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World Business

Asia-Pacific countries to boost regional infrastructure

(Xinhua)
Updated: 2010-04-19 16:08

JAKARTA: Seventeen countries including Indonesia have signed the Jakarta Declaration to boost infrastructure development in the Asia-Pacific region through public-private partnership (PPP) schemes, the Jakarta Post reported on Monday.

The declaration to replace the Seoul Declaration was signed on April 18 at the end of the four-day Asia-Pacific Ministerial Conference on PPP for Infrastructure Development 2010.

The conference was attended by 22 countries out of the 53 members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).

The 17 countries signing the declaration are Indonesia, Sri Lanka, Myanmar, Maldives, Samoa, Timor-Leste, Bhutan, Papua New Guinea, Tuvalu, Russia, Mongolia, Afghanistan, South Korea, Iran, Vietnam, Pakistan and the Philippines.

There is a proposal to establish a Regional Infrastructure Fund, which will comprise a pool of funds for Asia-Pacific countries for financing the infrastructure development needed to boost economic growth.

Another proposal is to establish an Asia-Pacific PPP Center Unit, Dedy S. Priatna, Deputy of Infrastructure at the National Development Planning Agency said over the weekend.

"This declaration is proof that Indonesia is serious in attracting investors to invest in infrastructure under PPP schemes, since lagging infrastructure is said to be the second largest problem confronting businesses in Indonesia," he said.

Indonesia needs 1,400 trillion rupiah ($155.4 billion) for infrastructure in the 2010-2014-period. The government can finance only up to about 30 percent of the total amount required.

"The declaration, with three key points, will be submitted to the United Nations as a resolution to support infrastructure financing and implementation. A task force will be established to oversee this," Dedy said.

The three points include helping members to design policies and regulations to implement PPP schemes; providing technical support to prepare countries to establish PPP schemes; and creating a PPP secretariat under UNESCAP to promote PPP projects.