ISLAMABAD: The Asian Development Bank (ADB) on Monday created a new office to provide governments with independent advice on shaping public-private partnerships (PPPs), a key conduit for greater infrastructure in­­vestment in developing Asia.

ADB’s PPP transaction advisory service will ensure that ADB’s client countries are able to bring to market bankable transactions. ADB has successfully provided PPP transaction advice on several infrastructure projects.

Among them is the cross-border Turkmenistan-Afghanistan-Pakistan-India gas pipeline.

The new ADB office will provide advice on project marketing, deal structuring, bid packaging, and strategy so that governments are able to complete their transactions and achieve financial close. The advice will not be tied to any ADB lending and would be provided on a fee basis.

These services will be distinct from the new office’s work in PPP advocacy, support for development of policy, legal, and regulatory frameworks to promote PPPs, and coordination of financing.

ADB has strong and longstanding relationships with developing member governments, development partners, banks, and companies operating in Asia. It also has extensive experience in assessing and financing large and small infrastructure and social projects in the region, involving both the public and private sectors.

“Using PPP business models is one of the best ways for developing Asia to meet its massive infrastructure investment needs, estimated at $8 trillion up to 2020, given the significant amount of private capital that is waiting to be deployed to well-structured and bankable deals,” said Ryuichi Kaga, head of the new office of Public Private Partnerships.

Strategy 2020, the long-term strategic framework that guides ADB’s activities, identified the private sector as critical to meeting Asia’s development needs. ADB has committed to having private sector operations and development account for 50 per cent of its activities by the end of this decade.

Published in Dawn, September 2nd , 2014