The Australian Government works with a range of multilateral organisations, other governments and the private sector to deliver quality infrastructure and to support the growth of public private partnerships in developing countries. Australia is the largest funder of the Global Infrastructure Facility (GIF), having provided $25 million (2015-2020) to the pilot phase. The GIF is an initiative of Australia's G20 Presidency in 2014, which encourages collaboration between Multilateral Development Banks, bilateral donors and private sector investors to attract private sector investment into emerging markets and developing economies. We are a major funder of the World Bank's Public Private Infrastructure Advisory Facility (PPIAF), which provides technical assistance to improve enabling environments and infrastructure project preparation. Our commitment of $10 million to the Asian Development Bank's Asia Pacific Project Preparation Facility (AP3F), aims to encourage private sector participation in infrastructure by facilitating a more consistent and higher-quality approach to public private partnership project preparation and transaction advice across the Asia Pacific region. Australia has also provided $32 million (2012-2016) to the Private Infrastructure Development Group (PIDG), a multi-donor organisation that leverages private sector investment into frontier infrastructure markets in Asia.
Below are further examples of infrastructure programs funded by the Australian Government.
Public–private partnerships for infrastructure
Infrastructure enables access to markets and ensures reliable water, energy and other services. It is critical to driving economic growth and reducing poverty. With more than US$8 trillion worth of infrastructure needed in Asia between 2010 and 20201, governments and donors cannot plug this investment gap alone. Public private partnerships (PPPs) can help address this shortfall.
The Philippine Strengthening PPP Program is an example of collaboration between governments, donors and the private sector. Australia's US$30 million contribution has helped develop 12 PPP projects worth over US$4 billion.
Building on our experience in the Philippines, Australia is now working with the Government of Indonesia to identify potential pilot projects feasible for PPP transactions. Australia is also working with the multilateral development banks on the enabling policy and regulatory environment needed to support PPPs in Indonesia.
Gender and infrastructure
The Australian Government is committed to promoting gender equality and women's empowerment outcomes, particularly in the Indo-Pacific region. This commitment is reflected in Australia's Aid Policy, launched in June 2014.
In line with this commitment, DFAT commissioned a review of approaches to gender equality and infrastructure in one of our key multi-donor infrastructure development partners, the Private Infrastructure Development Group (PIDG), and in particular approaches to gender equality in the PIDG subsidiary, InfraCo Asia Development.
The review identifies a range of good practices already being implemented by the PIDG and InfraCo Asia Development, and provides recommendations to further progress the mainstreaming of gender equality. The review also adds to the broader literature on this important matter.
Country, regional and global program initiatives
1. BN Bhattacharyay, ADB, 'Estimating Demand for Infrastructure in Energy, Transport, Telecommunications, Water and Sanitation in Asia and the Pacific: 2010–2020', 2010.