Public–Private Partnership Monitor

By Asian Development Bank

The first edition of the Public–Private Partnership (PPP) Monitor tracks the development of the PPP business environment as well as the challenges of doing PPPs in nine of the developing member countries (DMCs) of the Asian Development Bank (ADB): Bangladesh, the People's Republic of China, India, Indonesia, Kazakhstan, Papua New Guinea, the Philippines, Thailand, and Viet Nam. It is divided into four main categories: Regulatory Framework, Institutional Capacity for Implementation, PPP Market Maturity, and Financial Facilities. The PPP Monitor aims to increase the level and quality of private sector participation in infrastructure in the ADB's DMCs by serving as an active platform for dialogue between the public and private sectors.

• Language: English
• Publisher: Asian Development Bank
• Release date: Nov 1, 2017
• ISBN: 9789292610173

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PUBLIC–PRIVATE PARTNERSHIP MONITOR

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2017 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel [phone]; Fax [phone] www.adb.org

Some rights reserved. Published in 2017.

ISBN 978-92-9261-016-6 (print), 978-92-9261-017-3 (electronic)

Publication Stock No. TCS179134-2 DOI: http://dx.doi.org/10.22617/TCS179134-2

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

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Notes:

In this publication, $ refers to US dollars.

ADB recognizes China as the People’s Republic of China, Vietnam as Viet Nam, Orissa as Odisha, and Saigon as Ho Chi Minh City.

Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda

CONTENTS

TABLES AND FIGURE

Tables

Figure

FOREWORD

We are pleased to present the first edition of the Public–Private Partnership Monitor. This edition covers public–private partnerships (PPPs) in the following nine Asian countries: Bangladesh, India, Indonesia, Kazakhstan, Papua New Guinea, the People’s Republic of China, the Philippines, Thailand, and Viet Nam.

A recent study of 25 of the developing member countries (DMCs) of the Asian Development Bank (ADB) has demonstrated that $204 billion of the $457 billion annual infrastructure gap would need private sector investment.¹ ADB has responded to this need through loans and technical assistance. From 2013 to 2016, ADB approved 257 loans and technical assistance projects with PPP components. As of July 2017, ADB was mandated to provide transaction advisory on 13 projects and supported 12 applications for private sector participation in infrastructure through the Asia Pacific Project Preparation Facility.

The PPP Monitor tracks the development of the PPP business environment as well as the challenges of doing PPPs in each country covered. It is divided into four main categories: Regulatory Framework, Institutional Capacity for Implementation, PPP Market Maturity, and Financial Facilities. These four categories are covered by over 100 quantitative and qualitative indicators. By creating an active platform for dialogue between the public and private sectors, the PPP Monitor aims to increase the level and quality of private sector participation in our DMCs.

The PPP Monitor indicates that PPPs have developed to different degrees depending on the country, the sector, and the various challenges encountered. We also found that some DMCs have good PPP frameworks, but still have limited implementation capacity under such frameworks. Another key finding is that having a well-developed financial market strongly corresponds to the size of a given PPP market. In all countries surveyed, the most well-developed PPP frameworks were found in the energy sector, which has had the largest share of private participation in Asia since the 1990s. The most developed PPP market among our DMCs, taking into account its gross domestic product was the Philippines.

In future editions, the PPP Monitor will expand its coverage to include more DMCs, contain more features, and will be available in an online format. We look forward to providing you with updates on an annual basis.

The information contained herein derives from consultations with leading technical and legal firms as well as financial institutions. We would like to express our appreciation to the private sector firms that we collaborated with, particularly Mott MacDonald, who project managed the delivery of this document through strong coordination and an intensive survey. The legal reviews conducted by Allen & Overy, Baker McKenzie International, Ashurst and India Law Partners were key inputs as was the feedback from commercial banks Mizuho and SMBC. However, it should be noted that the PPP Monitor reflects no official views of those firms and institutions.

We hope that you find the first edition of the PPP Monitor engaging and informative.

Takehiko Nakao

President Asian Development Bank

ACKNOWLEDGMENTS

This publication was developed by the Office of Public–Private Partnership (OPPP). Its purpose is to provide information on the public–private partnership frameworks and markets in specific developing member countries of the Asian Development Bank (ADB) with the objective of gathering business intelligence for private sector sponsors, and offering a comprehensive tool for public sector policy makers to monitor and improve the enabling environment for private sector participation of sustainable, quality infrastructure projects.

We are thankful to the ADB staff who helped improve the quality of data through their review and verification efforts including Bidyut Saha and Trevor Lewis for Bangladesh; Johanna Boestel, Trevor Lewis, and Guriyot Singh for India; Aziz Haydarov for Indonesia; Asem Chakenova and Yukihiro Shibuya for Kazakhstan; Husain Haider and Marcelo J. Minc for Papua New Guinea; Hubert Jenny, Allen Xio, Fionna Connel and Robert Shoelhammer for the People’s Republic of China; Joven Balbosa, Stephen Schuster and Carlos Gavino for the Philippines; Daniel Wiedmer for Thailand; and Dao Viet Dung and Dominic Mellor for Viet Nam.

Also gratefully acknowledged is the contribution from the staff of the OPPP, including Ryuichi Kaga, former head of OPPP, for initiating the Public–Private Partnership Monitor; Alexander N. Jett for spearheading its development with support from Aura Abon, Aida May Tiansay and Aliza Belarmino; as well as Amr Qari, Almazbek Galiev, Jonathan Grosvenor, Srinivas Sampath, Siddhartha Shah and Ferran Vila Planas for providing their valuable inputs.

Takeo Koike

Officer-in-Charge and Director

Office of Public–Private Partnership

DEFINITIONS

a The definition of PPP in this report adheres to the definition stated in ADB Public–Private Partnership Operational Plan, 2012–2020: Realizing the Vision for Strategy 2020—The Transformational Role of Public–Private Partnerships in Asian Development Bank operations, 2012.

ABBREVIATIONS

Weights and Measures

Currency Units

(as of May 2017)

GUIDE TO UNDERSTANDING THE REPORT

Topic Coverage

For each of the developing member countries covered, the information and data are organized into the following topic clusters:

PPP = public–private partnership.

Each of the topics and associated subtopics presented in Tables 1 and 2 are characterized by qualitative and quantitative indicators. Qualitative indicators take the form of a question, to which yes or no answers can be given. Quantitative indicators are represented in numbers, ratios, investment value, and duration.

Table 1: Country-Level Topics

PPP = public–private partnership.

Table 2: Sector-Level Topics

A detailed list of all indicators with explanations is provided in the Appendix.

Data Presentation in the Report

With regard to presentation, there are two types of progress indicators:

• Indicators reflecting features of current policies and regulations. These are represented in the report in the tables with an orange color string.

• Indicators reflecting what happens in practice. These are represented in the report in the tables with a blue color string.

An example is shown below:

In addition, for ease of perception, some indicators are color coded using a traffic light pattern, where green is considered positive based on internationally recognized good practice, red is considered negative, while yellow represents neither strongly positive nor negative.

Where the information has not been available, no data is stated in the report.

Where an indicator is considered not applicable, n/a is stated in the report.

Time Periods

Research has been carried out over the period of September 2016–February 2017, with the aim of reflecting the status as at the end of 2016. Therefore, some indicator data may have changed between that period and the date of publication of the report. Pipeline data is effective as of June 2017.

In country-level sections, quantitative data in relation to the number of projects reflect the cumulative number of projects over the periods of 1990–2014, 1990–2015, and 1990–2016. Otherwise, data represent the status at each individual year.

In sector-level sections, quantitative data in relation to number of projects reflect the cumulative number of