Asia needs $22.6 tn to upgrade infrastructure by 2030: ADB

Infrastructure needs in Asia and the Pacific will exceed $22.6 trillion through 2030, or $1.5 trillion per year, if the region is to maintain growth momentum, a new Asian Development Bank (ADB) report said on Tuesday.

The estimates rise to over $26 trillion, or $1.7 trillion per year, when climate change mitigation and adaptation costs are incorporated, the report said.

“The demand for infrastructure across Asia and the Pacific far outstrips current supply,” said ADB President Takehiko Nakao.

“Asia needs new and upgraded infrastructure that will set the standard for quality, encourage economic growth, and respond to the pressing global challenge that is climate change,” he said.

The report ‘Meeting Asia’s Infrastructure Needs’ focuses on the region’s power, transport, telecommunication, and water and sanitation infrastructure. It examines current infrastructure stock and investments, future investment needs, and financing mechanisms for developing Asia.

Infrastructure development in the 45 countries covered in the report has grown dramatically in recent decades —spurring growth, reducing poverty, and improving people’s lives.

But a substantial infrastructure gap remains, with over 400 million people still lacking electricity, 300 million without access to safe drinking water, and about 1.5 billion lacking access to basic sanitation. Many economies in the region lack adequate ports, railways, and roads that could connect them efficiently to larger domestic and global markets.

“ADB pledges to work with member countries and use its 50 years of experience and expertise to meet infrastructure needs in the region. As the private sector is crucial to fill infrastructure gaps, ADB will promote investment friendly policies, and regulatory and institutional reforms to develop bankable project pipelines for public-private partnerships,” said Nakao.