Approach

Provision of infrastructure, particularly in areas such as energy, transport, water and sanitation, agriculture and telecommunications, is central to economic growth and poverty reduction. Governments alone are not able to meet all the funding requirements for new infrastructure as well as the maintenance of existing infrastructure. Since development aid can only contribute a fraction of the cost, private sector capital needs to be mobilised. 

However, domestic capital markets in many developing countries are not sufficiently deep to provide the necessary financing, while international sources of capital often find the upfront risks and costs of infrastructure projects, especially greenfield projects, in developing countries too great to bear. Smaller, poorer countries and smaller projects find it particularly difficult to raise private sector finance.

InfraCo Asia is designed to meet this market gap and create "bankable" opportunities that the private sector is willing to participate in.  Established as a donor-funded, commercially managed project development company, it acts as a principal to develop primarily greenfield infrastructure opportunities and bring projects to the stage where they can attract domestic and international debt and equity finance (“financial close”).  Preparing and structuring infrastructure projects for private participation from an early stage involves considerable time, resources and uncertainty to deal with commercial, technical, environmental and other requirements.  By taking on the high costs and risks of early-stage project development, InfraCo Asia makes infrastructure projects happen in situations where the private sector would not otherwise be willing or able to invest.

Projects undertaken by InfraCo Asia must be:

  • Additional - projects where private sector developers are unable or unwilling to take on the upfront risks and costs on their own

  • Developmental - projects must deliver development benefits for low income communities and meet social and environmental best practice

  • Commercially viable - projects must be commercially viable in order to attract further private sector investment

InfraCo Asia focuses on the poorer regions of South and South East Asia, and has the flexibility to work across a wide range of infrastructure sectors.

Infraco Asia is continually seeking to partner with qualified private sector infrastructure development companies.  

View InfraCo Asia corporate presentations and fact sheets here.