Southeast Asia (SEA) stands on the cusp of transformative growth, projected to become the world’s fourth largest economy by 2040. Yet, this ascent hinges on bridging a vast infrastructure gap, while ensuring sustainability and inclusion. Australia’s Partnerships for Infrastructure (P4I) programme plays a pivotal role in this effort by strengthening institutions, improving planning systems and enabling climate-smart investments across the region. By fostering practical, long-term collaboration with SEA governments and regional bodies, P4I is helping shape a future where quality infrastructure unlocks economic opportunity, enhances regional connectivity and supports the transition to a low-carbon, resilient economy.
Collaborations for infrastructure development
As SEA moves rapidly towards becoming the world’s fourth largest economy, the region faces challenges in terms of ensuring that the growth is sustainable and inclusive. Central to achieving this vision is the development of quality infrastructure. However, with an estimated $3 trillion infrastructure investment gap, SEA cannot achieve this alone.
Australia’s P4I is stepping in to bridge this divide. Launched in 2020 and funded through Australia’s development programme, P4I is supporting partners to manage and deliver over AU$50 billion in new infrastructure projects annually. Working with eight SEA economies (Cambodia, Malaysia, Thailand, Indonesia, Vietnam, Philippines, Timor-Leste and Laos) and the Association of Southeast Asian Nations (ASEAN), P4I is helping governments implement policy reforms, attract quality financing and build pipelines of bankable projects.
P4I operates through four key mechanisms, which are infrastructure advisory services, technical knowledge exchanges, partner capacity building and facilitating collaboration between Australian and SEA organisations. The programme is implemented through a partnership involving Australia’s Department of Foreign Affairs and Trade, EY, Adam Smith International (Australia) Private Limited, the Asia Foundation, and Ninti One Limited.
Its comprehensive strategy focuses on the following:
l Raising awareness of Australian infrastructure expertise in SEA, while enhancing understanding of SEA perspectives among Australian government agencies, through supporting 109 Australian organisations in technical and policy exchanges with 64 SEA counterparts.
l Building capacity through technical advice, mentoring and co-development of procedures and tools, having engaged over 3,000 SEA participants in training, workshops and study tours.
l Addressing bottlenecks in infrastructure development and financing.
l Deepening investment in high quality infrastructure, closely coordinating with Australian government investment platforms.
Driving measurable impact
P4I’s support has already driven significant policy and infrastructure outcomes across sectors and geographies. These interventions reflect Australia’s commitment to delivering demand-driven, inclusive and high-impact support to meet SEA’s infrastructure needs.
In Cambodia, P4I has partnered with Austroads to develop national standards for roads and bridges, incorporating climate and disaster resilience. These standards are now embedded in procurement processes and will be applied to Cambodia’s $1.6 billion road infrastructure pipeline. The partnership is also building the institutional capability of Cambodia’s transport sector through follow-up workshops, expert visits and pilot applications of the new standards.
In Malaysia, P4I is working with state-owned utility Sarawak Energy Berhad to guide renewable energy investment planning. This could result in a fourfold increase in Sarawak’s renewable energy capacity, contributing to its 15 GW clean energy target by 2035. This initiative not only supports Malaysia’s climate goals but also strengthens regional power trade opportunities through the ASEAN Power Grid.
In Thailand, the government’s first large-scale procurement of 1,500 electric buses integrated P4I’s financing recommendations and gender and accessibility metrics. This successful deployment is part of a broader transport decarbonisation agenda, with P4I helping Thailand’s Ministry of Transport shape a national electrification road map that aligns with emission reduction targets and promotes social inclusion.
In Indonesia, a hydrogen generator trial is now under way through a partnership with an Australian firm, the direct result of a P4I-supported technical exchange. The trial supports Indonesia’s ambition to replace 5.2 GW of ageing diesel generation capacity with clean alternatives, reinforcing national energy resilience and emission reduction.
P4I also played a pivotal role in shaping Vietnam’s new electricity law and Power Development Plan VIII (PDP VIII). These reforms aim to unlock 44 GW of renewable energy capacity by 2030 and introduce rooftop solar for the first time, potentially creating 38 million new power generators. Complementary technical assistance has been provided to support the implementation of PDP VIII, including capacity-building workshops, policy analysis and regulatory strengthening.
