ADB approves new financing support for renewable power projects in the Pacific
April 25, 2019 4:55 pm
The Asian Development Bank has approved an umbrella facility of up to $100 million which will provide financing support including loans, guarantees, and letters of credit to overcome constraints to private sector investment in renewable power projects in Pacific island countries.
The Pacific Renewable Energy Program will support an estimated five separate renewable energy projects in ADB’s Pacific developing member countries over a 5-year period.
ADB’s Pacific Department and Private Sector Operations Department will work together to implement the program.
ADB’s Pacific Director General Carmela Locsin says the program will help to build urgently needed capacity for energy sector expansion and private sector interest in clean energy projects in the region.
The objective she says is to implement more renewable energy projects in the Pacific by working with power utilities to identify transactions at an early stage.
ADB’s Director General for Private Sector Operations, Michael Barrow says the program is designed to encourage private sector investment through an innovative blend of ADB’s direct private sector lending, ADB’s guarantees of commercial bank lenders, together with donor funds which provide a backstop to the payment obligations of the power utilities.
Meanwhile, Fiji is the first Pacific Island Developing State to host the ADB’s annual governors meeting.
The 2019 ADB annual governors meeting will be held in Nadi from May 1st to the 5th.