ADB launches US$70 billion plan for energy, digital infrastructure in Apac

[HANOI] The Asian Development Bank (ADB) on Sunday (May 3) announced a US$70 billion programme to expand energy and digital infrastructure across the Asia-Pacific 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,” he said in a statement.

The plan comprises US$50 billion for a new Pan-Asia Power Grid Initiative (Pagi) and US$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 per cent.

ADB intends to finance about half of the power grid initiative using its own resources, with the rest coming from co-financing, including private investment.

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The remaining US$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 per cent and creating up to four million jobs.

ADB expects to finance US$15 billion of the digital initiative itself. REUTERS