MANILA: Developing countries in Asia and the Pacific will need to invest up to $1.7 trillion a year, or $26 trillion through 2030, to meet their infrastructure needs and to maintain the region's growth momentum — more than double the previous estimate in 2009, an Asian Development Bank report said Tuesday.
The Manila-based bank's report covering 45 countries says despite dramatic growth in infrastructure development that has spurred an economic rise, reduced poverty and improved people's lives, a substantial infrastructure gap remains. It said more than 400 million people still lack electricity, 300 million have no access to safe drinking water and about 1.5 billion lack basic sanitation.
Many economies in the region lack adequate ports, railways and roads to better connect them to larger domestic and global markets, the report said.
"The demand for infrastructure across Asia and the Pacific far outstrips current supply," said ADB President Takehiko Nakao. "Asia needs new and upgraded infrastructure that will set the standard for quality, encourage economic growth, and respond to the pressing global challenge that is climate change."
The report said that the 25 economies comprising 96 percent of the region's population currently spend $881 billion a year on infrastructure.