ENHANCING REGIONAL COOPERATION IN

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ENHANCING REGIONAL COOPERATION IN
INFRASTRUCTURE DEVELOPMENT
INCLUDING THAT RELATED TO DISASTER MANAGEMENT

• Kim Hak-Su
• UN Under-Secretary General and
• UNESCAP Executive Secretary
• 11 April 2006

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Infrastructure Socio-Economic Development
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Infrastructure
Economic Growth
Infrastructure is key to
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Infrastructure
MDGs
Infrastructure promotes
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Issues Challenges
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Issues Challenges
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Regional Cooperation
A Two-track Approach
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Regional Cooperation Two Tracks
Track 1 Regional cooperation in cross-border
infrastructure development
Track 2 Regional cooperation in financing
infrastructure investment
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Cooperation on Track 1
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Existing Initiatives
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Asian Highway
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Trans-Asian Railway
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New Regional Initiatives
Energy
Trans-Asian Energy System
Enhance energy security through greater
coordination integration of energy systems
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New Regional Initiatives
ICT
Asia Pacific Broadband Programme
Building on extending previous initiatives
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New Regional Initiatives
Water
Asia-Pacific Water Forum
Promotes the management of water resources
Reduces water related disasters
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New Regional Initiatives
Disaster Management
Satellite Constellation for Natural Disaster
Management
It would facilitate
Pre-disaster risk assessment preparedness
Disaster monitoring
Disaster mitigation
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Infrastructure Investment
New Trends Future Needs
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New Paradigms in Public Private Infrastructure
Investment
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Infrastructure Investment Requirements
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UNESCAP-based Estimate
(Annual Needs in US billion)
Energy
201 B (33.0)
21 B (3.4)
ICT
Telecom
Transport
224 B (36.8)
Transport
Energy
Wat-San
107 B (17.6)
WS
Disaster
56 B (9.2)
TOTAL
gt 600 B
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Investment Financing GapWB-based Estimate
Investment Needs US228 B / yr
( ) Public Private include US7.4 B / yr.
from ADB, WB JBIC
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Financing Gap Sectoral DistributionUNESCAP-based
Estimate
GAP US 220 B / yr
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Financing Gap Regional Resources
US billions
WB- Based Gap
180 B / yr
UNESCAP- based Gap
220 B / yr
200 B / yr
Surplus
3 T
Forex
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Cooperation on Track 2
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Regional Cooperation on Track 2
How to intermediate financial resources in the
region to infrastructure investment ?
The Study puts forward four options for regional
cooperation in financing infrastructure
development
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Institutional Arrangements for Track 2
1. Asian Development Bank
Expand its mandate
Give higher priority to infrastructure
development
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Institutional Arrangements for Track 2
2. Subregional Development Banks Funds
Operationalize, reinvigorate consolidate
existing proposals
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Institutional Arrangements for Track 2
3. Asian Bond Fund
Expand its mandate to increase geographical
coverage financial scale
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Institutional Arrangements for Track 2
4. Asian Investment Bank
New financial institution modelled after the EIB
Raise funds from capital markets
Provide financing guarantees
Assist in the identification evaluation of
projects
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Way Forward
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Intergovernmental Task Force
United Nations ESCAP
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Thank you