Australia

Australia plays a significant role in the economic stability and growth of the Indo-Pacific region and provides more aid to the Pacific island countries than any other donor. The Department of Foreign Affairs and Trade (DFAT) channels funds toward development work in infrastructure; trade facilitation and international competitiveness; agriculture, fisheries, and water; governance (policies, institutions, and functioning economies); education; health; building resilience (humanitarian assistance, disaster risk reduction, and social protection); climate change; and gender equality and empowering women and girls.

At a Glance

Cumulative Project-Specific Cofinancing

$2.1 billion

  

Cumulative Trust Funds Contribution

$266.4 million

  

2020 Project-Specific Cofinancing

  • $1.1 billion

2020 Trust Funds Contribution

  • $106 million

In May 2020, ADB and DFAT signed financing documents to establish the Australian Climate Finance Partnership (ACFP), a concessional financing facility designed to catalyze financing for nonsovereign (private sector) climate adaptation and mitigation projects in eligible countries in the Pacific and Southeast Asia. The ACFP is a stand-alone, ADB-managed, single-donor trust fund supported by the DFAT through grant contributions of A$140 million (around $100 million). The ACFP will seek to scale up low-carbon sectors in selected developing countries in the Indo-Pacific through the targeted use of higher risk-bearing and concessional financing for nonsovereign transactions. It will also seek to promote gender equality and the empowerment of women and girls in projects supported by the fund.

Australia has also been extremely supportive of ADB’s Trade and Supply Chain Finance Program (TSCFP), which comprises the Trade Finance Program (TFP) and the Supply Chain Finance Program, and provided $6.3 million (A$8.5 million) to fund TSCFP expansion to the Pacific and Myanmar as well as other initiatives.

From its inception, ADB’s TFP has supported 939 Australian export and import transactions (through Australian and non-Australian banks) to developing Asia valued at over $855.4 million as of December 2020. Exports and imports were to seven countries, but mostly to Bangladesh, Pakistan, and Viet Nam. Isolating TFP’s work with Australian banks, the TFP works with four banks domiciled in Australia and has provided guarantees supporting $1.8 billion in trade in over 1,541 transactions. It has mobilized $111.6 million in cofinancing with banks domiciled in Australia. This cofinancing helps leverage ADB resources and brings more support for developing members.

