ADB Emphasizes on PPP in Infrastructure
Asian countries should focus more on public private partnerships (PPPs), as it will help in attracting private capital and technical expertise in infrastructure sector – hit hard by the pandemic, Asian Development Bank.
While some infrastructure sectors like health and Information & communications technology (ICT) are experiencing unprecedented demand, others like airports are witnessing demand dry up. Asia Pacific countries should revisit their public private partnership frameworks, making government support an integral element for seeking value-for-money through PPPs, it stated.
Governments in Asia will need to quickly assess the potential short-term impact of reduced demand and increased costs across their PPP portfolio. Even though PPPs projects are increasing rapidly in Asia, most programmes are still considered developing or emerging by international lenders, they said, adding only 13 per cent of the countries in Asia and the Pacific have procedures that align PPPs with public investment priorities.