In the Philippines, P4I is working with the Public-private Partnership (PPP) Centre to finalise legislative reforms that will streamline PPP deployment and unlock private capital. This support is critical in helping the Philippines address its estimated $69 billion infrastructure investment gap. Capacity-building for local governments and coordination with the country’s Department of Transportation is further enhancing infrastructure planning and execution.
In Laos, P4I co-developed the country’s first multimodal transport strategy, unlocking $12.5 million in projects with a broader pipeline of $140 million now being pursued through expanded financing reforms. Technical support is being continued through analytical studies, institutional strengthening and knowledge-sharing with ASEAN neighbours.
Sector priorities
P4I’s support across SEA is focused on four core sectors including transport, energy, telecommunications and infrastructure financing. In each area, Australia’s technical expertise and collaborative approach are helping partner countries address policy gaps and unlock investment. The advancement in the sectors is discussed below.
Transport
Transport is a major priority for P4I, with Australia sharing its expertise in maritime logistics and sustainable mobility to support countries across SEA. P4I is working with governments and port authorities on maritime decarbonisation, helping to green port operations, switch to low-carbon fuels and create green shipping corridors.
In Malaysia, P4I supported the Ministry of Transport in developing a business case for low-carbon fuels in the maritime sector. The resulting road map sets a 40 per cent penetration target for low-carbon fuels by 2050. Now, P4I is assisting the ministry in designing a regulatory framework to attract investment in this sector, including financing incentives and technology adoption guidelines.
Thailand and Vietnam have sought similar guidance. Thailand is adopting alternative fuels and clean vessels to meet the International Maritime Organization’s (IMO) net zero goals, while Vietnam is pushing for all domestic ships to meet IMO standards by 2050. Further, Vietnam will begin port decarbonisation in 2031, supported by feasibility studies, stakeholder engagement and investment promotion.
P4I is aligning these national efforts with regional coordination through the ASEAN Secretariat. In this role, it is analysing port digitalisation, shipping container circulation and PPP models to enhance maritime connectivity. These efforts also feed into ASEAN’s broader connectivity agenda and the master plan on ASEAN connectivity.
In Laos, the multimodal transport strategy developed with P4I’s support is now driving investment prioritisation and planning. In Cambodia, the updated national road and bridge standards, developed jointly with Austroads, are now mandated in public procurement.
P4I has also supported Thailand’s Department of Land Transport in its public transport electrification plan, directly influencing the country’s roll-out of 8,500 electric buses. The plan also includes training programmes for operators, guidelines for charging infrastructure and financial modelling.
Energy
The energy sector is undergoing a transformation across SEA, and P4I is helping shape the clean energy transition. Through policy reform, investment planning and capacity-building, P4I is enabling countries to integrate renewables and develop resilient, low-carbon power systems.
In Malaysia, Sarawak Energy’s partnership with P4I is set to result in a quadrupling of renewable capacity, contributing to cross-border energy integration with Indonesia via the ASEAN power grid. Efforts also include plans for grid stability analyses and scenario modelling.
In Thailand, P4I and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) have collaborated with the Electricity Generating Authority on battery storage development. This has led to expanded storage investment at the Sirindhorn Dam floating solar farm. A memorandum of understanding (MoU) now guides long-term co-operation on batteries, hydrogen and storage, supported by research exchanges and pilot demonstrations.
P4I has co-authored the ASEAN Centre for Energy’s 8th ASEAN Energy Outlook, which now includes a carbon neutrality scenario to 2050 and estimates that $190 billion in annual energy investment is needed across the region by 2035. These projections help in the formulation of national energy strategies and investment pipelines.
In Laos, P4I has worked with the Ministry of Energy and Mines to reform the electricity law and establish a national regulator, a critical step for improving sector governance and attracting investment. The electricity sector currently accounts for 13 per cent of the country’s gross domestic product (GDP). Further support includes benchmarking, tariff reform and investment climate assessments.
In Indonesia, P4I has helped connect state-owned utility Perusahaan Listrik Negara (PLN) with Australian hydrogen firms. This has resulted in a 12-month hydrogen generator trial aimed at replacing outdated diesel generators. The partnership also involves technical training and feasibility assessments.
