Exploring the public–private partnership (PPP) environment in Kazakhstan, this report assesses the country’s progress in creating better conditions for PPPs, to increase its infrastructure funding and improve service delivery.
В настоящем отчете дается оценка прогресса Казахстана в создании более благоприятных условий для развития государственно-частного партнерства (ГЧП), увеличения объемов финансирования инфраструктуры и повышения качества оказания услуг.
Opening remarks by Ahmed M. Saeed, ADB Vice-President, Operations 2, at the Philippine Department of Transportation – ADB Office of Public-Private Partnership Signing Ceremony for Transaction Advisory Services Mandates, 2 February 2023
Secretary Jaime J. Bautista, distinguished guests from the Department of Transportation and colleagues. On behalf of the Asian Development Bank, it is my great pleasure to welcome all of you to the signing of Transaction Advisory Services (TAS) Mandates for:
An efficient, safe, reliable, and climate-resilient transport infrastructure is the backbone of economic activity that fuels inclusive growth. Transport infrastructure is vital to maintaining connectivity and accessibility to spur sustainable growth.
The cross-cutting issues in the provision of safe and reliable transport infrastructure requires a strong partnership between the public and private sectors.
ADB is honored to have this opportunity to support the Department of Transportation in structuring transactions that attract suitably qualified private sector players and harness private sector innovation, expertise, and experience in transport infrastructure.
The rehabilitation, expansion, and modernization of NAIA will ensure that its capacity is ahead of the passenger traffic curve to accommodate projected growth and consistently provide optimum service levels. As the country’s main gateway, NAIA’s strategic importance to the Philippines compounds the urgency to enhance its capacity, improve passenger experience, ensure safety and security, and optimize operations. The modernization and expansion of regional airports will improve connectivity and drive development in the regional centers.
ADB has been supporting the development of the rail sector in the Philippines. The NSCR is a 147km rail system connecting commuters from Clark, Pampanga in North Luzon through Metro Manila to Calamba, Laguna in Southern Luzon, while the MMSP is a 33km underground metro system that will traverse Metro Manila from Quezon City to the NAIA airport terminals, and inter-operate with the NSCR from Bicutan to Calamba. The two sections of the NSCR, namely the Malolos-Clark Railway Project (MCRP) and the South Commuter Railway Project (SCRP), were financed by ADB for $7.05 billion in total, the largest infrastructure financing for ADB to-date. The railway lines will create more than 50,000 jobs during construction, and once completed, will provide affordable, safe, reliable and fast public transport for commuters and create more than 5,000 jobs. ADB is providing TAS support for the NSCR O&M and the MMSP O&M Projects, to assist in the selection of experienced and qualified operators for each of the line, so that the intended benefits to our commuters can be realized. The TAS support has been ongoing, and the term extension demonstrates the commitment from both parties to see the Projects through completion, ensuring that the rail sector is indeed at “full speed ahead”.
Thank you.
Remarks by Masatsugu Asakawa President, Asian Development Bank, at the 15th Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Leaders’ Summit, 11 May 2023, Labuan Bajo, Indonesia
Remarks by Masatsugu Asakawa, President, Asian Development Bank, at the 15th Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Leaders’ Summit, 11 May 2023, Labuan Bajo, Indonesia
Opening remarks by Roberta Casali, ADB Vice-President for Finance and Risk Management, at the 56th Annual Meeting Seminar Sponsored by DZ Bank, 5 May 2023, Incheon, Republic of Korea
Welcome address by Ashok Lavasa, ADB Vice President for Private Sector Operations and Public–Private Partnerships, at the CEO Forum, at the 56th Annual Meeting, 5 May 2023, Incheon, Republic of Korea
Opening remarks by Ashok Lavasa, ADB Vice President for Private Sector Operations and Public–Private Partnerships, at the PPP Monitor Launch, 8 December 2022, Bangladesh
Good morning. I am delighted to welcome you all to the PPP Monitor Launch. I would also like to welcome Honorable Minister from the Ministry of Planning, M. A. Mannan, Chief Executive Officer and Secretary, Public Private Partnership Authority Bangladesh, Dr. Md. Mushfiqur Rahman, and our other distinguished guests today from the government and the private sector.
This is the first time that we are launching the PPP Monitor in Bangladesh and I would like to touch on a few key points before we proceed with the event.
Today we live in a challenging world – many of our developing member country (DMC) clients have tight fiscal situations due to the combined impact of the pandemic, the impact on oil prices due to the Russian invasion of Ukraine, and other response spending. This means the screening of projects to be financed will be more stringent to ensure projects bring value for money and contribute to the economic and social goals of the country.
