Abstract
Developing countries in Asia have attached increasing importance to the development of urban environmental infrastructure (UEI), primarily in sewerage treatment and garbage disposal facilities, to overcome serious water pollution and solid waste pollution in urban areas. Funding difficulties are recognized as a barrier to accelerating UEI construction in this area, as large-scale initial investments are required. This paper argues that the expansion of possible roles for private finance initiatives (PFI) in UEI construction and operation is an important strategy for sustainable development in Asia to overcome governmental limitation in financing UEI.
This paper presents the situation of PFI projects development in Asia and identifies the principle of PPP and the risks of PFI project, as well as designs the framework for promoting PFI including to establish special governmental organizations, make appropriate measures to avoid risks and provide preferential policies for administration and financial support, and develop a manual for the formation of PFI projects.
