November 25, 2020
Recycling PET bottles
On Nov. 24, the Asian Development Bank (ADB) signed a loan agreement for plastic recycling projects in Asian countries utilizing the “Leading Asia's Private Infrastructure Fund” (LEAP), which is funded by JICA.
This investment provides a long-term loan for polyethylene terephthalate (PET) recycling projects in India, Indonesia, the Philippines, and Thailand. It will be JICA's first Blue Loan(*)for the private sector, certified under the international Guidelines. The project contributes to the “Initiative on Overseas Loan and Investment for ASEAN,” announced at the ASEAN Summit Meeting on Nov. 4, 2019.
In this project, Indorama Ventures Public Company Limited (IVL), part of the Indorama Ventures Group, which is one of the world's largest integrated PET producer based in Thailand, will be responsible for the plastic recycling business. More than 80 percent of plastic waste is released into the ocean, and the annual economic cost of ocean pollution is estimated to be $13 billion. This project will promote the reduction of plastic waste and the creation of a recycling-oriented society through the expansion of IVL's plastic recycling business.
The LEAP is a part of the follow-up measure for the “Partnership for Quality Infrastructure,” which was announced by the Japanese government on Nov. 21, 2015. Targeting high quality private infrastructure projects in the Asia-Oceania region, the fund provides assistance for such projects organized under various arrangements, such as public-private partnerships. In March 2016, JICA approved a $1.5 billion investment in private sector investment financing for the LEAP Fund. The LEAP Fund provides support for a wide range of sustainable infrastructure projects undertaken by the private sector in ADB member countries of the Asia-Pacific region, and is directed at projects in fields such as reduction of greenhouse gas emissions, energy efficiency, and provision of medical services at reasonable prices.
JICA will continue its collaboration with countries and international organizations to promote quality infrastructure investment and contribute to social and economic development in developing countries and regions based on the Sustainable Development Goals (SDGs).
(*)Blue Loan: A loan provided to projects to support the blue economy. It is certified on the Green Loan Principles and Blue Natural Capital Financing Facility’s Blue Bond Guidelines.