InfraCo Asia

InfraCo Asia

Providing risk capital and expertise to develop early-stage infrastructure projects in south and south-east Asia.

InfraCo Asia comprises two companies; InfraCo Asia Development (IAD), investing early-stage development capital, and InfraCo Asia Investments (IAI), offering debt and equity


At a glance

EstablishedIAD: 2010
IAI: 2014
PIDG members currently fundingIAD: UK aid, SECO, DFAT
IAI: UK aid
Cumulative PIDG member fundingIAD: $128.0m
IAI: $27.3m
ChairIAD: John Walker
IAI: Keith Palmer
Managed byInfraCo Asia
Total commitments as at 31 Dec 2017IAD: $103.4m to develop 32 projects, 6 having reached financial close and 26 having signed a JDA
IAI: $28.2m on 3 projects that have reached financial close
2017 commitmentsIAD: $45.3m across 16 projects which reached JDA, one of which also reached financial close

Expected development impact

2017Cumulative
Financially-closed projects26
Total Investment Commitments (TICs) ($m)97.4413.7
% of TICs in priority countries*87.9%
% of TICs in FCAS**86.9%
Access (in millions)*1.52.3
Job creation: short-term3102,010
Job creation: long-term95541
Fiscal benefits ($m)0.30.8

Notes

* Priority countries: Bangladesh, Bhutan, Cambodia, Laos, Myanmar, Nepal, Pakistan and DFID focus states in India
** Fragile and Conflict-Affected States: Bangladesh, Myanmar, Nepal, and Pakistan; Sri Lanka was FCAS until end 2016

Projects that signed a Joint Development Agreement or equivalent in 2017

BangladeshBangladesh Solar JV
IndiaHydroponic Farming, Himachal Pradesh
IndonesiaArchipelago Hybrid Solutions
MyanmarMyanmar Wind Power
PakistanSwat KPK Small Hydropower Projects - Ban Khwar, Gabral, Rathi Gali, Sakhara I & II
PhilippinesMetro Manila Waste-to-Energy
Sri LankaTrincomalee Biomass to Pellets
VietnamNinh Tay Power Projects - solar, wind
VietnamWater Supply Projects - Bai Lai, Kim Lien, La Giang, Thuy Nguyen

Projects that reached financial close in 2017

IndiaHydroponic Farming Project, Himachal Pradesh
NepalKabeli A hydropower

Achievements in 2017

InfraCo Asia sold its shares in Pakistan’s two 50MW Metro and Gul Ahmed wind power projects to the private sector, allowing the public funds it invested during development to be redeployed. The sale marked InfraCo Asia’s first complete exit from a utility-scale renewable energy project and demonstrated its ability to catalyse private sector infrastructure investment in its target countries.

InfraCo Asia Development saw two financial closes: the 36.7MW Kabeli A hydropower in Nepal; and a 1.2 hectare greenhouse hydroponics facility in Junga, north India, which will improve the yield and quality of vegetables for sale and export.


Other notable highlights

InfraCo Asia Development signed joint investment and development agreements (JIDAs) for a total of 16 projects in 2017, including a series of firsts. Its first commitments to water treatment and solar projects in Vietnam, are expected to reach financial close in 2018. In addition, a first JIDA to provide power to remote islands in Indonesia was signed.

Recognising its important role in de-risking project development in low-income areas of Asia, the company was awarded Smart Seed Investor status by industry publication Thomson Reuters Project Finance International.


2018 and beyond

In the coming years InfraCo Asia will seek to play a greater supporting role in the renewable, water and waste management sectors across the south and south-east Asia regions. With 16 new projects with Joint Development Agreements signed in 2017, InfraCo Asia will focus its efforts on bringing these projects into commercial operation, thereby scaling the impact of PIDG’s unique model of early-stage infrastructure development.

In these efforts InfraCo Asia will foster greater cooperation with other PIDG companies, including InfraCo Africa and GuarantCo, with whom it is now co-located in Singapore.

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