Unlocking Investment in Transport Infrastructure: The role of ADB

Transcription

1 Unlocking Investment in Transport Infrastructure: The role of ADB Asian Highway Investment Forum 8 October, 2013 Hideaki Iwasaki Principal Infrastructure Specialist Asian Development Bank Asian Development Bank ADB is a multilateral development bank owned by 67 members, 48 of which are from Asia and the Pacific region.

2 About ADB Quick Facts Established in 1966 Long term ratings: S&P: AAA Moody s: Aaa Fitch Ratings: AAA HQ in the Philippines 24 field offices in Asia 5 representative offices in Australia, Germany, Japan, the Philippines, and the USA Over 2,800 employees ADB HQ ADB Field Offices 3 Long Term Strategy: Strategy 2020 Core Objectives Inclusive Economic Growth Environmentally Sustainable Growth Regional Integration Key Drivers Private Sector Operations Good Governance and Capacity Development Gender Equity Knowledge Solutions Partnerships Core Specializations Infrastructure Environment (including climate change) Regional Cooperation and Integration Financial Sector Development Education 50% of annual operations targeted by % of annual operations targeted by

3 ADB s Sustainable Transport Initiative Priority areas: 1.Urban transport 2.Transport and climate change 3.Logistics and crossborder transport 4.Road safety and social sustainability MDB joint statement + voluntary commitment

4 The need for Sustainable Transport Sustainable Transport = accessible, affordable, efficient, financially sustainable, environment friendly, safe A Menu of Support Finance + Leverage + Knowledge

5 Government Financing Requirements Instruments Recurrent Financed by: Revenue (incl investment income) + Expenditure (incl debt interest & exps) Domestic Recurrent Surplus / Deficit + / Government bills Capital Government bonds Revenue + Bank restructuring bonds Expenditure Foreign currency bonds Capital Surplus / Deficit + / Special purpose bonds Budget Surplus / Deficit + / Infrastructure bonds Central bank credit Financial Transactions & Adjustments Debt Principal Repayments Privatisation Receipts & Asset Sales + External On-lending + / Multilateral loans Contingent Liabilities Bilateral loans Other Adjustments + / Commercial loans + / International bonds Government Financing Requirement (Mobilisation) Financing Requirement Domestic / External International Funding Sources International Capital Markets Multilateral Institutions/ Bilateral Agencies Officially Supported Export Credits

6 ADB s Financial Resources Ordinary Capital Resources Funds available for ADB s lending operations Replenished by borrowings from the world s capital markets Equity Loans at near-market terms Special Funds Asian Development Fund (ADF) The oldest and largest special fund (Est. 1973) Concessional assistance For DMCs with low-income per capita and limited debt-repayment capacity Types of Financing

7 Strategy for Private Sector Development A multi pronged approach to private sector development: ADB believes that a vibrant private sector is essential to long term economic growth, advances employment, productivity and new technologies, through payment of taxes, enables governments to invest in public goods and services, including basic social services ADB s Private Sector Thrusts Support governments to create enabling environments for business ADB supports private sector development through complementary assistance to both governments, through its sovereign operations departments the private sector, through the Private Sector Operations Department Generate opportunities in ADB financed Public Sector projects Fight Poverty in Asia Catalyze private investments ADB s sovereign operations Private Sector Operations Department 13 Private Sector Operations ADB Products Loans Direct loan: market based pricing with major international and/or local currencies B loan: ADB as Lender of Record (funded by eligible third party financing) Unfunded risk participations: fronting arrangement with IFIs and/or commercial banks Guarantees Political Risk Guarantee: FX restrictions, expropriation, political violence and contract dispute Partial Credit Guarantee: non payment by the borrower of the principal and interest due Equity Investment Investment into enterprises: common shares, preferred stock, and/or convertibles Investment into financial institutions: common shares, preferred stock, and/or convertibles Investment into funds: no involvement in management or control Technical Assistance Project Preparatory Technical Assistance (PPTA) Policy & Advisory Technical Assistance (PATA) Capacity Development Technical Assistance (CDTA) Research & Development Technical Assistance (RDTA) 15

8 Case study: Intercity Motorway in Thailand Technical assistance (TA) to create policy/strategy and legal framework for public private partnership (PPP) in Thailand TA 7540 THA: Mainstreaming Public Private Partnerships in Thailand (2011) deliverables contributed to enactment of PPP Act in April TAs to support development of Bang Yai Nakhon Pathom Kanchanaburi (BNK) Motorway using PPP TA 7483 THA: Implementation Plan for Strategic Intercity Motorway Project (2009) feasibility studies and ground work for PPP TA 8219 THA: Thailand Intercity Motorway Transaction Advisory (2012) structuring a well designed PPP model and develop preparatory plan for PPP procurement/ transaction ADB Potential Further Support for PPP Project Preparation Technical preparatory work for PPP procurement PPP Contract/ Transaction Tender design, procurement implementation and management Project Financing Project loan, credit enhancement products ADB Participation Specialized expertise in public and private sector financing for infrastructure development Deal broker role between public and private sector

9 ADB s role: unlocking investments Thank you for your attention! For further information, visit