THE REPUBLIC OF CONGO’S INFRASTRUCTURE: A CONTINENTAL PERSPECTIVE China devoted to infrastructure during the mid-2000s. By far the largest spending needs are in the power sector, where spending of $0.5 billion per year is required. By comparison, transport, water, and sanitation each require an estimated $0.2 billion per year. While most of the needs relate to capital investment, as much as a quarter of this sum is needed to address operations and maintenance requirements.

Spending on infrastructure was $0.46 billion per year during the mid-2000s. That figure rose to $0.55 billion per year in 2008–09. More than half of existing spending goes to the transport sector. The bulk is financed from domestic sources. Contributions from external financiers are relatively small; most significant is official finance from donors outside the Organisation for Economic Co-operation and Development ($44 million a year), followed by official development assistance (ODA) from OECD members ($19 million a year). Compared with other resource-rich countries in Africa, the Republic of Congo captures little private finance for infrastructure.

There is an ―efficiency gap‖ of $0.32 billion per year across infrastructure sectors. These resources are in the system but, due to inefficiencies, are not spent productively. Challenges include service underpricing ($78 million per year), operational inefficiencies of utilities ($79 million per year), and underexecution of capital budgets ($52 million per year). In all three cases, the power sector is by far the greatest culprit. Furthermore, $112 million per year is spent in certain sectors that could be reallocated more productively elsewhere.

If all inefficiencies were eliminated, the Republic of Congo would face an infrastructure funding gap of $0.27 billion a year, or approximately 4.7 percent of GDP. Shortfalls in power and water investment account for most of that total. No gap was found for transport. The funding gap was calculated based on spending levels of the mid-2000s. If the higher spending levels of 2008–09 could be sustained, the gap would essentially disappear.

By adopting lower-cost technologies to meet infrastructure targets, the Republic of Congo could reduce its annual funding gap by $158 million. On the other hand, without regional power trade, power sector costs would be $272 million higher.

If the Republic of Congo is unable to sustain spending at the levels of the recent past, capture efficiency gains, and reduce costs through suitable technology choices, and instead continues to spend at the levels of the mid-2000s, the country will take 78 years to achieve its infrastructure targets. By capturing efficiency gains and maintaining spending at the level of the mid-2000s, it could meet the infrastructure targets within 31 years.

# The continental perspective

The Africa Infrastructure Country Diagnostic (AICD) has conducted extensive data collection and analysis of the infrastructure situation in most Sub-Saharan countries, including the Republic of Congo. The results have been presented in a variety of continental reports on different areas of infrastructure— ICT, irrigation, power, transport, water, and sanitation—and different policy areas, including investment needs, fiscal costs, and sector performance.

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