Regulatory frameworks

Regulatory (including competition) quality

Captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development.

Infrastructure assets tend to form natural monopolies. Effective competition and infrastructure regulation is important to balance service levels with appropriate price controls that allow sufficient cost recovery to attract investment, and ultimately deliver quality infrastructure for consumers. Poor regulatory quality will deter investment.

Singapore

The Role of Economic Regulators in the Governance of Infrastructure (OECD)

Strength of insolvency framework

The strength of insolvency framework index is based on four domains, including commencement of proceedings, management of debtor's assets, reorganisation proceedings and creditor participation.

The strength of the legal and corporate frameworks for liquidation and restructuring. It provides an indication of the ease of conducting business in a country. Improving your insolvency frameworks will encourage investment from those who require insolvency protections, including through infrastructure Special Purpose Vehicles, and for those dealing with local entities that may default. The strength of the legal and corporate frameworks for liquidation and restructuring. It provides an indication of the ease of conducting business in a country. Improving your insolvency frameworks will encourage investment from those who require insolvency protections, including through infrastructure Special Purpose Vehicles, and for those dealing with local entities that may default.

Germany

Rwanda

United States

Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank)

Prevalence of foreign ownership

Score based on responses to the World Economic Forum, Executive Opinion Survey question 'In your country, how prevalent is foreign ownership of companies'? This score has been normalised (rescaled to lie between 0 and 100) to ensure all data are expressed using the same scale.

Foreign investment policies can either promote or inhibit foreign investment in infrastructure assets. Policies that promote foreign investment will increase the supply of capital, promote competition and, in theory, reduce the costs of financing and delivering infrastructure, as well as encouraging innovation and exchange of skills.

United Kingdom

OECD Checklist for Foreign Direct Investment Incentive Policies

UK Investment policy: Seventh report of Session 2017-2019 

Product market regulatory score, network sectors

A survey-generated score for a country's regulatory management practices across the following domains: independence, scope of action, and accountability.

Regulatory policies can either promote or inhibit investment and competition in the network sector (all utilities including road, rail, ports, airports, electricity, gas, water and telecommunications). This can include price controls, licensing, and governance of SOEs. It shows the regulatory barriers for participants to enter and operate in the sector. The easier it is to enter the sector, the more likely to attract competition and investment that drives quality infrastructure.

United Kingdom

Guidelines on Corporate Governance of State-Owned Enterprises (OECD)

Effect of taxation on incentives to invest

Score based on responses to the World Economic Forum, Executive Opinion Survey question 'In your country, to what extent do taxes reduce the incentive to invest? The index component is scored from 1-7 (with 1 = to a great extent; 7 = not at all).

Determines the extent to which tax incentives encourage or discourage investment and affect the competitiveness of the market. While this metric is not specific to infrastructure sectors, it shows general effect of taxation on investment, which includes infrastructure and has flow-through from the broader economy to infrastructure assets.

United Arab Emirates

The Role of Economic Regulators in the Governance of Infrastructure (OECD)

Investment promotion agency

Whether an investment/trade agency exists to promote and coordinate foreign investment in the local market.

Provides coordinated government assistance to promote, attract and facilitate foreign investment, participation and skills in local infrastructure projects. This increases investment and competition in the local market, potentially driving cost of projects down and quality up.

Angola

United Arab Emirates

Argentina

Australia

Austria

Azerbaijan

Belgium

Benin

Burkina Faso

Bangladesh

Brazil

Canada

Chile

China

Cote d'Ivoire

Colombia

Czech Republic

Germany

Denmark

Egypt

Spain

Ethiopia

Finland

France

United Kingdom

Ghana

Guinea

Greece

Guatemala

Croatia

Indonesia

India

Ireland

Italy

Jordan

Japan

Kazakhstan

Kenya

Cambodia

Republic of Korea

Morocco

Mexico

Mali

Myanmar

Malaysia

Nigeria

Netherlands

New Zealand

Pakistan

Peru

The Philippines

Poland

Portugal

Paraguay

Qatar

Romania

Russia

Rwanda

Saudi Arabia

Senegal

Singapore

Slovak Republic

Slovenia

Sweden

Chad

Togo

Thailand

Tunisia

Turkey

Tanzania

Uruguay

United States

Vietnam

South Africa

The Australian Trade and Investment Commission (Austrade)