During the 2023 U.S.-Asia Pacific Economic Cooperation (APEC) Leaders’ Week, the U.S. Trade and Development Agency (USTDA) announced new funding commitments that will deepen business ties between the United States and the APEC and Indo-Pacific regions. These activities span high-quality clean energy, transportation, digital and healthcare infrastructure.
INDO-PACIFIC ECONOMIC FRAMEWORK PROJECT PREPARATION FACILITY
USTDA announced it will lead the U.S. government’s Indo-Pacific Economic Framework (IPEF) Project Preparation Facility, a key component of the PGI IPEF Investment Accelerator. Through the Facility, USTDA will lead the U.S. government’s efforts to deepen IPEF donor country coordination and create novel tools that accelerate project scoping and preparation, with the goal of timely project implementation. USTDA will allocate more than $10 million of its own resources as an initial commitment to the Facility, with the goal of mobilizing hundreds of millions of dollars in capital for IPEF’s emerging economies.
The Facility is an integral part of the new PGI IPEF Investment Accelerator, a one-stop-shop to increase project-specific financing for priority infrastructure in IPEF countries by streamlining project pipeline sharing and pooling resources with IPEF partners, including the private sector and investors. The Facility led by USTDA will be integral to early-stage project preparation work that brings quality, bankable projects into the Accelerator’s pipeline.
The Facility intends to facilitate an ecosystem that leverages the resources and capabilities of Indo-Pacific project developers, the U.S. private sector, financial institutions, and like-minded partners who are committed to a free, open and prosperous Indo-Pacific.
PROJECT PREPARATION COMMITMENTS
USTDA also announced additional commitments that advance U.S. priorities like the Partnership for Global Infrastructure and Investment (PGI) and the Indo-Pacific Economic Framework, among other initiatives.
Indonesia: Supporting Renewable Energy Minigrids: USTDA approved grant funding for a feasibility study to facilitate Indonesia’s deployment of renewable energy minigrids in five remote sites in eastern Indonesia. Working in partnership with national utility PT Perusahaan Listrik Negara (PLN), this Just Energy Transition Partnership (JETP) project will develop a replication strategy for wider minigrid implementation across the region. The assistance will be conducted by Texas-based company TQ Automation, LLC in public-private partnership with the U.S. Department of Energy’s national labs under the Net Zero World initiative.
Powering ASEAN Across Borders: USTDA announced funding for a feasibility study grant to advance two priority cross-border electrical grid interconnection projects between Indonesia and Malaysia. Partnering with PLN, the study aims to develop efficient resource sharing infrastructure to help countries meet their growing national energy demands, enhance their energy security, and implement policies for clean energy and climate protection goals across ASEAN. The project advances JETP goals and the Clean EDGE Asia initiative.
Indonesia: Increasing Rural Digital Connectivity: Partnering with Indonesia’s Ministry of Communication and Informatics (Kominfo), USTDA approved feasibility study funding to further the deployment of open radio access network (Open RAN) technology that will provide digital connectivity for more than 1,600 unserved villages across Indonesia. The study will include a proof-of-concept to inform larger-scale deployment of Open RAN technology in support of Kominfo’s mandate to provide universal access for all Indonesians.
Malaysia: Connecting Fiber Optics Across the Pacific: USTDA signed a grant agreement with Malaysia’s Hexa Capital Consultancy for a feasibility study to develop the Malaysia-U.S. (MYUS) submarine fiber optic cable system. The MYUS cable will add cost-effective digital connectivity capacity by directly linking Indonesia, Malaysia, and the Philippines with the United States.
Thailand: Greening Rail Infrastructure: USTDA approved grant funding for a feasibility study to facilitate efforts by the State Railway of Thailand (SRT) to transition its switcher locomotive fleet to low-emission technologies. By reducing locomotive emissions at major rail stations and transit hubs, the project will advance SRT’s strategy to modernize and expand its railway system while decarbonizing and improving air quality.
Thailand: Planning for the Future of Airports: USTDA approved funding for technical assistance to support the Civil Aviation Authority of Thailand (CAAT) in ensuring that Thailand’s 39 public airports each have an airport master plan (AMP) to further their long-term planning. The assistance will create a model AMP and provide training for CAAT on how to internally approve future airport-specific plans.
USTDA will host the 6th U.S. Indo-Pacific Business Forum (IPBF) in partnership with the U.S. Department of State and the Government of Philippines. IPBF will take place during the week of March 11, 2024, in Manila, Philippines.
IPBF is the premier public-private U.S. government event to promote trade, investment and economic cooperation between the United States and its partners throughout the Indo-Pacific region. The Forum aims to connect U.S. industry to major infrastructure investments and other economic opportunities in the Indo-Pacific region and to share U.S. government tools and programs to support U.S. projects. More details will be provided on USTDA’s website.
For more information on USTDA’s Indo-Pacific portfolio, please visit https://www.ustda.gov/.
The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.
MEDIA INQUIRIES: Paul Marin | (703) 875-4357