December 17, 2015
On December 17, JICA President Shinichi Kitaoka and Asian Development Bank (ADB) President Takehiko Nakao signed a Memorandum of Understanding (MOU) on a framework for the partnership between the two organizations. This JICA-ADB partnership is based on a new collaboration package announced by the Government of Japan on November 21 as one of the follow-up measures of “the Partnership for Quality Infrastructure”.
There are two main provisions specified in the MOU;
1. Establishment of a trust fund for supporting public-private and other private sector infrastructure projects
By the end of the current fiscal year, JICA will make equity contribution for a trust fund to be established by ADB, under the Private Sector Investment Finance (PSIF) . This fund will be used to finance quality infrastructure projects structured under the public-private partnerships or fully private basis in conjunction with the private sector financing from ADB. With a target of providing up to 1.5 billion U.S. dollars in financing over the next five years, this initiative is expected to facilitate further development of large-scale private infrastructure projects in Asia.
2. Cofinancing framework for supporting the governments of developing countries to promote public infrastructure
JICA and ADB will provide sovereign loans to the governments of developing countries with a goal of 10 billion dollars through cofinancing between the two agencies over five years to promote quality public infrastructure in Asia. Long-term assistance plans will be formulated by JICA and ADB for target countries and based on the plans, the two agencies will provide the technical assistance required for project preparation and implementation, leveraging the comparative advantages of each institution.
For smooth implementation of quality infrastructure investment through this framework, JICA is participating in regular high-level policy dialogues with the Government of Japan and ADB.
Going forward, JICA will coordinate with governments and international agencies toward socioeconomic development in developing countries and regions, promoting “quality infrastructure financing.”