Analyzing Asian Infrastructure Development Privatization Market

Abstract

Concession agreement is one of the infrastructure privatization models. In Asia, the rise of concession projects began in the 1980s, and the number of such projects continues to grow. This research provides an overview and detailed analysis of the Asian concession market. Eighty-seven concession projects awarded between 1985 and 1998 covering 12 Asian countries were examined. Findings show that Asia has been implementing concession models actively in response to the high demand of infrastructure development in the power, transportation, and water sectors. Approximately 30% of the total concession projects had disappointing performances resulting in financial loss, cancellation, delay, and suspension of the project.