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PUBLIC-PRIVATE INFRASTRUCTURE ADVISORY FACILITY
REGIONAL UPDATE
PPIAF’S WORK IN EAST ASIA AND PACIFIC
April 2012
The growth of economies in the East Asia and the Pacific (EAP) region remains strong
but constrained by weakening external demand due to the sluggish U.S. economy,
uncertainties in the eurozone, and the impact of natural disasters (such as the tsunami
in Japan and flooding in several countries) in the production supply chain. The slow
global growth, however, presents an opportunity to enhance medium- to long-term
growth by increasing investment in infrastructure (particularly in those sectors that
support production) and increasing the quality and efficiency of these investments.
The private sector can play a role in financing and improving the delivery of productive
infrastructure. PPIAF assistance in the region continues to be centered on building a
robust pipeline of public-private partnership (PPP) projects and improving enabling
environments for private sector financing.
Since inception PPIAF has approved $32,278,827 in funding to 151 projects in the
EAP region, representing 15% of PPIAF’s total funding portfolio. Projects have been
concentrated in the largest countries in terms of economies and population: China,
Indonesia, Philippines, and Vietnam. These four countries account for 60% of all
funding in the region. Multi-sector activities dominate and represent 32% of PPIAF’s
funding portfolio, followed by 23% in energy and 18% in water. PPIAF has activities in
over 11 countries with a current portfolio of 14 ongoing activities.
In recent months, PPIAF supported four activities that will help governments determine
the potential for private sector participation in roads in Lao PDR and Vietnam, irrigation
in the Philippines, and a nationwide e-ID system in Vietnam. PPIAF also approved two
Sub-National Technical Assistance (SNTA) activities to support the credit rating of
Jakarta, Indonesia in preparation for a bond issuance and improve the creditworthiness
of Tanuan City in the Philippines.
Recent PPIAF assistance in the region focused on developing a pipeline of PPPs particularly in the
roads, irrigation, and ICT sectors. Lao PDR is positioning itself as a “land-linked” country for regional
trade, and is looking at PPPs as an innovative way of fi nancing future infrastructure investment. A
PPIAF activity is supporting the government of Lao PDR in conducting the preliminary assessment
of the enabling environment for PPPs in the transport sector and the country’s potential PPP pipeline.
The activity will serve as an input to the Lao National Strategy for the Transport Sector. In the
Philippines, PPP arrangements are relatively new in the agriculture sector, and the Department of
Agriculture requested support to address the enabling environment for PPPs and build its capacity
to implement its PPP program. PPIAF is currently providing assistance to the to the Department
to identify policy, regulatory, and institutional constraints in the sector, in addition to a pipeline
of bankable projects. Another PPIAF activity is providing assistance to determine options in the