by George E. Peterson and Elisa Muzzini: Basic infrastructure services are those that households and businesses tend to use every day. The primary components are roads and transportation services, water supply and distribution, and sanitation—wastewater collection and removal, and solid waste collection and removal. These services are often bundled together under the heading of “urban services.” However, parallel infrastructure systems are found in rural areas, where roads, irrigation networks, and latrines are critical to life. Irrigation systems, in particular, are sometimes underestimated as infrastructure networks. In the Philippines, irrigation systems account for 80 percent of national water consumption.Efforts to decentralize infrastructure services raise distinctive issues regarding policy design and implementation. Because of their capital intensiveness, these systems require decision making at several different stages:
- Preparing capital investment plans and setting priorities for individual capital projects.
- Operating a network system to provide services and maintaining facilities to sustain the physical capital.
- Financing the system by both mobilizing capital to pay for the initial investment and generating revenues to cover operations and maintenance—that is, ensuring financial sustainability … (Read more on Chapter 10, pages 209 to 236).