Title: Frontiers public-private interface in East Asia's infrastructure
Abstract: Governments and the private sector agree that the progress of private infrastructure in East Asia has been unacceptably slow. The region's total infrastructure needs for the next decade are estimated by the World Bank at $1.2 trillion to $1.5 trillion1-needs which can only be met with the help of private initiative and finance. Yet despite significant private activity in telecommunications and power generation and, to a lesser extent, in toll roads, the share of private capital at risk in infrastructure investment has been less than 10 percent in the past few years. The conference sought to identify common ground that would enable substantial private investment while addressing public concerns about due process in the award of contracts and the achievement of broader societal goals. The private-sector and government representatives agreed that moving forward depends on strong, high-level government commitment to increasing the role of the private sector in infrastructure development. They further concluded that achieving this goal requires a clear policy and institutional framework to ensure the efficient allocation of resources across sectors and projects, timely and credible contracting, and cost effective services responsive to the needs of consumers. The core elements of a framework for private infrastructure delivery are: (a) sectoral pricing reform; (b) introduction of competition among service providers and, where appropriate and feasible, direct competition by suppliers for final consumers, allowing feedback on consumer preferences and direct assumption of commercial risks; (c) transparent and competitive contracting processes; (d) credible legal and regulatory structures; and (e) clear definition and assignment of risks.
Publication Year: 1999
Publication Date: 1999-01-29
Language: en
Type: article
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