In late 2003, the World Bank Group recommitted itself to supporting “high risk/high reward” infrastructure projects, including dams and energy developments. In addition to investing in projects directly, the World Bank Group supports extractive industries and energy activities through policy and program lending and technical assistance. Loans to governments support the privatization of public utilities and the revision of energy, mining, and petroleum sector regulations to facilitate increased private sector engagement in these sectors.
At the same time, the Bank Group’s private sector loans, equity investments and risk guarantees subsidize corporate investments in these same sectors. The Bank’s support for both public and private initiatives in the extractive industry and energy sectors suggests the magnitude of its impact in these arenas.
The quest for new sources of energy has led to a recent boom in oil activities in the Caspian Sea region and in Africa’s Gulf of Guinea region, and a surge in the number of pipelines developed to transport oil and gas from their sources in the developing world to markets abroad. See Problem Projects for case studies.