..Press Release................................ UNESCAP News Services

Date 11 April 2006
Press Release No: G/25/CS62/19

UNESCAP’s 62nd Commission Session, 6-12 April 2006

NEW INFRASTRUCTURE FINANCING INITIATIVES STUDIED

Ministerial Roundtable on Enhancing Regional Cooperation in
Infrastructure Development meets

JAKARTA, 11 April -- In order to sustain growth over the long term, governments have to invest much more in infrastructure — in the energy, ICT, transport and water, sectors — given the huge backlog resulting from past neglect in these critical areas.

This was the message delivered at the Ministerial Roundtable on Enhancing Regional Cooperation in Infrastructure Development.

“Resources must be found to provide effective public services, particularly for improving maternal and child health and for expanding primary education, and, above all to ensure equity in policy outcomes,” said UNESCAP Executive Secretary Kim Hak Su.

A UNESCAP study notes that a staggering US$600 billion a year are needed to finance infrastructure development in the region.

A two-track approach to regional cooperation was discussed. Track one focuses on regional cooperation in cross-border infrastructure development. Track two, on regional cooperation in infrastructure investment.

Two existing initiatives were highlighted – the Asian Highway and Trans-Asian Railway. The Intergovernmental Agreement on the Asian Highway Network adopted at the 60th session in Shanghai came into force in July 2005.

The 62nd Commission is expected to adopt the Trans-Asian Railway Agreement on the closing day, 12 April. The Intergovernmental Agreement on the Trans-Asian Railway Network will open for signature at a signing ceremony during the Ministerial Conference on Transport to be held in November this year.

“These two major developments are putting into place the basic building blocks for an integrated international intermodal transport network that will enhance the region’s integration into the world’s economy,” noted Mr. Kim.

Participants agreed that more studies will be done to examine other ideas such as an Asian Bond Fund and strengthening the mandate of Asian Development Bank to give higher priority to infrastructure financing.

“In our view promotion of national policies and strategies that bring about a conducive investment climate offers the most promising way forward,” said one delegate.

Dialogue enhancement, cooperation between government and enterprises, policy coordination and income rise will contribute to development, noted another delegate.

The 62nd Commission session wraps up on Wednesday, 12 April with a side event on the gender dimension of international migration, adoption by the Ministers of the Commission's report, and a closing joint press conference given by Mr. Kim and the Chairman of the 62nd Commission Session, Indonesian Foreign Minister Hassan Wirajuda.

Headquartered in Bangkok, Thailand, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) is the largest of the UN's five Regional Commissions, in terms of population served and area covered. The only inter-governmental forum covering the entire Asia-Pacific region, it aims to promote economic development and social progress in the developing countries of the Asian and Pacific region. More information is available at www.unescap.org.

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