ADB approves $210 mln in LEAP Financing in first year of operation

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ISLAMABAD, Oct 3 (APP): The Asian Development Bank (ADB) has
approved two projects worth over $210 million in debt financing
from the Leading Asia’s Private Infrastructure Fund (LEAP) in
its first year of operation.
ADB expects these initial projects will generate about $1.4
billion in total financing, including $264.5 million from ADB’s
own capital and an additional $890 million from co-financing
partners,says a statement issued by ADB here Tuesday.
ADB is also actively processing over $500 million of LEAP debt
and equity transactions for private infrastructure throughout the
region. This includes potential projects in India, Indonesia,
Myanmar, Pakistan, the Philippines, and Thailand.
LEAP is one of ADB’s cofinancing vehicles dedicated to private
sector infrastructure in Asia and the Pacific.
The Japan International Cooperation Agency (JICA) supports the
fund, launched in August 2016, through a $1.5 billion equity
commitment. Combined with ADB’s own capital and that of commercial
partners, the fund is expected to provide financing of at least $6
billion and enables ADB to boost support for quality and sustainable
infrastructure.
“We are very pleased with the initial progress of the fund,
which has made a tangible impact on private infrastructure delivery
in the region within the first 12 months,” said Yasushi Kanzaki,
Senior Vice President of JICA.
Over the past year, LEAP financing for two transactions has
been approved, with the projects now in their construction phase.
The ReNew Clean Energy Project in India recently commissioned a 48
megawatt (MW) solar subproject in Telangana state and a 110 MW wind
subproject in Karnataka state. The Muara Laboh geothermal power
project in Indonesia has commenced drilling, secondary works, and
construction.
“LEAP is amplifying the impact we can have on our developing
member countries,” said Diwakar Gupta, ADB Vice-President for
Private Sector and Cofinancing Operations. “The initial renewable
energy projects are helping the region in its transition to a low-
carbon economy.”
ADB, based in Manila, is dedicated to reducing poverty in Asia
and the Pacific through inclusive economic growth, environmentally
sustainable growth, and regional integration. Established in 1966,
ADB is celebrating 50 years of development partnership in the
region. It is owned by 67 members-48 from the region. In 2016, ADB
assistance totaled $31.7 billion, including $14 billion in
cofinancing.