BIMP-EAGA Priority Infrastructure Projects

Date Published October 28, 2021

BIMP-EAGA has a rolling pipeline of projects worth more than $24.3 billion to improve air, land, power, and ICT connectivity in the subregion through 2025. These priority infrastructure projects are under BIMP-EAGA’s Vision 2025, a long-term plan to narrow development gaps, sustainably manage natural resources, and promote stronger connectivity. These projects are expected to open more trade and investment opportunities for the subregion.

A large share of investments in infrastructure is allotted for transport connectivity, which is crucial to connecting the areas that make up BIMP-EAGA. An efficient, secure, and integrated transport network is vital for optimizing subregional economic integration. Transport connectivity is a cornerstone of cooperation in the subregion.

One of the biggest road projects involves the construction of a $7-billion highway between Sarawak and Sabah. The Pan-Borneo Highway will serve as the transportation backbone of the states of Sabah and Sarawak, and will play a major role in opening up BIMP-EAGA’s economic corridors. The Sabah component will entail the construction of a 1,236-km toll-fee dual carriageway from Tawau to Kota Kinabalu. The Sarawak component from Telok Melano to Merapok will span a total distance of 1,089 km. The Pan-Borneo Highway is expected to be completed in 2022.

Another big-ticket project involves the $2.6-billion expansion of the Bitung International Port in Indonesia. It is part of efforts to strengthen links between Bitung and Manado, both in North Sulawesi, to improve transport synergy and economic growth in the area.

All four countries are funding a project to develop green cities in the subregion. The BIMP-EAGA Green Cities Initiative Project is estimated to cost $400 million. The first pilot city is Kendari in South Sulawesi.

The ICT project in the list is funded by the private sector. The $150 million BIMP-EAGA Submarine Terrestrial Cable System Project links all four countries using a hybrid communications platform either through sub-sea cable, satellite, or terrestrial systems. It is seen to support ecotourism and e-commerce initiatives and can also potentially contribute to plans to set up the ASEAN Broadband Corridor.