Capability and Capacity

Limited delivery capability or capacity of some government line agencies.

Depletion of engineering and project management capability within some government line agencies is impacting the planning and delivery of infrastructure. Limited number of personnel with direct experience in managing complex contractual, program or project governance structures.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Establish a dedicated public delivery authority with specialist project or program delivery. A dedicated public delivery body will place greater importance on recruiting and retaining required competencies and will be able to do so more efficiently. Recruitment speed is important in a project environment with the ability to attract staff, facilitated by greater flexibility in pay structures.	Case Studies: Cross River Rail (Australia) established an independent statutory body, operating on a commercial basis. The Cross River Rail Authority has been able to attract and retain key competencies needed to address government objectives, private sector demand, planning, stakeholder and community engagement, and provide project certainty for private sector investment. By providing an identity, vision, and direction with appropriate governance, it created an attractive place to work and allowed retention of knowledge and expertise. Societe du Grand Paris (France) is a public company (‘etablissement public industriel et commercial’) created in 2010 and dedicated to the development of the new metro network of Greater Paris with 200 km of new railway lines and 68 new stations. Its main source of funding is from French and European Union subsidies and affected tax. Over five years, the organisation has developed a high level of internal expertise through the recruitment of 800 transport and systems engineers, as well as project and contract management specialists (overseeing more than 400 contracts). Societe du Grand Paris is established as a competent body able to oversee and direct a long-term highly complex infrastructure program. Kigali Bulk Water Supply (Rwanda) resulted in the government splitting the Energy, Water and Sanitation Authority into two public companies to improve accountability and operational effectiveness. This created the Water and Sanitation Corporation which had a newly-developed business and investment plan and was focused on the Kigali project (case study from the GI Hub Project Preparation Reference Tool). Case Studies Cross River Rail (Australia) Kigali Bulk Water Supply (Rwanda) Societe du Grand Paris (France) GI Hub Resources Project Preparation Reference Tool
Use infrastructure delivery models where the private sector provides its delivery management expertise either acting as agent for the client or with the owner’s input in the engagement of subcontractors, advisers and consultants (e.g. Delivery Partner Model, Construction Management contract, Managing Contractor etc.). This may involve the client directly retaining the contractual relationship with the contractors and control of the design development. A painshare / gainshare payment regime will help to manage the project owner risks effectively.	Case Studies: Woolgoolga to Ballina Upgrade Project (Australia) used a delivery partner model to engage a consortium comprising a Tier 1 contractor and an engineering design firm to provide its management expertise on behalf of the delivery agency. The arrangement allowed a time critical project to be delivered in a shorter space of time, while saving the additional margin compared to a traditional design and construct (D&C) contract. Case Studies Woolgoolga to Ballina Upgrade Project (Australia)
Use an Intelligent Client Model to boost client capability. Through a combination of strategic recruitment (key personnel), partnerships with professional development bodies and access to international resources and guidance to develop the required capability into the client organisation. For professional development, jurisdictions are using Major Project Leadership training and Overseas Development Assistance.	Case Studies: Thames Water (United Kingdom) implemented its intelligent client model under AMP7 (UK water regulatory period) that has seen it establish a client led Program Management Office (PMO) with an external provider. It will involve supporting Thames Water to build its PMO capabilities with a comprehensive transition plan, selection, and training of PMO personnel and development of PMO policies and practices. Case Studies Thames Water (United Kingdom)
Implement Major Project Leadership training to retain and build within the public sector, critical infrastructure skills and expertise on major project delivery.	Examples: Major Projects Leadership Academy (sponsored by Infrastructure and Projects Authority – UK) focuses on developing leadership skills and expertise for major UK infrastructure projects, in co-operation with the Said Business School at the University of Oxford. Centre of Excellence for Major Project Leaders (sponsored by Development Bureau Hong Kong) offers high-level project management training and leadership development, for Hong Kong Government officials to improve their project delivery skills. Australian Major Projects Leadership Academy (sponsored by Office of Projects Victoria, Australia) was established in 2019 to help build and maintain the talent needed to deliver complex infrastructure projects. Guidance Major Projects Leadership Academy Centre of Excellence for Major Project Leaders Australian Major Projects Leadership Academy
Seek Overseas Development Assistance and infrastructure knowledge guidance to provide specialist technical knowledge regarding planning, construction, operations and maintenance. Collate well-regarded industry guidance and make easily accessible to staff.	Case Studies: MRT Jakarta Stage 1 (Indonesia) is a rapid transit system in Indonesia’s capital to alleviate its major road congestion issues. The first phase covers the North-South corridor and comprises 24 km of track, seven elevated stations and six underground stations. The project used an Overseas Development Assistance Loan to access specialists in new rail technology, construction expertise and financing through the Japan International Cooperation Agency (JICA). Specialist skills enabled the introduction of new rail infrastructure technology and rolling stock as well as lifting local capability. Resources: IPA Project Development Routemap for Infrastructure Projects (UK) Partnerships Victoria Contract Management Guide (Australia) World Bank Contract Management Guidance GI Hub resources: PPP Project Preparation PPP Contract Management Output Specifications for Quality Infrastructure Case Studies MRT Jakarta Stage 1 (Indonesia) GI Hub Resources IPA Project Development Routemap for Infrastructure Projects (UK) Partnerships Victoria Contract Management Guide (Australia) World Bank Contract Management Guidance PPP Project Preparation PPP Contract Management Output Specifications for Quality Infrastructure
Use Project Preparation Facilities (PPFs) such as those from Multilateral Development Banks. These facilities provide financial or technical support to emerging market and developing economies to obtain guidance and support in their early-stage project preparation.	Case Studies: Mactan-Cebu International Airport Passenger Terminal Building (The Philippines) used the Project Development and Monitoring Facility, a revolving fund with USD84 million from the Philippines Government and USD18 million from the Australian Government. This paid for external consultants and transaction advisers to assist implementing agencies in the procurement stages (case study from the GI Hub Project Preparation Reference Tool). Resources: GI Hub’s Governmental Processes Facilitating Infrastructure Project Preparation provides a practical guide for governments to improve early-stage activities within the infrastructure projects development cycle and create an environment that enables sustainable and bankable projects. Case Studies Mactan-Cebu International Airport Passenger Terminal Building GI Hub Resources Project Preparation Reference Tool

