Services

T-Avanta have gained valuable experience in project managing the delivery of a number of high profile European and African projects in various developmental sectors.

The working relationships are insights into our established position as project managers; simultaneously working with various sub-contractors and other service providers.

T-Avanta is currently on the drive to further extend such high standards of management to Africa and the emerging economies where rapid development of infrastructure is in high demand.

Defining Infrastructure

T-Avanta’s TAD defines infrastructure as the framework; including services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post offices.

Infrastructure services can further be characterised as capital intensive goods which are immobile, lumpy and need longer duration to generate revenues.

In the T-Avanta’s TAD model, infrastructure activities can mainly be categorised as follows:

• Physical / Hard Infrastructure: this is the type of infrastructure which provides the network for the functioning of modern industrial nation. These include
  • Transport (Toll roads, light rail systems, bridges and tunnels)
  • Energy (power generation and supply)
  • Telecommunication (telephones)
  • Water (sewerage, waste water treatment and support

• Non-physical / Soft Infrastructure: this is the type of infrastructure which help maintain the economy. These usually require human capital and help deliver certain services to the population. Examples include the
  • healthcare system,
  • financial institutions,
  • governmental systems,
  • law enforcement and
  • education systems.

Significance of infrastructure for a Developing Country

In the T-Avanta TAD model, countries are designated as ‘developed’ or ‘developing’ country. A developing country can be described as a nation with low level of material well-being.

Developing countries are considered to have no significant industrialisation as compared to their population and have medium to low standard of living.

T-Avanta recognises that access, quality and price of infrastructure are all important drivers of a country and a region’s competitiveness, growth and poverty reduction.

T-Avanta’s TAD programme explores how lack of adequate infrastructure can limit gains in productivity, raise the cost of logistics and production, reduce business profitability, and constrain opportunities for economic and social progress.

T-Avanta believes that this lack or inadequacy is mainly because infrastructure investments are characterised by capital intensive, requires a longer duration for planning and construction, need longer duration to generate revenues, gradually come in to full capacity usage, are considered immobile and lumpy goods which can not be relocated.

T-Avanta’ TAD model advocates that infrastructure is the nerve centre of the economic system. It goes further to demonstrate that not only does it play an important role in the development of the economy; but of the communities within it as well. As such infrastructure is the glue that brings together the elements of the economic system.

The growing influence of Public-private-partnerships

T-Avanta believes there is some evidence of PPPs leading to efficiency gains in the service delivery of infrastructure projects.

T-Avanta’s extensive experience in managing complex projects mean that even with growing fiscal constraints and competing needs for public finance, it is well placed to ensure quality and timely delivery for governments in developing countries who are considering private participation in order to meet their infrastructure challenges.

T-Avanta understands that the high capital cost of infrastructure services and increasing financial needs are becoming well above the public ability alone thus emphasis has been shifted from public driven to private driven infrastructure procurement.

Public-private-partnerships (PPPs) for infrastructure are becoming vital not only because of the high capital cost but to bring technical innovation and management expertise for more efficient delivery of the services.

T-Avanta’s TAD model of public procurement to infrastructure provision is perceived to reduce public borrowing and minimising public administration inefficiencies.

T-Avanta believes that this lack of ventures in building adequate infrastructure can be attributed to weak tariff regulation, reluctance in honouring concession commitments, inconsistent enforcement of laws, corruption, poor governance practices, lack of availability of long-term local currency financing at fixed interest rates, weak accounting and disclosure norms, and weak securities legislation.

The Importance of infrastructure investment for economic growth.

T-Avanta’s TAD model highlights the the plethora of anecdotal and more technical evidence that better quantity and quality of infrastructure can directly raise the productivity of human and physical capital and hence growth (e.g.
by providing access, roads can

• Improve education and markets for farmers’ outputs and others by cutting costs
• Facilitate private investment,
• Improve jobs and income levels for many).

T-Avanta’s TAD model concludes that the upshot is that it is easy to understand why there are still so many debates as to the level of the impact of infrastructure on the level of GDP and its longer term impact on the growth potential
of the economy.