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APEC Project Database

Project Title

Best practices aimed at attracting quality FDI and measuring it to promote sustainable development through the execution of physical infrastructure

Project Year

2023

Project Number

IEG_201_2023

Project Session

Session 2

Project Type

Standard

Project Status

Completed Project

Project No.

IEG_201_2023

Project Title

*
Best practices aimed at attracting quality FDI and measuring it to promote sustainable development through the execution of physical infrastructure

Project Status

Completed Project

Fund Account

*
General Project Account

Sub-fund

None

Project Year

2023

Project Session

*
Session 2

APEC Funding

114,689

Co-funding Amount

20,000

Total Project Value

134,689

Sponsoring Forum

*
Investment Experts Group (IEG)

Topics

Investment

Committee

Committee on Trade and Investment (CTI)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru

Co-Sponsoring Economies

Australia; Canada; Chile; Hong Kong, China; Korea; United States; Viet Nam

Expected Start Date

01/03/2024

Expected Completion Date

30/12/2024

Project Proponent Name 1

Ivan Lucich Larrauri

Job Title 1

Director of the Investor Services Division of the Agency

Organization 1

The Private Investment Promotion Agency  - PROINVERSIóN

Telephone 1

+51 988334029 / +51 989334847

Email 1

Project Proponent Name 2

Not Applicable

Job Title 2

Not Applicable

Organization 2

Not Applicable

Telephone 2

Not Applicable

Email 2

Not Applicable

Declaration

Ivan Lucich Larrauri

Project Summary

FDI is an important factor in the development of an economy and is an indicator of the openness of an economy. FDI contributes to development and growth, but its impact may vary. In that sense, it is important to learn about experiences and good practices adopted by APEC economies to attract quality FDI and learn about methodologies used to measure the impact of this investment to promote sustainable development in physical infrastructure. The project consists of a survey and a workshop, with this structure: i) International organizations′s development of methodologies to attract and measure the quality of FDI ii) Exchange of good practices by APEC economies iii) Civil society testimony on the impact of quality FDI to promote sustainable development through the execution of physical infrastructure. The results and voluntary recommendations will be included in a report

Relevance

Region
FDI (Foreign Direct Investment) is a powerful element for the growth of an economy, as an important source of financing for development. However, successful investment does not necessarily correlate with investment quality. Investment of quality is one that contributes to sustainable development of an economy and assists in closing gaps (e.g., infrastructure gap, access to education, access to basic utility services, among others). In this sense, APEC economies will benefit by learning how to attract quality investment aimed at the development of physical infrastructure and orient it to the sustainable development of its economy, as well as learning about mechanisms that measure its effects.

Eligibility and Fund Priorities

This project meets the eligibility criteria of the GPA since it is aligned with the following priorities: (i) Facilitating trade and investment; (ii) Promoting inclusive and sustainable growth; and (iii) Affirming an equitable and inclusive future for all.

Also, the project is aligned with the U.S. priority “Interconnected” since seeks to enhance the infrastructure network to achieve an inclusive, sustainable, and resilient growth, and focus on increasing the quality of infrastructure projects in our region.

Capacity Building

The project aims to raise APEC economies’ awareness on the importance of taking actions to orient quality FDI in physical infrastructure to attain sustainable growth and equitable development in the APEC region. It is also a space to share and develop knowledge that will enable APEC economies, especially the developing economies and economies that have not develop mechanisms or policies to attract quality FDI and measure its impact on sustainable development; and, in the case of economies that have them, it will also serve as an exercise to share and learn about best practices and different approaches.

Objectives

The project aims to generate voluntary recommendations on the application of good practices to measure and promote the positive impact of quality FDI oriented to physical infrastructure in the sustainable development of APEC economies. It consists of a survey to know the objectives (values) prioritised by economies when promoting sustainable development through physical infrastructure. Furthermore, it aims to compile practices and/or methodologies on how to measure this impact. Afterwards, a workshop will allow discussing the findings of the survey and exchange views on the topic with the purpose to then issue a document with the findings of the project.

Alignment

APEC
Leaders endorsed, at the APEC Economic Leaders Meeting, held in Beijing on 10-11 November 2014, the "APEC Connectivity Blueprint for 2015-2025".  Under physical connectivity, the Blueprint focuses on the improvement of the investment climate and enhancement of infrastructure financing through public-private partnership, enhancing the application of good practices and oeople-centered investment for planning and implementing infrastructure.

