On 1st December, 2021, the European Commission announced an international infrastructure plan - the “Global Gateway Plan” - a move seen as a response to China’s Belt and Road strategy.
Global Gateway Plan: Key Highlights
Investment: It is a plan to mobilise €300 billion (between 2021 and 2027) in public and private infrastructure investment around the world.
The investment will be made in projects that can be delivered with high standards, good governance, and transparency while ensuring financial sustainability at the same time.
Expected Outcomes: This will help develop sustainable and high quality digital, climate, energy and transport infrastructures. The plan will strengthen health, education and research systems across the world.
The project will probably extend the remit of the European Fund for Strategic Investment, or create a similar institution, which can act as a guarantor for riskier investments in the ‘Global South’.
The EU has indicated it especially wants to compete for infrastructure development projects in Africa.
Offshoot of Build Back Better World: it is an offshoot of the Build Back Better World (B3W) Initiative (an international infrastructure investment initiative recently announced by the G-7) to offer developing countries an alternative to the Belt and Road Initiative.
Implementation
The Plan will be implemented in a Team Europe approach that brings together funding by the EU, its Member States, European financial institutions and national development finance institutions.
The plan will also require buy-ins from international institutions and the private sector as well.
