Southeast Asia Faces $7.1 Trillion Infrastructure Challenge Through 2040, ADB Finds
The bank said public spending covers only 45% of needs as higher borrowing costs and private financing limits widen the funding gap.
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ASEAN countries need up to $7.1 trillion for infrastructure but face funding gap, ADB says
Southeast Asia's economies need $7.1 trillion in infrastructure investments through 2040 but the region faces a huge funding gap, the Asian Development Bank said in a new report published on Tuesday.
Asean's $7.1 trillion infrastructure ambition hit by massive funding gap: ADB
By 2040, Southeast Asia will require an astounding $7.1 trillion for infrastructure improvements, with reports indicating a $4 trillion funding shortage. Governments are projected to fund just 45% of the total requirements, making it essential to strategically allocate public funds to draw in private investors. Notable areas of focus include enhancing electricity supplies and upgrading transportation systems throughout the region.
The ADB estimates that ASEAN's infrastructure investment needs will reach US$7.14 trillion by 2040, with the electricity and transportation sectors dominating.
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