Developing BankableProjects in ASEAN

Bangkok May 2018

INSTITUTIONAL

ENABLERS

The Infrastructure Investment Situation in ASEAN

Goals (2030)Impact (2021)OutcomeOutput

required todeliverresults

A need to work with the Demand and

Supply sides to facilitate project

developers and local government build new sustainable

productive infrastructure

Outcome

Developing Pipelines: Sourcing and Linking of Projects

Goals (2030)Impact (2021) 3

MPAC 2025GMS RIF

2022Nat Plans

ASEAN connectivity sustainable infrastructureand seamless logistics investments

Policy and Plans

INSTITUTIONAL

ENABLERS

Developing and Financing Pipelines: UNCDF Solutions

Goals (2030)Impact (2021)OutcomeOutput

required todeliverresults

Outcome

UNCDF De Risking Instruments

Goals (2030)Impact (2021) 5

reducing the high Up Front Costs for projects

15% to 20%total project value

facilitating Partnerships for projects (SPVs)

PPPs

BoT

Operate & Maintain

structuring Project Finance reducing interest

leveraging Capital for projects

1 to 20ODA / Capital

Blending

Credit Guarantees

Equity

Project ExampleICD Myawaddy

Outcome

ICD Project – Myawaddy Mae Sot UNCDF Methodology

Goals (2030)Impact (2021) 7

Outcome

ICD Project – Myawaddy Mae Sot PIM

Goals (2030)Impact (2021) 8

Project Information Memorandum

Detailed Technical StudyTraffic / logistics Trade flow projectionsLegal – legislation base

Financial Modelling (Industry Std)CAPEXRoIFinancing Structure (options)

Outcome

ICD Project – Myawaddy Mae Sot Project Flow Key Stages

Goals (2030)Impact (2021) 9

Project Information MemorandumDeveloped (Financial and Technical)

BoT Discussions / AgreementsMoPF / MoT (Myanmar Gov.)

Investor SearchCurrently discussing

Fund Raising EventsBangkok and Yangon

Outcome

ICD Project – Myawaddy Mae Sot PPP Spectrum

Goals (2030)Impact (2021) 10

Private Sector Owns and Operates Assets

- Utility- Restructuring- Corporatization- Decentralization

- Civil Works- Service

Contracts

Managementand Operating Contracts

Leases/ Affermages

- Concessions

- BOTs

- DBOs

Joint Venture/ Partial Divestiture of Public Assets

Full Divestiture of Public Assets

Public Owns and Operates Assets Public Private Partnerships (PPP)

Low High

• A brownfield project with existing facilities, infrastructure and equipment would typically fall under the concession model

• While a greenfield project where the infrastructure and facilities would have to be developed and built and equipment purchased, would qualify as a BOT

Outcome

ICD Project – Myawaddy Mae Sot PPP Type (suggested)

Goals (2030)Impact (2021) 11

ICD Operator

BOT Company:

• Land• Environmental & Social• Civil Works• Construction• Equipment & Fleet

Public Authority

ICD Operator

BOT Company:

• Civil Works• Construction• Equipment & Fleet

Public Authority:

• Land• Environmental & Social

ICD Operator

BOT Company:

• Construction• Equipment & Fleet

Public Authority:

• Land• Environmental & Social• Civil Works

Viability Gap Funding

Concession Agreement

O&M contract

Various BOT structures may be employed depending on the level of investments

from the developer

Thank youFor more information, please visit www.uncdf.org

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