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
Cumulative Trust Funds Contribution
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
- ASEAN Australia Smart Cities Trust Fund under the Urban Financing Partnership Facility
- Asia Pacific Project Preparation Facility
- Australian Climate Finance Partnership
- Australian Technical Assistance Grant
- Carbon Capture and Storage Fund under the Clean Energy Financing Partnership Facility
- Clean Energy Fund under the Clean Energy Financing Partnership Facility
- Cooperation Fund for Regional Trade and Financial Security Initiative
- Gender and Development Cooperation Fund
- Multi-Donor Trust Fund under the Water Financing Partnership Facility
- Regional Malaria and Other Communicable Disease Threats Trust Fund under the Health Financing Partnership Facility
1 January 2014–31 December 2020 Cofinanced Projects
a G = official grant cofinancing, TA = technical assistance cofinancing