DEVELOPING ASIA, including the Philippines, needs to invest at least 5% of Gross Domestic Product (GDP) in infrastructure to sustain economic growth, the Asian Development Bank (ADB) said in a statement Tuesday.
The ADB said at the launch of a book it co-published, “Infrastructure Financing in Asia,” that countries investing less than 5% will face a “tough challenge” particularly because of competition to tap outside financing sources.
“Developing Asian countries need to invest more than 5% of their gross domestic product (GDP) over the next decade to be able to meet the infrastructure needs of their fast-growing economies,” ADB said in a statement yesterday.
In 2018, Philippine infrastructure disbursements, excluding other capital outlays, amounted to P886.2 billion, or 5.1% of GDP.
During the book launch on Tuesday, ADB Vice-President for Knowledge Management and Sustainable Development Bambang Susantono said the region must consider “innovative” solutions to meet investment needs.
“Developing Asia must strive to find new, innovative, outside-the-box financing solutions to meet its huge infrastructure investment needs. I am confident that this rich collective volume prepared by experts from inside and outside ADB will set forth some concrete and specific directions for infrastructure financing, as well as provide food for thought,” Mr. Susantono said at the book launch Monday.
In a chance interview on Tuesday, ADB President Takehiko Nakao said ADB continues to support infrastructure in the Philippines since it remains a weak area for the country.
“Transport is a weak part, isn’t it? There’s a lot of traffic jams and connectivity between rural parts and Manila is more limited and unless we address those issues, the growth reach is preventive,” Mr. Nakao said.
In its lending plans for the Philippines for 2020-2022, ADB scaled up its investment in infrastructure development, which now account for 59% of its $9.1-billion total lending program.
These projects include railways, bridges, roads and elevated pedestrian walkways. — Beatrice M. Laforga
