The present study identifies components and processes of the project cycle of infrastructure delivery that can be improved to generate efficiency gains. This study concludes that gains from increasing efficiency in LAC are considerable, stemming primarily from three sources: improving project selection and optimizing infrastructure portfolios, streamlining infrastructure delivery by reducing cost overruns and delays, and making the most of existing assets. Improvements in these areas could potentially save as much as 40 percent of infrastructure investment, more than 1 percent of regional GDP. The magnitude of potential efficiency gains in public infrastructure spending illustrates that it is not necessarily more investment what is needed, but more efficient investment to close the prevailing infrastructure gap in LAC.
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