International CEO Forum IV

1
REGIONAL INFRASTRUCTURE DEVELOPMENT OPTIONS FOR
FINANCING

• International CEO Forum IV
• Dr. Ravi Ratnayake
• Director
• Poverty and Development Division
• UNESCAP
• 17 December 2007, Bangkok

2
Structure of the Presentation

Role of Infrastructure
Challenges
Infrastructure investment needs
Regional cooperation for financing infrastructure
3
Infrastructure
Economic Growth
Infrastructure is key to
4
Infrastructure
MDGs
Infrastructure promotes
5
Challenges
6
Challenges
7
Infrastructure Investment Requirements
8
UNESCAP Estimates
(Annual Needs in US billion)
Energy
201 B (33.0)
21 B (3.4)
ICT
Telecom
Transport
224 B (36.8)
Transport
Energy
Wat-San
107 B (17.6)
WS
Disaster
56 B (9.2)
TOTAL
gt 600 B
9
Financing Gap Sectoral DistributionUNESCAP-based
Estimate
GAP US 220 B / yr
10
Financing Gap Regional Resources
US billions
UNESCAP- based Gap
220 B / yr
200 B / yr
Surplus
gt 3 T
Forex
11
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
12
Institutional Arrangements
1. Asian Development Bank
Expand its mandate
Give higher priority to infrastructure
development
13
Institutional Arrangements
2. Subregional Development Banks Funds
Operationalize, reinvigorate consolidate
existing proposals
14
Institutional Arrangements
3. Asian Bond Fund
Expand its mandate to increase geographical
coverage financial scale
15
Institutional Arrangements
4. A New Institution
New financial institution modeled after the EIB
Raise funds from capital markets
Provide financing guarantees
Assist in the identification evaluation of
projects
16

Benefits for SMEs
Potential is high
Globally account for 50 of GDP,30 exports
60-75 of private employment
Major source of innovation and economic and
social cohesion
Growth of SMEs hampered by infrastructure deficit
Regional development bank could take a lead in
financing the infrastructure gap
17

Thank you
United Nations ESCAP