ADB and PIDG to Cooperate on Early-Stage Infrastructure Investments in Asia and the Pacific – EQ Mag
INCHEON, REPUBLIC OF KOREA : The Asian Development Bank (ADB) and the Private Infrastructure Development Group (PIDG) have signed a memorandum of understanding for cooperation on early-stage, private sector infrastructure investments in Asia and the Pacific.
Early-stage projects are characterized by significant risks, upfront costs, and time on project preparation to advance them to a stage to attract commercial sponsors and financing. ADB and PIDG will explore possible partnerships in developing and financing sustainable infrastructure projects that address climate change and contribute to sustainable development and poverty reduction in ADB’s developing member countries.
“Asia and the Pacific faces a shortfall of climate investments in the billions of dollars and the private sector is integral to filling these gaps through project development and financing activities,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This partnership with PIDG will be the bridge that can help mobilize private capital into Asia and the Pacific.”
It is estimated the region needs around $1.7 trillion a year, from 2016 to 2030, to meet infrastructure demand while maintaining its growth momentum, eradicating poverty, and addressing climate change. The public sector cannot meet the rising demand for financing. This institutional cooperation will explore potential partnerships to originate, develop, and finance sustainable infrastructure projects. It may also include single-country facilities for credit enhancement instruments in support of infrastructure-related projects.
“Accelerating the development and financing of sustainable and climate-resilient infrastructure is essential to meet both the urgent needs of developing and emerging economies and to achieve global climate goals,” said PIDG Chief Executive Officer Philippe Valahu. “The changes needed call for innovative partnerships with a strong regional focus. It is exciting for us to build on our existing relationship with ADB to help bridge the gap between public and private support in the development of early-stage infrastructure projects.”
PIDG is an infrastructure developer and investor that mobilizes the private sector in Africa and Asia for climate resilience and sustainable growth. PIDG works across the project lifecycle, developing innovative solutions with public and private partners to de-risk projects, promote sustainable development, and combat poverty. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany, and the International Finance Corporation.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
