Over $2.7 billion in infrastructure projects in India and Asia listed on Singapore’s new online portal

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NNA |
Updated:
08 August 2022 06:59 STI

By Lee Kah Whye
Singapore, Aug 8 (ANI): Last week, an online infrastructure project portal that connects government, developers and financiers was launched by Infrastructure Asia, a platform set up by Enterprise Singapore and the Central Bank of Singapore, Monetary Authority of Singapore (MAS) .
The portal was officially announced at the Asian Infrastructure Forum on August 2 by Singapore’s second finance minister, Indranee Rajah, who said the portal aims to support greater regional collaboration between complementary experts and brings greater high visibility to project opportunities in the exciting growth area of ​​sustainability. Infrastructure.
The new online project portal serves as a marketplace for various parties interested in developing infrastructure projects in Asia and also to surface the region’s infrastructure project pipeline.
A look at the projects currently listed on the portal reveals that there are 11 infrastructure projects listed worth over $2.7 billion. There are seven projects related to water and sanitation, two related to logistics and two are rail transport projects. Indonesia leads the number of projects listed with five, Cambodia and the Philippines with two each, and Vietnam and India have one each.
The India project which is on the portal is Stage 2 of the New Delhi Railway Redevelopment Project.
Infrastructure Asia claims that Singapore, which has an established ecosystem of various private sector companies including developers, engineering companies, supply companies, construction companies, professional service providers, financial institutions and multilateral development banks working with public sector agencies, is in a unique position to meet Asia’s infrastructure needs and unlock the region’s infrastructure potential.
Lavan Thiru, executive director of Infrastructure Asia, said the costs of finding solution providers and partners are very high.
He added, “So there was a need for a neutral platform, a platform that has some level of independence, and more importantly, a platform that can do curation.” The recently launched project portal aims to showcase regional infrastructure projects and can connect public and private sector parties interested in partnering to develop these projects.
Project owners can list project requirements on the platform, and interested parties, such as solution providers or financiers, can access project details, including its value, owner, and developers.

Thiru said Infrastructure Asia will select projects to be listed on the portal based on whether they are marginally bankable and belong to sectors in which Singapore or Singapore-based companies have expertise.
During her keynote address at the Asia Infrastructure Forum held at the Marina Bay Sands Expo and Convention Centre, Minister Indranee said that to achieve the Paris Agreement to limit global warming to 1.5 degrees Celsius, immediate and deep emission reductions are needed.
She added that Singapore, which has announced that it will raise its climate ambition to achieve net zero emissions by mid-century or around mid-century, will ensure that its climate commitments are backed by the right strategies, policies and actions.
The Minister continued: “To achieve our sustainable development goals, we need to radically transform the way we plan, build and operate infrastructure. A frequently missed opportunity relates to brownfield infrastructure, or existing assets, which are responsible for almost 80% of all greenhouse gas emissions. , particularly in the energy, transport and building sectors. We can do a lot to decarbonize our current stock of infrastructure, including improving energy and resource efficiency in the built environment. »
Investments in brownfield assets could require modest investments, but result in outsized decarbonization gains.
For emerging markets in Asia, the International Finance Corporation (IFC) estimates that building energy retrofits could reduce greenhouse gas emissions by almost a billion tonnes. This is equivalent to taking nearly 200 million internal combustion engine cars off the road, or about 15% of the entire global car fleet.
Capital is needed to ensure these solutions can scale. It is estimated that $2 trillion is needed to build sustainable infrastructure in Southeast Asia by 2030. Governments are aware of the huge amount of capital required and, as they step forward to take the ahead, private capital is needed.
In Singapore, the public sector will issue up to SGD 35 billion (USD 25.3 billion) of green bonds to finance sustainable infrastructure projects by 2030, and the Philippines and India have also announced that their governments issue their own green bonds.
In addition to public funding, funding from private financial institutions is crucial for the success of infrastructure projects. Banks surveyed by Business Times Singapore (BT) say funding does not just depend on whether the project supports social and environmental causes, it must also be economically viable. Sustainable infrastructure cash flows must have the ability to repay long-term loans.
Yulanda Chung, sustainability manager, institutional banking group at DBS, told BT that to manage these issues, regulatory certainty backed by commercial contract structures is needed. Closing the gap further requires robust pricing models that balance project costs and social affordability, as well as appropriate economic incentives.
“We believe having a framework to define a strong governance process for how the money raised will be used and clearly defining green standards will help banks fund more sustainable infrastructure projects,” Chung said. (ANI)

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