Wednesday, March 16th, 2005

ADB, JBIC, and the World Bank Launch “Connecting East Asia: A New Framework for Infrastructure

East Asia needs $1 trillion for infrastructure over the next five years

The Asian Development Bank, the Japan Bank for International Cooperation, and the World Bank today released their first joint study on the infrastructure challenges facing developing nations in East Asia at a symposium held today at Keidanren Hall in Tokyo.

"Connecting East Asia: A New Framework for Infrastructure" is based on extensive consultations with government officials, private investors, NGOs, academics, and development partners. The study also draws on interviews with officials from 48 countries throughout the region and around the world to gauge East Asia's the level of interest in infrastructure investment and to identify what criteria companies use when deciding where to invest.

Developing countries in East Asia face a massive infrastructure funding challenge. The study estimates that the 21 countries covered will need more than US$200 billion per year to fund new investment and maintenance of power, piped gas, transportation, information and communications technology, and water and sanitation systems.

Jemal-ud-din Kassum, the World Bank's Regional Vice President for East Asia and the Pacific, said "Over the course of our consultations, people we talked with emphasized the long-term nature of infrastructure development, a process which requires dedicated and reliable partners ... The organizations responsible for this study are contemplating stepping up our engagement, both in terms of the funds we provide and the scope of projects we support. It is critical that we seize the opportunity to contribute to the region's ability to reduce poverty, expand opportunities, and share the benefits for future growth."

JBIC Governor Kyosuke Shinozawa said "In order to continue the growth trend, East Asian countries must keep up with the demands of companies which need energy, reliablelogisticslinks, and other serviceas part of investment climates. Basic infrastructure service, such as water and sanitation as well as transportation services, for people particularly for the poor, needs to be provided for achieving Millennium Development Goals."

Mr. Kassum provided opening remarks at the symposium and participated in a panel discussion on the operational implications of the study. During the panel, the Tokyo Development Learning Center's mobile videoconferencing facility was used to connect to the World Bank's Jakarta office where Andrew Steer, the Bank's Country Director for Indonesia, invited comments from assembled government officials and development experts including Dr. Suyono Dikun, Deputy for Infrastructure at the National Development Planning Board.

Following Mr. Kassum's speech, Christian Delvoie, the Bank's Infrastructure Director for East Asia and the Pacific, spoke on the regional significance of the study and how it can help point the way to new tools and methods needed to address the infrastructure challenges facing Asia.

Yukio Yoshimura, World Bank Vice President and Special Representative for Japan, delivered closing remarks to the symposium in which he suggested an important role for the Global Development Learning Network in supporting infrastructure development throughout the region.

The three institutions supporting the study intend to play major roles in supporting its findings and in helping countries across Asia meet their growing infrastructure and institutional needs.

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Related links:

The World Bank: East Asia Needs $1 Trillion for Infrastructure Over Next Five Years

The Asian Development Bank

Japan Bank for International Cooperation

The World Bank's East Asia and Pacific Region website