ADB Launches New Initiatives to Improve and Monitor PPP Business Environment

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YOKOHAMA, JAPAN (4 May 2017) — The Asian Development Bank (ADB) announced two new initiatives to improve and monitor the business environment for public-private partnerships (PPPs) in Asia and the Pacific. The measures, which aim to strengthen the bankability and implementation of PPPs, were announced in Yokohama, Japan at the 50th Annual Meeting of ADB’s Board of Governors.

The first initiative announced today is the Infrastructure Referee Program (IRP), which is the first program of its kind in the PPP market. Under the program, ADB will provide independent third party advice through qualified consultants to help public and private parties resolve disagreements that may arise over the life of a PPP project.

“Disagreements between public and private parties over risk allocation can arise during tendering, negotiation, construction, or operation, potentially triggering protracted delays, increased costs, and failure to deliver critical services,” said Ryuichi Kaga, Head of ADB’s Office of Public–Private Partnership (OPPP). “ADB, through the IRP, will help resolve disagreements between public and private stakeholders and support successful delivery and implementation of PPP projects in Asia and the Pacific.”

The second initiative, the PPP Monitor, is a new ADB publication that tracks the development of the PPP business environment across ADB member countries and provides insight for the public sector on structuring a sound environment for PPPs.

“We know from experience that there is substantial interest from both public and private sectors in PPPs, but they often lack essential information on the PPP environment,” Mr. Kaga said. “The PPP Monitor will provide country-specific information critical not only for sound policy formulation but also for the private sector to make informed business decisions.”

The PPP Monitor tracks each country’s regulatory framework, institutional capacity for project implementation, market maturity, and financial facilities. It also features sector-specific information for each country covered. A key finding is that having a well-developed financial market strongly corresponds to the size of a given PPP market. In all countries surveyed, the most well-developed PPP frameworks were found in the energy sector, which has had the largest share of private participation in Asia since the 1990s.

The PPP Monitor’s first edition includes information on Bangladesh, the People’s Republic of China, Indonesia, Kazakhstan, Papua New Guinea, the Philippines, Thailand, and Viet Nam. Future editions are expected to cover more countries and include a broader range of factors.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.

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