AIIB is not unique in its priority to mobilize private capital. Yet unlike other MDBs, AIIB has a more focused mandate on infrastructure project financing and does not offer concessionary financing. Like others, AIIB will try to develop a high degree of flexibility in financing through various instruments. Its strategy on mobilizing private capital for infrastructure (2018) spells out its vision as a bank that will help develop emerging market infrastructure as an asset class. The first step toward creating infrastructure as an asset class for private sector investors would be to increase the level of data quality to facilitate a high-quality brainstorming around key issues, for international comparisons, and to help market participants make informed financing decisions. This report, which AIIB has prepared with The Economist Intelligence Unit (The EIU) and with inputs from industry experts, aims to contribute toward this objective.
The first part of this report provides an assessment of the near- to medium-term state of the project financing market, with a focus on identifying the implications arising from the global economy. The assessment takes into consideration global economic developments (assessed by various international organizations) and data trends from various sources. The key takeaway is that infrastructure project financing is at an inflection point.
The second part of this report includes six articles that explore some of these structural and longer-term issues. In this first publication, special focus is given to cross-border connectivity.
Last but not least, the report presents a methodology for comparing road construction costs in various economies in Asia.