Asean needs $60-B yearly for in­fra: ADB

Sun.Star Davao - - BUSINESS -

MANILA – The As­so­ci­a­tion of South­east Asian Na­tions (Asean) needs to un­der­take ef­forts to estab­lish macroe­co­nomic and po­lit­i­cal sta­bil­ity to meet an es­ti­mated $60 bil­lion a year to ad­dress the re­gion’s in­fra­struc­ture needs, a se­nior of­fi­cial of the Asian De­vel­op­ment Bank (ADB) said Mon­day.

Di­wakar Gupta, ADB Vice Pres­i­dent for Pri­vate Sec­tor and Co­fi­nanc­ing Op­er­a­tions, noted that there is a huge amount of money avail­able but flows into in­fra­struc­ture is barely one per­cent.

“Ba­si­cally be­cause in­vestors will only send in money where they are com­fort­able send­ing it. In the other words, you need to there­fore cre­ate a ma­trix where the risk for in­vest­ing is com­men­su­rate with the re­turn,” he said dur­ing the sec­ond day of the Asean Busi­ness and In­vest­ment Sum­mit (ABIS) 2017.

To at­tract in­vest­ments into in­fra­struc­ture, Gupta thus un­der­scored the need for Asean to cre­ate con­ducive mar­ket con­di­tions, estab­lish ef­fec­tive dis­pute res­o­lu­tion and en­act depend­able laws.

He also pro­posed un­der­tak­ing deeper cap­i­tal mar­ket re­forms, such as through in­no­va­tive in­stru­ments, rat­ing agen­cies and in­for­ma­tion com­mu­ni­ca­tion tech­nol­ogy (ICT), to estab­lish a stronger lo­cal cap­i­tal mar­kets.

“Those are the things that we will need to do. Govern­ments will have a very large role to play,” he added.

Gupta also cited the im­por­tant role of pub­licpri­vate part­ner­ship (PPP) ar­range­ments in in­creas­ing in­fra­struc­ture in­vest­ment re­quire­ments.

“And then there is run­ning busi­ness, which the gov­ern­ment can’t do, that has to be in pri­vate sec­tor hands where ef­fi­cien­cies in ex­e­cu­tion can be lever­aged. And I think that’s re­ally the way for­ward,” he said.

“Philip­pines is do­ing very well on PPPs, (it has) put to­gether a very large amount in the last 15 projects,” he added.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.