 4.5 Public participation -- 4.6 Lao PDR governance indicators -- 4.7 Measures to enhance transparency -- 4.8 Independent regulators: Predictability and discretion -- 4.9 Comparing the costs of public and PPP procurement -- Maps -- 2.1 Comparison of the growth rate and poverty reduction rate of each province in the Red River Delta region -- 4.1 Competition in international voice communications, 2003 -- Tables -- 1.1 Growth, income, poverty, and population, East Asia -- 1.2 Infrastructure investment, percent GDP -- 1.3 Total road network and electricity generating capacity, 1990-2000 -- 1.4 Infrastructure access and stocks -- 1.5 There is significant variation in the speed and level of urbanization across East Asian countries -- 1.6 Inequality in access to infrastructure services in urban areas -- 1.7 Even in fast-growing Thailand, regional income and access to infrastructure can diverge significantly -- 1.8 Aid dependency in East Asia and the Pacific, 2003.

1.9 Investment and maintenance needs, East Asia 2006-10, and percent GDP -- 1.10 Investment and maintenance needs, China 2006-10, and percent GDP -- 1.11 Investment and maintenance needs, East Asia excluding China, 2006-10, and percent GDP -- 2.1 Distribution of study findings on impact of infrastructure investment on productivity or growth -- 2.2 Potential positive impacts of infrastructure services on the poor -- 3.1 Hierarchy and average population size by local government -- 3.2 Augmentation funds for local infrastructure, DPWH budget, 1997-2001 (P billion) -- 3.3 Real gross regional product per capita in areas of Thailand, 1981-95 (1988 prices) -- 4.1 Distribution of developing and transition countries by structure of power supply (mid-2004) -- 4.2 Comparison of performance, 1993 and 2003 -- 4.3 Common types of central government fiscal support for infrastructure -- Appendix A Statistical Annex -- 1 Energy -- 2 Water supply and sanitation -- 3 Telecommunications -- 4 Road transport -- 5 Rail transport -- 6 Urban -- 7 Infrastructure finance.