Asian development to top US$ 8 trillion
By Sarah Ann McCay07 June 2012
The Asian Development Bank (ADB) has forecast that US$ 8 trillion is required over the next decade to continue Asia's infrastructure development.
In order to raise finance for the region's continued development, ADB is calling on financial institutions and governments in Asia Pacific to consider public private partnerships (PPPs).
The bank's 2011 Infrascope study, conducted by the Economist Intelligence Unit, uses a benchmark index system to rank the readiness and capacity of a country to carry out PPP projects.
The assessment, carried out on 11 developing economies in the region, shows an increasingly open environment for PPPs, though with individual countries at different stages of readiness.
The Republic of Korea, India and Japan are the top performing countries in Asia Pacific, reflecting their robust institutional and regulatory frameworks.
China also performed well with 614 PPPs reaching financial closure between 2000 and 2009.
Vietnam, Mongolia, and Papua New Guinea were at the lower end of the index, due to a lack of experience with PPPs and underdeveloped institutions and regulatory frameworks. However the study found that they, and other emerging economies such as Pakistan, Bangladesh, Kazakhstan, Thailand, Indonesia and the Philippines, are moving swiftly to put in place the necessary laws and structures to attract more private investment.