7.1　Institutional framewor k

Gover n ments need to establish a suitable invest ment cli mate and co mmunicate t his widely,in the process making known their project priorities.In particular,govern ments shoul d ensure t hat:

1.The legislative framewor k f or decision making is one in which an investor can have confidence in ter ms of clarity,t he i mpartiality of t he legal pr ocess,and t he ability to resolve disputes without undue costs or delay.

2.An efficient institutional fra mewor k is in place to ensure t hat all parties concer ned with the develop ment of any project are f ully aware of the factors of interest to t hemselves and t hat,as far as possible,unnecessar y delay and conflict of interest are avoided.(https://www.daowen.com)

3.In deter mining pr oject priorities,t he long-ter m interests of the state shoul d be taken into account,in ter ms of the selection of the preferred project and the finalisation of its ulti mate configuration.

4.Econo mic and financial analysis should take account of the effects of assu med interest rates,and so me allo wance taken of t he needs f or price escalation.

5.Wherever possible mechanisms should bei mplemented to reconcile the gap bet ween short-ter m price co mpetitiveness and long ter m wealt h creation.Multilateral develop ment banks should be encouraged to play their f ull part in this process.