Status : Completed
The demand for infrastructure is increasing rapidly as the ASEAN region copes with urbanization, high rates of growth, and the push for greater regional integration and connectivity. While the drivers for infrastructure investments vary from country to country, the overall financing gap remains wide. Already overstretched public finances, with limited scope for expanding the concessional Official Development Assistance (ODA) resource envelope – either because of country-specific ceilings on receiving ODA, or due to their status as Middle Income Countries (MICs) – means that governments must consider alternative financing models to leverage private capital into infrastructure.
Recognizing the centrality of infrastructure in the region’s development, and the imperative to engage and partner with the private sector, ASEAN has launched several initiatives, including the Master Plan on ASEAN Connectivity (MPAC), the Brunei Action Plan (BAP), the ASEAN Infrastructure Financing Mechanism (AIFM) and the ASEAN Infrastructure Fund (AIF) to identify key infrastructure development priorities, and innovative financing mechanisms. ASEAN Member States are committed to involving the private sector as a source of private capital and expertise in developing sustainable infrastructure projects to support the MPAC. The World Bank has worked very closely with the ASEAN Secretariat as a core team member in the development of the MPAC as well as the establishment of the WB-ASEAN Infrastructure Finance Network.
The lack of bankable projects remains the key bottleneck to the flow of private capital in infrastructure. There is therefore a need for ASEAN Member States to develop models of Public-Private-Partnership (PPP) which reach financial close. The project aims to establish an ASEAN PPP Program (APP) to support ASEAN Member States in leveraging private capital for financing projects identified under the Master Plan on ASEAN Connectivity (MPAC).
As a result of this project, eight (8) project briefs for selected PPP projects is now available for potential implementation under the ASEAN PPP Program. The project briefs were developed through collaboration with the World Bank.