The Asian Development Bank (ADB) has taken a move to help accelerate the public-private partnership (PPP) initiatives in its member countries, including in Bangladesh, UNB reports.
The Manila-based development bank signed a PPP co-advisory agreement with eight global banks aimed at accelerating the flow of private funds into critical infrastructure projects in developing Asia.
The eight banks are: Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Credit Agricole CIB, HSBC, Mizuho Bank, Macquarie Capital, Societe Generale, and Sumitomo Mitsui Banking Corporation. The agreement was signed on the sidelines of ADB’s 48th Annual Meeting of its Board of Governors, being held here from 2-5 May 2015, an ADB news release said today (Monday).
This agreement is the first formal co-advisory framework between a multilateral development bank and international commercial banks. Under the agreement, ADB and the eight banks would work together to provide independent advice to governments in developing Asia on how best to structure PPPs to make them attractive to the private sector and to manage the subsequent PPP bidding process. The governments will, however, make the final choice of PPP winning bidders.
ADB has estimated that developing Asia needs to spend $8 trillion between 2010 and 2020 on national infrastructure. Many governments hope to raise finance for energy, roads, railways, ports, airports, water, and other key infrastructure through PPPs. ADB, with its co-advisors, will help clients assess the future income flows of projects, bring international best practices to PPPs, and develop PPP capacity in the region to deliver bankable transactions.
ADB has been supporting the efforts of countries in the region to improve their PPP regimes for some time. On 1 September 2014, it formally established the Office of Public-Private Partnership to provide independent transaction advice on specific deals and help countries improve their PPP knowledge and legal and regulatory frameworks.