ADB’s Office of Markets Development and Public-Private Partnerships provides comprehensive public–private partnership support to create markets and mobilize financing to narrow Asia’s infrastructure gap.
The infrastructure shortfall, along with weak capacity and insufficient project financing hold back economic growth and poverty alleviation in Asia and the Pacific.
PPPs play an important role in addressing the huge infrastructure investment gap in Asia and the Pacific.
PPPs can be used to finance and run not only traditional infrastructure, but also the transport sector, education, health, and other social sectors.
The Office of Markets Development and PPP (OMDP) is established to enhance the role of ADB in supporting and enabling Developing Member Countries (DMCs) to secure greater private investment and generate private sector-led growth in the region. OMDP will provide market-facing transaction advisory services and technical assistance for clients and the region leading to private investment and serve as a Private Sector Development (PSD) knowledge nexus, engage in internal and external advocacy and capacity building, creating an enabling environment, project preparation and structuring, and mobilizing and catalyzing financing.
The impact of COVID-19, climate change, and inflation, means the region now needs in excess of $200 billion per year from the private sector to meet its infrastructure needs. The ongoing impact of the pandemic means there’s a deficit on the revenue side and increased government expenditure in most DMCs.
ADB provides upstream support to create a conducive enabling environment for PPPs as continuous regulatory reform and institutional strengthening are required to facilitate PPPs. ADB’s midstream help includes advisory services, assisting DMCs in preparing bankable projects that can attract private capital.
ADB provides, via technical assistance or knowledge, critical support for governments in establishing the right policy and regulatory frameworks for capital mobilization at scale. This creates an enabling environment for PPPs to thrive. Building these policy and regulatory frameworks increases investment opportunities.