Japan and ADB agree $16bn infrastructure development partnership

23 Nov 15

The Asian Development Bank and Japan have announced a $16bn commitment to infrastructure in Asia and the Pacific over the next five years.

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Tokyo's high-speed railway

Tokyo's high-speed railway

 

The partnership will include the establishment of an investment fund and promote public infrastructure development. Projects will aim to be high quality, reliable, sustainable and resilient in line with the Sustainable Development Goals agreed in September.

ADB president Takehiko Nakao said reducing poverty through sustainable development has been a central feature of the bank’s operation since it began in 1966.

This partnership will work towards this goal, and contribute to the expansion of climate financing to developing countries in line with the expected outcome of climate talks in December, he added.

The ADB and the Japan International Cooperation Agency (JICA) ‒ who will provide $1.5bn in capital ‒ will begin by establishing a trust fund by March 2016 to stimulate investment in private infrastructure.

With the ADB’s financial contribution and that of other partners, the fund is expected to hold at least $6bn, enabling the ADB to expand large-scale private infrastructure operations. It will leverage JICA’s official development assistance resources and risk-bearing capacity.

In order to support quality and sustainable public infrastructure in the region ADB and JICA will provide $5bn each in co-financing to sovereign borrowers over the next five years.

Each donor will also provide the technical assistance necessary for preparing and implementing projects.

The ADB and JICA are due to sign a memorandum of understanding on the partnership, and the ADB is to seek similar arrangements with other development partners. 

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