As developed markets worldwide continue to battle the aftershocks of the global fnancial crisis, all eyes are on Asia to keep up global demand. But while Asia’s emerging markets continue to display strong growth prospects, a lack of infrastructure could hamper future prospects. The issue has prompted the Asian Development Bank (ADB) and the Asian Development Bank Institute (ADBI) to conduct a study into the region’s infrastructure needs. The results are no small matter. According to the Infrastructure for a Seamless Asia study, the region will need no less than US$8.3trn in investment for the period 2010-2020 to realise what the institutions refer to as its ‘enormous growth potential’. This investment would cover four areas: energy, telecommunications, transport and water and sanitation, with power alone accounting for $4trn. According to the 2009-published study: “The inadequacy of Asia’s infrastructure networks are a bottleneck to growth, a threat to competitiveness and an obstacle to poverty reduction.”

At the same time, governments are becoming increasingly attuned to the importance of well functioning infrastructure. In June 2008, Merrill Lynch raised its emerging markets infrastructure forecast to US$2.25trn annually, or 5% of GDP, from US$1.25trn over the period to June 2011, because of more aggressive government spending programmes.

“Over the past few years, there has been a signifcant increase in the number of infrastructure projects launched across the country, especially under the PPP framework. By their nature...

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