Innovation in Infrastructure Development in Asia: PPP Business Opportunity and Challenges in Postcrisis Recovery

Infrastructure such as roads, railways and electric power grids are a foundation for economic development, as well as improving people’s lives and contributing to poverty reduction. However, given the huge gaps in infrastructure and pressures on public expenditure, there is an expectation that public–private partnership (PPP) will narrow this gap globally. PPP as a mechanism for financing and procuring infrastructure by utilizing the private sector’s expertise is regarded as an innovative way to develop infrastructure. However, the COVID-19 pandemic created a serious crisis on a global scale. Although there is a growing expectation for PPP business in Asia, due to the tight fiscal space and deteriorated debt status of the most central governments in Asia, in response to COVID-19, the impacts of crisis on all stages of the project cycle of PPP projects and PPP business in general are noteworthy. The purpose of this paper is to consider the implications of the COVID-19 pandemic on PPP and business opportunities and challenges in PPP infrastructure business in the postcrisis recovery period in Asia. The paper first outlines an overview of PPP infrastructure business in Asia and reviews the theoretical framework for PPP. Then, the paper argues that the impact of COVID-19 on PPP infrastructure business in Asia including opportunities and challenges during postcrisis recovery using cases such as the Philippines.