China’s AIIB commits $100 million to support Asia-Pacific net-zero projects

BEIJING-BASED Asian Infrastructure Investment Bank (AIIB) has committed $100 million to help Asia-Pacific countries adopt low-carbon technologies and practices.

The AIIB said in a statement that $75 million was committed to the Actis Asia Climate Transition Fund, while $25 million will go towards co-investment.

“This marks AIIB’s first climate transition-themed fund dedicated to emerging Asia and highlights the Bank’s commitment to sustainable development and climate change mitigation in the region,” it said.

The fund will be invested in renewable energy infrastructure, energy solutions, and sustainable transportation in the region.

In particular, the commitment will support climate transition initiatives in India, Indonesia, Malaysia, China, the Philippines, Thailand, and Vietnam.

“Our commitment to the Actis Asia Climate Transition Fund underscores AIIB’s dedication to financing sustainable infrastructure and fostering low-carbon solutions in Asia,” AIIB Acting Vice-President Rajat Misra was quoted as saying.

“This partnership aligns with our climate strategy and sets a precedent for future investments aimed at achieving net-zero emissions while promoting gender equality in the energy sector.”

Separately, the Department of Finance (DoF) said the AIIB pledged to support Philippine infrastructure projects.

“The DoF was able to secure the Bank’s commitment to support the Philippine government in accessing grants through the Multilateral Cooperation Center for Development Finance (MCDF) Finance Facility with the AIIB as an implementing partner,” it said in a statement.

The MCDF is a multilateral financial mechanism promoting high-quality infrastructure and connectivity investments in developing countries.

The AIIB also affirmed the Philippine government’s call to assign specific country officials to improve its partnerships, the DoF said.

“Recognizing that project implementation delays equate to development denied, we request even stronger support from the Bank through regular comprehensive portfolio reviews to assist the government,” Finance Undersecretary Joven Z. Balbosa was quoted as saying. 

The DoF also cited the need for AIIB project teams to promptly identify project implementation issues, come up with potential solutions and strategies, and facilitate closer monitoring and coordination among relevant stakeholders.

Big-ticket projects supported by the AIIB include the Manila Flood Management project and the Bataan-Cavite Interlink Bridge. The bank co-finances these projects with the World Bank and the Asian Development Bank (ADB), respectively.

The government is also processing AIIB loans for key infrastructure projects like the Laguna Lakeshore Road Network Project – Phase 1 and the Metro Manila Rail Transit Line 4 (MRT4) Project, both co-financed with the ADB.

The bank also supports the Facility for Accelerating Studies for Infrastructure (FAST-Infra), which is expected to be signed this year. FAST backs the formulation of a transport infrastructure master plan. — Beatriz Marie D. Cruz