Critical infrastructure enables economic growth, increasing stability and trust. For that reason, this project is aligned with the APEC Putrajaya Vision 2040’s economic driver on Trade and Investment.  This project is also aligned with the following collective actions of the Aotearoa Plan of Action: “Promote the flow of quality investment through steps such as work on investment facilitation and liberalization”; “Promote trade and investment facilitation for all (...)”; and “Address key infrastructure gaps and enhance connectivity by creating transparent regulatory environments, promoting dialogue, and sharing best practices that enable quality infrastructure development and investment, which remains accessible, sustainable and affordable with respect to life-cycle costs”.

Forum

This project intends to support the IEG work program, by developing an investment policy dialogue on approaches to attracting sustainable investments and sharing experiences amongst APEC investment policy makers and regulators.

The project complies with one of the objectives of the IEG, which is the enhancing of capacity building in the area of investment through economic and technical cooperation among member economies in the APEC region, because it seeks to develop best practices aimed at attracting and measuring quality of FDI.

Beneficiaries and Outputs

Output 1 - Survey

Mapping of the best practices starts with data collection and with the survey it will be possible to obtain information from APEC economies on topics such as, if the APEC economy has specific policies to attract quality FDI, whether the APEC economy has a specific objective(s) or sustainable development goal to achieve when attracting FDI, or if not, which would be the objective of the APEC economy would like to promote/achieve. Another critical issue is measuring the impact of FDI, and to know if the APEC economy follows-up or can track FDI oriented to physical infrastructure to then measure its impacts.

The results of the survey will be analyzed to identify the APEC economies that have been developing or implementing actions on the topic. Likewise, these results will allow the workshop agenda to be designed/structured. To provide more information and guide the discussion in the workshop, a Brief Survey Report (We estimate 4 pages) will be prepared to be distributed in advance to all workshop participants.

Once the results of the survey have been analyzed, we will request a virtual meeting with each of the economies that were identified, they are developing actions related to the project, the number will depend on the results of the survey, to delve deeper into the methodology and indicators used.

Output 2 - Workshop

The workshop to be held for full-day (8 hours), in the city of Lima, Peru. (Lima Convention Center), within the framework of SOM 3 in August 2024. The workshop serves to raise APEC economies’ awareness of the importance of taking actions to orient quality FDI in physical infrastructure to achieve sustainable growth and equitable development in the APEC region. It is also a meeting to share, update and develop knowledge within APEC economies. The workshop will have the following structure: i) International organizations’ development of methodologies to attract and measure the quality of FDI ii) Exchange of good practices by APEC economies iii) Civil society testimonies on the impact of quality FDI to promote sustainable development through the execution of physical infrastructure.

After the workshop, a final session will be held to recap the key learnings and recommendations gained from the workshop. In this session, we will use a few minutes, right after the workshop to circulate a post-workshop survey to evaluate knowledge and capacity gained from the workshop.

Output 3 - Final Report

The Final Report will contain an analysis of the current situation of the economies, considering the results of the survey made for the workshop, presentations of the speakers and reference methodologies and indicators presented by the experts from international organizations, in addition to key discussions and results from the workshop, recommendations and good practices.

This report will allow APEC economies, especially those developing economies and economies that have not develop mechanisms or policies, to attract quality FDI and measure its impact on sustainable development. This document will map the various best practices of APEC economies to attract and measure FDI impact focused on sustainable development through the execution of physical infrastructure and voluntary recommended actions to guarantee the attraction of quality FDI to ensure that the results of the project will be shared with all the economies and will remain available to interest parties. It is important to mention that the number of good practices that will be included in the Final Report will depend on the identification made in the analysis of the survey and shared in the workshop sessions; we estimate that there will be around 6.

The Final Report will be published by APEC, we estimate that it will contain at least 15 pages excluding annexes.

Outcomes

1) Gained participants knowledge on best practices for attracting quality FDI for physical infrastructure and implement them when creating/updating their policies and mechanism of FDI registry and impact. It will be measured with the post-workshop survey that we will do.

