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How Asia Can Unleash Private Investment for Its Infrastructure
Asian governments are scrambling to reboot their battered economies, following the COVID-19 pandemic. The key to generating a return to high levels of economic growth is a substantial increase in infrastructure investment.
The Asian Development Bank (ADB) has estimated that developing Asian economies need $1.7 trillion a year in climate-adjusted infrastructure investment in transportation, power, water and sanitation and telecommunications. Prior to the pandemic, only about two-thirds of that huge financing requirement was being met, overwhelmingly with government spending.
However, the public purse, stretched thin by the costly response to COVID-19, is unable to fill the massive gap. Only through private sector investment can developing Asia ensure connectivity and the physical foundations essential for a modern economy to create jobs and prosperity.
So what can Asian governments and their partners do to unleash pent-up funds waiting on the sidelines? Here are four key areas for action.
Prepare More Projects
A key bottleneck to increasing infrastructure investment is the simple lack of bankable projects. There are several initiatives underway, but more action is required — particularly in more challenging environments, like fragile and…
