Asia's rapid development over the past two decades has brought the continent to the brink of becoming the world's economic powerhouse. However, its infrastructure shortfall – believed to be worth $6500bn between 2015 and 2020 – is threatening to hold the region back, unless it can scrape together the required funding to fill this gap.
Asia's infrastructure needs are primarily in electricity and raid networks - key to economic growth and development.
According to recent article in the Banker there are many reasons for this bottleneck, including inking PPP projects to attract private investors. PPP deals in Asia can be a challenge, despite there being a lot of capital available. Indeed, bankable infrastructure projects – the kind that give private banks the confidence to lend – are rare in Asia's emerging markets. "The issue is not funding but a lack of good projects," says Rajeev Kannan, director of the structured finance department at Japan's Sumitomo Mitsui Banking Corp (SMBC).
The more transparency; data and standardized best practices sharing around the globe should lead to more bankable PPP projects, encourage favorable and clear regulatory regimes, and kickstart the effort to close infrastructure gaps.
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