Post on 27-Mar-2015
transcript
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International CEO Forum IV
Dr. Ravi Ratnayake Director
Poverty and Development Division UNESCAP
17 December 2007, Bangkok
REGIONAL INFRASTRUCTURE REGIONAL INFRASTRUCTURE DEVELOPMENT: OPTIONS FOR DEVELOPMENT: OPTIONS FOR
FINANCINGFINANCING
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Structure of the PresentationStructure of the Presentation
ChallengesChallenges
Infrastructure investment needsInfrastructure investment needs
Role of InfrastructureRole of Infrastructure
Regional cooperation for Regional cooperation for financing infrastructurefinancing infrastructure
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Infrastructure &
InfrastructureInfrastructure is key to:
Economic Growth
Production of goods
& services
Trade & investment
Regional integration
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Infrastructure & MDGs
InfrastructureInfrastructure promotes:
Sharing the benefits of growth
Income generation
Education & Health
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Challenges
Rural connectivity is an
issue in some countries
TransportTransport
Access to safe drinking
water & sanitation is low
Water & SanitationWater & Sanitation
One billion people lack
access to electricity
EnergyEnergy
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Challenges
The Asian & Pacific region
is the most disaster-prone
region of the world
Natural DisastersNatural Disasters
ICTICTVery visible digital divide
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Infrastructure Investment Requirements
Aggregated Demand & Limited Coverage
An
nu
al N
eed
s (U
S$
bil
l.)
300
100
200
500
400
022
8 B
600
Sectoral Projections & Broader Coverage
>60
0 B
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Energy
Telecom
Transport
W&S
201 B (33.0%)
21 B (3.4%)
(Annual Needs in US$ billion)
UNESCAP Estimates
Energy
ICT
Transport
Wat-San
Disaster
TOTAL
224 B (36.8%)
107 B (17.6%)
56 B (9.2%)
> 600 B
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Financing Gap: Sectoral DistributionUNESCAP-based Estimate
GAP: US$ 220 B / yrGAP: US$ 220 B / yrWATER
US$ 66.0 B / yr(30%)
ICTUS$ 14.4 B / yr
(7%)
DISASTER
MANAGEMENTUS$ 27.1 B / yr
(12%)
ENERGYUS$ 60.7 B / yr
(28%)
TRANSPORTUS$ 52.0 B / yr
(24%)
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Financing Gap & Regional Resources
Forex
US$ billions
Surplus 200 B / yr
> 3 T
UNESCAP-based Gap
220 B / yr
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Regional Cooperation
How to intermediate financial
resources in the region to
infrastructure investment ?
The Study puts forward four
options for regional cooperation
in financing infrastructure
development
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Institutional Arrangements
1. Asian Development Bank
ASIAN DEVELOPMENTBANK
Give higher priority to
infrastructure development
Facilitate its access to
capital markets
Expand its mandate:
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Institutional Arrangements
2. Subregional Development Banks & Funds
Operationalize, reinvigorate & consolidate
existing proposals:
North East Asian Development Bank
South Asian Development Fund
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Institutional Arrangements
3. Asian Bond Fund
Expand its mandate to increase
geographical coverage
financial scale
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Institutional Arrangements
New financial institution modeled after the EIB
4. A New Institution
Provide financing & guarantees
Raise funds from capital markets
Assist in the identification & evaluation of projects
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Benefits for SMEs
Potential is high
Major source of innovation and economic and social cohesion
Globally account for 50% of GDP,30% exports 60-75% of private employment
Growth of SMEs hampered by infrastructure deficit
Regional development bank could take a lead in financing the infrastructure gap
17United Nations
ESCAP
Thank you