Given this backdrop, we must take this opportunity to re-engage with our DMC clients, including Bangladesh, and help address the effects of COVID-19 and ongoing global economic turbulence on infrastructure and other important considerations such as climate change. As recovery plans are being put together, we can enable governments to build back better by leveraging on private sector innovation and know how, with the private sector having the potential to bring in efficiency and financing to improve infrastructure and public services.
Governments’ resources are constrained, and we need to be more creative in identifying partnership models between the public and private sector which bring the desired developmental outcomes. We must help DMCs bring private sector into the fold by ensuring that the regulatory and institutional frameworks are conducive for private sector participation; there is adequate capacity in the public sector institutions to prepare projects; and there is balanced risk allocation in projects.
PPPs can actively support energy transition in terms of renewable energy generation but also in terms of energy efficiency and this is where private sector innovation and the long-term nature of PPP contracts can add significant value through whole-life cost efficiencies. In planning government’s PPP programmes, I encourage you to pro-actively include climate mitigation and adaptation factors, whether it’s energy efficient street lighting and electric vehicle charging networks on your road PPPs or PPPs to deliver low-carbon government buildings or to deliver e-bus schemes. In terms of climate adaptation, we need to consider how PPPs can include specifications for infrastructure to be designed and maintained to be climate resilient.
PPP is an effective procurement method. Numerous analysis and reports developed by, or for governments show PPPs deliver value for money. Studies from the United Kingdom indicate that government departments that implemented PPPs registered cost savings of between 10 and 20 percent. According to the 2002 census of the UK National Audit Office or NAO, only 22 percent of PFI deals experienced cost overruns and only 24 percent experienced delays, compared to 73 percent and 70 percent of projects undertaken by the public sector and reviewed in an NAO survey in 1999.
Australia’s National PPP Forum representing Australia’s national, state and territory governments, commissioned the University of Melbourne in 2008 to compare 25 Australian PPP projects with 42 traditionally procured projects. The study found that traditionally procured projects had a median cost overrun of 10.1 percent, and a median time overrun of 10.9 percent. PPP projects meanwhile had a median cost overrun of just 0.7 percent, and a median time overrun of 5.6 percent.
Public-Private Partnerships is the bridge to our public and private sector operations to deliver holistic ADB solutions and ADB has been supporting the Government of Bangladesh in its PPP programme for around 10 years, helping to improve the enabling environment and deliver capacity building, transaction advisory, financing and also supporting Government contracting agencies with post-financial close contract management.
ADB has supported the country’s PPP program since the very inception ranging from institutional set-up of the country’s PPP Authority, development of the PPP framework and legislation, capacity augmentation of key public sector organizations such as PPP Authority and Roads & Highways Division, providing transaction advice on pathfinder road PPP projects, and developing innovative structures to facilitate long-tenor local currency lending through BIFFL and IDCOL. The impressive progress made until 2018 led to PPP Authority being recognized in 2018 as the Government PPP Promoter of the Year by the prestigious Partnership Bulletin. We are hopeful that such global awards followed by track record of successful project deliveries would motivate the government to reinvigorate their focus on PPPs. OPPP’s 3 advisory mandates on road PPP projects, two of which have successfully achieved commercial close, have the potential to mobilize an aggregate of over $1 billion private sector investments. We would like to build upon our learnings and achievements till date and focus our support on other important sectors such as water supply, wastewater treatment, health sector, renewable etc.
The Dhaka Bypass PPP project exemplifies the synergy between the public and private sectors. A partnership between ADB, the Bangladesh Infrastructure Finance Fund Limited and the Dhaka Bypass Expressway Development Company, the project is the first road PPP in Bangladesh structured on international market standards. Through funding from partners, a four-lane tollway and a two-lane service road will be added to the Dhaka Bypass Expressway, a 48-kilometer road that is a strategic corridor for freight, linking the manufacturing center in the north of Dhaka with the center of shipping activity at the Chittagong port in the south. By doing so, it has restarted infrastructure development, spurred economic growth, and generated jobs during post COVID-19 recovery.
In today’s agenda, we will look at the highlights of ADB’s PPP monitor for Bangladesh, which provides detailed information on the PPP landscape in Bangladesh through hundreds of indicators, as well as an overview of the market and projects such as these.
The PPP Monitor provides investors with business intelligence on the enabling environment, policies, priority sectors and deals to facilitate informed investment decisions and also informs government counterparts with a diagnostic tool to identify gaps in its PPP legal, regulatory, and institutional framework or issues in particular sectors or with its financial markets. The PPP Monitor tracks the development of the PPP business environments as well as the challenges of doing PPPs in Bangladesh, with the goal of increasing the level and quality of private sector participation in infrastructure by serving as an active platform for dialogue between the public and private sectors. In particular, it enables us to identify the opportunities and the priority areas for potential ADB interventions to help PPP play an increasing role in delivering Bangladesh’s infrastructure requirements.
