The International Finance Corp., the private sector arm of the World Bank, made $3.9 billion in new investment commitments in Asia-Pacific in its fiscal year that ended June 30, to bankroll 120 projects all over the region.
In a statement issued Tuesday, the multilateral lender said investments in Asia rose 11 percent in fiscal year 2011 from the same period a year ago. The bulk of these investments, or $1.7 billion, went to the poorest countries in the region.
IFC’s focus was mainly on sustainable, private sector-led development, to help the region recover from the ill effects of the global financial crisis.
A large chunk of funding went to Vietnam, which got $800 million in fiscal year 2011. This included a $307-million equity and loan investment and advisory package for the partial privatization and service delivery improvement of VietinBank.
IFC also plunked cash into India’s North Delhi Power Ltd. for a grid-tied solar rooftop project and into Sri Lanka’s Senok Group for a wind power project.
In an earlier interview, IFC Philippines country representative Jesse Ang said the financing institution was also keen on investing in local renewable energy projects. However, the delay in the issuance of the feed-in tariff (FIT) rates was a huge deterrent.
He said it was difficult to back projects without being certain of their viability.
From July 1, 2010, to June 30, 2011, IFC said its total investments in Asia-Pacific could support 30,000 jobs and 840,000 farmers, as well as facilitate $21 billion in loans to micro, small, and medium enterprises.
“Our record investment numbers underscore IFC’s strategy of supporting jobs through investments in infrastructure, access to finance for small and medium enterprises, and fighting climate change through clean energy and energy efficiency, as well as investments in socially important sectors such as water and health care,” IFC first vice president for Asia Karin Finkelston said.