Flagship Study on Infrastructure and Regional Cooperation

The ADB/ADBI flagship study on Infrastructure and Regional Cooperation examines the key issues and challenges facing cross-border infrastructure development in Asia. The study attempts to outline what the region needs to address in terms of policies and best practices to meet these challenges.

The study's second workshop was held in two parts both focusing on technical aspects of the research papers. The workshop's two parts drew 68 participants; 24 researchers presented their work on the study's four themes: trade and logistics, transnational infrastructure networks, policies and institutions, and financing infrastructure. Valuable comments were solicited from policymakers and experts from the academic community, think tanks, and the private sector.

The first part, Policies and Institutions and Financing Infrastructure, was held in New Delhi on 12–14 June 2008. ADB India Country Director Tadashi Kondo delivered welcome remarks, followed by opening remarks by ADBI Dean Masahiro Kawai. Alok Sheel, Secretary of the Economic Advisory Council to India's Prime Minister, delivered the keynote speech on financing Asia's infrastructure. Biswa N. Bhattacharyay, Special Advisor to the ADBI Dean and the task manager of the flagship study, gave the introduction to the workshop and presented the objectives, scope, and structure of the study.

The major conclusions of the first part of this workshop include:

1. identify a set of policies and institutions that can provide conducive environments, such as the establishment of additional coordination mechanisms and regional policy and institutional frameworks for encouraging public-private partnerships in regional or cross-border infrastructure development;
2. identify impediments to inter-governmental coordination and harmonization of legal and regulatory frameworks, policies, procedures, environmental and social safeguards, and other measures and suggest best practices;
3. suggest modalities and new schemes of financing based on learning experiences from other regions to finance regional infrastructure by governments, multilateral and bilateral donors, and the private sector; and
4. identify ways to strengthen and integrate regional financial systems, including capital markets and bond markets for efficient financing of regional projects.

The second part of the workshop, Trade and Logistics and Transnational Infrastructure Networks, was held in Bangkok on 3–4 July 2008. ADB Southeast Asia Director General Arjun Thapan provided welcome remarks, followed by opening remarks by ADBI Dean Masahiro Kawai.

The major conclusions of the second part of the workshop include:

1. identify the types of regional infrastructure, such as transport and energy infrastructure, needed for the development of regional production networks and supply chains in order to connect production clusters and gateways within the region and significantly reduce trade and logistics costs;
2. further deepen analysis of the socio-economic impacts of regional infrastructure projects on economic growth and development, poverty reduction, and social conditions, focusing on subregional and cross-subregional (such as Greater Mekong Sub-region, South Asia, and Central Asia) projects in the transport and energy sectors; and
3. analyze the distributional impacts of regional infrastructure networks on different countries and different sectors or types of people within each country, and suggest best practices for designing and implementing regional infrastructure projects.