2023.12.08
The Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB) have signed an agreement to establish the Leading Asia's Private Infrastructure Fund 2 (LEAP 2) with capital of up to $1.5 billion provided by JICA. The signing took place between JICA President Tanaka Akihiko and ADB President Asakawa Masatsugu on December 8. The fund aims to cofinance high-quality, resilient, and sustainable infrastructure projects in Asia and the Pacific.
LEAP 2 is the successor fund to LEAP, which began in March 2016 and concluded in August 2023. LEAP 2 will continue to support ADB’s private sector operations by providing commercial and concessional finance for ADB and JICA projects. ADB will serve as the fund manager and administrator. LEAP 2 will contribute to ADB’s mission including reducing poverty and promoting decarbonization in Asia and the Pacific, where annual infrastructure financing needs are estimated at about $1.7 trillion.
LEAP committed over $1 billion in cofinancing across 35 projects in 14 of ADB’s developing member countries. The projects supported 1.4 gigawatts of new electricity generation capacity; created 7,285 jobs, including 2,794 for women; avoided 6.2 million tonnes of carbon dioxide equivalent; and facilitated $13.8 billion in infrastructure investment, including $7.8 billion in the renewable energy sector.
LEAP 2 will operate within the same mandate and governance as its predecessor. Funded projects will aim to reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services. The fund’s broader scope includes investments in agribusiness and education where there is a clear link to infrastructure, while excluding gas refining, processing, transmission, and distribution. LEAP2 will contribute to the achievement of SDGs(Sustainable Development Goals) Goal 7 (Affordable and clean energy), 13(Climate action) and 17(Partnerships for the goals).
JICA aims to contribute to the promotion of international cooperation as well as the sound development of the Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions.
Signing ceremony
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