Infrastructure Fund
Expanding the ambit of its infrastructure funding operations, Asian Development Bank (ADB) has decided to set up an Asia Pacific Infrastructure Fund to cater to the infrastructure financing needs of countries in the region. India has expressed its keenness to be a part of this fund that would have contributions from various Asia Pacific nations, Managing Director-General, Rajat M. Nag said explaining that over the next decade, the infrastructure financing needs of the Asia-Pacific region are estimated at about $8 trillion and efforts would be made to build a track record for a few years after which the Asia Pacific Infrastructure Fund could issue bonds to investors.

He further added that in case bonds are able to get AA rating, then funds (reserves) of various central banks could also be channelized into the Asia Pacific Infrastructure Fund. A number of countries have been using part of their forex reserves for infrastructure financing. Several models have been adopted for this purpose and ADB would look to combine the benefits of Asia Pacific Infrastructure Facility with the proposed Asia Pacific Infrastructure Fund. It may be recalled that the ADB had few years ago put together an Asean Infrastructure Fund with contributions from Asean member countries. India, however, was not a part of this initiative as it was not a member of this grouping and in case the new Asia Pacific Infrastructure Fund becomes a reality, then India would reap rich dividends from such an initiative, he claimed.