scholarly journals Toward an innovative approach of financing infrastructure in Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 87
Author(s):  
Aladdin D. Rillo ◽  
Zulfiqar Ali

Infrastructure development is critical for sustaining Asia’s economic growth. Unfortunately, huge financing gaps—estimated by a recent Asian Development Bank study to be USD22.5 trillion—constrain the ability of most emerging Asian countries to fully realize the benefits of infrastructure development. For instance, over 70% of infrastructure investments in Asia are still funded by public resources, which pose acute financing challenges for many countries with limited budgets and fiscal constraints. This paper discusses some of the challenges associated with public financing of infrastructure projects in emerging Asian countries, before introducing some new options for alleviating their infrastructure investment needs. In particular, it proposes a new approach to infrastructure financing by utilizing the spillover effects of infrastructure investment, where additional revenues generated from such investment can be channeled back to investors as subsidy to increase the returns to their investment. The paper also argues the need for Asian countries to implement fiscal reforms and to develop a more balanced approach to financing, one that involves both the private and public sector. 

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Fitria Diah Hastuti ◽  
Ma’mun Sarma ◽  
Manuwoto

Road and bridge infrastructure investment can increase economic growth. The purposes of this study are to analyze the budget for road infrastructure development in Banten Province, analyze the effectiveness of road and bridge infrastructure investment for economic growth in Banten Province and formulate effective strategies to improve economic growth through investments in road infrastructure in Banten Province. The data was analyzed using descriptive analysis, regression,and SWOT analysis.The descriptive analysis explained that growth of budget and its realization. Based on regression analysis, road and bridge infrastructure investments are significanly influence for the economic growth. Strategies for increasing economic growth through road and bridge infrastructure investment in the Province of Banten is synergy between government, private sector and public to improved road infrastructure by using corporate social responsibility towards the construction of roads and bridges for the industries related to the level of damage, liaison in subsections in the Department of Highways and Spatial Planning is responsible for the activities that involve interaction with the public related to road and bridge infrastructure investments. meeting regularly to discuss and resolve issues that occur between institutions.Keywords: Indramayu, Competitiveness, Investment Increasing StrategyKeywords : Infrastructure, Economic Growth, Regression and SWOT analysis ABSTRAK Investasi infrastruktur jalan dan jembatan dapat meningkatkan produktivitas dan pertumbuhan ekonomi. Penelitian ini bertujuan untuk menganalisis anggaran infrastruktur jalan dan jembatan di Provinsi Banten, menganalisis efektifitas investasi infrastruktur jalan dan jembatan dikaitkan dengan pertumbuhan ekonomi dan menyusun strategi di bidang infrastruktur jalan dan jembatan yang efektif meningkatkan pertumbuhan ekonomi. Analisis data dilakukan dengan metode analisis deskriptif, analisis regresi, dan analisis SWOT. Analisis deskriptif menjelaskan pertumbuhan anggaran dan realisasi jalan dan jembatan di Provinsi Banten. Berdasarkan hasil regresi, variabel jalan dan jembatan berpengaruh signifikan kepada pertumbuhan ekonomi. Strategi untuk meningkatkan pertumbuhan ekonomi melalui investasi infrastruktur jalan dan jembatan di Provinsi Banten adalah melakukan sinergi stakeholder pemerintah, swasta dan masyarakat melalui program Corporate Sosial Responsibility (CSR) yang ditujukan pada pembangunan jalan dan jembatan bagi industri yang terkait dengan tingkat kerusakan jalan, difungsikannya secara intensif Subbagian humas di Dinas Bina Marga dan Tata Ruang (BMTR) yang bertanggungjawab terhadap berbagai kegiatan investasi infrastruktur jalan dan jembatan yang melibatkan masyarakat dan rapat secara rutin untuk membahas dan menyelesaikan permasalahan yang terjadi antar instansi.Kata kunci : Infrastruktur, Pertumbuhan Ekonomi, Regresi, dan Analisis SWOT


