public interest for the construction company to be distracted from their project
contract by the exponential growth of public requests or demands, as any attempt
to distinguish a possibility may entail further possibilities.
7.8.6 Is Infrastructure = Development?
Appel (2018) mentions that oil and gas were discovered in Equatorial Guinea around
1994 and that by 2013, the country was investing some 61% of its GDP, the highest
in the world. Investment as a fraction of GDP often reflects how much is invested in
infrastructure projects, among those mentioned in Chap. 1. However, the experience
for the 800,000 residents (and visitors) was, unfortunately poor: noise, dust settling
on people, construction ongoing, apparently without any proper planning, or proper
coordination. Regularly, new roads are dug out to insert water pipes. And, after
10 years, the water is only sporadically supplied, and not potable, because of a long
awaited filtration plant.
People can wait for infrastructure, but for how long? Unreliability of water,
electricity services, school or healthcare facilities played second fiddle to more
pressing other infrastructure projects, such as government buildings, roads, airports,
ports, dams which were supposed to bring in economic development, through
private sector investment. But, there was a perception that there a significant
collusion between high ranking officials and the private sector: in short, infrastructure also meant money laundering, through a method of inflated contracts with
kickbacks to officials.
Very often, infrastructure is used metonymically for development itself. For
example, implementing a cold storage needs ice, which in turn, requires both
water and electricity, and eventually a port for export purposes. Providing all these
facilities comes within infrastructure provision, but is not necessarily development.
A plan may be presented at a meeting with potential investors to consider the
National (or Government’s vision). But, if no time frame is given, this plan is just
speculative.
One complaint from local contractors is that foreign companies are given all
facilities (legal fiscal climate, proper labour conditions, access to credit and finance,
access to technology) while local companies which, do have the capacity to do the
same work, but lack the capital or money, do not receive any help from the
government.
The government officials were quite aware that the country had few basic social
services, with no running water, even if potable, sporadic electricity in the cities. The
health and education sectors are practically inexistent. Small businesses find access
to credit difficult, without any established procedure to start a business. Most sectors
lack legal instruments or regulation. Private property and contract law present
significant issues that need to be addressed. While infrastructure development was
ongoing, no state contract law or laws governing the quality of work carried out
existed either.
208
7 Economic and Social Aspects of Infrastructure
contract by the exponential growth of public requests or demands, as any attempt
to distinguish a possibility may entail further possibilities.
7.8.6 Is Infrastructure = Development?
Appel (2018) mentions that oil and gas were discovered in Equatorial Guinea around
1994 and that by 2013, the country was investing some 61% of its GDP, the highest
in the world. Investment as a fraction of GDP often reflects how much is invested in
infrastructure projects, among those mentioned in Chap. 1. However, the experience
for the 800,000 residents (and visitors) was, unfortunately poor: noise, dust settling
on people, construction ongoing, apparently without any proper planning, or proper
coordination. Regularly, new roads are dug out to insert water pipes. And, after
10 years, the water is only sporadically supplied, and not potable, because of a long
awaited filtration plant.
People can wait for infrastructure, but for how long? Unreliability of water,
electricity services, school or healthcare facilities played second fiddle to more
pressing other infrastructure projects, such as government buildings, roads, airports,
ports, dams which were supposed to bring in economic development, through
private sector investment. But, there was a perception that there a significant
collusion between high ranking officials and the private sector: in short, infrastructure also meant money laundering, through a method of inflated contracts with
kickbacks to officials.
Very often, infrastructure is used metonymically for development itself. For
example, implementing a cold storage needs ice, which in turn, requires both
water and electricity, and eventually a port for export purposes. Providing all these
facilities comes within infrastructure provision, but is not necessarily development.
A plan may be presented at a meeting with potential investors to consider the
National (or Government’s vision). But, if no time frame is given, this plan is just
speculative.
One complaint from local contractors is that foreign companies are given all
facilities (legal fiscal climate, proper labour conditions, access to credit and finance,
access to technology) while local companies which, do have the capacity to do the
same work, but lack the capital or money, do not receive any help from the
government.
The government officials were quite aware that the country had few basic social
services, with no running water, even if potable, sporadic electricity in the cities. The
health and education sectors are practically inexistent. Small businesses find access
to credit difficult, without any established procedure to start a business. Most sectors
lack legal instruments or regulation. Private property and contract law present
significant issues that need to be addressed. While infrastructure development was
ongoing, no state contract law or laws governing the quality of work carried out
existed either.
208
7 Economic and Social Aspects of Infrastructure