8 October 2013
Bali, Indonesia
Quality infrastructure is critical to improving living standards and reducing poverty, through enabling access to markets and ensuring access to reliable sources of clean water, electricity, and other services.
Asian economies will require an estimated US$8 trillion in infrastructure investment between 2010 and 2020.
In order to facilitate greater private investment in infrastructure in Indonesia, Prime Minister Stephen Harper announced on October 8, 2013, that the Government of Canada will provide $5 million over five years for a pilot Public-Private Partnership (PPP) Centre in Indonesia.
With support from Canada, Australia, Indonesia, the Asian Development Bank, and other partners, this pilot PPP Centre will help the Government of Indonesia identify a conduit of investment ready infrastructure projects within the country, and help them overcome the challenges with domestic coordination on a project-by-project basis. Specifically, the pilot PPP Centre will:
- provide technical expertise to the Indonesian Government for any stage of the project cycle, covering technical, economic and financial questions;
- ensure coordination by developing and reviewing project structures, removing bottlenecks, filling gaps and identifying problems in the delivery of particular infrastructure projects; and
- assist in raising the capacity of relevant entities in the economy to develop PPP’s.
The pilot PPP Centre – which APEC Finance Ministers agreed to establish – will be housed within the Ministry of Finance of Indonesia.
It is expected that this new initiative will help lead to the creation of a network of regionally based PPP centres, building on existing institutions such as the Public-Private Partnership Centre of the Philippines and the Association of Southeast Asian Nations (ASEAN) Infrastructure Centre of Excellence. Both of these are already supported by Canada and the Asian Development Bank.
The Asia-Pacific region is a priority for our Government and Canada has been actively pursuing a number of important initiatives with Asia-Pacific Economic Cooperation (APEC) member economies and within the larger Asian region.
