The Asian Development Bank (ADB) has urged Southeast Asian governments to accelerate the development and financing of cross-border infrastructure, warning that delays could leave the region vulnerable to future global shocks.
Speaking at the ASEAN High-Level Conference on Connectivity in Manila on August 26, ADB President Masato Kanda said stronger connections across power, transport, digital and financial networks are essential to the region’s economic security and resilience.
Southeast Asia needs at least US$210 billion in infrastructure investment each year to meet its development needs. However, governments continue to face tight budgets, a shortage of bankable projects and fragmented financing across borders.
ADB has committed to mobilizing up to US$30 billion by 2030 for ASEAN priorities, including public and private sector investment, project preparation and cross-border coordination. A major focus will be the ASEAN Power Grid, for which ADB plans to provide up to US$10 billion through 2035.
The bank is also supporting the Regional Connectivity Fund for Energy in Southeast Asia, launched in April with approximately US$26 million from Australia, Canada, the European Union, Germany and the United Kingdom. The fund aims to help transform proposed energy projects from feasibility studies into bankable investments.
ADB is working with the ASEAN Secretariat, ASEAN Centre for Energy and the World Bank to coordinate public and private financing for regional power-grid projects.
The ADB says faster implementation of connectivity projects will help Southeast Asian economies improve resilience, strengthen regional integration and ensure that energy, goods, capital, data and people can move more efficiently across borders.
