The Asian Development Bank (ADB) has signed an agreement with ten international insurers. The goal is to raise $2.75 billion in private capital. This money will be used to support infrastructure and renewable energy projects in Asia and the Pacific.
ADB said the Master Framework Agreement for Sustainable Infrastructure will help bring in private sector funding. The plan includes using credit insurance. That means some of ADB’s loans will be insured, which reduces the risk for investors.
By reducing the risk, ADB can free up space on its balance sheet. This gives ADB more room to lend to other projects. It also provides a system that can be used by others to reduce investment risk in developing countries.
Tokio Marine HCC is one of the insurers in the agreement. The company said it supports projects that align with Japan’s Green Transformation strategy. ADB Vice-President Bhargav Dasgupta said that credit risk transfer will help unlock more funding for clean infrastructure.
Aside from this large financial framework, ADB is already supporting various smaller renewable energy projects across Asia.
In Mongolia, ADB is involved in the construction of a hybrid solar and wind project in Zavkhan province. The system includes 10 megawatts (MW) of solar, 5 MW of wind, and a 3 MWh battery storage unit. The project powers small towns that are not connected to the national grid.
In Bhutan, ADB has funded a run-of-the-river hydropower project in Dagachhu. It generates around 126 MW of electricity. Most of the electricity is exported to India under a long-term power purchase agreement.
In the Maldives, ADB has supported a decentralized solar program that includes rooftop systems on public buildings across 160 islands. The total installed capacity across all systems is around 20 MW. The energy is used mostly for schools, clinics, and administrative buildings.
ADB also helped fund a microgrid project in the Philippines. Located on an island in Palawan, it includes 1.3 MW solar PV and a 1 MWh battery, serving over 3,000 households.
