On 4 April, 2019 in Bangkok, the Association of Southeast Asian Nations (ASEAN), the Asian Development Bank (ADB) and major development financiers launched a facility, called the ‘ASEAN Catalytic Green Finance Facility’, to spur in green Infrastructure investments across South East Asia. The facility has USD 1 billion in funding, including USD 75 million from the ASEAN Infrastructure Fund (AIF), USD 300 million from ADB, Euro 300 million (USD 336 million) from KfW, Euro 150 million (USD 167 million) each from the European Investment Bank, and the Agence Française de Développement.
The new facility’s objective is to attract private capital by mitigating risks through innovative finance structures. It provides loans and necessary technical assistance for sovereign green Infrastructure projects such as sustainable transport, clean Energy, and resilient water systems.
This is part of a new “Green and Inclusive Infrastructure Window” under the AlF, a regional financing initiative established by ASEAN governments and the ADB in the year 2011. Till date, the AlF has committed around USD 520 million for regional Energy, transport, water and urban Infrastructure projects.
Alongside the launch ASEAN Catalytic Green Finance Facility, the AIF also launched a new “Inclusive Finance Facility” to provide concessional financing for critical Infrastructure in Cambodia, the Lao People’s Democratic Republic, and Myanmar.
(Source: Asian Development Bank; The Nation)