Southeast Asia’s economies need $7.1 trillion in infrastructure investments through 2040 but the region faces a hugefunding 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.
Reuters
