Transport

Private Sector Participation

ADB assists its developing member countries in invigorating their investment climate to stimulate private sector involvement in the provision of transport infrastructure and services.

Operations must address the policy and regulatory functions of public authorities, risk assessment, and financing structures. Active dialogue is needed between the public and private sectors so as to establish sustainable Public Private Partnerships.

ADB through its own investments promotes viable projects and catalyzes additional private investments. Transport projects with attractive risk-return profiles are most likely to attract private sector investment.

In cases where transport projects are not financially viable, even if the market does not offer enough return for the private sector to undertake a project, the government can provide public funds to make the project feasible for the private sector, thereby leveraging more private funds for every unit of public funds spent. ADB assists governments to provide the public fund component to fill this viability gap and make the project happen as a way to leverage additional private funds.