Infrastructure financing and development group, InfraCo, part of the World Bank-funded Private Infrastructure Development Group (PIDG), has moved into Asia to provide development expertise and early-stage capital for infrastructure projects in the region.
“Many developing countries lack sufficient state resources and private sector investment for infrastructure projects, which are crucial for economic development to take place. We fill this gap with early-stage funding and relevant development expertise, balancing the interests of governments, local communities, private sector investors and financiers,” says Rod Sims, chairman of InfraCo Asia.
Based in Singapore, InfraCo Asia will focus on projects in South and Southeast Asia. According to a press release, the programme’s priority countries include Bangladesh, Cambodia, India, Indonesia, Laos, Nepal, the Philippines, Sri Lanka and Vietnam.
InfraCo will aim to identify early-stage infrastructure projects and provide the initial funding to get projects to a point where larger private sector investors feel comfortable investing in a relatively low-risk environment.
The firm will focus heavily on renewable energy products, in particular hydro and wind power.
“We take a balanced portfolio approach with a mix of larger, more commercial projects such as power plants, along with smaller projects that more directly benefit the disadvantaged, such as infrastructure that supports agriculture. The reality is that there has been inadequate response from the private sector towards investing in infrastructure in developing countries,” says Surender Singh, InfraCo Asia managing director.
Launched in 2005, the InfraCo programme is part of the Private Infrastructure Development Group, which is funded by a number of European donors and The World Bank. InfraCo is already highly active in Africa.