Written by David Baxter via LinkedIn
Thompson Chau, reporting for the Myanmar Times, writes China’s Belt and Road Initiative (BRI) is expected to extensively boost trade and commerce through comprehensive physical and social infrastructures improvements. Bankable and feasible infrastructure projects that can be supported by international agencies are the primary focus of this initiative.
A whole new integrated infrastructure ecosystem will be created under this initiative.
There is a role for Public-Private Partnerships (PPPs). It is reported that Jonathan Woetzel (of McKinsey) told the Myanmar Times that, “the private sector and foreign businesses, not multilateral institutions such as the Asian Infrastructure Investment Bank, have the biggest part to play.”
Private foreign investors will be able to participate in projects which will be risk-guaranteed by Chinese institutions.
It is acknowledged that three risk areas exist: geopolitical, funding, and operational. I would add another. The International Public-Private Partnership Resilience Center (IPPPRC – www.ippprc.org) has identified adverse natural events risk as an often-overlooked risk in the region which is susceptible to earthquakes and monsoon flooding to name a few.