The United States Agency for International Development and the Asian Development Bank launched Tuesday a collaboration that will mobilize $7 billion of private sector investments for energy projects in the Asia Pacific region.
USAID Asia Bureau acting assistant administrator Gloria Steele and Tomoyuki Kimura, ADB director general of strategy, policy and review department, signed a partnership agreement at the Asia Clean Energy Forum at the ADB headquarters.
“What we would like to do is to use the resources to get private sector engaged in the energy sector in the region and through their engagement we will mobilize investments from the private sector... We will try to mobilize financing for projects in the energy sector,” Steele said.
Under the framework of the agreement, USAID and ADB will work to mobilize $7 billion of investment for energy projects in Asia and the Pacific, boost the capacity of clean energy systems by 6 gigawatts (6,000 megawatts) and increase regional energy trade by 10 percent over the next five years.
The parties said the agreement would promote energy efficiency, energy sector reform and good governance of Asia and the Pacific’s energy sector.
“ADB welcomes the increased investment by the USAID and the US government in Asia through its new Indo-Pacific strategy and in partner in the energy sector,” Kimura said.
He said the primary objectives of the agreement involved increased energy access and deployment of advanced energy systems and practices, improved performance of energy utilities and enhanced regional integration and energy trade.
The new partnership follows decades of USAID–ADB development collaboration and comes as the US government next month marks the one-year anniversary of Asia Enhancing Development and Growth through Energy, one of the key initiatives contributing to the US government’s Indo-Pacific vision.