ADB South Asia Working Paper Series
Infrastructure Financing in South Asia
Shikha Jha and Rosa Mia Arao
No. 59|September 2018
Shikha Jha, principal economist,
Economic Research and Regional Cooperation Department,
Asian Development Bank (ADB).
Rosa Mia Arao, former research associate
atthe Public Management, Financial Sector
and Trade Division, South Asia Department, ADB.
ASIAN DEVELOPMENT BANK
Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)
2018 Asian Development Bank
6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines
Tel +63 2 632 4444; Fax +63 2 636 2444
www.adb
Some rights reserved. Published in 2018.
ISSN 2071-7202 (print), 2218-2675 (electronic)
Publication Stock No. WPS189514-2
DOI: http://dx.doi/10.22617/WPS189514-2
The views expressed in this publication are those of the authors and do not necessarily refect the views and policies
ofthe Asian Development Bank (ADB) or its Board of Governors or the governments they represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any
consequence of their use. The mention of specifc companies or products of manufacturers does not imply that they
are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.
By making any designation of or reference to a particular territory or geographic area, or by using the term “country”
inthis document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.
This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)
https://creativecommons/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound
bytheterms of this license. For attribution, translations, adaptations, and permissions, please read the provisions
andterms of use at https://www.adb/terms-use#openaccess.
This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed
toanother source, please contact the copyright owner or publisher of that source for permission to reproduce it.
ADB cannot be held liable for any claims that arise as a result of your use of the material.
Please contact pubsmarketing@adb if you have questions or comments with respect to content, or if you wish
toobtain copyright permission for your intended use that does not fall within these terms, or for permission to use
theADB logo.
The ADB South Asia Working Paper Series is a forum for ongoing and recently completed research and policy studies
undertaken in ADB or on its behalf. It is meant to enhance greater understanding of current important economic
and development issues in South Asia, promote policy dialogue among stakeholders, and facilitate reforms and
development management.
The ADB South Asia Working Paper Series is a quick-disseminating, informal publication whose titles could
subsequently be revised for publication as articles in professional journals or chapters in books. The series is maintained
by the South Asia Department. The series will be made available on the ADB website and on hard copy.
Notes:
In this publication, “$” refers to United States dollars.
Corrigenda to ADB publications may be found at http://www.adb/publications/corrigenda.
Printed on recycled paper
Contents
tables, Figures, and boxes iv
aCKnoWledgMents v
abstraCt vi
abbreviations vii
i. introduCtion 1
ii. develoPMent oF inFrastruCture in soutH asia: trends and QualitY 2
iii. PubliC and Private seCtor FinanCing 11
a. Corruption in Public infrastructure Provision 14
b. leveraging the Private sector 15
iv. drivers oF inFrastruCture investMent 21
a. total Public and Private investment21
b. Private investment by sector 24
v. ConClusions and PoliCY iMPliCations 30
aPPendix: deFinition oFvariables 31
reFerenCes 35