The United States and partners to invest $25 billion in Indo-Pacific infrastructure

This week, United States Commerce Secretary Gina Raimondo led a delegation to Singapore to participate in the “Indo-Pacific Economic Framework” (IPEF) Ministerial Meeting and the “2024 Indo-Pacific Economic Framework Clean Economy Investor Forum” (IPEF Clean Economy Investor Forum 2024).

On Thursday, Raimondo delivered a keynote speech at the forum, announcing a $25 billion investment opportunity for sustainable infrastructure projects in the region.

She mentioned that the alliance formed by U.S.-based multinational private equity firm KKR (Kohlberg Kravis Roberts), independent infrastructure fund management company Global Infrastructure Partners (GIP), and the newly established non-profit organization Indo-Pacific Partnership for Prosperity will invest $25 billion in infrastructure in the Indo-Pacific region. These investments will include green data centers in Indonesia, renewable energy in the Philippines, and smart meters and hybrid renewable energy in India.

In a joint statement, these three organizations stated, “The alliance members of the (Indo-Pacific Economic Framework) will help identify, promote, and develop successful infrastructure projects across the region.” The alliance will initially focus on scaling up infrastructure investments in energy, transportation, water and waste management, and digital fields.

Participants in the alliance also include Singapore’s sovereign wealth fund GIC, charity investment organization Allied Climate Partners (ACP), BlackRock, The Rockefeller Foundation, and Singapore-based global investment company Temasek.

Raimondo noted that the Indo-Pacific Economic Framework has identified over $23 billion in investment opportunities.

The Singapore Ministry of Trade and Industry, which organized the forum, announced on Thursday that 69 investment opportunities for “sustainable infrastructure” projects were identified at the IPEF Investment Forum. “Among them, 20 investment projects worth approximately $6 billion are ready for investment and have been showcased to investors; the remaining projects valued at around $17 billion have been identified as potential future investment opportunities.”

This initiative aims to promote sustainable growth, encourage environmentally friendly investments, and foster economic development in the Indo-Pacific region through collaboration between public and private sectors. The Indo-Pacific region is seen as a key area for economic cooperation and investment opportunities, driving forward cleaner and more sustainable economies.