Developing Private Finance Initiatives(PFI)/Public-Private Partnerships(PPP) for Urban Environmental Infrastructure in Asia.

Abstract

Developing countries in Asia have attached increasing importance to the development of urban environmental infrastructure (UEI) including sewer and wastewater treatment facilities and garbage treatment plants, to overcome deteriorating pollution in urban life. Difficulties of government finance and shrinking fund for ODA, however, are recognized as a barrier to accelerating UEI construction in this area, as large-scale initial investments are required. Thus, this paper proposes that the private finance initiatives (PFI) be introduced for UEI as a new and promising measures to realize the sustainable development in Asia. This paper also discusses on the current status of private sector’s investment to the development of UEI in Asian countries and identifies the principle of PPP (public-private partnerships) and the risks associated with PFI projects towards establishing PPP which is a new scheme to realize PFI, as well as designs the entire framework for promoting PFI, develops the promotion strategy including establishing special governmental organizations, appropriate measures to avoid risks and preferential measures, and presents preliminarily a manual for the formation of PFI projects