Canberra, Australia – Australia will invest in infrastructure development initiatives in the Asia-Pacific region to promote cleaner energy, improved roads, better and more secure water sources, and enhanced planning and management of key infrastructure.

The Australian Government has now allocated $500 million over the next four years to a range of programs supporting economic growth in the region, as part of the Infrastructure for Growth Initiative announced in this year’s Budget.

Poor infrastructure is one of the most pressing challenges to poverty reduction and sustainable economic growth in Asia and the Pacific. In Asia, rapid population growth and urbanisation threaten to overload infrastructure systems. In the Pacific, 80 per cent of the population living in remote, rural areas need improved access to markets and services.

Australian support will be provided to partner governments to improve their provision of reliable transport networks, clean energy, water supply, sanitation services, water resources management, and road safety.

In Indonesia, Australia will invest $65 million to help deliver essential services such as safer roads, cleaner water and renewable energy resources. Initial activities will include a review of Indonesia’s road safety programs and assistance to the Ministry of Finance to strengthen its risk management procedures for infrastructure investment.

Other activities will include rehabilitating and improving roads in Papua New Guinea, Solomon Islands, the Philippines, Laos and Vietnam; improving energy utilities in the Pacific and Mekong regions; and helping to improve infrastructure planning and management in East Timor.

Australia will also work in partnership with the World Bank, the Asian Development Bank and other donors to address infrastructure challenges. For example, Australia will support a program that includes activities in Indonesia, the Philippines, Cambodia and Laos, which aims to provide 200 million people with safe drinking water and improved sanitation; 40 million people with better irrigation and drainage services; reduced flood risk for 100 million people; and integrated water resources management in 25 river basins in Asia and the Pacific.