Nusa Dua, Bali, (ANTARA) - Vice President Jusuf Kalla on Saturday asked all worlds development banks like the World Bank, Asian Development Bank (ADB) and Asia Infrastructure Investment Bank (AIIB), to serve as long term investors financing government infrastructure projects.
"What we need now is long term funds to finance non commercially viable projects as the government would be in difficulty if it has to continue to use short or mid term funds to finance long term projects," Kalla said at the Global Infrastructure Forum 2018 here .
He said the government could guarantee sustainable development if long term financing facility is available from worlds development banks.
He said government of any country would see the importance of infrastructure for the peoploes welfare, but government have limited funds , while the private sector would not risk investing in project not having high commercial value.
"They would be more prepared to invest in toll roads or airport projects , but would not invest in irrigation or electricity project in isolated areas. Therefore, the role of worlds development banks is important as partners of the government in non commercial infrastructure projects," he said.
CEO of International Finance Cooperation (IFC) Philippe Le Houerou responded positively Kallas call for support from worlds development banks saying that the World Banks subsidiary is preparing principle guidelines to make it easy for the private sector to serve as investors for development of projects for the public interest.
"What the Vice President said is the need for investment institutions to be involved more in financing long term projects as they have funds much larger than funds controlled by any country," Houerou said.
IFC estimated there were assets valued almost US$100 trillion owned by private investment institutions that could be invested in sector having positive impact on the public.
The Investment Principle Guideline is introduced at the annual meeting of the International Monetary Fund and the World Bank 2018 in Bali. The IFC hopes that the program could be approved at the spring meeting of the IMF and the World Bank in April, 2019.
Source: ANTARA News