Pushak, Nataliya; Briceno-Garmendia, Cecilia M.
Description:
Infrastructure contributed half a
percentage point to the Republic of Congo's annual per
capita GDP growth from 2001 to 2006. If the country's
infrastructure were improved to the level seen in Mauritius,
the regional leader, it could contribute more than 3
percentage points to annual per capita growth. The Republic
of Congo's existing infrastructure is concentrated in
the developed south, reflecting the country's
urbanization patterns. Links spread from there to the
less-developed north, where there are vast areas of
underexploited dense forest. The Republic of Congo's
power sector offers the greatest potential for
infrastructure-based economic growth, but major
inefficiencies need to be addressed. Transit improvements
would also make significant contributions to growth by
improving connections to the north and to neighboring
countries. Additional opportunities include rehabilitating
the fixed-line telephone operator to spread Internet access.
The country's water and sanitation infrastructure is in
relatively good shape. Spending on infrastructure was $460
million per year in the Republic of Congo during the
mid-2000s. Based on these spending levels, if all
inefficiencies were eliminated, the country would face an
infrastructure funding gap of $270 million a year and would
not meet infrastructure targets for 31 years. Spending rose
to $550 million per year in 2008-09. If the Republic of
Congo could maintain these higher spending levels, the
funding gap would essentially disappear. The nation could
further reduce the funding gap by adopting lower-cost
technologies to meet infrastructure targets.