APEC cites role of quality infra in economic growth

CEBU CITY – The Asia Pacific Economic Cooperation (APEC), in support of the goal of APEC regional connectivity by 2025, emphasized that quality infrastructure is a necessary component to economic growth of the region.

At the APEC Third Senior Officials’ Meeting (SOM3) currently being held in Cebu, it was tackled that APEC recognizes the importance of quality infrastructure in economic growth of the Asia-Pacific, not only in physically connecting the region but also in ensuring the efficient movement of goods, services, and people between and within borders.

“Quality infrastructure directly supports efficient transportation and telecommunication services, air and sea ports, customs procedures, energy distribution, farm-to-fork logistics, among others,” a statement released on Monday by the APEC media group showed.

Recognizing the importance of investing in infrastructure, APEC Finance Ministers are set to discuss and launch the ‘Cebu Action Plan on a Financial Roadmap’ this month in Cebu.

The ten-year plan calls member economies to set regional standards for Public-Private Partnership (PPP) terms and practices as well as to maximize PPP’s role in infrastructure investment through collaboration with international organizations, such as the Asian Development Bank (ADB), World Bank, and Organization for Economic Cooperation and Development (OECD).

In relation to this, APEC senior officials will also hold the inaugural meeting of the Friends of the Chair on Urbanization on September 3 to discuss, among others, ways APEC can improve strategic infrastructure to support industry clusters, logistics systems, transportation, ICTs and social infrastructure within a city, between cities, and among economies.

APEC’s rising urban population is expected to account for 60 percent of the total population in 2030 and 70 percent in 2050.

“In its collective pursuit for a more integrated and connected Asia-Pacific, APEC is finding pragmatic and practicable ways to address the infrastructure needs of the region,” the statement further cited.

In 2014, APEC leaders endorsed ‘The Action Agenda on Promoting Infrastructure Investment through PPP’ to offer an alternative to traditional procurement methods and address the issue of capital shortages for infrastructure construction in the region.

The agenda supports the work of the APEC PPP Experts Advisory Panel—established to promote government’s capacity building in PPP project implementation and to support regional PPP Centers—and the ongoing implementation of the APEC Multi-Year Plan on Infrastructure Development and Investment launched in 2013.