Asia and the Pacific will require US$8.4 trillion in financing by 2030 to meet its transport needs, said the Asian Development Bank (ADB).
Takehiko Nakao, ADB president, said at the Transport Forum 2018 on September 12 that the region offers opportunities to invest in the transport sector and fill this gap.
“The current investment level for transport in Asia and the Pacific is about half of what is required,” said Nakao at the opening of the three-day forum held at ADB’s headquarters and coorganized by ADB and ADB Institute.
“Opportunities exist to address this shortfall through increased cooperation between the public and private sectors. But in the process, we must move toward more sustainable transport options and mitigate the worst effects of climate change,” he added.
The theme of Transport Forum 2018 is “Financing the Future of Transport in Asia and the Pacific.” Discussions are focused on practical approaches to the region’s transport challenges and knowledge sharing about the latest technical advances in the transport sector.
Aside from transport finance, the three-day forum will also hold two other plenaries focused on innovative technologies and knowledge partners.
Transport is the largest sector for ADB operations, comprising consistently more than a quarter of ADB’s annual investments and with operations totaling $68.2 billion up to the end of 2017. Under ADB’s new long-term Strategy 2030, approved by its Board of Directors in July, ADB will pursue differentiated approaches across its seven operational priorities to address specific country needs depending on the level of development.
Transport operations will promote systems that are safe and accessible for all—especially the poor, women, and the vulnerable; low-carbon transport modes (public transport, railways, electric vehicles) to help combat climate change; efficient and multimodal urban mass public transport systems; better service delivery through asset management and capacity building in the sector; and cross border infrastructure to foster regional cooperation and integration.
As recent examples, ADB approved two loans totaling $400 million to not only modernize and rehabilitate Azerbaijan’s Sumgayit-Yalama rail line, a key link in the North-South Railway Corridor, but also to help strengthen the country’s railway sector.
ADB is also loaning Pakistan $335 million to help develop a Bus Rapid Transport (BRT) system in Peshawar. ADB will explore expanded opportunities for the private sector in transport, particularly in new and frontier markets and small island developing states where transport infrastructure and technologies can make a huge positive impact. ADB will also link more lending with innovative technology, such as satellite imagery, which can be used to map out road projects and pinpoint areas with no access.
Further, ADB technical assistance loans, such as a $100-million loan to the Philippines approved in 2017 for its “Build, Build, Build” infrastructure program, can ensure complex projects are financed and implemented more efficiently, and help recruit and retain the skilled engineers needed to carry out the work, said ADB.
Photo: MNXANL
