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Add to Preferred SourcesThe Asian Development Bank (ADB) and the Singapore International Mediation Center (SIMC) signed a memorandum of understanding (MOU) to help public and private parties resolve disputes that may arise in infrastructure public-private partnership (PPP) projects, under ADB’s Infrastructure Referee Program (IRP).
IRP is part of the Asia Pacific Project Preparation Facility, a multi-donor trust fund administered by ADB, which aims to increase the level of infrastructure development and enhance the quality of infrastructure in Asia and the Pacific.
SIMC and ADB will also work together to promote mediation and other infrastructure PPP dispute resolution mechanisms to ADB member countries.
The MOU was signed by ADB Head of the Office of Public–Private Partnership Mr. Yoji Morishita and SIMC’s Chief Executive Officer Mr. Aloysius Goh.
The collaboration marks the start of a strategic relationship between SIMC and ADB to advance the development of sustainable PPPs in the Asia and Pacific region. It is also part of Singapore’s larger effort to establish itself as an international dispute resolution hub and infrastructure hub.
Under the MOU, SIMC will work with ADB to establish a panel of international mediators and experts with experience and skills in dispute resolution of infrastructure PPPs. Through the IRP, panelists will provide an independent, third-party opinion to resolve disagreements that may arise over the life of a PPP project.
Minister in the Prime Minister’s Office and Second Minister for Finance and Education Ms. Indranee Rajah S.C., said, “As a leading financial hub, Singapore has been a center for structuring and financing many of the infrastructure projects in the region. We are also home to strong professional service providers, including accountancy, engineering, and project management firms, as well as law firms, which have project financing and dispute resolution expertise. This partnership demonstrates Singapore’s role in facilitating infrastructure projects and promoting collaboration between private and public entities.”
Signing the MOU on behalf of ADB, Mr. Morishita said, “Many of the infrastructure PPP projects in recent times have been unsuccessful because of poor quality preparation and structuring by public sector agencies. This has added an additional layer of complexity to the negotiation and operation of the projects and the consequent dispute.”
The collaboration comes as Asia and the Pacific is set to be one of the fastest growing regions in the world, spelling the need for a robust, resilient dispute resolution framework for sustainable long-term economic growth.
ADB estimates that infrastructure needs in developing Asia and the Pacific will exceed $1.7 trillion annually through 2030. Available funding from government funds falls far short of the investment need. PPPs can play an important role in addressing this massive requirement. However, the flow of private infrastructure investment has been known to be impeded by a lack of reliable and investor-friendly regulatory and legal conditions.
This collaboration is expected to spur greater involvement by the private sector to improve efficiency as well as asset and service quality in the region’s infrastructure projects.
Original source: ADB
Published on 11 July 2018