$8.1 trillion worth of infrastructure projects in Asia have been identified between 2010 and 2020, and the energy sector drives almost half of this demand. Within energy, growth of renewable energy is expected to be the highest.
In much of Asia, demand outstrips financing, and private sector investment is key to meeting this gap. Institutional investors have raised up to $200 billion in funds globally. However, most infrastructure investors and pension funds are unwilling to take risks and invest in an early stage, high risk, emerging market environment.
The gap vs the actual infrastructure spend as a percentage of the GDP is significant so this is where foreign capital, despite the fact that the Philippines having a good balance sheet where there is significant debt capital available in the market, there is still a gap when it comes to equity, and in particular risk equity to put to work.
Yet available private funds are not fully used due to the lack of bankable projects in Asia. Watch this video below of InfraCo Asia Development‘s Chief Executive Officer, Allard M. Nooy’s presentation at Power & Electricity World Philippines 2016 on Stimulating greater FDI in the Philippines
Find out more on:
- Why is there a lack of bankable projects and how can this be addressed?
- Energy sector in the Philippines – policy and advantages
- Challenges and comparative regional position
There is indeed room for more power projects in the PPP pipeline within the Philippines, and stimulating FDI is one important part of kickstarting them.
Watch his presentation below and click here to download his presentation slides.
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