Asian Development Bank (ADB) plans to set up an Asia Pacific Infrastructure Fund to cater to the infrastructure financing needs of member countries in the Asia Pacific region.
India has expressed keenness to be part of this fund that would have contributions from various Asia Pacific countries besides the ADB, Rajat M Nag, Managing Director General, ADB, said here today.
Over the next decade, the infrastructure financing needs of Asia-Pacific region are estimated at about $8 trillion, Nag said.
Nag also said that efforts would be made to build a track record for few years after which the Asia Pacific Infrastructure Fund could issue bonds to investors.
If the bonds are able to get AA rating, then funds (reserves) of various central banks could also be channelised into the Asia Pacific Infrastructure Fund.
“The main challenge is how to use reserves (held by central banks) for infrastructure financing”, Nag said.
A number of countries have been using part of their forex reserves for infrastructure financing.
Several models have been adopted for this purpose.
Nag also said that ADB would look to combine the benefits of Asia Pacific Infrastructure Facility with the proposed Asia Pacific Infrastructure Fund.
ADB had few years back put together an ASEAN Infrastructure Fund with contributions from ASEAN member countries.
India however was not a part of this initiative.
If the proposed Asia Pacific Infrastructure Fund becomes a reality, then India could also benefit from such an initiative, Nag pointed out.