New body launched to boost Asian infrastructure

New body launched to boost Asian infrastructure

NEW DELHI (AFP): A new organization aimed at revitalizing Asia's infrastructure through private investment was launched here yesterday.

Indian transport minister T.G. Venkatraman said the Asian Infrastructure Development Alliance (AIDA) was a "unique body" which would improve the links between governments and private sector companies.

"The rapid formation of AIDA is indicative of the commitment of the region's governments," Venkatraman said.

The AIDA was proposed two years ago at the World Infrastructure Forum, Asia 1994 at Jakarta, he said.

Venkatraman said AIDA's strength was based on the fact that private sector companies would stand on an equal footing with government officials, allowing for frank head-to-head discussions.

"AIDA's structure allows specifically for private sector involvement on an equal basis which we are confident can deliver substantial rewards to governments and the private sector alike," he added.

The co-chairman of AIDA, John Trew, echoing Venkatraman's views said the alliance would enable private companies to work together with governments for their collective interest.

"AIDA will create an environment in which private sector investment can more effectively take place," Trew said.

"It is an unique enterprise where discussions between governments and private sector can take place on a neutral territory rather than one based on commercial interest alone," Trew added.

Trew said for AIDA to succeed it should have substantial support of private sector companies.

Earlier yesterday Deve Gowda addressed the Forum, a four-day event being run alongside the UN Economic and Social Commission for Asia and the Pacific (ESCAP) Ministerial Conference on Infrastructure.

He told the conference that New Delhi, aware of the "crucial role" of infrastructure for the country's growth, was giving more power to independent regulatory authorities in areas of power, transport and telecommunications.