ADB's Focus on Infrastructure
In the Spotlight
Meeting Asia and the Pacific’s transport needs will require $8.4 trillion in financing by 2030, said Asian Development Bank (ADB) President Mr. Takehiko Nakao at the Transport Forum 2018, which opened today at ADB’s headquarters, coorganized by ADB and the ADB Institute.
Afghanistan President Mohammad Ashraf Ghani witnessed the contract signing of three ADB-financed energy contracts, which will help Afghanistan enhance energy security and efficiency, among others.
The completion of Nepal’s longest excavated tunnel marks a key milestone in bringing more reliable and higher quality water supply to the people of Kathmandu.
ADB's Board of Directors has approved a $90 million grant as additional financing for the rehabilitation of a 40-km road to improve connectivity between Dushanbe and Kurgonteppa and enhance highway network safety.
Why does ADB work in infrastructure?
Infrastructure – defined as a country’s physical facilities, such as roads, power plants, and bridges – is critical for regional development. Poor infrastructure slows economic growth and limits the investment needed to create the jobs that help lift people out of poverty. Power outages hurt factory productivity. Bad roads, ports and airports stifle flows of people, goods, and services. Inadequate water and sanitation prevent millions from leading healthy, productive lives.
How is ADB supporting infrastructure?
ADB provides loans, grants and technical assistance to its developing member countries, to the private sector and through public-private partnerships to support the building and maintenance of infrastructure. The majority is in water, energy, transport, urban development, and information and communications technology. ADB is scaling up its operations by 50% from $14 billion in 2014 to more than $20 billion in 2020, with 70% of this amount going toward infrastructure.
How much infrastructure does Asia and the Pacific need?
Though nearly $900 billion is spent a year on infrastructure in Asia and the Pacific, that’s substantially less than the $1.7 trillion that ADB estimates the region needs annually from 2016 until 2030 to keep pace with climate change and economic growth. Energy and transport account for nearly 90% of total investment needs. If our vision of a region free of poverty is to become reality, new ways of funding regional infrastructure need to be developed, along with a greater role for the private sector.