Republic of Korea Earmarks $700 Million for Climate and ICT Projects through Cofinancing with ADB

News Release | 4 May 2021

MANILA, PHILIPPINES (4 May 2021) — The Asian Development Bank (ADB) and the Republic of Korea today signed a memorandum of understanding earmarking $700 million in cofinancing from the Republic of Korea for ADB sovereign development projects over the next 3 years.

Deputy Prime Minister, Minister of Economy and Finance, and ADB Governor Hong Nam-Ki signed for the Republic of Korea, while President Masatsugu Asakawa signed for ADB.

“I would like to warmly thank the Republic of Korea for its strong and enduring partnership with ADB,” Mr. Asakawa said. “With the Republic of Korea’s support, we will be able to scale up ADB projects focusing on climate change and information and communication technology, which will be key to support a green, resilient, and inclusive recovery in Asia and the Pacific.”

Half of the earmarked amount—$350 million—will cofinance projects through the Association of Southeast Asian Nations (ASEAN) Catalytic Green Finance Facility (ACGF), established in 2019 by ASEAN governments under the ASEAN Infrastructure Fund and managed by ADB. ACGF projects cofinanced by the Republic of Korea will help governments in Southeast Asia implement infrastructure projects that promote environmental sustainability, including ocean health, and contribute to climate change goals.

In a bilateral discussion before the signing, Mr. Asakawa thanked Mr. Hong for the Republic of Korea’s support of ADB, including for the 13th replenishment of the Asian Development Fund last year. Mr. Asakawa acknowledged continued cooperation through the Republic of Korea e-Asia and Knowledge Partnership Fund (e-Asia Fund), which has supported the application of advanced digital technology lessons from the Republic of Korea’s handling of the coronavirus disease (COVID-19) pandemic in ADB developing member countries.

Mr. Asakawa also appreciated the Republic of Korea’s commitment to host ADB’s Annual Meeting in Incheon in 2023. 

“The Republic of Korea’s hosting of the Annual Meeting in 2023 will be an excellent platform to illustrate what our partnership has achieved and, importantly, to showcase how we will innovate and collaborate in the future, drawing on the powerful demonstration effect of the Republic of Korea’s own celebrated development model,” Mr. Asakawa said.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.