ADB contributing to PPP infrastructure facility
MANILA, PHILIPPINES – The Asian Development Bank (ADB) is making its latest contribution to a multilateral facility promoting private sector involvement in infrastructure development in developing countries.
ADB is extending a $500,000 grant to the Public-Private Infrastructure Advisory Facility to cover its membership for 2007-2008. ADB joined the facility in 2001 through an initial $250,000 contribution, and continued to renew funding support for five years to the end of 2006.
Established in 1999 at the initiatives of Japan and United Kingdom in coordination with the World Bank, the facility helps developing nations improve the quality of their infrastructure through private sector involvement in financing, ownership, operation, rehabilitation, maintenance or management of infrastructure services. Eligible projects include the development of roads, ports, airports, railways, electricity supply, telecommunications, solid waste, water supply and sewerage, and gas transmission and distribution.
As a partner in the facility, ADB strengthens its role in mobilizing private resources for infrastructure development, particularly in the Asia and Pacific region, where infrastructure demands are immense and the public sector by itself cannot bridge the financing and efficiency gaps.
“Development of private sector involvement in infrastructure is crucial to the sustained economic growth of the region and the elimination of poverty,” said Toshimasa Dojima, senior finance specialist of ADB’s Regional and Sustainable Development Department.
Continued membership allows ADB to access an existing partnership of all major donors that will enhance the knowledge content of ongoing and proposed private sector participation projects. It also provides an opportunity to keep up-to-date on major initiatives in the private infrastructure sector, he said.
The facility undertakes its mission using two mechanisms. The first is through technical assistance to governments in developing countries on strategies and measures to tap the full potential of private involvement in infrastructure. The second is the identification, dissemination and promotion of good practices on matters related to private involvement in infrastructure in developing countries.
From the time it was established to 30 June 2006, the facility has approved 505 grants amounting to more than $111 million covering projects in 108 countries. During the same period, the facility also mobilized additional co-financing of $8.4 million from other donors and through contributions from governments.