Asia Pacific Project Preparation Facility (AP3F)
What is AP3F?
The $73 million Asia Pacific Project Preparation Facility (AP3F) is a multi-donor trust fund aiming to increase the level of infrastructure development and enhance the quality of infrastructure in Asia and the Pacific. AP3F’s primary objective is to assist developing member country (DMC) governments and their public sector agencies prepare and structure infrastructure projects with private sector participation, including privatization through to public–private partnership (PPP) modalities, and bring them to the global market.
AP3F can also provide:
- capacity-related assistance, including for the reform and improvement of policy, legislative, regulatory and institutional practices in DMCs; and
- ongoing project performance assistance, including project monitoring and project restructuring.
What kind of activities will be financed from the fund?
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 PPP transactions as well as enabling reforms and capacity building that can be linked to potential or current transactions, including the following:
- 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;
- due diligence covering technical, financial, economic, social, legal, regulatory, safeguards, institutional, governance, transaction structuring, and management matters;
- preparation of information memoranda and marketing to place each of the transactions with investors—the latter includes (a) managing road shows; (b) creating and overseeing data rooms and other channels for dissemination of project information for investor due diligence; (c) preparing bid documents and draft contracts; (d) managing the bidding process; and (e) assisting with evaluations, awards, and negotiations; and
- 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.
What are selection criteria for AP3F support?
Applications for AP3F support for the preparation of infrastructure projects will be prioritized based on the following priorities:
- climate resilience, sustainability and impact on poverty reduction;
- enhancement of regional connectivity and regional economic integration;
- new investments;
- projects identified as priorities by DMC;
- international practices in governance, procurement and contracting;
- first in kind projects; and
Who is eligible to receive AP3F support?
All ADB DMC central and local governments, government agencies (including sub-sovereign and government-owned entities), are eligible to receive AP3F support.
Who manages AP3F?
AP3F is managed by the Office of Public-Private Partnership.
For additional information, contact OPPP.