ASEAN Welcomes Principles for Public-Private Partnership Framework
NAY PYI TAW, 12 November 2014 – ASEAN Leaders highlighted the importance of infrastructure development and connectivity in ASEAN when they welcomed a set of ASEAN Principles for Public-Private Partnership (PPP) Frameworks at their meeting in Nay Pyi Taw today. The ASEAN Principles are expected to provide ASEAN governments with guidance on how to implement effective PPP frameworks to create a predictable and efficient PPP environment for infrastructure investment and to address issues related to cross-border regional infrastructure projects.
PPPs are seen to be beneficial in meeting ASEAN infrastructure needs, estimated by the Asian Development Bank at USD 60 billion per annum. Private participation in infrastructure provision can enhance existing public capacity in providing economic (e.g. transport, telecommunication, power, water and sanitation) and social (e.g. health and education) infrastructures. At the same time, effective infrastructure reduces transport costs, fosters competitiveness with positive impact on investment and trade flows, and the integration in global and regional value chains
The Principles cover four main areas: policy and organisational framework for private participation; project selection, development and implementation; affordability and budget transparency; and transnational infrastructure connectivity. The Principles are relevant to a range of models of private participation in infrastructure ranging from relatively limited services and management contracts, traditional public-private partnerships and concession agreements, to full or partial public divestiture of existing assets.
These Principles were developed with the assistance of the Organisation for Economic Cooperation and Development.