NOVEMBER 2018

@DFAT DFAT.GOV.AU

SPOTLIGHT ON INFRASTRUCTURE AND URBANISATION – SOUTHEAST ASIA

Infrastructure development is a priority investment sector for Australia’s aid program. It drives economic growth by facilitating trade and investment, stimulates enterprise opportunities, generates employment and improves access to basic services.

Australia provides technical assistance to support quality infrastructure development and works with other donors, multilateral banks, and institutions to mobilise funds for key investments, including using public-private partnerships and blended financing.

A wide range of Australia’s existing aid investments are targeted in, or impact urban environments in our partner countries. These efforts help address some of the challenges of rapidly growing cities.

INDONESIA AUSTRALIA INFRASTRUCTURE PARTNERSHIP $146.2m (2016-2021)

The Indonesia Australia Infrastructure Partnership or Kemitraan Indonesia Australia Untuk Infrastruktur (KIAT) aims to provide technical assistance to the Indonesian Government to support sustainable and inclusive economic growth through improved access to infrastructure.

KIAT aims to support the development of high quality infrastructure projects, reduce the regulatory constraints that impede infrastructure investment, and strengthen the capacity of government bodies responsible for infrastructure delivery. By 2035, Indonesia’s urban population is expected to exceed 200 million, having increased by 71 per cent since 2010. KIAT will initially focus on roads, water and sanitation.

The program will also support rapid, sustainable and inclusive economic growth; improved access to basic infrastructure services to help reduce poverty; and promote women’s economic participation and empowerment.

An example of work under KIAT is the Water and Sanitation Grants (Hibah) Program Phase II.

Through this program, we have worked with 115 local governments to deliver 330,000 new water connections (38,000 of which are USAID funded) and 9000 sewerage connections.

@DFAT DFAT.GOV.AU

PALEMBANG CITY SANITATION PROJECT $45m (2017-2022)

The Palembang City Sanitation Project aims to develop a sustainable urban sewerage system that is owned, operated and maintained by a city-level government. In partnership with central, provincial and local-level governments, Australia is co-financing a city wastewater treatment plant in Palembang City, South Sumatra.

The project will initially provide sewerage connections to 12,000 households and businesses. Around 60,000 people in Palembang City will directly benefit from the project, and a future expansion could increase service coverage to over 21,000 connections and 100,000 people. The project hopes to reduce pollution in the urban environment and contribute to general health improvements for the community.

Australia’s partnership supports the Government of Indonesia’s goal for all households to have access to clean water and basic sanitation by 2019, as well as encouraging greater engagement and local government investment to improved quality and sustainability.

STRENGTHENING PUBLIC-PRIVATE PARTNERSHIP PROGRAM $30m (2011-2021)

Australia supports the Philippine Government's efforts to fast-track the use of Public-Private Partnerships (PPPs) to help meet the country’s infrastructure needs. Infrastructure enables access to markets and ensures reliable water, energy and other services. It is critical to driving economic growth and reducing poverty.

The goal of this program is to assist the Philippine Government harness more private sector finance (i.e. capital markets) and to use that finance more effectively to deliver infrastructure.

The program will contribute to new or improved infrastructure such as schools, hospitals, roads and public transport. This includes:

an automatic fare collection system for Metro Manila, providing seamless train line transfers to select metro bus lines

the Mactan-Cebu International Airport new passenger terminal building, to increase annual passenger capacity from 4.5 million to 12.2 million people

PPP School Infrastructure Projects – to address classroom gaps that will benefit over 600,000 students annually.

Australia has partnered with the Asian Development Bank, World Bank and International Finance Corporation to deliver the program.

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VIETNAM AUS4TRANSPORT PROGRAM $30m (2018-2022)

Australia has a long history of supporting the development of the transport sector in Vietnam. Aus4Transport marks a new era of assistance. Through Aus4Transport, Australia is supporting the Government of Vietnam to develop high-quality transport infrastructure to promote economic growth and poverty reduction.

Australia is supporting the Government of Vietnam to develop high quality transport infrastructure project proposals and concepts more rapidly and to facilitate better public-private partnerships.

Aus4Transport will develop up to five national priority highway projects to the point where they are ready to begin construction. Other expected results from the program include:

new infrastructure projects are prepared more comprehensively, drawing on innovative engineering, construction and contracting practices which include detailed consideration of social and environmental issues

stronger public-private partnerships and more use of the private sector in infrastructure projects

Vietnam can better meet freight and passenger transport needs and reduce congestion

better access to quality transport infrastructure, markets and services and benefit from the increased income

Government of Vietnam staff responsible for project development gain improved skills and experience

economic empowerment of women through better consideration of the unique needs of women in infrastructure development and training of women staff in the Ministry of Transport and female engineering students.