media roundtable brunei 11092013

7/29/2019 Media Roundtable Brunei 11092013

1/15

Embracing PPP in ASEANMember States

Fauziah ZenERIA Economist

The 2nd ERIA EDITORS ROUNDTABLE

10 11th September, 2013Radisson Hotel, Brunei Darussalam

Economic Research Institute for ASEAN and East Asia (ERIA)

and

Prime Ministers Office, Brunei Darussalam


2/15

Outline

Infrastructure as key of growth

Funding: Demand vs Capacity

Call for PPP: Benefits vs Challenges Findings on PPP progress in AMS

Way Forward


3/15


Providing basic human needs and supporting

people activities

Boosting productivity and growth

Improving quality of life

Connecting people

Facilitating trade


4/15


Quality of Infrastructure Score, ASEAN Member States

Source: World Economic Forum, Global Competitiveness Report 2012-2013


5/15

Financing Infrastructure


6/15

Call for PPP

PPP

Provide additional

financing sources

Fee for use Project financing Equity financing

Improve

governmentsefficiency

Focus on public

function

Encourage

competition

Improve public

services delivery

Reliability Continuity Standardized

PPP is not a panacea for infrastructure problems PPP has been adopted in developing economies at various degrees


7/15

Challenges

PPP requires a set of regulatory system that

emerging economies may not be familiar with

PPP requires strong government leadership

and skills to assess optimum benefits and risks

sharing.

Private finance only follows business rule:

profit-seeking with manageable risks.


8/15

Critical aspects of PPP stages

Project

Prioritization:

Consistent with

National Development

Priority

Managing fiscal issues

(support vs. liabilities)

Transparent process

Market sounding

Project

Preparation:

Work timely

Economies of scale

Adequate funds,

human resources, andtime


9/15

Addressing the Challenges (2)

Tender and

SelectionProcess:

Transparencyand time

consistency

Contestable

market

Awarding

Project:

Clear andcomprehensive

contract (output,

dispute

resolution,

timeline,ownership, etc.)

Sufficient fiscal

and political

support

Project

Execution:

Monitoring andEvaluation

Warning system

and addressing

problems

Promotingsuccessful stories


10/15

How do AMS embrace PPP?

Singapore: adopting PPP to complement heralready strong public sector and adequatepublic funds to improve efficiency

Brunei: limited PPP projects due to her uniquesize and adequate public funds

Indonesia, Malaysia, Thailand, Philippines:

advancing PPP system towards moresignificant role of Public Sector Participation(PSP)


11/15

How do AMS embrace PPP?

Vietnam: A newcomer in PPP system

Cambodia, Lao PDR, Myanmar: Increasing role

of PSP and eagerness for adopting PPP

Different situations require different types of

support from international community


12/15

Way Forward

ASEAN helps one another

Developing and strengthening members PPP

Unit

Enhancing regional cooperation: PPP Centre of

Excellence

ERIAs commitment to support PPP

development in the region.


13/15

Enhancing Regional Cooperation

Non-optimal individualcountrys effort

Improve existing effortsand enhance

cooperation

Establishment of aRegional PPP Centre:

Capacity Building

Technical Assistance

Intra and Inter RegionalCooperation

Promotion


14/15

Regulatory Framework


15/15

Thank You!

Contact: [email protected]

media roundtable brunei 11092013

Documents