The Asian Development Bank (ADB) estimates that developing Asia will need to invest US$1.7 trillion annually in infrastructure until 2030 to maintain its growth momentum, tackle poverty and respond to climate change.
The greatest investment needs are in power and transport, followed by urban and smart cities and water and sanitation. These lie in greenfield projects, as well as the maintenance and rehabilitation of existing infrastructure. The definition for each sector is as follows:
Power refers to electricity generation, transmission and distribution from both conventional and renewable energy sources.
Transport refers to railways, roads and bridges, ports, airports, urban public transport (metros, buses and taxis) and their supporting infrastructure (payment networks, security and surveillance etc.).
Urban smart cities
Urban and smart cities refer to a wide repertoire of technology enabled solutions ranging from urban mobility (driverless vehicles) to smart street lighting (energy saving, multi-purpose lamp posts) to smart city planning.
Water and sanitation
Water and sanitation refers to water supply pipelines, water treatment plants, desalination plants, sewage projects (sewage collection, treatment and disposal systems, water recycling plants), solid waste management, and storm water drainage systems.
A successful infrastructure project requires effective planning, coordination and implementation among multiple stakeholders from start to end. Figure 1 below illustrates the key stages undertaken by real economy service providers and financiers in the life cycle of an infrastructure project.
Figure 1: Illustrative life cycle of an infrastructure project