Regional: Asia Infrastructure Insights

Sovereign Project | 51280-001

The proposed knowledge and support technical assistance (TA) attempts to facilitate and integrate the development of strategic knowledge on infrastructure in the region, both inside and outside the Asian Development Bank (ADB). The TA will focus on three important areas: (i) creating knowledge products that focus on strategic issues regarding infrastructure and its financing modality; (ii) integrating infrastructure knowledge products in the region through a publication entitled Asia Infrastructure Insights, and convening of regular consultation workshops and knowledge-dissemination events; and (iii) contributing to the development of methods for compiling data on infrastructure investments and their financing, and enhancing the availability of data required for policy analysis on infrastructure.

Project Details

  • Project Officer
    Hampel-Milagrosa, Aimee
    Economic Research and Regional Cooperation Department
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Energy
Project Name Asia Infrastructure Insights
Project Number 51280-001
Country / Economy Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9441-REG: Asia Infrastructure Insights
Technical Assistance Special Fund US$ 1.00 million
TA 9441-REG: Asia Infrastructure Insights
Technical Assistance Special Fund US$ 141,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Sector / Subsector

Energy / Energy efficiency and conservation - Renewable energy generation - solar - Renewable energy generation - wind

Transport / Road transport (non-urban) - Urban public transport

Water and other urban infrastructure and services / Other urban services - Urban sanitation - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Some gender elements
Description

The proposed knowledge and support technical assistance (TA) attempts to facilitate and integrate the development of strategic knowledge on infrastructure in the region, both inside and outside the Asian Development Bank (ADB). The TA will focus on three important areas: (i) creating knowledge products that focus on strategic issues regarding infrastructure and its financing modality; (ii) integrating infrastructure knowledge products in the region through a publication entitled Asia Infrastructure Insights, and convening of regular consultation workshops and knowledge-dissemination events; and (iii) contributing to the development of methods for compiling data on infrastructure investments and their financing, and enhancing the availability of data required for policy analysis on infrastructure.

The TA is included in the ADB Management-approved annual work program of the ADB Economic Research and Regional Cooperation Department (ERCD), and is aligned with the three work areas identified in its work plan for 2017:_(i) improve research quality, so as to be the leading source of knowledge on Asian development, regionally and globally; (ii) add value to ADB operations departments_to enable them to become more responsive to client needs, and contribute to ADB knowledge solutions under the "one ADB" approach; and (iii) establish strong links with global and regional centers of excellence for research on critical development issues of relevance to Asia and the Pacific.

Project Rationale and Linkage to Country/Regional Strategy

The Asia and Pacific region faces both a huge infrastructure investment gap, and high demand for knowledge on infrastructure, as discussed in the ADB Meeting Asia's Infrastructure Needs report._Policy dialogue with key stakeholders in the region during dissemination of the report revealed the large demand for knowledge on infrastructure to support necessary policy changes needed to close the infrastructure gap. Areas identified include innovative infrastructure financing, such as the increased role of bond (green) financing and land capture; high technology; public-private partnerships (PPPs); guarantees; insurance; and sector best practices in the region. The existence of unmitigated risk factors is considered to be a key reason for the lack of investor interest in infrastructure. Institutional investors have strong and increased interest in financing infrastructure in the region, but some significant constraints need to be addressed. Land-capture financing is a viable option to ease the government's fiscal constraints for selected infrastructure. There is strong interest from government stakeholders in the region regarding high-technology infrastructure, but a significant knowledge gap exists regarding the long-term benefits. While PPPs are being used in many countries in the region, the progress of developing PPPs remains relatively slow. ADB and other stakeholders have attempted to develop best practices across sectors, but knowledge generated from such operations is scattered, and not always published.

A recent ADB study on the drivers of growth in middle-income countries finds that infrastructure investments and capital will play a major role in transcending middle-income status._For developing countries in Asia, the infrastructure investment gap (i.e., the difference between investment needs and current investment levels) is equivalent to 2.4% of the projected gross domestic product from 2016 to 2020. Traditional public resources for infrastructure investment have proven to be inadequate. More investments are needed in electricity, transport, telecommunication, and water and sanitation. Public sources comprise 92% of infrastructure investments in the region, but, in many countries they are unlikely to meet even 50% of the infrastructure gap between investment needs and current investment levels.

With limited fiscal space and increased spending needs for health and education, expanding alternative nongovernment sources of infrastructure financing is imperative if the region is to achieve its infrastructure development target. To help meet the region;s need for infrastructure financing, ADB will increase its operations to $20 billion annually by 2020. Most private sector financing of infrastructure currently uses bank financing -- bond markets are at an early stage of development in many ADB developing member countries (DMCs), and the complementarity between banking and bond financing has not been widely utilized. At many forums, large investors in developed countries have expressed interest in financing infrastructure development in the region, but the actual infrastructure investments financed from this source have remained limited because of various constraints. Some countries have made good progress in reforming their regulatory framework to enable PPP financing, but results to date are very modest. Stakeholders in many DMCs are keen to explore innovative infrastructure financing alternatives to increase the role of the private sector, using modalities such as green bonds, land value capture, and take-out financing. In this context, policymakers have expressed the need for knowledge support to facilitate informed dialogue as they seek to develop enabling policies to increase private sector infrastructure and green financing, and develop other innovative approaches to meet various infrastructure needs.

Adoption of high-level technology (HLT) will help maximize the development impact of infrastructure by facilitating a transition to low emission and climate-resilient growth. Appropriate HLT could also improve the functionality and efficiency of infrastructure and reduce its lifetime costs. DMCs have shown strong interest in HLT, and ADB has championed its application in its operations. Knowledge support to demonstrate the long-term benefits of HLT and to expand its adoption in various sectors, however, are still in an early stage of development.