Author(s):  
Krishnan Sampath ◽  
Panchanatham Natarajan

Infrastructure development creates enough economic activities and development that have direct impact on socio economic development and overall national development. However, the role of traditional procurement / government spending on this sector has been under tremendous stress due to limited availability of resources. Public and private model and 100% private investments have been in vogue since couple of decades. The empirical government data projects a negligible or poor contribution of private sector, for various reasons though. The infrastructure gaps are still large and bridging those gaps will require tackling several problems, in terms of additional. This paper evaluates the current investment scenario and provide for radical changes in thought process and approach towards improving private participation in nation infrastructure building. One such approach is creating a national stock exchange for all private and public infrastructure investments and tagging this segment with organised industry profile. A CaaS (Construction As A Service) concept is being proposed to effectively utilise the limited resources and to avoid overlapping wasteful expenditures through pooling and shared services and on demand model. While it is not imperative to impress upon the establishment and public alike about the importance of private participation in infrastructure investments, it is order of the day to convince them about the real return on investments that they would commit. Similarly, bringing in public at large to participate in investing in infrastructure, a radical change will happen for good and the nation progress.


2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Alfredo Marvao Pereira ◽  
Rui Manuel Pereira

Using a newly-developed data set for Portugal, we analyze the industry-level effects of infrastructure investment. Focusing on the divide between traded and non-traded industries, we find that infrastructure investments have a non-traded bias, as these shift the industry mix towards private and public services. We also find that the industries that benefit the most in relative terms are all non-traded: construction, trade, and real estate, among the private services, and education and health, among the public services. Similarly, emerging trading sectors, such as hospitality and professional services, stand to gain. The positive impacts on traded industries are too small to make a difference. These results highlight that infrastructure-based strategies are not neutral in terms of the industry mix. Moreover, with most of the benefits accruing to non-traded industries, such a development model that is heavily based on domestic demand may be unsustainable in light of Portugal’s current foreign account position. 


2013 ◽  
Vol 12 (3) ◽  
Author(s):  
Dwinanta Utama

Public Private Partnership (PPP), recently is becoming popular issue among stakeholders in infrastructure development in Indonesia. In other countries, infrastructure facilities such as Toll Road, Water Supply Network, Electricity Power,  Harbour, Airport, Health Services, and Education have already been using PPP scheme. PPP is needed due to the limitation of government budget, infrastructure life time based on the quantity and the quality, and also the private sector skill/technology capability. In term of infrastructure quality competitiveness, based on the survey resulted in the World Competitiveness Report 2008-2009, showed that Indonesia is on the 96th rank among 134 countires surveyed. It can be argued that Indonesian infrastructure quality is still low in comparison to the other South East Asian Countries, even from its neighborhood countries. Government budget for infrastructure investment including transportation in 2010-2014 is very limited namely around 32% including from bilateral and multilateral loan. Therefore the 62% government budget remains must be fulfilled by another scheme such as Public Private Partnership.  


Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 15-27
Author(s):  
Suripto Suripto ◽  
Eva Dwi Lestari

Economic growth is one indicator to measure  the success of economic development in a country. Economic development is closely related to infrastructure. Infrastructure development will have an impact on economic growth both directly and indirectly. Therefore, the role of the government in determining infrastructure development policies is very important to increase economic growth in Indonesia. The purpose of this study is to determine the effect of infrastructure on economic growth in Indonesia including road infrastructure, electricity infrastructure, investment, water infrastructure, education infrastructure and health infrastructure in Indonesia in 2015-2017.The analytical tool used in this study is panel data regression with the approach of Fixed Effect Model. The spatial coverage of this study is all provinces in Indonesia, namely 34 provinces, with a series of data from 2015 to 2017 with a total of 102 observations. The data used is secondary data obtained from BPS Indonesia.The results of the study show that (1) the road infrastructure variables have a negative and not significant effect on GDRP. (2) electrical infrastructure variables have a negative and not significant effect on GDRP. (3) investment variables have a positive and significant effect on GDRP. (4) water infrastructure variables have a positive and not significant effect on GDRP. (5) educational infrastructure variables have a positive and not significant effect on GDRP. (6) health infrastructure variables have a positive and significant effect on GDRP. Keywords: development, infrastructure, investment, GDRP, panel data


