PublicPrivateInfrastructureInvestmentinEastAsia.pptVIP

Public-Private Infrastructure Investment in East Asia Rafaelita M. Aldaba Philippine Institute for Development Studies NEAT Working Group Meeting on Investment 10 May 2008 Beijing, China Agenda Modalities for public-private partnerships in infrastructure Trends in private participation in infrastructure investment Infrastructure challenge in East Asia Models for private participation in infrastructure Management lease contracts: private entity takes over management for a fixed period but ownership investment decisions remains with the state Concessions: private entity takes over management for a given period assumes significant investment risk - Rehabilitate, operate transfer (ROT) - Rehabilitate, lease/rent transfer (BLT) - Build, rehabilitate, operate transfer (BROT) Models for private participation in infrastructure (cont’d) Greenfield projects: a private entity or public-private joint venture builds or operates a new facility for a period specified in contract; facility may return to the state at end of concession period [East Asia] - Build, lease, transfer (BLT) - Build, operate, transfer (BOT) - Build, own, operate (BOO) Divestitures: buy equity stake through asset sale, public offering, or mass privatization program [Latin America] Private sector infrastructure investment in East Asia East Asia has attracted significant levels of private sector investment in infrastructure US$ billions Latin America the Caribbean East Asia Pacific Europe Central Asia South Asia * Canceled or distressed PPI projects in developing countries: 1990-2006 Source: World Bank and PPIAF, PPI Project Database. Canceled or distressed infrastructure projects with private participation by region, 1990-2006 ? Investment Projects Region Total (2006 US$ billions) % of total Total % of total East Asia and Pacific 34.3 11 64 7 Europe and Central Asia 5.0 2 21 3 Latin America and the Caribbean 63.1 12 110 10 Middle East and North Africa 1.2 2 6 6 South Asia 4.0 4 4