I encourage you today to take an active part in the discussions. This is a great opportunity to learn from others as well. Together, let us ensure that we find a way to work together to advance the PPP agenda of Bangladesh. Thank you and I look forward to today’s discussions.
Remarks by Masatsugu Asakawa President, Asian Development Bank, at the 15th Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Leaders’ Summit, 11 May 2023, Labuan Bajo, Indonesia
Remarks by Masatsugu Asakawa, President, Asian Development Bank, at the 15th Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Leaders’ Summit, 11 May 2023, Labuan Bajo, Indonesia
Opening remarks by Roberta Casali, ADB Vice-President for Finance and Risk Management, at the 56th Annual Meeting Seminar Sponsored by DZ Bank, 5 May 2023, Incheon, Republic of Korea
Welcome address by Ashok Lavasa, ADB Vice President for Private Sector Operations and Public–Private Partnerships, at the CEO Forum, at the 56th Annual Meeting, 5 May 2023, Incheon, Republic of Korea
DHAKA, BANGLADESH (8 December 2022) — ADB’s Office of Public–Private Partnership (OPPP) has been mandated to provide transaction advice on the Joydebpur Mymensingh Road (N3) PPP project to be built along one of the country’s busiest economic corridors and which is expected to deliver local jobs and skills, as well as cut road congestion and improve road safety.
The scope of the mandate agreed with Bangladesh’s Public–Private Partnership Authority covers project feasibility, transaction due diligence and structuring, bidder procurement, and negotiation to reach commercial and financial closure. The Roads and Highways Department of the Ministry of Road Transport and Bridges is the project’s implementing agency.
“This project builds on OPPP’s successful track record in supporting the Government of Bangladesh in the road sector,” said Head of OPPP F. Cleo Kawawaki. “This expressway will further demonstrate how the private sector’s innovation, efficiency, and capital can be leveraged to build climate resilient adaptable infrastructure. OPPP is focused on providing advice that assesses options to decarbonize the expressway and plan for future interventions like electric vehicle charging and innovative climate mitigation and adaptations.”
In addition to advising on the project, OPPP’s mandate will encompass capacity augmentation to identify a robust pipeline of new opportunities and monitor two other road PPP projects in Bangladesh—the Dhaka Bypass Road PPP project which achieved financial close in April 2021, and Rampura Amulia Demra PPP project which reached commercial close in January 2022. These two projects are estimated to mobilize over $600 million of private sector capital.
The project will convert the existing national highway-3, an 87-kilometer road connecting Joydebpur city at the outskirts of Dhaka to the northern district of Mymensingh, to a four-lane access-controlled expressway with service lanes on each side for local traffic. Estimated initial capital expenditure is over $400 million. Project costs, construction and concession duration will be assessed as part of feasibility study. Construction should cause minimal disruption given the need to use the existing highway, which is expected to see a sharp increase in heavy vehicle traffic when the 10 economic zones connecting to it are operational.
ADB’s advice will help ensure the project maximizes gains in connectivity and logistics while helping rebalance regional disparities. It will also explore private sector innovations and efficiencies to reduce congestion, improve traffic flow and safety, and deliver climate resilient and future-proofed infrastructure that accommodates electric vehicles, conserves rainwater, and reduces greenhouse gases.
The project is aligned with ADB’s country partnership strategy for Bangladesh, 2021–2025 which prioritizes road transport, urban and water, and health for targeted PPP-related support.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
ADB Signs $44.2 Million Blue Loan with ALBA to Reduce Ocean Plastic Waste in Indonesia
JAKARTA, INDONESIA (6 June 2023) — The Asian Development Bank (ADB) signed a $44.2 million blue loan with PT ALBA Tridi Plastics Recycling Indonesia, an ALBA Group Asia company, to establish a polyethylene terephthalate (PET) recycling facility in Central Java.
ADB and the Leading Asia's Private Infrastructure Fund (LEAP) will each provide $22.1 million in funding for the project. Blue loans are financing instruments that aim to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy.
ADB Records $11.4 Billion in Cofinancing, Focused on Resilience Against Economic Shocks
The financing partners of the Asian Development Bank (ADB) committed $11.4 billion in cofinancing of ADB projects in 2022 to help build the resilience of developing member countries and enable them to withstand economic shocks, according to the Partnership Report 2022: Driving Growth, Boosting Resilience.
