The World Bank Group logo

QII.2 Raising economic efficiency in view of life-cycle costs

Quality Infrastructure Investment is making a difference in development

Value for money is a fundamental aspect of quality infrastructure investment. It considers the total cost of an infrastructure asset’s life cycle, including operations, maintenance, and construction. Applying QII.2, for example, would consider the value of innovative technologies and the potential impact of risks of delays and cost overruns of infrastructure projects.

QII.2 PRINCIPLE IN ACTION

  • Quality Infrastructure Investment is making a difference in development
    PARAGUAY: STRENGTHENING PARAGUAY’S ENERGY SECTOR

    Paraguay is constructing a 500-kilovolt transmission line and associated substations. Its procurement process ensured that transformers were procured for the most economical price throughout their lifecycles, in line with QII.2. The monetary value of power losses was also considered in bidding, leading to a more sustainable and economical procurement decision.

  • Quality Infrastructure Investment is making a difference in development
    FUKUOKA CITY: EFFICIENT WATER MANAGEMENT

    Fukuoka City is home to numerous cutting-edge industries and start-ups, in part because of a strategy adopted in the 1970s—creating a compact urban core supported by high-quality infrastructure. The city applied QII.2 in managing its water resources—life-cycle costing was the underlying principle in Fukuoka City’s efforts to become a water-conscious city. To achieve this objective, the city made up-front additional investments in infrastructure to reduce operating expenditures and delay future capital expenditures.

  • Quality Infrastructure Investment is making a difference in development
    TOYAMA CITY: COMPACT CITY DEVELOPMENT

    Toyama City, Japan, is widely recognized as a role model for compact city development. The city took an integrated approach to urban and transport planning, with a focus on its light rail transport system. In reviewing options, the city looked at the costs and benefits for operations over a 30-year period, reflecting the life-cycle cost approach under QII.2.

  • Quality Infrastructure Investment is making a difference in development
    INFRASTRUCTURE MAINTENANCE IN THE PACIFIC

    This study was designed to enhance dialogue around infrastructure asset management in Pacific island countries. It includes an example of life-cycle costing for a road project in Papua New Guinea. It also provides an overview of the importance of maintenance and asset management, explains the underlying reasons for poor asset management, and provides an overview of the benefits of sound asset management and what it should involve. Download the report

  • Quality Infrastructure Investment is making a difference in development
    IMPLEMENTING A LIFE-CYCLE COST APPROACH

    This video presentation features four speakers from the World Bank, the Islamic Development Bank, and Bangladesh’s Ashuganj Power Station Company Ltd. Developed for the QII MOOC, the presenters outline the use of life cycle costing in the procurement of infrastructure projects financed by multilateral development banks. Link to video

The World Bank
Follow us