ASEAN Has Over $2 Trillion Worth of Infrastructure Investment Opportunities
The McKinsey Global Institute forecasts the need for over $2 trillion in investment in road, rail, port, airport, power, water, and telecommunications infrastructure across ASEAN to maintain economic growth. China, Japan, and the United States have pledged funding for major infrastructure projects across all sectors via government aid and public-private partnerships. However, in all sectors of infrastructure, a significant funding gap remains. A 2017 Asian Development Bank (ADB) report estimates an infrastructure investment gap of $92 billion in ASEAN until 2020.
Through the US-ASEAN Connect framework's Energy Connect pillar, the US has pledged to invest in a five-year effort in ASEAN to increase the supply of grid-connected renewable energy. Focused on the Lower Mekong River Delta countries of Cambodia, Laos, Thailand, and Vietnam, the program will support the installation of at least 500 megawatts of grid-tied renewable energy generation. It will also assist in implementing laws, policies, strategies, and regulations that contribute to the reduction of greenhouse gas emissions and support commitments made under the Paris Climate Agreement.