CANBERRA Australia AP Most troubled Asian economies will recover in two to five years and will provide ``significant commercial opportunities a new Australian government report released Wednesday said. ``Asia's infrastructure needs are still enormous'' said the report called Asia's infrastructure in the Crisis Harnessing Private Enterprise. The report launched by Trade Minister Tim Fischer is the work of a team headed by Dr. Frances Perkins executive director of the East Asia analytical unit of the Department of Foreign Affairs and Trade. It concludes that troubled regional economies will bottom out in 1999 and 2000 and it looks at how Asian countries will finance their power water and transport requirements after that time. ``Regional governments had insufficient resources to meet these needs even before the crisis but now have even fewer'' the report says. ``Most are devoting huge amounts to bail out their financial systems and assist the unemployed'' it adds. ``These governments are therefore keen to harness private sector funds and expertise to provide much of the infrastructure shortfall.'' The report notes that before the onset of the crisis last year Asia's infrastructure needs were expected to top US dlrs .1.5 trillion over the coming decade. ``That forecast has now been cut back to US dlrs 1 to 1.2 trillion'' it added. The authors admit that the private sector developers will face big problems but insist that they can be overcome. They say the considerable risks involved can be reduced by finding the best forms of finance and seeking involvement of agencies like the World Bank. ``Long term concessions are the best practice in private water supply'' the report says. ``They leave governments owning the monopoly water pipe and sewerage network but give private operators 20 to 30 year leases to use these assets and collect revenue from water sales. ``East and West Manila and Macau are good examples of private water concessions in the Asia Pacific'' the authors say. The report adds that best practices like these can provide benefits to everyone. ``Manila's 1997 tendering process was highly competitive'' they say. ``And the tariffs of the winning concessionaires were half to a quarter of those previously charged by the government owned water utility.'' The report also speaks favorably of what it called ``build operate and transfer'' or BOT arrangements in many other areas. ``To overcome gaps in regulatory and legal environments several East Asian economies like the Philippines and China have introduced successful build operate transfer BOT legislation to encourage private investment in infrastructure'' the report says. However it warns that some regional governments which it did not name still lack the capacity to operate such legislation efficiently and transparently. The report says tariff reform is is fundamental to preventing waste and encouraging private infrastructure investment in Asia. ``Singapore leads Asia in electronic tolls and time of day road pricing'' the report said. But it says charging practices are often less than optimal. ``In several regional economies uneconomically low tariffs mainly benefit middle and high income users'' it warns. The report says this reduces the authorities' ability to maintain existing assets and extend their services to lower income urban and rural areas. at-pjs APW19981201.0965.txt.body.html APW19981201.0807.txt.body.html