ADB to assist with Asian infrastructure<\/p>\n
MANILA (AFP): The Asian Development Bank (ADB) said yesterday
\nit would help developing member countries meet massive
\ninfrastructure requirements through novel financing schemes
\nproven effective in certain Asian countries.<\/p>\n
Asian governments are being urged to utilize schemes such as
\nthe build-operate-own (BOO) and build-operate-transfer (BOT)
\nprograms, said John Taylor, director of the bank's
\ninfrastructure, energy and financial sectors department, to
\noffset a lack of resources.<\/p>\n
The ADB said it would assist in \"formulating and negotiating
\nBOT projects.\"<\/p>\n
It has been projected that Asia will need more than one
\ntrillion dollars worth of infrastructure investment in the next
\ndecade, with US$450 billion alone going to energy and transport.
\nThe rest will go to water supply, telecommunications, and waste
\ndisposal.<\/p>\n
Infrastructure investments involving BOT programs can be
\nfunded by the ADB up to $50 million, but did not say whether it
\nwould be in the form of equity or loans.<\/p>\n
It added that it could \"mobilize similar commercial co-
\nfinancing\" especially for projects in the power, toll roads, mass
\ntransit and water supply services.<\/p>\n
The ADB has cited Bangladesh, China, India, Indonesia,
\nPakistan, Thailand, Philippines, Thailand and the whole of
\nIndochina as developing member countries \"with major
\ninfrastructure requirements.\"<\/p>\n
In an article in its bi-monthly publication, the ADB review,
\nTaylor cited Malaysia and the Philippines as two countries that
\nhad found innovative ways to meet infrastructure and energy
\nrequirements through privatization of existing assets and the
\n\"contracting out\" of the operation and maintenance of
\ninfrastructure services.<\/p>\n
He noted the Philippines' success in solving a crippling power
\ncrisis after \"an aggressive BOT program,\" which attracted
\nJapanese, American, Hong Kong and European investors. Those
\nprojects generate more than 6,000 megawatts of power.<\/p>\n
BOT programs involving the private sector \"allows governments
\nto reallocate scarce resources from infrastructure\" to poverty
\nalleviation, health and education programs, Taylor said.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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