ADB Helps Launch Vocational Education Project in PNG
ADB and the governments of Australia and Papua New Guinea today launched a cofinanced project to improve the country’s technical and vocational education and training program.
ADB to Focus on Robust, Climate-Resilient, and Inclusive Growth in India
ADB has launched a new country partnership strategy for India with a focus on deepening its engagement with the country and supporting India’s drive for robust, climate-resilient, and inclusive growth.
This publication contains a detailed overview of Bangladesh's public–private partnership (PPP) landscape, assesses its progress, and explains how well-structured deals can help climate-proof its infrastructure and maintain growth.
This brief discusses why governments should consider ways to regulate the renegotiation of public–private partnership (PPPs) contracts to ensure that the process is efficient, flexible, and transparent.
MANILA, PHILIPPINES (2 November 2022) — The Asian Development Bank (ADB) signed a transaction advisory services mandate with Cambodia’s national utility company Électricité du Cambodge (EDC) to support the development of 2 gigawatts (GW) of solar power in Cambodia. The mandate will help the country achieve its goal of carbon neutrality by 2050.
Under this mandate, ADB will help EDC conduct a nationwide study on opportunities for additional solar power capacity in combination with a Battery Energy Storage System (BESS), to be implemented from this year through 2030. ADB will also assist EDC in bidding out a 100-megawatt pilot project identified under the study to the private sector, which will build, finance, and operate the project. The pilot project is expected to mobilize up to $100 million of investments and serve as a model to replicate fast and efficient procurement of affordable renewable power in Cambodia.
This development of 2 GW of solar power is in line with the strategy of the Cambodian government to meet its growing energy demand by maximizing the adoption of renewable energy and energy efficiency. Key to this strategy will be harnessing Cambodia’s abundant solar resources, whose share in the installed capacity increased from practically nothing in 2016 to around 12% at the end of 2021.
“This program will be Cambodia's most ambitious yet in the renewable sector,” said Head of ADB’s Office of Public–Private Partnership F. Cleo Kawawaki. “It will lower electricity costs and improve energy security by taking advantage of domestic resources. We hope to contribute to this effort by supporting a well-planned pipeline for transparent bids that attract active competition to optimize the efficiency, innovation, and capital of the private sector to benefit the people of Cambodia.”
Cambodia’s new Power Development Masterplan recognizes the potential to further expand the capacity of solar PV, which is expected to exceed 3 GW in 2040. As the share of solar increases, there is a need to improve grid stability through the adoption of BESS.
“ADB is pleased to support a green energy transition in Cambodia that will promote clean, sustainable, and inclusive economic growth through policy reform in energy planning and governance, improving grid stability, and energy efficiency,” said ADB Country Director for Cambodia Jyotsana Varma.
The mandate builds on ADB’s earlier support to Cambodia’s solar sector, including through the country’s first National Solar Park located in Kampong Chhnang, which will generate up to 100 MW of solar power. The program will also build on BESS projects implemented by EDC with technical and financial assistance provided by ADB.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region
ADB Signs $44.2 Million Blue Loan with ALBA to Reduce Ocean Plastic Waste in Indonesia
JAKARTA, INDONESIA (6 June 2023) — The Asian Development Bank (ADB) signed a $44.2 million blue loan with PT ALBA Tridi Plastics Recycling Indonesia, an ALBA Group Asia company, to establish a polyethylene terephthalate (PET) recycling facility in Central Java.
ADB and the Leading Asia's Private Infrastructure Fund (LEAP) will each provide $22.1 million in funding for the project. Blue loans are financing instruments that aim to safeguard access to clean water, protect underwater environments, and invest in a sustainable water economy.
ADB Records $11.4 Billion in Cofinancing, Focused on Resilience Against Economic Shocks
The financing partners of the Asian Development Bank (ADB) committed $11.4 billion in cofinancing of ADB projects in 2022 to help build the resilience of developing member countries and enable them to withstand economic shocks, according to the Partnership Report 2022: Driving Growth, Boosting Resilience.
ADB Helps Launch Vocational Education Project in PNG
ADB and the governments of Australia and Papua New Guinea today launched a cofinanced project to improve the country’s technical and vocational education and training program.
ADB to Focus on Robust, Climate-Resilient, and Inclusive Growth in India
ADB has launched a new country partnership strategy for India with a focus on deepening its engagement with the country and supporting India’s drive for robust, climate-resilient, and inclusive growth.
Adrian Torres, Chief of ADB’s Public-Private Partnership Thematic Group, discusses public-private partnerships challenges in developing Asia and how ADB is helping through financing and knowledge sharing.
