ADB launches $25 million fund for ASEAN power grid
MANILA — The Asian Development Bank said on Tuesday that it has launched Southeast Asia’s first multi-partner fund to accelerate the development of an ASEAN-wide cross-border power grid and strengthen regional energy security.
The initial funding of $25 million for the Regional Connectivity Fund (RFC) comes from Australia, Canada, the European Union, Germany and Britain, and will finance early-stage cross-border energy projects.
ADB President Masato Kanda said the fund will accelerate investments to achieve fully integrated electricity grid operations by 2045, benefitting Southeast Asia, whose energy demand is expected to triple by 2050.
The RCF is a key initiative under the ASEAN Infrastructure Fund, Southeast Asia’s largest infrastructure financing platform that was established in 2011.
The fund will provide technical assistance and grants for feasibility studies, engineering design, financial structuring, and safeguards assessments.
ADB has pledged up to $10 billion over the next 10 years to support the grid and related investments to expedite cross-border power connections, national grid projects, and renewable energy initiatives. — Reuters
