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Local governments in Asia can no longer take an incremental approach to financing and implementing strategic infrastructure investments that largely relies on grants from senior government levels.
Exacerbating these difficulties, demand for new and improved infrastructure has continued at an unprecedented rate with rapid urban growth. To tackle current and future infrastructure needs, it is imperative for city governments to look for alternative financing options and products to supplement their own sources. However, in order to tap external financing, the financial viability of local governments and their investments projects has to be clearly demonstrated. Given the challenges to access financing for urban infrastructure, it is critical for cities to take proactive steps. An integrated and coordinated approach drawing on the full spectrum of financing products will go a long way in helping cities to be more competitive and pursue more sustainable development. It is imperative now for city governments to look for alternative financing options.
This Handout offers an introductory orientation aimed to raise awareness and help prepare cities in their efforts to identify alternate external financing products for their infrastructure investment projects. The focus is on assisting local government officers to better understand where opportunities lay for available for financing. The content also looks to enhance understanding of internal institutional capacity needs, expectations on the part of the financiers, and modalities for financing agreements.
As such, while equally important, these materials do not attempt to address internal options to enhance a local government’s financial capacity, nor internal mechanisms to generate additional financing (e.g.: using betterment levies, bonusing, leveraging assets, etc.).
A copy of the Handout can be download at the following link:
External Urban Infrastructure Financing Options in the Asia-Pacific Region