Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203394 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
ADB Economics Working Paper Series No. 554
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
A recent Asian Development Bank publication estimates the large infrastructure financing requirement in Asia for the period 2016-2030, which establishes the strong need to encourage private sector participation to meet investment requirements. This paper analyzes a critical aspect of expanding private finance to infrastructure by examining the role of bank lending to public-private partnership (PPP) projects through the project finance modality. The key empirical results suggest that project financing by banks to infrastructure PPP projects is still in its infancy in several Asian markets, and banks are guided more by macroeconomic factors and by the strength of their balance sheets. The key policy implications to unlock bank finance for infrastructure PPP projects lie in reducing macroeconomic risk factors and having well-capitalized banks. The latter assumes significance, given the higher capital requirements that banks are expected to fulfill, following the adoption of Basel III capital standards.
Subjects: 
project finance
bank lending
infrastructure
public-private partnership
JEL: 
G21
G32
H41
H54
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
272.32 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.