Retention of delivery knowledge over a program of works and ensuring price competitiveness.

Avoiding a loss of program knowledge and sector specific skillset and data due to a lack of continuity over a long period of time.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Create a program-based specialised national agency overseeing an infrastructure program over a long period of time and building internal and long-lasting capabilities in a specific sector.	Examples: Agence Publique Pour l’Immobilier de la Justice (APIJ) (France) created in 2010 is a specialised public establishment managing the infrastructure delivery program of the French Ministry of Justice (court of Justice, prisons) over the whole territory. This includes the PPP Prisons Program highlighted in the GI Hub Reference Guide on Output Specifications for Quality Infrastructure Investment). Guidance Agence Publique Pour l’Immobilier de la Justice (APIJ) (France) PPP Prisons Program GI Hub Resources Reference Guide on Output Specifications for Quality Infrastructure Investment
Use a Delivery Partner model over an infrastructure program. The Delivery Partner acts as an agent for the client and retains the program’s corporate knowledge that would otherwise be lost when using multiple contractors. It enables the client / asset owner to participate in the project in a collaborative way while providing program-wide efficiencies through the shared knowledge and approach.	Case Studies: Lower South Creek Treatment Program (Australia) covered an AUD500 million program for three plant renewal projects to upgrade wastewater assets in Sydney. Sydney Water used the delivery partner model with the ADAPT JV which provided project management services and allowed a one-team approach with Sydney Water to drive improvements in design and construction. Sydney Water retained full control of design development and was fully integrated into the design, construction, and commissioning processes. The program-wide approach allowed lessons learnt early on to be implemented in the proceeding parts of the program. Case Studies Lower South Creek Treatment Program (Australia)
Create a construction costs database per infrastructure type to benchmark costs and build internal (within the contracting authority) sector knowledge.	Case Studies: Transport and Infrastructure Council (Australia) conducted a pilot benchmarking study of highway project costs in Australia, producing an average cost per highway kilometre by jurisdiction and road class. The data was sourced through the co-operation of State and Territory Governments and covered a selection of their infrastructure procurement and road construction projects. In addition to the benchmark data, it provided trends as the exercise was updated two years after the pilot study. Resources: Highways England (UK) has developed cost models and tools that use historic cost information from projects delivered over a decade. This information is incorporated into its cost model and used in deriving estimates for current and proposed projects. Case Studies Transport and Infrastructure Council (Australia) GI Hub Resources Highways England (UK)

Lack of workforce diversity in infrastructure.

The infrastructure industry has not fully capitalised on its pool of potential resources such as female participation and use of apprentices to increase industry capacity.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Produce procurement guidelines with mandatory targets for trainees, apprentices, Indigenous people, women, disabled or unemployed for government infrastructure projects.	Case Studies: Societe du Grand Paris (France) has been establishing employment integration obligations in their public procurement contracts: 10% of the working hour volume must be allocated to unemployed persons. US Bank Stadium (USA) which implemented an equity plan to define project-specific inclusivity targets under law (case study from the GI Hub Inclusive Infrastructure Reference Tool). Mi Teleferico Cable Car (Bolivia) established a ‘Working with High Values’ program to train young people, with 886 graduates between 2014-18. The cable car workforce composition included people with disabilities and women (4% and 36% respectively), and a 50% fare reduction for people with disabilities, the elderly, and students. The program was established to meet the building local capacity requirements set out in the project’s contracts. (case study from the Inclusive Infrastructure Reference Tool). Resources: NSW Government Action Plan 2020-03 (Australia) requiring all major NSW Infrastructure projects to meet skills and diversity targets. Case Studies Societe du Grand Paris (France) US Bank Stadium (USA) Mi Teleferico Cable Car (Bolivia) GI Hub Resources NSW Government Action Plan 2020-03 (Australia) Inclusive Infrastructure Reference Tool

What improvements have been used to address the challenges? Improvement

How have infrastructure projects benefited from improvement? Benefit

Produce procurement guidelines with mandatory targets for trainees, apprentices, Indigenous people, women, disabled or unemployed for government infrastructure projects.

