ADB's Focus on Infrastructure
In the Spotlight
ADB has approved loans totaling $149 million to help improve basic infrastructure services and promote inclusive and sustainable economic growth in four provinces in the north central coastal region of Viet Nam.
ADB signed three project loan agreements with the Government of Cambodia to provide support for road network improvement, provincial water supply and sanitation, and smallholder farmers development in Tonle Sap.
ADB Board of Directors has approved a $380 million loan to help the Philippine government strengthen the road network and spur economic development in Mindanao, the country’s second largest island with about 20 million people.
ADB will provide a $15 million loan for an internet submarine cable project to connect Rarotonga and Aitutaki in the Cook Islands. The Government of New Zealand, Agence Française de Développement, and the European Investment Bank will also finance the project.
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.