Mobilising the private sector to finance and deliver economic infrastructure is a key priority of the Australian aid program.
Australia works with partner Governments to prioritise and prepare infrastructure projects which involve the private sector in their development, and enhance commercial activity once complete. We are partnering with the private sector and international organisations to develop regulatory and institutional frameworks which promote innovation and attract private finance to infrastructure.
Australia is working to expand private investment in infrastructure through promoting and supporting the use of Public Private Partnerships, introducing much needed innovation into infrastructure service delivery.
Some of the initiatives the Australian aid program currently supports to increase private sector engagement include:
- Assistance to the Philippines Public Private Partnership Center to develop over US$1 billion worth of road, school and health infrastructure projects, with around US$7 billion of additional projects in the pipeline. Our support includes project preparation and monitoring, capacity building, and institutional and regulatory reforms.
- Australia supports the Private Infrastructure Development Group which has mobilised private investment for a number of projects including:
- In Cambodia, a 100 hectare evaporated sea salt farm with the potential to create a $100 million a year export sector creating employment opportunities for up to 10,000 workers.
- In Pakistan, a 50 megawatt wind farm that will improve power services for around 350,000 people.
- In the Solomon Islands, Australia’s work with the World Bank Group on the project preparation of the Tina River Hydropower Project is supporting development of the first public-private partnership of its kind in Solomon Islands. The Project not only has the potential to significantly reduce energy prices (one of the biggest constraints to growth in the country), but it could also be the catalyst for more large-scale private investment in Solomon Islands.
- Tonga’s Transport Sector Consolidation Project successfully built private sector capacity to undertake road maintenance activities in Tonga. Assistance from the project has led to 12 companies bidding for and undertaking road maintenance activities in Tonga. Between April 2013 and March 2014, 468km of road was maintained by these companies, creating more than 20,000 person hours of work for the local contracting industry.
Read more about DFAT’s investment priorities: Infrastructure.