ADB launches $70b plan for energy, digital infrastructure in Asia-Pacific
A worker walks past inside the Asian Development Bank (ADB) headquarters in Manila June 17, 2009. REUTERS
The Asian Development Bank (ADB) on Sunday announced a $70 billion programme to expand energy and digital infrastructure across the Asia-Pacific region by 2035, aiming to strengthen power grid links, boost cross-border electricity trade and increase broadband access.
ADB President Masato Kanda said energy and digital connectivity would underpin the region's long-term growth as demand rises and technological change accelerates.
"By linking power grids and digital networks across borders, we can lower costs, expand opportunity and bring reliable power and digital access to hundreds of millions of people," Kanda said in a statement.
ADB has issued a special update to its economic forecasts, with significant downward revisions to growth and a sharp increase in inflation for developing Asia and the Pacific.
As the conflict in the Middle East creates more severe and prolonged disruptions to global energy and… pic.twitter.com/bHW8MWejhcHit by war
The Asian Development Bank also said it was ready to deliver urgent help to the countries in the Pacific region, which had been rattled by the war in the Middle East and the resulting fuel shortages.
Speaking at the ADB's annual 59th meeting in Uzbekistan's ancient city of Samarkand, ADB President Masato Kanda said the Pacific region's countries have been especially exposed to the conflict and require urgent help to address their energy needs.
Read More: OPEC+ set to agree third oil output quota hike since Hormuz closure, sources say
The plan included $50 billion for a new Pan‑Asia Power Grid Initiative (PAGI) and $20 billion for technology and digital connectivity projects, the bank said.
Under PAGI, ADB aims to integrate about 20 gigawatts of renewable energy across borders, build 22,000 circuit-kilometres of transmission lines and improve electricity access for 200 million people by 2035. It expects the initiative to cut regional power-sector emissions by around 15%.
ADB plans to finance about half of the power grid initiative from its own resources, with the remainder coming from co-financing, including private investment.
The remaining $20 billion will be mobilised through the Asia‑Pacific Digital Highway to support fibre-optic networks, subsea cables, satellite links and regional data centres.
The digital programme aims to provide first-time broadband access to 200 million people and improve connectivity for another 450 million by 2035, reducing costs in remote areas by about 40% and creating up to 4 million jobs.
ADB expects to finance $15 billion of the digital initiative itself.