2021 ◽  
Vol 13 (10) ◽  
pp. 5720
Author(s):  
Han Phoumin ◽  
Sopheak Meas ◽  
Hatda Pich An

Many players have supported infrastructure development in the Mekong Subregion, bridging the missing links in Southeast Asia. While the influx of energy-related infrastructure development investments to the region has improved the livelihoods of millions of people on the one hand, it has brought about a myriad of challenges to the wider region in guiding investments for quality infrastructure and for promoting a low-carbon economy, and energy access and affordability, on the other hand. Besides reviewing key regional initiatives for infrastructure investment and development, this paper examines energy demand and supply, and forecasts energy consumption in the subregion during 2017–2050 using energy modeling scenario analysis. The study found that to satisfy growing energy demand in the subregion, huge power generation infrastructure investment, estimated at around USD 190 billion–220 billion, is necessary between 2017 and 2050 and that such an investment will need to be guided by appropriate policy. We argue that without redesigning energy policy towards high-quality energy infrastructure, it is very likely that the increasing use of coal upon which the region greatly depends will lead to the widespread construction of coal-fired power plants, which could result in increased greenhouse gas and carbon dioxide emissions.


2021 ◽  
Vol 13 (9) ◽  
pp. 4836
Author(s):  
Wonder Mafuta ◽  
Jethro Zuwarimwe ◽  
Marizvikuru Mwale

The paper investigated the social and financial resources’ interface in WASH programmes for vulnerable communities. Nineteen villages were randomly selected from the Jariban district in Somalia using the random number generator based on the village list. Data was collected in a sequential methodology that started with transect walks to observe and record the WASH infrastructure. Thirty-eight focus group discussions and desktop reviews triangulated transact walk recordings. The findings indicate minimum to zero investments towards WASH infrastructure in Jariban from the state government, with more dependency on the donor community. The study revealed that resources for the construction of latrines and water sources come from the following sources, NGOs (54.3%), diaspora community (34.5%) and community contributions (11.2%). The findings revealed a backlog in the WASH infrastructure, resulting in low access to water supply and sanitation services. The results demonstrate limited resource allocation by both the government and community, affecting the WASH infrastructure’s sustainability and further development. Due to the backlog in investments, particularly on improved latrines, it is concluded that their usage is low and a hindrance to having access to sanitation, hygiene and water as per the SDG goals, of leaving no one behind. While investment towards WASH in Jariban demonstrates multiple potential sources, there is a need to strengthen domestic resource mobilisation and explore governments’ role and capacity to secure WASH infrastructure investments. It is also recommended to explore how to tax the remittances to fund WASH infrastructure development and the private sector’s role in WASH infrastructure investment.


Author(s):  
Albert Mafusire ◽  
Zuzana Brixiova ◽  
John Anyanwu ◽  
Qingwei Meng

Private sector investment opportunities in Africa’s infrastructure are huge. Regulatory reforms across African countries are identified as critical to the realization of the expected investment flows in the infrastructure sector. However, planners and policy makers need to note that there are infrastructure deficiencies in all subsectors with low income countries (LICs) in Africa facing the greatest challenge. Inefficiencies in implementing infrastructure projects account for USD 17 billion annually and improving the capacity of African countries will help minimize these costs. In this regard, the donor community must play a greater role in African LICs while innovative financing mechanisms must be the focus in the relatively richer countries of the continent. Traditional sources of financing infrastructure development remain important but private investment is critical in closing the current gaps. Countries need to devise mechanisms to exploit opportunities and avoid pitfalls in investing in infrastructure.


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