This guidance note examines the impacts of the coronavirus disease (COVID-19) on public–private partnership (PPP) projects in Asia and the Pacific and identifies how these can be mitigated.
Speech by Ashok Lavasa, ADB Vice-President for Private Sector Operations and Public–Private Partnerships, at the ADB, India COVID-19 Vaccine Value Chain Support Webinar, 5 November 2020
Let me start by appreciating the initiative of Dr. Aparna, Secretary Pharmaceuticals and Mr. Tarun Bajaj, Secretary Economic Affairs, Government of India, in organizing this interaction on a subject that has influenced our lives, our economies, our thought process, our behavior and our psyche, as few things have in recent memory.
Since December 2019 the number of COVID-19 cases and the number of affected countries have increased. Those who thought they are past the peak are staring at growing numbers again. As of 4 November 2020, about 48 million people have been infected and over 1.2 million have unfortunately died.
The pandemic has caused the largest global economic contraction since the Great Depression, driving millions into poverty. The economic effects of the pandemic are devastating. As per ADB’s estimates in June 2020, global economic losses could range from $6.1 trillion to $9.1 trillion, equivalent to a loss between 7.1% and 10.5% of global gross domestic product (GDP). About 22% of the global loss accrues to developing Asian economies. As the pandemic persists, developing Asia is projected to contract by 0.7% in 2020—the first regional GDP contraction since the early 1960s. All this caused by an unseen virus that we were not prepared for and which has crippled us inconceivably.
In Asia and the Pacific, countries have had mixed success in containing the spread of the virus. Some 12,600,000 positive cases have been identified, causing more than 225,000 deaths. The number of new daily COVID-19 cases remains high in some regional economies, is flattening or subsiding in others, and reviving in still others in second or third waves.
The pandemic has exposed the fragility of the healthcare systems not only in developing countries, but also in advanced economies. It has taught us to re-orient our priorities, to increase focus on lives and livelihoods, enhance international cooperation to first, find a credible vaccine, and then, to distribute it fairly and justly, and to invest in affordable and resilient healthcare systems which can withstand future pandemics.
ADB’s initial response to the COVID-19 pandemic focused on several immediate issues and supported DMCs to (i) procure emergency personal protective equipment (PPE) and other necessary medical equipment to slow the spread of the pandemic; (ii) mobilize additional technical assistance and knowledge support to develop national plans and strategies for responding to the health, social and economic impacts of the pandemic; (iii) expand the provision of private finance for trade facilitation and microfinance institutions to facilitate the flow of credit from commercial banks for on-lending purposes; (iv) undertake critical counter-cyclical fiscal expenditure programs to mitigate the adverse economic impacts of the pandemic and to provide targeted social protection for vulnerable groups; and (v) adapting country programs to begin supporting DMCs in building back better and more resilient economies.
As the pandemic continues to evolve, focus is now shifting towards medium term objectives – which are: (i) safe and effective procurement and distribution of COVID-19 vaccines; and (ii) strengthening of healthcare systems including enhancing critical care capacity, developing effective treatment protocols, and increasing manufacturing and distribution capacity of medicines.
Our experience across all our DMCs has shown us that governments are overwhelmed with the situation and are seriously preoccupied in finding short-term and long-term solutions. Their resources, both financial and human, are understandably constrained and the situation demands effective and efficient public-private partnership models in the entire healthcare value chain. Private sector can bring in its strengths in research and development, manufacturing, logistics and distribution to complement government’s efforts to ensure affordable healthcare to all.
ADB has been working with the private sector to support and enhance their operation in healthcare. It has also been assisting different PPP models by way of Private Finance Initiative, Specialized Service PPP such as Dialysis and Diagnostic Centers and other Integrated services and is engaged in projects involving Elderly Care, Vaccine Self Reliance, and expansion of Medical infrastructure.
As we go along, ADB’s comprehensive support package to enhance vaccine access will include continued support through its non-sovereign operations and Public Private Partnerships. ADB recognizes that the private sector will play a critical role in different stages of vaccination efforts, from production to last-mile delivery. Given the complex storage, logistics and distribution challenges for vaccines, the private sector warehousing and cold storage space could be purchased through a formal public–private partnership arrangement, as pure private sector solutions may not be feasible in some cases.
Pharmaceuticals industry has a critical role to play along with other industries in health sector. I hope today’s interaction will enable us to pursue a common goal and all of us, including the government, private sector and ADB can come together and devise effective solutions to the problems at hand.
The ADB has a special Unit for Health investments led by Anirudha Patil, which is ably supported by a team of professionals under the guidance of the Director General of Private Sector Operations, Michael Barrow. The private sector team and the Country Director of ADB in India, Takeo Konishi would be happy to carry on this conversation in future.
Before I close I would also like to acknowledge the interest shown by the Indian pharma industry in this interaction and the efforts made by Mr. Khare, India’s Executive Director at ADB, in making this event possible.
I thank you all and wish the webinar success.
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
Safeguards due diligence reports are prepared as part of safeguard due diligence and review to ensure compliance with ADB safeguard policy due diligence requirements.
This document dated August 2018 is provided for the ADB project 51375-001 in India.
Safeguards due diligence reports are prepared as part of safeguard due diligence and review to ensure compliance with ADB safeguard policy due diligence requirements.
This document dated May 2019 is provided for the ADB project 51375-001 in India.
Safeguards due diligence reports are prepared as part of safeguard due diligence and review to ensure compliance with ADB safeguard policy due diligence requirements.
This document dated August 2018 is provided for the ADB project 51375-001 in India.
Resettlement plans provide an assessment and measures, as well as time-bound actions and budgets, for projects with involuntary resettlement.
This document dated December 2019 is provided for the ADB project 51375-001 in India.
Resettlement plans provide an assessment and measures, as well as time-bound actions and budgets, for projects with involuntary resettlement.
This document dated December 2019 is provided for the ADB project 51375-001 in India.
Resettlement plans provide an assessment and measures, as well as time-bound actions and budgets, for projects with involuntary resettlement.
This document dated December 2019 is provided for the ADB project 51375-001 in India.
