The Asian Development Bank (ADB) and International Enterprise (IE) Singapore signed on May 3rd a Letter of Commitment to launch a public-private partnership (PPP) initiative to catalyze infrastructure development within the Association of Southeast Asian Nations (ASEAN). The initiative will see ADB work with Singapore agencies, led by IE Singapore, to enhance private sector participation and investments in regional PPP projects.

Based out of Singapore, the initiative is proposed to be funded at $9 million over three years. This amount is jointly committed by ADB and Singapore government agencies, led by IE Singapore.

This is one of the first concrete initiatives put in place following the Memorandum of Understanding signed between the Government of Singapore and ADB last year to strengthen cooperation for sustainable growth in the region.

It aims to help address the region's pressing infrastructure development needs, building towards the establishment of the ASEAN Economic Community (AEC) by 2015. ASEAN's infrastructure needs are estimated at $60 billion per year over the next decade.

The initiative will work with governments in the region to structure PPP projects, tapping into ADB's regional operations and outreach to ASEAN member countries. It also aims to explore ASEAN's capital markets to finance or refinance these PPP projects. Areas that the initiative will fund are wide-ranging, covering power generation, water management, transport infrastructure, and more.

Targeted to begin operations in the second half of 2013, the initiative will be run by a core team of specialists. Representatives from ADB and Singapore agencies, led by IE Singapore, will jointly oversee the initiative's operations.

Source: ADB