Governors’ Seminar I: Mobilizing Finance for Infrastructure (June 25, 0900-1045), Tata Theatre, NCPA
Objectives
- To explore ideas on potential interventions that can help mobilize finance for infrastructure in Asia.
- To get the views of senior policy makers and stakeholders on how governments can help create an environment conducive to mobilizing finance for infrastructure.
- To discuss how Multilateral Development Banks (MDBs) can be more active in mobilizing additional resources by working closely with both governments and private sector.
- To explore how AIIB as a new MDB with a new business model, can complement its peers’ and member countries’ efforts to catalyze private capital for infrastructure investment in Asia.
Background
Asia is also facing important climate challenges that necessitate significant level of infrastructure investments for adaptation and mitigation. The current level of infrastructure investment in Asia is lagging far behind these huge needs and its financing is largely dominated by few resources. Currently almost 80% of infrastructure finance in Asia is provided by the Governments and MDBs. To scale up infrastructure investments to the levels required to meet these needs, it is essential to effectively mobilize large amounts of financing from a variety of sources. Given balance sheet constraints most Governments and MDBs have little room to further boost their finances.
The private sector and institutional investors with large assets under their management can potentially play a much more substantial role, particularly given the attractive returns that infrastructure assets can offer.
However, the private sector is very risk sensitive. To mobilize private finance in a much larger scale, a combination of market-creating and market-supporting interventions by Governments and by MDBs are needed. To list a few examples, additional Government efforts to improve the infrastructure landscape and new innovative credit enhancement products by MDBs might help in this regard.
Possible Discussion Topics
- How can Governments create a conducive environment for mobilizing finance for infrastructure (e.g. by improving the investment environment, by supporting the development of capital markets and equity markets or by putting in place PPP frameworks)?
- How can MDBs be more active in mobilizing additional resources (e.g. by increasing private investors’ knowledge about emerging markets, by helping Governments design bankable projects or by offering risk insurance products)?
- How can AIIB help its member countries catalyze private capital for infrastructure investment in Asia?
Speakers
Ms. Latha Venkatesh-Executive Editor, CNBC TV18 (Moderator)
Latha began her career in CNBC-TV18 as chief of the Mumbai News Bureau and is now the Banking and Commodities Editor. Over the years, she has come to be recognized as one of the keenest watchers of the Reserve Bank of India and a respected commentator on banking sector issues, money markets and macroeconomic trends.
She has been a business journalist for years and has specialized in covering all markets - stocks, currency debt and commodities. She has also had stints in all major streams of media having worked in Economic Times and Dow Jones newswires for five years each. Latha graduated in Economics and Politics and has a doctoral degree in Political Science.
Dr. Zeti Aziz-Former Governor, Bank Negara Malaysia
Dr. Zeti served as Governor of Bank Negara Malaysia from May 2000 to April 2016. She had an important role in managing the resolution of the financial system during the Asian financial crisis and the consequent recovery of Malaysia’s economy. She was also instrumental in transforming Malaysia’s financial system, including overseeing the enactment of twelve new pieces of legislation for the financial sector. During this period, the Malaysian financial system also underwent a period of progressive liberalisation.
In Asia, Dr. Zeti was active in strengthening cooperation and regional financial integration. In 2006, she chaired the regional task force that prepared the report for the future direction of central bank financial cooperation in the East Asian region. She was a founding member of the Bank for International Settlements (BIS) Asian Consultative Council, was the first Co-chair of the Financial Stability Board Regional Consultative Group for Asia, and was Chair of the BIS Central Bank Governance Group. Dr. Zeti had an extensive role in the global development of Islamic finance, and was active in the global financial inclusion agenda. She is currently Co-chair, Board of Governors of Asia School of Business, established in collaboration with MIT Sloan.
Dr. Zeti received her PhD in Economics from the University of Pennsylvania.
Prof. Bambang P. S. Brodjonegoro-Minister of National Development Planning and AIIB Alternate Governor, Indonesia
Bambang P. S. Brodjonegoro is currently the Minister of National Development Planning/Head of National Development Planning Agency (Bappenas), appointed by President Joko Widodo on 27 July 2016. He was previously the Minister of Finance (from 27 October 2014 to 27 July 2016) in President Widodo’s Working Cabinet. During President Susilo Bambang Yudhoyono’s administration, Bambang served as the Deputy Minister of Finance (from 3 October 2013 to 20 October 2014).
Bambang is one of Indonesia’s leading economists, with a Bachelor’s Degree in Economic Development and Regional Economy from the University of Indonesia (1990), and a Master’s Degree (1995) and Ph.D. (1997) in Urban and Regional Planning from the University of Illinois at Urban a Champign, USA. His areas of expertise include regional economics, fiscal decentralisation, public finance, development economics, urban economics, and transportation.
Prior to his ministerial positions, Bambang’s career included commissioner roles with PT Pertamina (a national oil & gas company of Indonesia); PT Aneka Tambang (a state-owned mining company); PT Adira Insurance; and PT PLN (the national electricity company of Indonesia). He is active on a number of international boards including the ASEAN Infrastructure Fund and the ASEAN+3 Finance and Central Bank Deputies Meeting.
He is a committed and active academic, currently a Professor of Economics at the University of Indonesia. Prior experience has included positions as guest lecturer in The Department of Urban and Regional Planning with the University of Illinois; Director General of the Islamic Research and Training Institute at the Islamic Development Bank; and Dean of the Faculty of Economics with the University of Indonesia.
Mr. Piyush Goyal-Minister of Finance and AIIB Governor, India
Piyush Goyal (54) is the Minister of Railways & Minister of Coal in the Government of India.
