Shortage of private capital is not the primary challenge for infrastructure projects in countries along the “Belt and Road,” according to the KPMG China in its new report Charting the course of 'Belt and Road' cooperation together: Enhancing international private capital participation in 'Belt and Road' infrastructure projects, which was written in collaboration with the Institute of Market and Price of the NDRC, and China International Contractors Association.
The wider issue is the lack of pipelines of bankable opportunities in these markets. Which means there is a lack of projects that are financially viable, with an acceptable risk profile, and which are structured appropriately to enable them to be considered “investable” by providers of international private capital.
Honson To, chairman of KPMG China and Asia Pacific, said, “Increasing the supply of international private capital is important because public sector resources will not be enough to meet the infrastructure investment needs in countries along the ‘Belt and Road.’ While China has already made significant contributions, it cannot bridge the infrastructure investment funding gap alone. Cooperation among governments, businesses, multilateral organizations and professional firms will be critical to achieving this objective.”
To read the full statement, click here.
