JICA contributes to the promotion of the Japanese government’s vision of high-quality infrastructure partnerships through its investment in the Asian Infrastructure Partnership Trust Fund (LEAP) (Note 1), a trust fund managed by the Asian Development Bank (ADB). Utilizing LEAP, ADB has recently signed a loan agreement totaling US$44.2 million with a special purpose company established by the sponsors, Alba Group Asia Limited (AGA) (Note 2) and PT Dhara Daya Sustainea (DDS) (Note 3). Of this amount, US$22.1 million will be provided through LEAP.
This project is a long-term financing for a polyethylene terephthalate (PET) recycling project in Central Java, Republic of Indonesia, which is certified under international guidelines as a Blue Loan (Note 4). The project is expected to be fully operational by 2025, and is expected to recycle 48,000 tons per year. The project is expected not only to reduce ocean emissions of plastic waste, but also to contribute to the fight against climate change by reducing greenhouse gas emissions through the recycling of plastics.
Indonesia is the world’s second largest emitter of plastic litter into the ocean, and has set a goal to reduce this emission by 70% by 2025 and to bring it close to zero by 2040. This project aims to reduce plastic litter, which is a global problem, and will contribute to SDGs (Sustainable Development Goals) Goal 13 (take concrete measures against climate change), 14 (protect the ocean’s richness), and 17 (achieve the goals through partnership).
(Note 1) LEAP (Leading Asia’s Private Infrastructure Fund) is a trust fund of ADB mentioned in the follow-up measures of the “High Quality Infrastructure Partnership” announced by the Japanese government on November 21, 2015. The fund is a trust fund of the ADB. JICA has agreed to invest US$1.5 billion in LEAP in March 2016. LEAP supports a wide range of high-quality, sustainable private sector infrastructure projects in ADB member countries in the Asia-Pacific region, including greenhouse gas reduction, energy conservation, and affordable health services.
(Note 2) The company is the Asian subsidiary of the Alba Group, a German waste management company established in 1968. The group owns more than 250 plant facilities in Europe and Asia.
(Note 3) The company is an Indonesian local plastics recycler.
(Note 4) Blue Loans are loans provided to projects that contribute to marine environmental protection, etc. They are certified in accordance with the Green Loan Principles and the Blue Natural Capital Financing Facility’s guidelines for Blue Bonds.
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