How to attract more private infrastructure financing

Author: Karry Lai | Published: 1 Nov 2018

Creating partnerships between governments and multilateral development banks (MDBs) and expanding the local currency financing market are necessary to drive more private capital to finance infrastructure projects in Asia.

"There remains a shortage in equity capital and large institutions that gather capital and allocate it in a proper way into infrastructure"
(Sujoy Bose, National Investment and Infrastructure Fund)

Panellists at the FT-AIIB summit on October 23 in Hong Kong believe that the infrastructure sector will be growing given the fiscal stimulus that Asian governments are pushing forward as the US-China trade war intensifies.

For developing countries, risk of project overruns, disputes, difficulties in land acquisition and changing tariffs are common risks that keep investors away from infrastructure projects. 

"Many of the risks originate in government action and/or inaction and it doesn’t make sense for the private sector to cover for these," said Joachim von Amsberg, vice president, policy and strategy...