World Bank's plan raises infrastructure investment

By Lesley Wroughton

WASHINGTON, July 30 (Reuters) - The World Bank released a four-year action plan on Wednesday that significantly increases its lending and broadens its advice to fill the chronic need for roads, railways, electricity and water in developing nations.

The plan envisages scaling up infrastructure investments to between $50 billion and $72 billion in the 2009-2011 period, compared with $41 billion over the last four years.

Through its investments, the World Bank estimates it can mobilize another $109 billion to $149 billion for infrastructure projects by working with the private sector and donor countries.

It is the first comprehensive plan by a newly merged department that hopes to put more emphasis on balancing development needs with environmental hazards that come with opening up new transport routes or building power stations.

Jamal Saghir, director for energy, transport and water at the World Bank, said the World Bank could leverage its financing to mobilize additional private funding for infrastructure.

Even at the World Bank's current increased spending level of $13 billion a year on infrastructure, Saghir said it was nowhere near enough to meet the $900 billion-a-year demand for investment in roads, railways, electricity and water in developing countries.

"The financing is one part of what we do; it is not the only part. It is also important for the World Bank to remain engaged in the policy dialogue," Saghir added.

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