Case Studies:

Societe du Grand Paris (France) has been establishing employment integration obligations in their public procurement contracts: 10% of the working hour volume must be allocated to unemployed persons.
US Bank Stadium (USA) which implemented an equity plan to define project-specific inclusivity targets under law (case study from the GI Hub Inclusive Infrastructure Reference Tool).
Mi Teleferico Cable Car (Bolivia) established a ‘Working with High Values’ program to train young people, with 886 graduates between 2014-18. The cable car workforce composition included people with disabilities and women (4% and 36% respectively), and a 50% fare reduction for people with disabilities, the elderly, and students. The program was established to meet the building local capacity requirements set out in the project’s contracts. (case study from the Inclusive Infrastructure Reference Tool).

Resources:

NSW Government Action Plan 2020-03 (Australia) requiring all major NSW Infrastructure projects to meet skills and diversity targets.

Case Studies
Societe du Grand Paris (France)
US Bank Stadium (USA)
Mi Teleferico Cable Car (Bolivia)

GI Hub Resources
NSW Government Action Plan 2020-03 (Australia)
Inclusive Infrastructure Reference Tool

Inadequate skills and labour available to deliver the increasing number of infrastructure projects.

The infrastructure industry has not fully capitalised on its pool of potential resources such as female participation and use of apprentices to increase industry capacity. In some countries, specialist skilled resources are contracting between organisations without increasing the overall market capacity.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Establish integrated infrastructure skills and employment centres focused on increasing the supply of competent labour to meet current and future infrastructure project demands.	Case Studies: The NSW Infrastructure Skills Legacy Program (Australia) had its genesis in the NSW Infrastructure Skills Centre which was designed to meet the needs of Sydney Metro and other infrastructure projects such as Western Sydney Airport. The joint project involved the Australian Government, the NSW Government’s Sydney Metro and TAFE NSW, and three Infrastructure Skills Centres in Annandale, Nirimba and Ingleburn. The skills centres used expert and industry experienced teachers to train apprentices, trainees, and a new generation of workers, thereby increasing the supply of skilled labour. Hangzhou International Airport (HGH) (China) overcame a skills shortage by forming a strategic partnership with Hong Kong International Airport in 2006, for a 30-year period. This aims to build capacity of HGH staff in airport management and service. Hong Kong airport invested equity into HGH to further align incentives (case study from the GI Hub Project Preparation Reference Tool). Case Studies The NSW Infrastructure Skills Legacy Program (Australia) Hangzhou International Airport (HGH) (China) GI Hub Resources Project Preparation Reference Tool
Establish high demand skills training centres to ensure adequate training is provided for specialist skills.	Case Studies: Rail Projects Victoria (Australia) and Cross Rail (UK) each established a Ground Tunnelling skills development centre. The centres are upskilling the local workforce with tunnelling design and construction skills to meet the labour force requirements for current and future tunnelling projects. Case Studies Rail Projects Victoria (Australia) Cross Rail (UK)
Provide a transparent pipeline of projects to enable potential project participants to plan and prepare adequately, helping ensure the availability of the right resources to bid and deliver these projects.	Case Studies: The Australia and New Zealand Infrastructure Pipeline (ANZIP) provides an independent forward-looking view of the major infrastructure projects across Australia and New Zealand. Projects are tracked from an initial conception all the way through to award and completion. Examples: National Infrastructure and Construction Procurement Pipeline (UK) similarly provides visibility of planned procurement across economic and social infrastructure sectors. Mexico Projects Hub (Mexico) provides a consolidated view of planned private investment opportunities in infrastructure projects across Mexico. It aims to be the ‘go-to source for domestic and international institutional investors interested in development in Mexico’. In doing so it provides investors the information they need to plan and prepare to invest. Case Studies The Australia and New Zealand Infrastructure Pipeline (ANZIP) Guidance National Infrastructure and Construction Procurement Pipeline (UK) Mexico Projects Hub (Mexico)

Improving Delivery Models

Evidence-based improvements in delivery models

View challenges and improvements by theme

Limited delivery capability or capacity of some government line agencies.

Retention of delivery knowledge over a program of works and ensuring price competitiveness.

Lack of workforce diversity in infrastructure.

Inadequate skills and labour available to deliver the increasing number of infrastructure projects.

Consistently apply a structured infrastructure investment decisionmaking framework and process.