He is a Member of the Upper House of the Parliament of India (Rajya Sabha), and was earlier the Minister of State (Independent Charge) for Power, Coal, New & Renewable Energy (2014-2017) and Mines (2016-17). Mr Goyal’s tenure saw transformational changes in India’s power sector including the fast tracking of electrification of the nearly 18,000 unelectrified villages in some of the remotest and inaccessible parts of the country, the roll out of the most comprehensive power sector reform ever (UDAY), the success of the world’s largest LED bulb distribution programme (UJALA) for energy efficiency, and massive proliferation of renewable energy through the world’s largest renewable energy expansion programme. Other achievements include the elimination of coal shortages to improve the energy security of India and successful conduct of transparent e-auctions of coal blocks.
During his 34 year long political career, Mr Goyal has held several important positions at different levels in the world’s largest political party, the Bharatiya Janata Party (BJP) and is in its National Executive. He has been the National Treasurer of the Party. He also headed the BJP’s Information Communication Campaign Committee and oversaw the publicity and advertising campaign of the party including the social media outreach for the Indian General Elections 2014.
He has had the privilege of being mentored by stalwarts such as Shri Atal Bihari Vajpayee, former Prime Minister of India. He was also nominated by the Government of India to the prestigious Task Force for Interlinking of Rivers in 2002. Mr Goyal has had a brilliant academic record – all-India second rank holder Chartered Accountant and second rank holder in Law in Mumbai University. He was a well-known investment banker.
Mr. Piyush Gupta-CEO, DBS Bank
Mr. Piyush Gupta is Chief Executive Officer and Director of DBS Group. Prior to joining DBS, Piyush was Citigroup's Chief Executive Officer for South East Asia, Australia and New Zealand. Piyush began his career with Citibank in India in 1982 and over the years, held various senior management roles across Citi's corporate and consumer banking businesses, including Head of Strategic Planning for Emerging Markets and Regional Director for Global Transaction Services for Asia Pacific. He has also served as Citi's Country Officer for Indonesia, Malaysia and Singapore respectively. Piyush is a member of the Executive Committee of the Institute of International Finance, Washington. In addition, he sits on the boards of Enterprise Singapore, The Institute of Banking and Finance, Dr. Goh Keng Swee Scholarship Fund and National Research Foundation, Prime Minister's Office. He is also the Chairman of The Association of Banks in Singapore and Sim Kee Boon Institute for Financial Economics Advisory Board, and a term trustee of the Singapore Indian Development Association (SINDA). Piyush has a Bachelor of Arts (Honours) Degree in Economics from St. Stephen's College, Delhi University, India and a Post Graduate Diploma in Management from IIM, Ahmedabad.
Piyush was named Singapore Business Awards' Outstanding Chief Executive of the Year in 2016. In 2014, he was named as the Singapore Business Leader of the Year by CNBC and in 2013, he was accorded the CEO Leadership Achievement Award for Singapore and Asia Pacific by The Asian Banker.
Mr. Bandar M. H. Hajjar-President, Islamic Development Bank
H.E. Dr. Bandar M.H. Hajjar has been President of the Islamic Development Bank since 2016. As development enters a new era, Dr. Hajjar is reimagining the traditional role of a development bank. Through his strategic programme, the IsDB is empowering people for a sustainable future by building global partnerships and driving innovation through a value chain approach to development. Dr. Bandar is also consolidating the bank’s position as a global leader in Islamic finance and the largest issuers of Sukuk.
Prior to this appointment, he served as Minister of Hajj between 2011- 2016, where he introduced 25 initiatives to develop and enhance the services provided to the Hajj and Umrah performers.
In 2005, Dr. Hajjar formed a coordinating council of seven NGOs under the umbrella of the National Society for Human Rights to monitor the first municipal elections held in Saudi Arabia. He believes upholding human rights and dignity is paramount. In 2004 he established a national non-governmental human rights society, along with 40 Saudi men and women.
In 1998, Dr. Hajjar was selected as a member of the Shura Council, serving on the Council for three consecutive terms, spanning 12 years. He was appointed Vice-Speaker of the Council, a position he held for three years.
H.E. Dr. Bandar Hajjar holds a bachelor's degree with First-Class Honours in Economics and Political Sciences from King Saud University, Riyadh, a master's degree in Economics from Indiana University, USA. and a Ph.D. in Economics from Loughborough University in the United Kingdom.
Mr. Jin Liqun-President, AIIB
Mr. Jin Liqun is the inaugural President and Chairman of the Board of Directors. Before being elected as the Bank’s first president, Mr. Jin served as Secretary-General of the Multilateral Interim Secretariat tasked with establishing the Bank.
Mr. Jin has rich experience across the private and public sectors, as well as with MDBs. He served as Chairman of China International Capital Corporation Limited, China’s first joint-venture investment bank, Chairman of the Supervisory Board of China Investment Corporation, and as Chairman of the International Forum of Sovereign Wealth Funds.
Mr. Jin previously served as Vice President, and then Ranking Vice President, of the Asian Development Bank, and as Alternate Executive Director for China at the World Bank and at the Global Environment Facility. He spent nearly two decades at the Chinese Ministry of Finance, reaching the rank of Vice Minister.
Mr. Jin holds an M. A. degree in English Literature from Beijing Institute of Foreign Languages (now Beijing Foreign Studies University). He was also a Hubert Humphrey Fellow in the Economics Graduate Program at Boston University from 1987 to 1988. He is a national of the People’s Republic of China.
