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Vanuatu

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Country Overview
Vanuatu has a high level of infrastructure activity, particularly with private investment for the size of its economy. Despite strong recent activity in the market, there is a need to reform its procurement processes through publishing guidelines for infrastructure procurement and improving its tender processes. It also lacks a long-term infrastructure plan, which could help set the strategic vision and actions required for the nation’s infrastructure development. Due to the small size of its economy, its funding capacity remains limited.
See Full Overview Data
GDP per capita
2,970 USD
Population
0.3 million persons

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Score /100
Emerging Aspiring Contender Top performer Global Leader
Governance
56.0
Regulatory frameworks
50.3
Permits
45.2
Planning
38.0
Procurement
28.3
Activity
57.7
Funding capacity
24.5
Financial markets
32.8

Rank

Score /100

Best practice

Governance

56.0
-

Regulatory frameworks

50.3
-

Permits

45.2
-

Planning

38.0
-

Procurement

28.3
-

Activity

57.7
-

Funding capacity

24.5
-

Financial markets

32.8
-

Metric Overview

Strengths

Private infrastructure investment

At 1% of GDP, Vanuatu has one of the highest values of private infrastructure investment over the last five years of all InfraCompass 2020 countries. This may be impacted by the COVID-19 pandemic.

Financial stability

Vanuatu’s financial stability is similar to the average of 83 for Lower Middle Income Countries. Stable financial markets facilitate the smooth flow of funds between infrastructure assets and investors. However, the impact of the COVID-19 pandemic is a concern.

Infrastructure investment

Total public and private investment in infrastructure is high in Vanuatu, at 5.4% of GDP per annum. The COVID-19 pandemic may impact these efforts.

Private infrastructure investment

At 1% of GDP, Vanuatu has one of the highest values of private infrastructure investment over the last five years of all InfraCompass 2020 countries. This may be impacted by the COVID-19 pandemic.

Financial stability

Vanuatu’s financial stability is similar to the average of 83 for Lower Middle Income Countries. Stable financial markets facilitate the smooth flow of funds between infrastructure assets and investors. However, the impact of the COVID-19 pandemic is a concern.

Infrastructure investment

Total public and private investment in infrastructure is high in Vanuatu, at 5.4% of GDP per annum. The COVID-19 pandemic may impact these efforts.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 
Lower-middle income country average

Activity:
Private infrastructure investment

Financial markets:
Financial stability

Activity:
Infrastructure investment

Opportunities to Grow

Published infrastructure procurement guidelines

Vanuatu does not publish guidelines for the procurement of infrastructure projects. Publishing guidelines makes contractors aware of the government’s processes, expectations and requirements, improves transparency and helps the government achieve better value for money.

Published project pipeline

Vanuatu does not currently publish an infrastructure pipeline of projects. The addition of an infrastructure pipeline could help provide infrastructure participants with a clear indication of prospective and confirmed infrastructure activity.

Published infrastructure plan

Vanuatu does not have a national or sub-national infrastructure plan. The addition of an infrastructure plan could highlight infrastructure challenges and opportunities for investment, as well as detail the government's planned responses.

Published infrastructure procurement guidelines

Vanuatu does not publish guidelines for the procurement of infrastructure projects. Publishing guidelines makes contractors aware of the government’s processes, expectations and requirements, improves transparency and helps the government achieve better value for money.

Published project pipeline

Vanuatu does not currently publish an infrastructure pipeline of projects. The addition of an infrastructure pipeline could help provide infrastructure participants with a clear indication of prospective and confirmed infrastructure activity.

Published infrastructure plan

Vanuatu does not have a national or sub-national infrastructure plan. The addition of an infrastructure plan could highlight infrastructure challenges and opportunities for investment, as well as detail the government's planned responses.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.
Lower-middle income country average

Procurement:
Published infrastructure procurement guidelines

Guidance

Planning:
Published project pipeline

Guidance

Planning:
Published infrastructure plan

Guidance

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Score /100
Emerging Aspiring Contender Top performer Global Leader
Governance
56.0

Weighting
(% of Driver)

Metric

Vanuatu

Lower-middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

45.8 (+1.0)
31.4
Doing Business Survey, World Bank (2020)

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

56.7
41.5
Worldwide Governance Indicators, World Bank (2018)

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-
Deloitte in-country survey (2020)

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

0.0
34.2
Doing Business Survey, World Bank (2020)  

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

64.0 (+5.4)
38.7
Worldwide Governance Indicators, World Bank (2018)

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-
Deloitte in-country survey (2020)

Vanuatu

Lower-middle Income Countries Average

Recovery rate

45.8 (+1.0)
31.4

Rule of law

56.7
41.5

Post-completion reviews

Yes
-

Shareholder governance

0.0
34.2

Political stability and absence of violence score

64.0 (+5.4)
38.7

Infrastructure or PPP agency

Yes
-

Country Overview Data

Vanuatu has a high level of infrastructure activity, particularly with private investment for the size of its economy. Despite strong recent activity in the market, there is a need to reform its procurement processes through publishing guidelines for infrastructure procurement and improving its tender processes. It also lacks a long-term infrastructure plan, which could help set the strategic vision and actions required for the nation’s infrastructure development. Due to the small size of its economy, its funding capacity remains limited.
GDP per capita

2,970 USD

Population

0.3 million persons

GDP growth rate

3.8%

GDP per capita growth rate

0.2%

Gini coefficient

37.6 (0-100 worst)

Gross Government Debt

49.0% of GDP

Inflation rate

2.0%

Unemployment rate

5.4%

Urbanisation ratio

25.0% of total population