Jakarta –
The G7 leaders have plans to mobilize funds of up to US$ 600 billion or equivalent to Rp. 8,880 trillion (assuming an exchange rate of Rp. 14,800) for developing country funding. The move is seen as a counter to China’s financing plans.
The Partnership for Global Infrastructure and Investment (PGII) is relaunching a scheme that was sparked at last year’s G7 talks in the UK.
US President Joe Biden said the plan would benefit everyone. China’s infrastructure financing initiative has been criticized for hitting over-indebted countries.
“I want to be clear. This is not aid or charity,” Biden said of the G7 PGII scheme.
“This is an investment that will provide a return for everyone,” he added.
Under the plan, G7 leaders are required to raise $600 billion over 5 years to fund infrastructure projects in middle and low-income countries.
The US has pledged to raise $200 billion of the total through grants, federal funds and private investment. While the European Union has announced 300 billion euros.
These initiatives will be directed at tackling climate change, improving global health, achieving gender equality, and building digital infrastructure.
Some of the initiatives highlighted include a solar power project in Angola, a vaccine manufacturing facility in Senegal, and a 1,609 km underwater telecommunications cable linking Singapore to France via Egypt and the Horn of Africa.
The plan has been put forward as a way to counter China’s Belt and Road Initiative (BRI). Launched by Chinese President Xi Jinping in 2013, the BRI provides financing for developing countries to build infrastructure such as ports, roads and bridges.
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(acd/the)
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