ADB report: ASEAN infrastructure financing gap is huge

China News Service, Beijing, November 11. Comprehensive news: The latest report released by the Asian Development Bank on the 10th pointed out that Southeast Asian countries need to invest US$7.1 trillion in infrastructure by 2040, but the region faces a huge funding gap.

The report, covering all 11 ASEAN member states, pointed out that as ASEAN's economy continues to expand, urbanization accelerates and the digital economy continues to develop, Southeast Asia has a growing demand for modern infrastructure. It is estimated that ASEAN's annual infrastructure needs will reach US$476 billion between 2026 and 2040. However, at the current level of investment, government investment can only meet 45% of demand, and it is expected that there will be a financing gap of US$264 billion every year.

Power and transportation account for 85% of the region's infrastructure needs, the report said. Among them, power investment must expand the scale of power generation, transmission and energy storage to strengthen energy security, support wider application of clean energy, and reduce the risk of global supply disruptions. In the transportation sector, roads continue to account for the largest investment needs, while demand for railways and airports is growing fastest.

In addition, ASEAN digital infrastructure and health infrastructure construction also require financial investment.

In response to the huge funding gap, the report pointed out that government budget pressure and limited private capital participation are the main challenges facing ASEAN infrastructure construction. The Asian Development Bank recommends that countries strengthen project preparations, develop predictable regulations, and implement transparent procurement processes.

Masato Kanda, President of the Asian Development Bank, said that the growth of Southeast Asia depends on its future development direction. Factories in Southeast Asia need reliable power supply, and companies need faster and safer market access. These investments must focus on long-term benefits. "ADB will assist governments to promote projects that investors trust and people rely on." (End)