ADB has strived to develop sector best practice in its infrastructure operations in various sectors. However, much of the tacit and explicit knowledge produced in these operations is not published. Published materials are scattered and tend to be disseminated in a low-profile manner. Selected infrastructure stakeholders in the region have also published their experience, but its reach to policy makers has been limited. Development and integration of these scattered infrastructure knowledge products into a flagship regional publication would facilitate regional knowledge sharing to enhance policy dialogue, inform development of enabling policies, and accelerate adoption of HLT and new financing modalities for infrastructure. This is in line with the objectives of the ADB Knowledge Framework for Strategy 2030, which seeks to make ADB a major facilitator of tacit and explicit knowledge in the region.

As noted in "Meeting Asia's Infrastructure Needs", data on actual infrastructure investments undertaken by countries is surprisingly scarce. Investments in infrastructure are undertaken by different entities, including national and subnational governments, state-owned enterprises (SOEs), and the private sector. Governments do not typically publish data on aggregate infrastructure investments, and there is no single way or international best practice approach to measure it. However, sufficiently disaggregated data on gross fixed capital formation (GFCF) from countries' national accounts statistics presents a possible approach. In this context, a methodological exercise conducted jointly with national accounts statisticians and budget experts from selected DMCs is required to prepare a set of easy-to-implement guidelines for measuring infrastructure investments more consistently across countries and over time than is currently possible. Moreover, coordination with similar efforts being undertaken in other developing regions by the World Bank (for Africa) and Inter-American Development Bank (for Latin America) could lead to the development of a global database on infrastructure investments by developing countries._In conjunction with existing databases on infrastructure investments and stocks, such a database, guided by principles and methodologies of open access, including bulk data and common data standards, would be very useful in undertaking policy analysis of infrastructure-related issues. The TA will also contribute to the creation of an infrastructure finance database.

Impact

Better informed policy making on infrastructure and its financing made

Innovative financing modality for infrastructure mainstreamed

Project Outcome
Description of Outcome

Knowledge base and policy dialogue on infrastructure policies in Asia and the Pacific enhanced.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Knowledge products on infrastructure and its financing modality published

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will require consulting services that will be provided by a number of international and national experts, including economists, infrastructure specialists, statisticians, resource persons, and research assistants who have research experience in infrastructure financing. The exact requirements for each type of expertise and the length of input will vary according to the area and scope of research studies. Economists, infrastructure specialists, and statisticians will be hired using individual consultant selection, on output-based, lump sum contracts with a provision for fixed out-of-pocket expenditures. ADB will engage individual consultants in accordance with the ADB Procurement Policy (2017, as amended from time to time) and the associated project administration instructions and/or TA staff instructions.
Responsible ADB Officer Hampel-Milagrosa, Aimee
Responsible ADB Department Economic Research and Regional Cooperation Department
Responsible ADB Division Economic Analysis and Operations Support Division
Executing Agencies
Asian Development Bank
Timetable
Concept Clearance 08 Sep 2017
Fact Finding -
MRM -
Approval 04 Dec 2017
Last Review Mission -
Last PDS Update 21 Dec 2017

TA 9441-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Dec 2017 - 04 Dec 2017 31 Dec 2020 01 Dec 2022 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,141,000.00 0.00 0.00 0.00 0.00 0.00 1,141,000.00 19 Sep 2022 880,544.57

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Asia Infrastructure Insights: Technical Assistance Report Technical Assistance Reports Dec 2017

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.



The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Research Associate Individual - Consulting Closed 14 Jan 2022 16 Jan 2022
Research Associate Individual - Consulting Closed 06 Jan 2022 12 Jan 2022
Asia Infrastructure Insights- City cluster development and planning specialist Individual - Consulting Closed 05 Mar 2020 18 Mar 2020
Infrastructure-PPP Specialist Sustainable Cities Chapter Individual - Consulting Closed 13 Nov 2019 19 Nov 2019
Indonesia Firm - Consulting Closed 12 Jul 2019 24 Jul 2019
Manuscript Editor Individual - Consulting Closed 15 May 2019 21 May 2019
Economist-National Individual - Consulting Closed 16 Apr 2019 22 Apr 2019
Asia Infrastructure Insights: Research Analyst for the Study on Financing SMEs to Support Infrastructure Development in Asia Individual - Consulting Closed 22 Aug 2018 31 Aug 2018
Research Assistant for Land Value Capture Study Individual - Consulting Closed 27 Jul 2018 29 Jul 2018
Research Assistant for Land Value Capture Study Individual - Consulting Closed 07 Jul 2018 13 Jul 2018
Asia Infrastructure Insights- Climate and Disaster Risks and Adaptation Investment Opportunities in the Asia-Pacific Region Firm - Consulting Closed 04 Jul 2018 02 Aug 2018
Asia Infrastructure Insights - National Economist Individual - Consulting Closed 22 May 2018 28 May 2018
Asia Infrastructure Insights - Research Assistant Individual - Consulting Closed 17 May 2018 23 May 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Research and Development Technical Assistance 9441 07 Oct 2019 PT PRICEWATERHOUSECOOPERS INDONESIA ADVISORY(INDONESIA) in association with PRICEWATERHOUSECOOPERS ADVISORY SERVICES PTE. LTD.(SINGAPORE) | WTC 3, Jl. Jend. Sudirman Kav 29-31 Jakarta 12920 Indonesia Asian Development Bank 153,733.00
Research and Development Technical Assistance 9441 08 Nov 2018 Four Twenty Seven(UNITED STATES) | 2000 Hearst Avenue, Suite 304 Berkeley, A 94709 United States Asian Development Bank 119,904.00

Procurement Plan

None currently available.