Infrastructure projects focused on cross-border connectivity present significant investment opportunities and are vital for long-term growth in Asia.
This is the main conclusion of the inaugural Asian Infrastructure Finance report developed by the Asian Infrastructure Investment Bank (AIIB). The report emphasizes that cross-border infrastructure including links that promote trade, market integration and the distribution of green energy are necessary during times of market instability and declining economic growth. It also highlights that projects in markets including India and China have the potential to greatly improve much-needed connectivity in Central and South Asia.
“We are working to help emerging markets understand that investments in connectivity projects are needed for long-term growth,” said AIIB President Jin Liqun. “AIIB is stepping up with additional capital, practical solutions and data and insights to help drive the necessary level of infrastructure investment needed during challenging economic times.”
Using snapshot analyses of financing cost, financing value and construction costs across eight key markets, the report explores how tensions, rising nationalism and macroeconomic developments are impacting cost drivers and investment potential on a country-by-country basis. The report also identifies where infrastructure opportunities are still largely untapped by investors and are at risk of remaining so with increasing uncertainties.
The Asian Infrastructure Finance report recognizes that there has been no significant breakthrough in the region in mobilizing private capital for infrastructure. AIIB believes there is urgent need to redouble efforts to mobilize private capital, and that multilateral development banks (MDBs) need to further contribute towards improving project preparation, improving country policy frameworks and sustaining the supporting conditions such as providing better information for market players.
Read and download the Asian Infrastructure Finance report
Original source: AIIB
Published on 29 January 2019
