Question 3. What are the PRIF principles?

PRIF support for infrastructure programs will be delivered within (or help create) the following conditions:

  1. Long-term engagement with Pacific island countries that provide access to consistent technical expertise and funding for sustained improvements in infrastructure services. Long-term funding of infrastructure services from all sources (user charges, PIC governments, the PRIF partners, other financiers) must be based on the ‘life-cycle’ costs of sustainable service provision at appropriate standards and efficient balances between public, private and development partner financing. 
  2. Country responsive prioritisation of infrastructure investments based on local capacity through country led planning and priority setting. PRIF support for PIC infrastructure programs through grants should be negotiated with regard to the capacities of individual Pacific island countries to fund up-front and sustain recurrent expenditure on infrastructure services to appropriate standards from user charges and/or their domestic budgetary resources. 
  3. Whole-of-sector based approaches to infrastructure planning, budgeting and priority setting led by the Pacific island countries, with a strong focus on the recurrent costs implications of maintenance requirements and the institutional capacities for investing in and maintaining infrastructure; and with facilitatory TA from the PRIF as necessary. 
  4. Institutional and regulatory structures that: clearly distinguish between the interests of infrastructure service providers and consumers; transparently fund the costs of infrastructure provision that cannot be recovered through user charges; and enforce management accountability for performance. 
  5. A strengthened role for the private sector in infrastructure financing and service delivery and, where appropriate, encouraging local employment. 
  6. Use of appropriate technology that considers whole of life costing and sustainability, and accords with the need for building climate change resilient assets. 
  7. Harmonisation amongst development partners to increase the effectiveness of aid, and increasing harmonisation with Pacific island country government systems. 
  8. Achievement by service providers of agreed performance benchmarks, as the basis for subsidies for provision of infrastructure services, whether funded by PICs or the PRIF partners; and establishment of performance incentive arrangements to improve infrastructure service outcomes.