The platform is launched by Infrastructure Asia, a government office set up by Enterprise Singapore and the Monetary Authority of Singapore (MAS). According to Singapore’s finance second minister Indranee Rajah, the online platform will increase exposure of the infrastructure project pipeline in Asia.
A dozen projects worth of S$4 billion are available on the platform located in Indonesia, the Philippines, Cambodia, Vietnam, Thailand and India. These are mainly public sector projects in the energy, water, waste management, supply chain and logistics sectors.
By 2030, US$2 trillion will be required in sustainable infrastructure in southeast Asia, which will accordingly need private capital to supplement government spending. Finding solution providers and partners is very costly. The new online platform will be able to link all interested parties and these projects.
Infrastructure expert John Yeap of Pinsent Masons said: “With the demand for sustainable infrastructure, and despite rising interest rates, liquidity in the debt markets, the opportunities for growth of the sector in the region is tremendous. However, there will inevitably be challenges in ensuring projects are well structured with a solid business case. Good projects should be able to attract competitive financing and such financing should always be able to find such projects.”
“For the online platform to deliver value it would hopefully not just match good projects with capital as general free market forces should do that already. Instead, it’s value add may be to match capital and opportunities in a way that improves the finance ability of projects. Through delivering a stronger and active pipeline of good projects, the platform could truly galvanise sustainable investments and projects in the region,” he said.
Project owners are able to list their project needs on the platform and solution providers and financiers can get detailed information about the project, including its value, owner and developers.
Infrastructure Asia will select projects to be listed on the platform depending on whether they are bankable, and whether they fall under the sectors of expertise of Singapore or Singapore-based companies.