Quality Infrastructure Investment, or QII, is a Japanese concept. The idea is to expand the definition of quality beyond grey infrastructure to include economic growth, efficiency, climate change, resilience, inclusivity, and governance.Due to urban growth, pollution, devastating earthquakes, economic shocks, and ageing infrastructure, Japanese planners examined infrastructure quality in greater detail.

In 2019, the G-20 nations established six voluntary, non-binding principles for infrastructure investment. The QII Principles are founded on the consensus that infrastructure is a significant driver of economic prosperity and that well-constructed and sustainable infrastructure amplifies the positive effects of these costly investments.

The QII Principles:

  1. Maximising the positive impact of infrastructure to achieve sustainable growth and development: When infrastructure investments are optimised by increasing efficiency, reducing costs, and increasing reliability, the positive impacts of infrastructure can be maximised, delivering green, resilient, and inclusive development outcomes.
  2. Raising economic efficiency in view of life-cycle cost: Life cycle cost (LCC) methodology for infrastructure investmentevaluates the total costs and benefits of the investment, as well as the risks associated with it, over the lifetime of infrastructure assets. In addition to upfront design and construction costs, governments should also account for infrastructure maintenance expenses.
  3. Integrating environmental considerations in infrastructure: At each stage of development, the environmental impact of infrastructure projects must be taken into account. This necessitates conducting comprehensive environmental analyses in order to identify ways to mitigate the negative effects of infrastructure on ecosystems, biodiversity, and climate change.
  4. Building resilience against natural disasters: Resilience against natural disasters, which can be intensified by climate change, and human-made risks such as cyberattacks, which have significantly increased in recent years.
  5. Integrating social considerations in infrastructure investment: Access to infrastructure services for all groups, enabling economic and social participation in a respectful, safe, and healthy environment. Women, indigenous people, racial and ethnic minorities, lesbian, gay, bisexual, and transgender (LGBTQ) individuals, and other groups should benefit equally from infrastructure investment.
  6. Strengthening infrastructure governance: Good infrastructure governance ensures that decisions are appropriate and transparent. Governments must have the resources and capacity to effectively supervise infrastructure projects. This frequently necessitates alterations to institutions and regulations. Additionally, good governance reduces the likelihood of corruption and increases community support.

Countries that apply the QII principles to infrastructure projects contribute to Sustainable, resilient, and inclusive growth.

According to the G20 QII preamble, the objective of pursuing quality infrastructure investment is to maximise the positive economic, environmental, social, and development impacts of infrastructure and to create a virtuous circle of economic activity, all while ensuring sound public finances. This circle of virtue can take many different forms. Construction, operation, and maintenance of infrastructure generate new jobs, while infrastructure’s positive spillover effects stimulate the economy and increase the demand for jobs. Advanced technology and expertise may be transferred voluntarily. This can result in a better allocation of resources, enhanced capacities, a skill upgrade, and an increase in local economies’ productivity. This motive would enhance the potential for economic growth, resulting in a broader investor base, increased private investment, and a further strengthening of economic fundamentals.

COVID-19 brings the realisation that in the future we must do things differently, innovate, and rebuild more effectively. Infrastructure investment is a crucial tool for bringing about numerous desired changes and achieving ambitious economic, social, and environmental objectives due to its wide-ranging and potentially transformative effects.

Sources:

Newer Public Private Partnership in The Indian Infrastructure Industry
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Older Special Efforts Are Needed for the Indian Infrastructure Sector to Develop into a Global Leader