ASEAN countries need up to $7.1 trillion for infrastructure but face funding gap, ADB says
- ASEAN governments’ current spending could cover 45% of the infrastructure needs, leaving a shortfall of almost $4 trillion
Southeast Asia needs $7.1 trillion in infrastructure investments by 2040, facing a nearly $4 trillion funding gap. Public and private capital must align to meet these critical needs.
- Updated infrastructure investment requirements for ASEAN.
- Key sectors needing significant investment, like electricity and transport.
- Strategies to bridge the substantial funding shortfall.
MANILA: 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.
Nehal calls for stronger cooperation among ASEAN nations
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.
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