P4I’s Future of Electricity Vietnam project has brought together Australian energy sector partners to support the development of PDP VIII and a revised electricity law. These policies will add 44 GW of renewable capacity by 2030, while enabling household solar generation on a wide scale. Complementary work includes utility reform, consumer protection and private sector engagement.
Telecommunications
P4I is leveraging Australia’s leadership in digital connectivity to help SEA countries modernise their telecommunications sectors. This includes improving policy and regulatory environments, strengthening infrastructure and enabling next-generation technologies.
In Cambodia, P4I is working with the Ministry of Post and Telecommunications, and the national regulator, to revamp radio frequency spectrum policies. These updates will protect critical aviation and maritime communications and support a nationwide transition to 5G. Projections suggest that 5G could drive up to 60 per cent of Cambodia’s GDP growth by 2030.
In the Philippines, P4I is advising the Department of Information and Communications Technology on the business and financing model for a national broadband network. With approximately 60 per cent of its total 115 million population having internet access, the Philippines is among the region’s most underserved countries. P4I is also helping improve radio spectrum management as part of this cooperation.
To support submarine cable resilience, P4I is collaborating with Indonesia, the Philippines and Vietnam on undersea cable planning, alongside Australia’s new cable connectivity and resilience centre. In the Philippines, this includes developing an executive order to streamline permits and establish cable protection zones, a critical step for unlocking the country’s potential as a trans-Pacific digital hub.
Infrastructure financing
High quality infrastructure is not just about design and delivery, it requires smart, inclusive and sustainable financing. P4I is drawing on Australia’s experience with innovative financing models to support SEA countries to improve planning, prioritisation and procurement systems.
In the Philippines, the Department of Transportation is working with P4I to enhance funding proposal frameworks and increase project approval rates by central agencies. Simultaneously, P4I is supporting the PPP centre to refine financing models that underpin its broader investment strategy to close the $69 billion infrastructure gap. These efforts also include training modules, technical templates and advisory services for regional governments.
In Cambodia, P4I is collaborating with the Ministry of Economy and Finance and the Victorian Department of Treasury and Finance to support the newly established Cost Efficiency Department (CED). The CED is now screening and prioritising infrastructure proposals as the secretariat to Cambodia’s public investment committee. P4I is also piloting new investment planning approaches with Cambodia’s Ministry of Public Works and Transport, including proposals based on the national road and bridge standards. These pilots help ensure that new projects are climate-resilient, economically viable and socially inclusive.
Building long-term partnerships
Over the course of its first phase, P4I has delivered a broad range of impactful activities across SEA’s infrastructure sectors. The programme has demonstrated Australia’s strengths in areas such as maritime decarbonisation, land transport resilience, renewable energy integration, digital connectivity and access to financing.
P4I has connected 109 Australian agencies with 64 SEA government agencies on regional infrastructure challenges. From these engagements, 25 have evolved into long-term partnerships, including CSIRO’s work with Laos’s Ministry of Mines and Energy, Austroads’ support to Cambodia’s infrastructure agencies and the Australian energy regulator’s cooperation with Vietnam’s electricity authorities.
Sustainability and resilience are deeply embedded in P4I’s work. More than 60 per cent of its activities include low-carbon and climate-resilient objectives, particularly in the energy sector. As climate-related events intensify, land transport resilience has become a growing area of demand. P4I is now scaling up its engagement with Australian partners to share best practices on mitigating and managing the economic and social impacts of extreme weather.
In sum
As SEA navigates the complexities of climate change, urbanisation and digital transformation, the demand for resilient, inclusive infrastructure has never been greater. P4I’s collaborative model, grounded in technical depth, institutional trust and regional alignment, offers a blueprint for impactful development cooperation. By fostering innovation, strengthening local capabilities, and connecting Australian expertise with SEA priorities, P4I is catalysing change. As the region enters a decisive phase of growth, the programme’s next chapter will be instrumental in shaping a more connected, low-carbon and future-ready SEA, where quality infrastructure serves as a bridge to shared prosperity.
(Extract from a report by the Australian government’s Department of Foreign Affairs and Trade, and Partnerships for Infrastructure initiative on “Supporting Quality Infrastructure Development in Southeast Asia: An Update on the Partnerships for Infrastructure Program.”)
