The Asian Development Bank serves only China, the Republic of Korea and Mongolia. The World Bank and the International Monetary Fund serve these three countries plus the Russian Federation. Of the six countries in Northeast Asia, only the Russian Federation is served by the European Bank for Reconstruction and Development. Most importantly, traditional lending programmes of these multilateral financial institutions appear to emphasise public borrowing rather than co-financing with the private sector. Leverage with the private sector is essential, both to mobilise the resources needed and to gain the efficiencies associated with private sector management and participation.
Structured financing concerning infrastructure projects is extremely complex.
Tumen Programme member countries do not, in most cases, posses the required pool of expertise. They may, therefore, be placed at a disadvantage when negotiating with the private sector, especially when dealing with the formidable expertise that can be assembled by large multinational firms. The Executive Board of Directors and corporate management will reflect partnership among the five Tumen Programme member countries and partnership with the private sector. Consistent with these operational objectives, capitalisation and staffing will be modest. As a catalyst for structured financing of infrastructure projects, the objective will be to minimise the use of public funds and maximise the use of private funds.