IFC and JICA to support $1.5 b in projects to modernise infrastructure in emerging markets
May 17, 2017 – IFC, a member of the World Bank Group, and the Japan International Cooperation Agency (JICA) are planning to co-finance up to $1.5 billion in high-impact private sector projects over the next five years under a partnership that aims to modernise infrastructure and expand access to basic services for underserved communities in emerging markets.
IFC Vice President Nena Stoiljkovic and JICA Senior Vice President Kenichi Tomiyoshi recently signed a memorandum of cooperation between the two institutions. The partnership establishes principles for enhancing cooperation between IFC and JICA – which will co-finance private sector projects by providing debt and equity, or both. The initiative will also support Japan’s business development efforts in emerging markets.
“Japan has been a critical partner in IFC’s efforts to create opportunities and improve people’s lives in developing countries. This agreement deepens our partnership, and we look forward to pursuing more co-investments in private sector projects including in the lowest-income countries,” said Stoiljkovic, who is IFC’s Vice President for Blended Finance and Partnerships.
IFC and JICA will offer structured finance in renewable energy, energy efficiency, water, and transportation. The two institutions will also help provide financing for corporations working in sectors essential for economic growth and development, such as infrastructure, microfinance, finance for small and medium enterprises, agribusiness, and healthcare.
Tomiyoshi said: “The Japanese government’s policy of ‘Quality Infrastructure Investment’ for sustainable growth and comprehensive development in developing countries is essential to help private-sector-led infrastructure projects. The partnership with IFC will boost JICA’s ability to promote the “Quality Infrastructure Investment” initiative by leveraging IFC’s knowledge, know-how, and networks.”
IFC and JICA made the first co-investment in a 414-megawatt dual-fuel combined-cycle power plant in Bangladesh earlier this year and expect to co-finance more projects this year.
The agreement creates opportunities for IFC and JICA to address the enormous demand for projects in infrastructure and other key sectors in developing countries through co-investment. JICA will co-finance projects with IFC through JICA’s Private Sector Investment Finance program.