ISLAMABAD: The Asian Development Bank (ADB) is actively processing over $500 million of LEAP debt and equity transactions for private infrastructure development in Asia-Pacific region, which also includes potential projects from Pakistan.

Leading Asia’s Private Infrastructure Fund (LEAP) is one of the ADB’s co-financing vehicles dedicated to private sector infrastructure in Asia and the Pacific. Projects from India, Indonesia, Myanmar, the Philippines and Thailand are also included for approval.

The Japan International Cooperation Agency (JICA) is supporting the LEAP, which was 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 $6bn and enables ADB to boost support for quality and sustainable infrastructure.

On Tuesday, ADB approved two projects worth over $210m in debt financing from LEAP in its first year of operation. The project in India was recently commissioned, while the geo-thermal project in Indonesia has commenced drilling and construction.

ADB expects these initial projects will generate about $1.4bn in total financing, including $264.5m from ADB’s own capital and an additional $890m from co-financing partners.

The fund will provide co-financing to non-sovereign infrastructure projects at different stages of development, including early stage, growth stage, and green-field and brown-field projects. It will support projects with strong anticipated development impacts and alignment with the strategies of ADB and JICA.

The fund will contribute significantly to ADB’s mission of reducing poverty in Asia and the Pacific. Asia’s overall infrastructure financing needs for 2010-2020 are estimated at $8 trillion - about $730bn per year - with priorities in energy and transport (82 per cent).

Sustainable energy, water, and transport solutions are not only good for the environment but are also key national security issues for many countries in Asia and the Pacific.

Published in Dawn, October 4th, 2017