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While there has been much discussion about the large infrastructure needs in Asia and the Pacific, less attention has been paid to public expenditure efficiency in infrastructure services delivery. New constructions are not the only solution, especially when governments have limited capital to invest. Globally, new infrastructure projects face delays and cost overruns, leading to an inefficient use of public resources. The root causes include the lack of transparency in project selection, the lack of project preparation, the silo approach by public entities in assessing feasibility studies, and the lack of public sector capacity to fully develop a bankable pipeline of projects. To tackle these issues, governments need a smarter investment approach and to do so, enhancing public service efficiency is very crucial. The paper suggests a “whole life cycle” (WLC) approach as the main strategic solution for the discussed issues and challenges. We expand the definition of WLC to include the entire life cycle of the infrastructure asset from need identification to its disposal. The stages comprise planning, preparation, procurement, design, construction, operation and maintenance, and disposal. This is because we believe any efficient or inefficient decision throughout such a wide life cycle influences the quality of public services. Hence, in this holistic approach, infrastructure life cycle consists of four phases: planning, preparation, procurement, and implementation. Governments could enhance public efficiency and thus improve access to finance throughout the WLC by several solutions. These are (i) preparing infrastructure master plan and pipelines and long-term budgeting during the planning phase; (ii) establishing framework and guidelines and improving governance during preparation phase; (iii) promoting standardization, transparency, open government, and contractual consistency during the procurement phase; and finally (iv) continued role of government and total asset management during the implementation phase. In addition to these phase-specific means, key WLC solutions include proper use of technology, capacity building, and private participation in general and public-private partnership (PPP) in particular.

The project finance scenario has changed significantly around the world after the 2008 financial crisis and following the subsequent Basel III recommendations. Project finance loans from commercial banks and financial institutions have largely dried up, leaving it mostly to the export credit agencies and the bilateral and multilateral development banks to provide the institutional credit. Unfortunately, those sources are not enough, given the huge needs for construction of new infrastructure and renovation of the old ones across Asia, Africa and Latin America. The need for capital markets, through market listed financial products across asset class, unlocking a large part of domestic and corporate savings, has never been felt as strongly before. This article seeks to analyze the development story of various Asian capital markets and examine financial products, which have succeeded in their short history in receiving investor interest. The article also delves into the challenges to market development, policy imperatives and the issues relating to market liquidity and credit rating, which are the most significant influencers for public market float and investor interest.

Innovative approaches needed to offer affordable finance in developing countries. For instance, through a regional financing facility to support clean mobility. Such approach can bring scale, diversify risks, reduce transaction costs and provide greater flexibility in Sub-Saharan Africa. Other approaches to financing 2-3 wheelers are also discussed. Carbon pricing schemes can be explored in more advanced developing economies in addition to a global and voluntary carbon market to finance the transition in maritime shipping.Concerted actions must be taken by every country along with a worldwide coordinated effort to guarantee an equitable transition to low carbon transportation. This document brings concrete recommendations by: i) setting climate action goals, ii) putting in place green transport-specific regulation and institutional frameworks, iii) incorporating a GHG analysis in transport planning to prioritize policies and investments, iv) deploying public transport and improving land use policies, v) managing motorization, vi) investing in e-mobility and charging infrastructure, viii) adopting green freight and logistics, ix) optimizing funding mechanisms to incentivize greening actions, x) ensuring efficiency of public spending, xi) focusing on research and development by leveraging private sector's ability to innovate, and finally xii) developing a financing strategy including blend financing and credit enhancements as needed.

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