Developing Asia’s infrastructure will cost $26 trillion over the next 14 years. The region needs $1.7 trillion per year from 2016 to 2030 to maintain growth momentum and combat poverty and climate change, according to Asian Development Bank (ADB).
The infrastructure projects include transport, power, telecommunications, water supply and sanitation. Nearly $15 trillion will be used for power, while transport will see $8.4 trillion. Telecommunications and water and sanitation will need investments of $2.3 trillion and $800 billion respectively, according to ADB.
In 2009, ADB estimated the annual investment at $750 billion. The reason for the increase can be attributed to using 13 more ADB member countries and updated prices in the current report. More than 60% of ADB’s estimated infrastructure work, or $16 trillion, is for East Asia. The Pacific, as a percentage of the gross domestic product (GDP), led all regions needing investments valued at 9.1% of the GDP.
Philippine President Rodrigo Duterte said he plans to spend $170 billion for 5,000 projects. China recently committed $3.4 billion for three infrastructure projects in the Philippines. Malaysia’s capital city, Kuala Lumpur, is already planning new rail lines. A 720-kilometer railway is also in the works in Indonesia. India’s government said last summer it needs to invest more than $1.5 trillion over the next 10 years for an infrastructure gap and to connect hundreds of thousands of villages with roads by 2019.
– Michael Miller, editorial associate