Written by Marsh and McLennan companies
4 October 2017
Project bankability in Asia has been a key concern for investors in infrastructure for many years. Marsh & McLennan Companies Asia Pacific Risk Center estimates that between 55-65 percent of projects in Asia are not bankable without support from government or multilateral development banks. This report seeks to address the many challenges of project bankability in the region, by introducing a set of guidelines based on the combined expertise of Marsh & McLennan Companies operating companies: Oliver Wyman, Marsh, Mercer and Guy Carpenter. The report is structured as follows: Section 1 sets the context for the boom in infrastructure demand in Asia. Section 2 looks in more detail at the drivers and challenges associated with infrastructure financing in the region, including the inadequacy of the current public sector driven financing model based on forecasted future requirements. Section 3 sets out the bankability guidelines which consist of six levers that reflect the ideal environment (created by governments) and best practice execution (conducted by investors) for infrastructure investment. The report concludes by looking at the successful application of these levers across key industry sectors and within selected countries with high infrastructure investment growth expectations. Publication Date: 2017