ASEAN countries need up to $7.1 trillion for infrastructure but face funding gap, ADB says

Southeast Asia will require $7.1 trillion for infrastructure through 2040, but governments in the region can meet less than half of that bill with their current outlays, the Asian Development Bank said in a report published Tuesday. The estimate is more than twice the bank’s earlier projection of $3.15 trillion for 2016-2030, following an update of its assessment of ASEAN’s needs.

The resulting funding gap is close to $4 trillion, while private financing is also constrained, the report said. ADB argues that public funds should be deployed on predictable terms to attract private investors, and says governments should focus on transport, electricity and health projects; electricity accounts for half of required investment, with transport infrastructure representing a third.