2) Increased participants awareness of the challenges and the importance of having clear policies that attract investment of quality. It will be measured with the post-workshop survey that we will do.

3) Built capacity in areas related to attracting quality FDI oriented to sustainable growth and the development of economies that will help reduce gaps and disparities. It will be measured with the post-workshop survey that we will do.

Beneficiaries

1) Public sector: specifically, those related to entities in charge of creating and implementing policies regarding investment attraction such as: government offices from ministries of economy and finances, private investment promotion agencies, government agencies in charge of structuring infrastructure projects. Depending on their roles, government officer will benefit from the results of the project and apply them or implement them when creating or updating their policies and mechanism of FDI registry and impact; as well as including sustainable development parameters when formulating and structuring an infrastructure project.

Representatives from APEC economies will have the opportunity to present their experiences and approach when attracting quality FDI and different methodologies to measure the impact of the investment received by an economy. This will add value to the discussion to provide a practical approach and not only stay in a theoretical framework.

2) Private sector: since FDI is provided by private investors it is important that they are also aware of the existing policies or orientation of future policies regarding investment attraction; and also, how infrastructure operators can contribute to sustainable development.

3) Representative of international organizations: International organizations such as the UN, OECD, WAIPA, the World Bank, and regionally agencies like the IDB have been conducting important work on how FDI can help the sustainable development of economies and how government entities, such as private investment promotion agencies can orient their strategies of investment promotion to implement policies related to the attraction of quality FDI. Representatives from those organizations will help provide a better understanding on current trends.

The second beneficiaries will be the Academia.

Dissemination

Final Report will be published electronically on the APEC website. Notes/articles related to the project and its results will be disseminated on the social networks of the institution that presented the project (PROINVERSION), Facebook, X and Linkedin, the final report will be published on the website of the same institution linking it to the APEC website.

The target audience include government officers in areas related to investment attraction, FDI measurement and registry and infrastructure development, infrastructure operators.

The Workshop will be hybrid, for that reason it will require live streaming for nominated participants unable to attend in person and recording of the workshop is considered for the purposes of notetaking by the PO, and public dissemination, in accordance with Appendix N requirements. 

Gender

Please see Project Proposal posted in Supporting Documents folder.

Work Plan

Please see Project Proposal posted in Supporting Documents folder.

Risks

Please see Project Proposal posted in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal posted in Supporting Documents folder.

Linkages

This project will be engaged with other APEC fora such as CTI. Also, one of the aspects of the project is to have representatives from other non-APEC fora like the UN, OECD or WAIPA to exchange their approaches to measure FDI impact and promote quality investment attraction that assist APEC economies to an inclusive and sustainable development and the Workshop will be an opportunity to share their findings in each of their corresponding areas of expertise. The project is related with a project named “High-Level Seminar on Sustainable Finance and Quality Infrastructure Investment in Asia” which was developed by New Zealand and Japan in 2021 and was supported by the OECD. The project also complies with objectives and pillars of the IEG and builds on the work the IEG has done during 2023.

The Project has a different scope and focus, it covers all APEC economies, it focuses on attracting investment, registration, determination of destination sectors to guarantee the quality of the investment, and subsequent measurement through indicators, structured and designed methodologies for these results, to determine the impact.


Sustainability

The Workshop will be held in Peru in August 2024.  The final report will be issued in November 2024.  Six months after the Workshop a follow-up with participating APEC economies' members will be carried out through a survey about their evaluation of the recommendations and best practices compiled; and how they value them with regards to their applicability in their own work.  Furthermore, when possible interviews with participants will be considered to have a more in-depth understanding of how the workshop has impacted or influenced views on how to approach measurement of FDI, chosen value to measure impact in sustainable development, as well as any specific need of its team to help implement best practices.

Likewise, it is important to measure if best practices are not implemented to know if this is because it is a long-term decision that needs several steps to implement (i.e. change of legislation), because the entity has chosen a different approach, or because of the entity does not consider one of its priorities at the moment to measure the impact of FDI in sustainable development, among other factors.


These findings will be compiled in a report to analyze the factors that have help in the implementation of the best practices or those that have delayed it or make it impractical or not a priority to implement.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

Yes
Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
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Secretariat Comments
Reprogramming Notes
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Content Type: Standard Proposal