EDCF Establishes New MDB Collaborative Financing Framework... Discovering ICT and Healthcare Projects

Government to Hold 'Ministerial Meeting on External Economy and External Economic Cooperation Fund Management Committee Meeting' on the 11th
Approval of Projects Including Indonesia Energy Sector Program Loan and Madagascar Power Grid Expansion Project

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[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance plans to promote the entry of new countries with no prior support records from the Economic Development Cooperation Fund (EDCF) through an efficient cooperation framework with Multilateral Development Banks (MDBs). In particular, it is expected to explore multilateral projects with key countries of the New Southern Policy, such as India.

On the 11th, the Ministry of Economy and Finance held the "Ministerial Meeting on External Economic Affairs and the EDCF Management Committee Meeting" and announced the "Plan to Revitalize MDB Cooperation Loans," which includes these details.

The ministry plans to establish a new cooperation loan promotion system and expand the existing framework to build a cooperation base with MDBs. Through the African Development Bank (AfDB) cooperation loan framework, it will support the entry of Korean companies and the Green New Deal. Additionally, it will increase the Inter-American Development Bank (IDB) cooperation loan, which is expected to be exhausted early, by up to 300 million USD to continuously expand cooperation in the Latin American region. Considering the demand by country, it will also promote cooperation with MDBs such as the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), which have no cooperation loan records, and the U.S. Agency for International Development (USAID).

Furthermore, it plans to discover projects that can enhance the scalability of the Green New Deal by utilizing green platforms established by MDBs such as the Asian Development Bank (ADB) and AfDB. It will also expand support for global Green New Deal projects through new contributions to the Climate Change Action Cooperation Fund (CACF).

When providing MDB cooperation loans, the ministry will allow the introduction of new EDCF support systems and diversify cooperation methods. By directly supporting loans to MDBs, it plans to utilize the expertise of the Multilateral Cooperation Bank (MCB) to provide rapid and effective support to multiple countries. Additionally, it will support project funds in front of developing country corporations for private sector-led development cooperation purposes, such as supporting SMEs in developing countries and job creation.

Meanwhile, the government plans to complete the approval of three candidate projects in the first half of this year: the Indonesia energy sector program loan, the Madagascar power grid expansion project, and the Central American Bank for Economic Integration (CABEI) COVID-19 response on-lending loan.

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