The private sector, however, is becoming important. First, market-based financing reflects the extent of private capital mobilization, which is critical to fill Asia’s infrastructure gap. Second, many public sector projects increasingly have some private sector participation. Third, private sector transactions deliver a timelier update on market sentiment and development, which provides policy makers with insights. Overall, the private infrastructure market has remained resilient despite the pandemic.
Key highlights are the following:
- Private sector transactions are declining in Asia, but a bright spot is information and communication technology (ICT).
- Investors continue to shift from loans to bond financing.
- Brownfield infrastructure foreign direct investment (FDI) into Asia is robust.
- Bankability could require greater downside protection post pandemic.