fbpx Public-Private Partnerships in Asia and the Pacific | Asian Development Bank

Public-Private Partnerships

ADB’s Office of Public-Private Partnership provides comprehensive public–private partnership support to create markets and mobilize financing to narrow Asia’s infrastructure gap.

  • ADB and PPP
     

    Asia's huge infrastructure needs, about $1.7 trillion a year, cannot be financed by the public sector alone.

  • Local governance
     

    Public-private partnerships can help address Asia and the Pacific's infrastructure deficit and boost development.

  •  

    Asia and the Pacific lacks quality bankable projects, a major challenge to attracting private capital for infrastructure.

  • Infrastructure ranking of Developing Asian economies, 2019

    The infrastructure shortfall, along with weak capacity and insufficient project financing hold back economic growth and poverty alleviation in Asia and the Pacific.

  • PPP projects in developing member countries, 2017
     

    PPPs play an important role in addressing the huge infrastructure investment gap in Asia and the Pacific.

  • PPP projects by sector, 2017
     

    PPPs can be used to finance and run not only traditional infrastructure, but also the transport sector, education, health, and other social sectors.

ADB's Office of Public-Private Partnership (OPPP) provides end to end public–private partnership (PPP) advisory services to narrow Asia’s infrastructure gap. ADB recognises that public–private partnerships (PPPs) can play an important role in addressing the huge infrastructure investment shortfall in Asia and the Pacific.

This is in line with ADB’s new strategy 2030 where ADB is expanding its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

With the new strategy we plan on increasing the emphasis on human development and social inclusion, generating quality jobs, improving education and training, accelerating progress in gender equality, tackling climate change, promoting rural development and food security and more.

To support PPPs in the region, OPPP provides transaction advisory services over the entire range of activities associated with the development and structuring and placing of PPP projects in the market. The provision of transaction advisory services is a unique service offering of OPPP and its team of experienced transaction advisors. The team helps harness the private sector's efficiency at managing infrastructure projects and delivering infrastructure services.



Your Questions Answered

  • Why are PPPs important in helping the region meet its huge annual infrastructure needs?

     

    The impact of COVID-19, climate change, and inflation, means the region now needs in excess of $200 billion per year from the private sector to meet its infrastructure needs. The ongoing impact of the pandemic means there’s a deficit on the revenue side and increased government expenditure in most DMCs.

  • What important lessons has ADB learnt in brokering PPPs in recent years?

     

    ADB provides upstream support to create a conducive enabling environment for PPPs as continuous regulatory reform and institutional strengthening are required to facilitate PPPs. ADB’s midstream help includes advisory services, assisting DMCs in preparing bankable projects that can attract private capital.

  • Lack of national capacity is an issue, so how does ADB work with member governments to establish proper legal and contractual frameworks for PPPs?

     

    ADB provides, via technical assistance or knowledge, critical support for governments in establishing the right policy and regulatory frameworks for capital mobilization at scale. This creates an enabling environment for PPPs to thrive. Building these policy and regulatory frameworks increases investment opportunities.