Active Trust Funds

1 January 2014–31 December 2020 Cofinanced Projects
Country Project Cofinancing Amount ($ million) Type of Cofinancinga
Cambodia Flood Damage Emergency Reconstruction – Additional Financing 6.7 G
Rural Roads Improvement II 18.5 G
Fiji Supporting Public Financial Management Reform (Supplementary) 0.8 TA
Sustained Private Sector-Led Growth Reform Program - Subprogram 3 0.7 G
Federated States of Micronesia Improving the Quality of Basic Education in the North Pacific 1.8 G
Indonesia Metropolitan Sanitation Management Investment 48.8 G
Strengthening Verification in Results-Based Programs in Indonesia's Power Sector (Supplementary) 0.4 TA
Sustainable Infrastructure Assistance Program – Technical Assistance Cluster Management Facility (Subproject 1) 5.5 TA
Sustainable Infrastructure Assistance Program – IKK Water Supply Sector (Subproject 2) 0.7 TA
Sustainable Infrastructure Assistance Program – Scaling up Hydropower Development (Subproject 3) 2 TA
Sustainable Infrastructure Assistance Program – Green Cities - A Sustainable Urban Future in Indonesia (Subproject 4) 1.1 TA
Sustainable Infrastructure Assistance Program –Strengthening Community Participation in Project Design, Implementation, and Monitoring in Regional Roads Development Projects (Subproject 5) 1 TA
Sustainable Infrastructure Assistance Program – Capacity Development for the Metropolitan Sanitation Management Investment (Subproject 6) 2 TA
Sustainable Infrastructure Assistance Program – Improving Multimodal Connectivity to Support Integrated Land and Sea Tollway (Subproject 7) 1.3 TA
Sustainable Infrastructure Assistance Program – Strengthening Verification in Results-Based Programs in Indonesia's Power Sector (Subproject 8) 0.5 TA
Sustainable Infrastructure Assistance Program – Strengthening Fiscal Risk Management of Accelerated Infrastructure Delivery (Subproject 9) 1 TA
Sustainable Infrastructure Assistance Program – Subproject Strengthening Results-Based Lending Independent Monitoring in Irrigation (Subproject 10) 0.8 TA
Sustainable Infrastructure Assistance Program – Facilitating Regional Cooperation and Integration between Indonesia and Timor-Leste through Enhanced Cross-border Cooperation (Subproject 11) 0.2 TA
Sustainable Infrastructure Assistance Program – Strengthening State Procurement Systems for Faster Infrastructure Delivery (Subproject 12) 0.8 TA
Sustainable Infrastructure Assistance Program – Supporting Sustainable and Universal Electricity Access in Indonesia (Subproject 13) 1.5 TA
Sustainable Infrastructure Assistance Program Phase II – Supporting Sustainable and Universal Electricity Access Phase 2 (Subproject 3) (Supplementary) 0.5 TA
Sustainable Infrastructure Assistance Program – Indonesia Energy Sector Assessment and Priorities 2020–2024 (Subproject 14) 1 TA
Sustainable Infrastructure Assistance Program: Preparation of the Enhanced Water Security Investment (Subproject 15) 1 TA
Sustainable Infrastructure Assistance Program – Municipal Bond Issuance and Infrastructure Finance (Subproject 16) 0.7 TA
Sustainable Infrastructure Assistance Program Phase II - Innovative Infrastructure Financing, Infrastructure Planning, and Program Management Support (Subproject 1) 8 TA
Sustainable Infrastructure Assistance Program Phase II - Supporting Sustainable and Efficient Energy Policies and Investments (Subproject 2) 1.5 TA
Sustainable Infrastructure Assistance Program Phase II - Supporting Sustainable and Universal Electricity Access (Subproject 3) 3.5 TA
COVID-19 Active Response and Expenditure Support Program - Indonesia 1,092.2 L
Sustainable Infrastructure Assistance Program Phase II - Capacity Development of Ministry of Transportation in Project Preparation and Implementation (Subproject 5) 1 TA
Sustainable Infrastructure Assistance Program Phase II - Due Diligence for Road Projects in Kalimantan and Capacity Development (Subproject 6) 1 TA
Sustainable Infrastructure Assistance Program Phase II - Supporting Water Security Investments Facility (Subproject 4) 1.4 TA
Kiribati Strengthening Economic Management Reform Program – Subprogram 1 0.4 G
Strengthening Economic Management Reform Program – Subprogram 2 0.4 G
Republic of the Marshall Islands Ebeye Water Supply and Sanitation 4 G
Ebeye Water Supply and Sanitation (Supplementary) 0.4 TA
Nauru Electricity Supply Security and Sustainability – Additional Financing 4.7 G
Fiscal Sustainability Reform Program 1.9 G
Port Development Project (Supplementary) 2.6 TA
Sustainable and Climate-Resilient Connectivity 14.1 G
Nepal Supporting School Sector Development Plan 9 G
Pakistan National Disaster Risk Management Fund 3.4 G
Papua New Guinea Building Resilience to Climate Change in Papua New Guinea (Additional Financing) 3 G
Microfinance Expansion – Additional Financing 3.1 G
Power Sector Development Investment Program 2.2 TA
Rural Primary Health Services Delivery – Additional Financing 17.7 G
Support for Water and Sanitation Sector Management (Supplementary) 0.7 TA
Sustainable Highlands Highway Investment Program – Tranche 1 11.5 G
Health Services Sector Development Program—Subprogram 1—Additional Financing 38 G
Preparing the Improved Technical and Vocational Education and Training for Employment 0.3 TA
Philippines Strengthening Social Protection Reforms (Supplementary) 1.1 TA
Samoa Fiscal Resilience Improvement Program – Subprogram 1 2.3 G
Samoa Agribusiness Support – Additional Cofinancing 0.8 G
Samoa Submarine Cable 1.5 G
Solomon Islands Improved Fiscal Sustainability Reform Program 1.5 G
Strengthening the Capacity of the Ministry of Infrastructure Development 4.5 TA
Sustainable Transport Infrastructure Improvement Program 23.4 G
Timor Leste Expansion of Financial Services (Supplementary) 0.5 TA
Tonga Building Macroeconomic Resilience – Subprogram 1 3 G
Building Macroeconomic Resilience – Subprogram 2 3.1 G
Nuku’alofa Urban Sector Development 2 G
Outer Island Renewable Energy 1.9 G
Preparing the Intergrated Urban Resilience Sector 0.2 TA
Strengthening Macroeconomic Resilience Program 7.2 G
Tuvalu Institutional Strengthening of the Ministry of Finance and Economic Development – Supplementary 0.2 TA
Strengthened Fiscal Sustainability Program 1.1 G
Improved Fiscal and Infrastructure Management Program 1 G
Vietnam Financial Sector Development and Inclusion Program (Supplementary) 1.1 TA
Northern Mountain Provinces Transport Connectivity 4.5 G
Regional Capacity Development for Expansion of the Trade Finance Program into the Pacific and Enhanced Safeguards and Integrity Measures for Trade Finance Program Banks 3.5 TA
Development Partnership Program for South Asia (Supplementary) 0.5 TA
Enhancing Engagement with Pacific Developing Member Countries, Phase 2 (Supplementary) 0.8 TA
Facilitating Trade for Fragile and Landlocked States in the Post-Bali Institutional Environment 0.3 TA
Mekong Business Initiative 11.3 TA
Mekong Tourism Innovation 0.2 TA
Pacific Economic Management (Phase 2) (Supplementary) 0.3 TA
Pacific Private Sector Development Initiative, Phase III 8.1 TA
Promoting Gender-Inclusive Growth in Central and West Asia Developing Member Countries (Supplementary) 0.02 TA
Sector and Thematic Analyses in Policy Development (Supplementary) 0.2 TA
Strengthening Public Sector Management in the North Pacific 0.6 TA
Strengthening Regional Response to Malaria and Other Communicable Diseases in Asia and the Pacific (Supplementary) 1.3 TA
Support for Implementing the Action Plan for Transport and Trade Facilitation in the Greater Mekong Subregion (Subproject 2) 3.7 TA
Sustainable Infrastructure for Asia and the Pacific 0.3 TA
Aid for Trade for Inclusive Growth - Aid for Trade for Inclusive Growth, 2019-2020 (Subproject 1) 0.1 TA
Subproject 2: Aid for Trade for Inclusive Growth, 2020-2022 0.1 TA
Pacific Private Sector Development Initiative, Phase IV 22.6 TA
Pacific Region Infrastructure Facility Coordination Office - Leveraging Infrastructure for Sustainable Development 4.1 TA
Southeast Asia Agriculture, Natural Resources, and Rural Development Facility – Phase II 0.5 TA

a G = official grant cofinancing, TA = technical assistance cofinancing

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