ASEAN countries need up to $7.1 trillion for infrastructure but face funding gap, ADB says
Southeast Asia’s economies need $7.1 trillion in infrastructure investments through 2040 but the region faces a huge funding gap, the Asian Development Bank said in a new report published on Tuesday.
ADB has updated its assessment of the Association of Southeast Asian Nations’ infrastructure needs from almost a decade ago, more than doubling the region’s investment requirements for the next 15 years, from the $3.15 trillion estimate for the 2016-2030 period.
- Governments should prioritize projects that improve transportation, electricity and health, the bank said
- ASEAN governments’ current spending could cover 45% of the infrastructure needs, leaving a shortfall of almost $4 trillion
- Private capital is also limited, and ADB said the funding gap can only narrow if public money is used in ways that draw private capital and under predictable terms
- Half of the investment requirements are for electricity, while a third of the region’s needs are for improving transportation, roads, airports and rail systems.
Source: Reuters