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Asia Pacific Project Preparation Facility

Institutional Document | October 2014

The Asia Pacific Project Preparation Facility is a multi-donor umbrella facility that will encourage private sector participation in infrastructure by adopting a more consistent and higher-quality approach to public–private partnership (PPP) project preparation development and transaction advice across the region. ADB will use the fund to prepare, structure, and place in the market projects structured with the objective of promoting PPPs.

The fund will provide financial assistance to developing member country governments and their public sector agencies to support the financial, legal, and technical advisory services required to prepare and structure transactions. The fund will also offer support for enabling reforms and capacity building that can be linked to potential or current transactions, including the following: (i) upstream sector reform work linked to potential projects that are being prepared or soon will be, including advising client countries on enabling reforms (such as legislation and regulation frameworks, and possible use of guarantees or incentive schemes), appropriate PPP project selection criteria, staff training, and market and/or stakeholder awareness; (ii) due diligence covering technical, financial, economic, social, legal, regulatory, safeguards, institutional, governance, transaction structuring, and management matters; (iii) preparation of information memoranda and marketing to place each of the transactions with investors—the latter includes (a) managing road shows; (c) creating and overseeing data rooms and other channels for dissemination of project information for investor due diligence; (d) preparing bid documents and draft contracts; (e) managing the bidding process; and (f) assisting with evaluations, awards, and negotiations; and (iv) attracting high-quality sponsors that rely on limited recourse debt markets by preparing strong project documentation and robust financial models, and capitalizing on ADB’s strong knowledge of infrastructure markets in Asia to inform potential investors and their lenders of opportunities.

Contents 

  • Introduction
  • Background and Rationale
  • Objectives and Scope
  • Implementation Arrangements
  • Contributions to the Fund
  • Administration Arrangements
  • Recommendations
  • Appendix 1