Frequently Asked Questions
Who We Are

InfraCo Asia is a company of the Private Infrastructure Development Group (PIDG), established in 2002 as a coalition of donors mobilising private sector investment to assist developing countries attain infrastructure vital to boosting their economic growth and combating poverty.

InfraCo Asia is currently funded by four members of the PIDG: the UK Department for International Development (DFID); the Ministry of Foreign Affairs of the Netherlands (DGIS); the Swiss State Secretariat for Economic Affairs (SECO); and the Australian Department of Foreign Affairs and Trade (DFAT)

Developing Asia will need to invest $26 trillion from 2016 to 2030, or $1.7 trillion per year*, if the region is to maintain its growth momentum, eradicate poverty, and respond to climate change.

InfraCo Asia provides responsible leadership and development capital to bridge the infrastructure gap that cannot be met by governments or development banks funding. InfraCo Asia is serving as a catalyst for the private sector to invest in sustainable infrastructure projects in South and South-East Asia. Read more about our model on the About Us page.

*Asian Development Bank estimate

InfraCo Asia works in South Asia: Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka

And South-East Asia: Cambodia, Indonesia, Laos, Myanmar, Philippines, and Vietnam.

Sectors include power and energy; telecommunication; logistics and transport infrastructure; water and waste water; waste management; urban and social infrastructure; agriculture; oil & gas distribution; and manufacturing. Go to the Portfolio page to see a map of where we operate.

InfraCo Asia is an innovative model that combines public sector funding and private sector expertise to bring a sustainable private sector solution to meet the unmet infrastructure needs in developing countries. Three main points define the ways in which InfraCo Asia is innovative:

  • Applying public funds to de-risk infrastructure projects and catalyse private sector participation: As a company of the Private Infrastructure Development Group (PIDG), InfraCo Asia is currently funded by four members of the PIDG: the UK Department for International Development (DFID); the Ministry of Foreign Affairs of the Netherlands (DGIS); the Swiss State Secretariat for Economic Affairs (SECO); and the Australian Department of Foreign Affairs and Trade (DFAT). These donor funds are used to mitigate early-stage project development risks and create “bankable” infrastructure projects that will attract more private sector investment. In this way, InfraCo Asia steps in where the private sector is initially unable or unwilling to invest on its own. InfraCo Asia is additional to the private sector: Our role is to complement, not compete with, the private sector.
  • Taking a private sector approach: Acting commercially as an investor, InfraCo Asia seeks to ensure each project it undertakes is commercially viable in order to be able to attract further private sector capital to invest in the project. Through its contracted developer teams and in-house management team, InfraCo Asia provides the relevant private sector expertise and experience needed to develop and manage projects
  • Focusing on development impact and sustainability: InfraCo Asia focuses on providing new or improved access to infrastructure to lower-income communities in South and South East Asia, thereby contributing to inclusive economic growth and poverty reduction. Environmental impact is also an important consideration, and InfraCo Asia seeks out projects that will lead to overall carbon footprint reduction and reduced environmental impact.

InfraCo Asia is mandated specifically to complement, not compete with private sector investors. Its role is also complementary to International and Multilateral Finance Institutions such as the World Bank Group and the Asian Development Bank, with whom InfraCo Asia works in partnership from time to time. InfraCo Asia’s parent organisation, the Private Infrastructure Development Group, is funded by members which include the International Finance Corporation.

InfraCo Asia seeks to catalyse private sector participation in infrastructure development in South and South-East Asia. A key marker of success relates to mobilising private sector capital (both equity and debt) at or prior to Financial Close.

InfraCo Asia provides new or improved access to infrastructure to lower income communities in the region, thereby contributing to inclusive economic growth and poverty reduction in multiple ways, including generating jobs and income for local workers, supporting growth of local businesses and improving quality of life.

Environmental impact is also a focus: we seek out projects that will lead to overall carbon footprint reduction and reduced environmental footprint.

To learn more about the impact of InfraCo Asia’s projects, visit our Impact Page.

How We Work

Under InfraCo Asia’s Developer Services Program, project origination – as well as pre-financial-close project development, EPC management, and financial structuring activities – are outsourced to three teams of dedicated and exclusively contracted project developers.

Under its Co-Development Program, InfraCo Asia invests in third-party projects to provide pre-financial close project development capital to projects that meet InfraCo Asia’s investment criteria.

Project sponsors may approach the InfraCo Asia Executive Management Team directly with project proposals.

InfraCo Asia’s project selection criteria are based on three core pillars:

  • Development Impact: Projects must be sustainable, reduce poverty, and provide social and economic benefits while meeting environmental best practice. They must afford better access to better infrastructure for people in lower income regions.
  • Additionality: InfraCo Asia’s role is to complement, not compete with, the private sector. InfraCo Asia steps in where private sector developers, owners, and operators are unable or unwilling to take on upfront risks and costs on their own.
  • Commercial viability: Project returns must be commercially attractive in order to mobilise private sector participation.

The investment process at InfraCo Asia works as follows:

Screening:

  • Preliminary exchange of information
  • NDA, Q-and-A, exchange of project details
  • Review proposal, determine next steps
  • Complete project proposal templates

Approval:

  • In principle approval by Investment Committee/IAD Board
  • Sign Letter of Intent/exclusivity letter
  • Undertake compliance checks, site visits; financial, legal, and technical due diligence; discuss and agree Joint Development Agreement/Shareholder Agreement terms
  • Final approval by Investment Committee/IAD Board

InfraCo Asia is committed to to de-risking  projects and bring them to financial close – i.e., when all the investment required by the project to commence construction has been secured.

Should there be a funding gap at financial close, InfraCo Asia can deploy funding from a second pool of capital, which is mandated to provide investment/construction capital at or near financial close to meet the shortfall if insufficient, if private sector funding has been secured.

We invite you to join us in unlocking the private sector capital that is so critical in bridging the infrastructure gap in emerging Asia.

InfraCo Asia’s key expertise is in the early stage development of infrastructure projects. We are happy to discuss genuine proposals with governments, businesses, and individuals. Two streams of collaboration are possible:

Project development: We are interested in projects located in South East Asia (including Myanmar) and South Asia that may be ideal candidates for InfraCo Asia’s Co-Development Program.

Funding: InfraCo Asia is open to receiving additional development capital to enable a greater number of projects to be developed. Please contact us for more information.

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Company Registration No. 200901920D
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