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Singapore initiatives aim to spur private investment in infrastructure

Out-Law News | 23 Oct 2015 | 11:22 am |

Singapore has launched three initiatives to encourage the private sector to invest in infrastructure, according to a news report.

Deputy prime minister Tharman Shanmugaratnam told the World Bank-Singapore Infrastructure Finance Summit that the Singapore government will: improve project documentation to reduce the perception of risk in infrastructure projects; provide benchmarks, performance measures and other analytics; and develop more infrastructure debt in the infrastructure asset class, The Business Times said.

Public-private-partnership contracts should include clear clauses covering termination and dispute resolution, to reassure investors, the deputy prime minister said, according to the report.

Investors need clear analytics to make decisions on where to put their money, he said.

On infrastructure debt, less than 0.2% of the world's total funds under management by institutions goes into infrastructure debt. The asset class is "greatly underweighted", and could help banks to pass projects on to institutional investors when they hit the operational stage, the deputy prime minister said, according to The Business Times.

The Monetary Authority of Singapore has been building an infrastructure debt takeout facility that will help the transfer of infrastructure debt from banks to institutional investors, The Business Times said.