This book is an outcome of the collaboration between the Economic Research and Regional Cooperation Department (ERCD) of the Asian Development Bank (ADB) and the Korea Development Institute (KDI) under ADB’s regional technical assistance research project—Asian Development Outlook (ADO) 2016–2018. The project supports the production of the ADO, one of ADB’s flagship knowledge products. This book was born out of the theme chapter—Sustaining Development through Public–Private Partnership—of the Asian Development Outlook 2017 Update. The chapter, coauthored by members of ADB and KDI and Akash Deep, senior lecturer in public policy at the Harvard Kennedy School, examined the state of public–private partnerships (PPP) in developing Asia, and how these partnerships can contribute to economic growth and poverty reduction. It also discussed how PPPs can be used to meet developing Asia’s infrastructure needs and contribute to sustainable development. This book contains the background papers that were used in the preparation of the theme chapter. All the papers have been updated and expanded for this book.

- Despite the rapid economic progress, Asian countries are still troubled by deficits in the infrastructure for electricity, transportation, water supply, sanitation, etc., increasing the demand for PPPs which efficiently utilizes private capital and expertise.

○ Developing infrastructure serves as a key factor not only in a region’s economic development but also in urbanization and building a stronger value chains.

- The report focuses on the prospect of PPP-driven infrastructure development in Asian countries and the risks challenging them. There are also insights into Korea’s advanced PPP system and its experiences and lessons and the importance of efficient financing mechanisms.

○ Chapter 1 evaluates the benefits and risks of PPP projects.

○ Chapter 2 analyzes factors affecting the financing for PPPs and suggests methods for syndicated loans and risk mitigation.

○ Chapter 3 details Korea’s experiences with PPPs and the implications, and compares the current condition and system of Korea, the Philippines and Indonesia as a way to explore the future direction for successful PPPs in Asian countries.

Tables, Figures, and Boxes
Foreword
Acknowledgments
Abbreviations

1. Overview

2. The Empirical Evidence and Channels for Effective Public–Private Partnerships

3. Assessing Risk in Public–Private Partnerships

4. Factors Influencing Bank Project Financing of Infrastructure Public–Private Partnership Projects in Developing Asia

5. Syndicated Loans in Project Finance: Empirical Evidence from Asian Public–Private Partnership Markets

6. Determinants of Public–Private Partnerships in Infrastructure in Emerging Economies

7. Risk Mitigation and Sovereign Guarantees for Public–Private Partnerships in Developing Economies

8. Delivering Economic Benefits from Public–Private Partnerships: The Experience of the Republic of Korea

9. Public–Private Partnerships versus Traditional Procurement: A Comparison of Financing Modalities in the Republic of Korea

10. Improving the Performance of Public–Private Partnerships in Infrastructure Services in Asia through Better Regulation

11. Public–Private Partnership Development in Southeast Asia

12. Public–Private Partnership Systems in the Republic of Korea, the Philippines, and Indonesia: A Comparative Review

Appendixes