Sector Strategies B. Infrastructure 36. The country s infrastructure, particularly in rural areas, is quite undeveloped by regional standards and is a crucial factor limiting growth.
Major investments are necessary in the sector including from the private sector.
To make the best use of scarce resources, public investments should be directed toward areas where private investments would not be forthcoming, to focus on strategic investments that promote pro-poor growth and in developing a conducive policy and regulatory environment for increased private sector participation in the economy. In the energy sector, one of the major ongoing structural reforms is the restructuring and privatization of the electric power industry. An ongoing program loan is providing assistance in these areas. In addition, ADB technical assistance is programmed to assist in NPC privatization and in strengthening regulation in the energy sector covering both power and gas. To improve the overall efficiency of the power industry, ADB will provide assistance to the Government to support the integration of the Luzon-Leyte grid with the Mindanao grid.