ADB to provide PPP advisory services
Manila, Philippines: The Asian Development Bank (ADB) opened a new
office to provide governments with independent advice on shaping
public-private partnerships (PPPs), a key conduit for greater
infrastructure investment in developing Asia.

"Using PPP business models is one of the best ways for developing
Asia to meet its massive infrastructure investment needs, estimated at
$8 trillion up to 2020, given the significant amount of private capital
that is waiting to be deployed to well-structured and bankable deals,"
said Head of the new Office of Public Private Partnerships, Ryuichi Kaga.
"Accessing the operational expertise of private companies is another
advantage of PPPs for implementing infrastructure projects efficiently,"
he said.
Strategy 2020, the long-term strategic framework that guides ADB's
activities, identified the private sector as critical to meeting Asia's
development needs.
The ADB is committed to having private sector operations and
development account for 50% of its activities by the end of this decade
and delivering much-needed investment. The private sector can also help
inject greater efficiency and innovation into infrastructure projects in
the region.
The ADB has strong and longstanding relationships with developing
member governments, development partners, banks and companies operating
in Asia.
It also has extensive experience in assessing and financing large and
small infrastructure and social projects in the region, involving the
public and private sectors.
The ADB has provided PPP transaction advice on several infrastructure
projects.
They include the $1.3 billion combined heat and power plant 5 in
Mongolia, the country's first PPP which reached contractual close in
June, the ongoing Lae Port, the largest port in Papua New Guinea, and
the cross-border Turkmenistan-Afghanistan-Pakistan-India gas pipeline.
ADB's PPP transaction advisory service will ensure that ADB's client
countries bring to market bankable transactions. The new ADB office will
provide advice on project marketing, deal structuring, bid packaging and
strategy so that governments complete their transactions and achieve
financial close.
The advice will not be tied to any ADB lending and would be provided
on a fee basis.
These services will be distinct from the new office's work in PPP
advocacy, support for development of policy, legal and regulatory
frameworks to promote PPPs and coordination of financing. |