lack of vital infrastructure. there is agreement thai inadequate infrastructre particularly in the indonesia and philippines components of EAGA is a major bottleneck to private sector investments. When BIMP-EAGA was created there was some basis for believing that development of the sub-region could be accelerated through close attention to policy coordination across national boundaries emphasis on further development of infrastructure and vigorous promotion of substantial private investment in the sub-region. Public sector investment in infrastructure development in BIMP-EAGA is currently being assessed although it is widely accepted that for most parts of the sub-region infrastructure investment has seriously lagged behind other parts of the respective member countries particularly after the 1997 financial crisis. Given the widely dispersed population and centres of production infrastructure transport and logistics development are vital to the marketing and distribution of production inputs and output It is recognised that BIMP-EAPA could not expect to receive significantly larger pubic resources for its development. For development to happen conditions have to be created to encourage increased private sector investments in infrastructure development.