At the 2022 G20 Summit in Bali, Indonesia, President Biden, Indonesian President Widodo and European Commission President von der Leyen co-hosted a group of G20 leaders to demonstrate their shared commitment to deepening engagement under the Partnership for Global Infrastructure and Investment (PGII). ) to accelerate investment in quality infrastructure in low- and middle-income countries around the world and strengthen the global economy.
In line with the G20 theme for 2022, “Recover Together, Recover Strong,” PGII investments aim to create lasting positive impacts for partner countries, strengthen communities’ resilience and support inclusive, sustainable development, as well as benefit partners’ economic security. and global supply chains.
On the sidelines of the summit, President Biden, President Widodo and President von der Leyen met with leaders and ministers from Argentina, Canada, France, Germany, India, Japan, the Republic of Korea, Senegal and the United Kingdom, PGII collaboration among like-minded partners globally and support The leaders highlighted the ways in which PGII partners are coming together to finance transformative infrastructure and mobilize the private sector as drivers of quality global infrastructure and investment. The event comes on the heels of a weekend of additional PGII project announcements by President Biden, including the COP, the ASEAN Summit and a bilateral meeting with G20 host, Indonesia.
In his remarks, President Biden delivered an update on PGII’s progress and impact to date. He announced new projects and followed many announced at the G7 formal launch of PGII in June 2022, providing concrete examples of how the United States and its partners are working together to mobilize capital to deliver quality infrastructure and sustainable development.
New projects announced include:
- Indonesia Just Energy Transition Partnership (JETP): The United States and Japan led the International Partners Group, which successfully launched a long-term partnership with Indonesia to advance a rapid and ambitious just energy transition that supports a trajectory that reaches a warming limit of 1.5. °C above pre-industrial levels. The partnership is expected to mobilize over $20 billion in financing from the public sector (G7 partners and like-minded countries Norway and Denmark) and the private sector to support Indonesia’s efforts using a mix of grants, concessional loans, market-rate loans, guarantees. and private investments. The Indonesia JETP includes an ambitious power sector emissions reduction path based on the expansion of renewable energy, a phase-out of coal-fired electricity, as well as a commitment to an energy transition for workers and communities.
- Indonesia Millennium Challenge Corporation (MCC) Compact: The United States and Indonesia have successfully concluded negotiations to launch a $698 million MCC compact, supported by $649 million from the United States and $49 million from Indonesia. The compact will support the development of high-quality, climate-conscious transport infrastructure in the five provinces; mobilize international capital in support of Indonesia’s development goals, in part by building the capacity of Indonesia’s financial markets; support coal plant decommissioning as part of the broader JETP program; and increasing access to finance for Indonesian women-owned businesses and micro, small and medium-sized enterprises
- Tripartite support for digital infrastructure in the Pacific: The United States, in partnership with Australia and Japan, is supporting digital projects that will improve access to and security of digital services in the Pacific.
- Acquisition of Telecom Assets for Network Upgradation: The US International Development Finance Corporation (DFC) is working with the Japan Bank for International Cooperation (JBIC) to provide $50 million each to guarantee financing through Export Finance Australia (EFA) for Telstra’s acquisition of Digicel Pacific’s telecom assets in Papua New Guinea and the Pacific. is Leads to network upgrades that will improve security and efficiency. The project also supports the continued provision of affordable, high-quality mobile voice and data services to subscribers in these markets. Expansion of the network will lead to adoption of innovative technologies.
- Blue Dot Network Certification for Palau Spur Cable: The tripartite-supported Palau Spur subsea cable will be used to pilot the “Blue Dot” certification framework of quality infrastructure. A public-private US-, Japan- and Australia-backed initiative, the Blue Dot Network aims to symbolize quality in infrastructure by certifying projects that meet development standards and criteria, including labor and environment.
- Securing the Critical Minerals Supply Chain in Brazil: Building on previous support, DFC will invest $30 million in equity in Techmate Limited to develop a mining platform for the critical minerals nickel and cobalt in Brazil, promoting supply chain resilience for the renewable energy transition. TechMet’s Brazilian mine produces sustainable nickel through an extraction process that is less water- and carbon-intensive than conventional methods. This nickel is estimated to be near the lowest quartile of carbon intensity for global nickel production
- Solar Development in Honduras: The Export-Import Bank of the United States (XIM) is providing a $52 million loan guarantee to JP Morgan, which is financing Banco Atlantida’s $31 million purchase of US equipment for a 53.4 MW solar power project in Honduras. The transaction is the largest solar project ever financed by EXIM in the US. The project will use American-made equipment from First Solar Nextraker, Shoals Technologies Group and the Cambria County Association for the Blind and Handicapped.
- Investment in India’s Health Infrastructure: DFC will invest more than $15 million in India’s health infrastructure, including support for the expansion of a chain of eye clinics to perform corrective surgery for underserved individuals and an India-based social enterprise that produces safe and affordable feminine hygiene products for underserved women. – Metro areas.
Project updates include:
- Strengthening Care Infrastructure and Economy: As the Invest in Childcare Initiative was launched as a flagship PGII project at the G7 Summit, the World Bank will generate at least $180 million in funding for the initiative, including $50 million from the United States, Germany, Canada, and Australia. The initiative has shortlisted 27 proposals and awarded its first grant of $2 million to a project in Somalia expected to benefit nearly 30,000 young women and 3,000 young men and their children, primarily from marginalized populations.
- Expanding Digital Access: Since Digital Invest was launched as a PGII flagship project by USAID and the state in June 2022, the blended finance program has attracted private sector partners and capital and advanced two major projects that will connect currently un- or underserved communities with digital access. Markets:
- CSquared Liberia Fiber Backbone: A $1.15 million support under Digital Invest is leveraging nearly $2.5 million in financing from CSquared to install a 350-kilometer national fiber network backbone in Liberia. The new backbone will extend from Monrovia to the Côte d’Ivoire and Guinean borders, providing transformative network connectivity capabilities to Internet Service Providers (ISPs) and mobile network operators, and as a result, serving approximately one million Liberians.
- Microsoft Airband ISP Incentive Fund: The $500,000 Digital Invest grant will leverage $1.5 million from Microsoft to establish an incentive fund for ISPs that provide digital access to community organizations such as health clinics, schools and local government facilities. The initiative will include establishing and piloting an incentive fund managed by Resonance to catalyze investment and expansion of Internet networks in hard-to-reach communities.
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