Infrastructure financing, public-private partnerships and development in the Asia-Pacific region

Abstract

Several studies have shown the significant interlinkage between infrastructure and development among various economies in the Asia-Pacific region. Recognizing the central role of infrastructure in contributing to the improvement of human welfare and achieving the 2030 Agenda for Sustainable Development, the present paper looks into the following key areas: (1) status of infrastructure in Asia-Pacific economies and infrastructure financing; (2) evidence linking infrastructure and development; (3) public-private partnership (PPP) as an emerging infrastructure financing scheme for developing economies; and (4) the creation of new financial institutions for infrastructure financing in the region. Overall, the Asia-Pacific region’s large and expanding infrastructure needs may be addressed through various forms of financing. While tax revenues and borrowing will continue to be significant sources of financing for most economies in the region, PPPs and other emerging sources could play a major role in addressing infrastructure gaps.