ADB launches $70 billion plan for energy, digital infrastructure in Asia-Pacific

HANOI: The Asian Development Bank 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.

The plan includes $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.

Help to Pacific countries hit by Iran war

The ADB said also on Sunday it ​was ready to deliver urgent help ‌to the countries in the Pacific region, which has been rattled by ​the war in the Middle East ​and resulting fuel shortages.

Speaking at the ⁠ADB's annual 59th meeting in Uzbekistan's ​ancient city of Samarkand, ADB President ​Masato Kanda said Pacific region's countries have been especially exposed to the conflict and ​required urgent help to address ​their energy needs.

"Beyond this immediate support, we ‌are ⁠ready to support Pacific countries to build resilience against external shocks through diversifying energy sources," he said.

Kanda ⁠said according to the bank's recent estimates, growth of the Pacific will ⁠decline ​to 2.8% in 2026 ​from 4.2% last year.