WB, ADB to provide over $12 bln to green projects in ASEAN

The World Bank has allocated $2.5 billion, while the Asian Development Bank has set aside $10 billion to support green projects in ASEAN, said Malaysian Deputy Prime Minister Datuk Seri Fadillah Yusof.

Speaking at the closing plenary session of the Sustainability and Renewable Energy Forum (SAREF) 4.0 in Kuching, Malaysia on September 4, he said the existing financing support from international banks remains insufficient to complete the ASEAN Power Grid (APG) initiative.

“The challenge is always the financial and business model needed to attract more investors,” he said.

The ASEAN Power Grid initiative is a flagship regional project aimed at enhancing energy security, sustainability, and integration among member states.

The Deputy Prime Minister added that, beyond the multilateral lenders, private sector investors from regions such as the Middle East, Japan, and China have expressed interest in the project.

“This will be the new growth for ASEAN as it brings investment, job opportunities, and business opportunities for the entire region,” he said.

According to him, an enhanced APG agreement will be signed at the ASEAN Energy Ministers Meeting in Kuala Lumpur in October for implementation by 2026.

The current Laos-Thailand-Malaysia-Singapore power integration project serves as a model for the APG, Fadillah said.

However, it is important for member states to harmonize energy standards and business models to facilitate the transfer of electricity from one country to another. The challenge will be how to apply that model to other member states.