GIH: Romania needs USD 237 bn spent on infrastructure by 2040

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Romania should invest USD 237 billion in infrastructure by 2040, the G20-backed Global Infrastructure Hub (GIH) said. But if current spending trends continue, the Romanian authorities will invest only USD 226 billion, resulting a USD 11 billion investment gap, GIH report reads.

The report details how much each country needs to spend on infrastructure to 2040, which sectors need it the most and how they far they are from meeting these needs based on current spending trends.

As regards Romania, the GIH report argues that Romania needs to invest USD 62 billion in energy infrastructure by 2040, but if current trends continue, it will invest about USD 57 billion, which means an investment gap of USD 5.8 billion.

At the opposite end, there are investments in water infrastructure where, according to GIH, Romania has to invest USD 18 billion by 2040, and if the current spending trends continue, the country will be very close to the required amount, resulting in a gap of only USD 3.9 million.

Another sector in which Romania will see a significant gap is the railway infrastructure where, according to GIH, Romania should invest USD 10 billion by 2040, but according to current trends it will invest about USD 5.9 billion, resulting in a USD 3.6 billion gap.

At global level, nearly a fifth of the USD 94 trillion in global infrastructure investment needed by 2040 risks being unfunded if current spending trends continue, GIH report stresses. To close the spending gap, annual infrastructure spending needs to rise to 3.5 percent from 3 percent of global gross domestic product.

“We believe this information will be key to governments, and indeed those organizations that fund, plan and build infrastructure projects into the future – and providing sustainable cities with social and economic benefits for all,” GIH Chief Executive Chris Heathcote said.

The GIH, set up by the G20 in 2014, aims to help to increase opportunities for public and private investment in infrastructure around the world. It is funded by governments including Britain, Australia, China, Korea and Singapore.

 

 

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