The International Finance Corporation (IFC), a member of US-based World Bank Group, recently agreed to launch a multifaceted project in partnership with the Japan International Cooperation Agency (JICA), a development institution of the Japanese government. The program is slated to direct USD 1.5 billion by 2022 to “high-impact private sector projects” that “modernize infrastructure and expand access to basic services for under-served communities in emerging markets.” The first of these ventures will be the construction of a power generation station in Bangladesh with a capacity of 414 megawatts.
While the focus of the program is on “renewable energy, energy efficiency, water, and transportation… [it] will also help provide financing for corporations working in sectors essential for economic growth and development, such as infrastructure, microfinance, finance for small and medium enterprises, agribusiness and healthcare.”
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2016, IFC has 184 member countries and total assets of USD 90.4 billion.
Established in 2002, JICA coordinates international development for Japan’s government. As of 2016, JICA has total assets of JPY 252 billion (USD 2.26 billion) and has undertaken projects in approximately 150 developing countries. More recent financial information on JICA is not available.
By Jacob O’Driscoll, Research Associate
Sources and Additional Information
Signing of Cooperation Memorandum with the International Finance Corporation: Promoting co-financing for the private sector in developing countries
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