OPIC, the U.S. Government’s development finance institution, announced on Tuesday that its board of directors has approved nearly $500 million in financing for five new investment funds that could eventually invest more than $1.5 billion in the renewable resources sectors of South and Southeast Asia and Africa.
In India and Southeast Asia, OPIC will provide up to $136 million in financing for projects related to renewable energy generation, recycling, and energy efficiency. The organization has approved $62 million in financing for mature renewable technologies, such as wind and small hydro, primarily India and the Philippines.
Up to $50 million of OPIC funds are committed for the Mekong Renewable Resources Fund, which will invest in renewable resource projects in the Lower Mekong countries of Vietnam, Cambodia and Laos, specifically in the environmental services and infrastructure; renewable energy; and energy efficiency sectors.
Other portions of the committed funds will go to various sustainable energy and agricultural projects in the targeted global regions. The five separate investment funds are being managed respectively by Berkeley Energy, Aloe Private Equity, Indochina Capital Corp., Phatisa, and The Silverlands Fund.
Established in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers, according to the organization. It has supported $200 billion worth of investment in nearly 4000 projects in developing countries and emerging markets.
Last December in Cancun, the U.S. and other developed countries confirmed a commitment to scale up financing for climate change mitigation projects in developing countries.
