Business Desk :
Leveraging private capital and technical expertise through public-private partnerships (PPPs) can help countries in Asia and the Pacific meet their infrastructure needs, which currently stand at about $1.7 trillion per year, according to a new Asian Development Bank (ADB) report.
The special theme chapter in the Asian Development Outlook (ADO)-2017 Update analyzes PPPs as a vital source of private sector support in the region’s efforts to fill the $500 billion per year infrastructure finance gap.
“PPPs, if done right, have the potential to fill the region’s huge infrastructure needs, leveraging the capabilities and resources of the private sector towards the common goal of sustainable development for all,” said ADB Chief Economist Yasuyuki Sawada.
Asia’s development needs are significant, with over 400 million Asians currently living without electricity, 300 million without safe drinking water and over 1.5 billion without basic sanitation. Resources of governments and international financial institutions like ADB are not enough to meet these needs, something the private sector through PPPs can help address.
The report noted that PPPs, when properly implemented, can improve both infrastructure as well as public service delivery, making them effective tools in inclusive economic development.
