New ADB Office to Provide Independent PPP Transaction Advisory Services

News Release | 1 September 2014

MANILA, PHILIPPINES – The Asian Development Bank (ADB) today opened a new office to provide governments with independent advice on shaping public-private partnerships (PPPs), a key conduit for greater infrastructure investment in developing Asia.

"Using PPP business models is one of the best ways for developing Asia to meet its massive infrastructure investment needs, estimated at $8 trillion up to 2020, given the significant amount of private capital that is waiting to be deployed to well-structured and bankable deals,” said Ryuichi Kaga, Head of the new Office of Public Private Partnerships. “Accessing the operational expertise of private companies is another advantage of PPPs for implementing infrastructure projects efficiently.”

Strategy 2020, the long-term strategic framework that guides ADB’s activities, identified the private sector as critical to meeting Asia’s development needs. ADB has committed to having private sector operations and development account for 50% of its activities by the end of this decade. As well as delivering much-needed investment, the private sector can also help inject greater efficiency and innovation into infrastructure projects in the region.

ADB has strong and longstanding relationships with developing member governments, development partners, banks, and companies operating in Asia. It also has extensive experience in assessing and financing large and small infrastructure and social projects in the region, involving both the public and private sectors.

ADB has successfully provided PPP transaction advice on several infrastructure projects. They include the $1.3 billion Combined Heat and Power Plant 5 in Mongolia, the country’s first PPP which reached contractual close in June, the ongoing Lae Port, the largest port in Papua New Guinea, and the cross-border Turkmenistan-Afghanistan-Pakistan-India gas pipeline.

ADB’s PPP transaction advisory service will ensure that ADB's client countries are able to bring to market bankable transactions. The new ADB office will provide advice on project marketing, deal structuring, bid packaging, and strategy so that governments are able to complete their transactions and achieve financial close.The advice will not be tied to any ADB lending and would be provided on a fee basis.

These services will be distinct from the new office’s work in PPP advocacy, support for development of policy, legal, and regulatory frameworks to promote PPPs, and coordination of financing.