March 12, 2021
On March 12, the Asian Development Bank (ADB) signed a loan agreement that utilizes the “Leading Asia's Private Infrastructure Fund” (LEAP) funded by JICA for aviation transportation businesses in Fiji.
This finance will provide a loan for aviation transportation businesses in Fiji that have been severely affected by COVID-19. It includes a direct loan of $40 million from ADB and a loan of $25 million from LEAP.
In Fiji and other Pacific countries, the aviation transportation infrastructure supports the development of industry and the transportation of daily necessities. It is an essential infrastructure, especially in Fiji, where tourism accounts for one third of the GDP. Meanwhile, the COVID-19 outbreak has had a serious impact on the country's aviation businesses, causing a decline in the number of passengers and other issues. This finance will support aviation transportation infrastructure which is the essential infrastructure for the Pacific region, through the financing of aviation businesses in Fiji.
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. The LEAP 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).