In the last 12 months the PPP market in South East Asia has slowly picked up pace, after a dry period in the years following the Lehman collapse. Dependent on the availability of long term debt, which was either unavailable or only available at a price that rendered underlying projects untenable, some projects that were put on hold or cancelled have been reactivated as activity has picked up.
The closing of the Sports Hub PPP in Singapore at the back end of 2010 was a key PPP milestone regionally, and the Central Java Power Project (CJPP) in Indonesia also recently achieved commercial close, with a strong group of international banks now looking to participate in the financing. CJPP provided a particularly promising market sign as it was procured under the recently amended PPP regulations in Indonesia and is also supported in part by a guarantee from the Indonesian Infrastructure Guarantee Fund (IIGF). In addition, the Philippines, through its PPP Centre, has also earmarked a pipeline of key PPP projects planned to be procured shortly.