Policy paper

G7 Foreign and Development Ministers’ Meeting, December 2021: infrastructure and investment projects

Published 12 December 2021

G7 Infrastructure Investment Projects

The G7 is supporting a wide range of programmes and initiatives which have made a demonstrable impact in improving the quality and quantity of infrastructure in developing countries. The projects in this document illustrate the type of activity that G7 members, working with our allies and partners, are already undertaking in line with the principles of the G7 Partnership for Infrastructure and Investment (PII). Collectively we have invested substantial resources – in 2019 and 2020 combined, G7 members provided over US$265 billion in official development assistance, including for infrastructure. G7 members also provide substantial amounts of additional finance for infrastructure in developing countries through Multilateral Development Banks (MDBs) and their development finance institutions. We will look to build on the programmes and initiatives below to help us deliver the step change sought in the Leaders’ Statement of 3 December.

UK

Toolkit: British International Investment

Example project	Details
UK Dubai Port (DP) World BII	UK Dubai Port (DP) World BII recently agreed a US$1.7 billion joint venture platform with commercial Dubai entity DP World, a global developer and operator in supply chain solutions, to expand in ports and logistics hubs across Africa. This partnership aims to increase access to vital goods for 35 million people and add US$51 billion to total trade by 2035. Initial investment is to develop ports in Egypt, Senegal and the Berbera corridor in Somaliland.
Globeleq	Globeleq BII is a majority shareholder of Globeleq, Africa’s largest independent power producer. Globeleq develops, owns and operates power plants in 7 countries across the continent. Collectively it generates the equivalent to 8% of Africa’s total electricity. Globeleq recently announced it will be a major partner in delivering a range of new wind and solar power projects in South Africa to support its transition to net zero, totalling 1,274 MW of generation capacity.

USA

Toolkit: Build Back Better World (B3W)

Example project	Details
Transaction Advisory Fund	The Transaction Advisory Fund (TAF) aims to advance sustainable, transparent, high quality infrastructure development in Asia. The fund provides transaction advisory services, using best-in-class consultants, engineers, accountants, and lawyers to support partner governments as they implement public infrastructure projects. Illustrative examples of TAF services include pre-feasibility and feasibility reports, due diligence assistance, debt sustainability and alternatives analyses, environmental and social impact analyses, and legal services. TAF assistance can help boost partner countries’ capacities to evaluate the financial and environmental implications of potential infrastructure projects.
Prosper Africa	Prosper Africa is a U.S. government trade and investment initiative that seeks to promote U.S. trade and investment with Africa. Prosper Africa coordinates the work of 17 U.S. government agencies that provide tools that facilitate transactions. It seeks to mobilize billions of dollars in private investment in African infrastructure, including through partnerships with U.S. pension funds. In addition, it provides support to firms to be eligible for U.S. government financing, such as through Development Finance Corporation, and for private investment and promotes projects through its Virtual Deal Room.

Canada

Example project	Details
Canadian Climate Fund for the Private Sector in Asia	The two-phased Canadian Climate Fund for the Private Sector in Asia (CFPS-I and II) aims at catalyzing private sector and gender responsive climate investments across Asia and the Pacific, with a view to helping countries reduce their carbon footprint and increase climate resilience. It provides loans with concessionary terms and technical assistance. The two funds focus on increasing renewable energy and energy efficiency; supporting urban infrastructure and sustainable transportation; and enabling climate-smart projects in other sectors, such as infrastructure, agriculture, forestry and other land use (supported by CFPS-II). The CFPS-I and II are expected to help reduce or avoid greenhouse gas emissions by up to 750,000 tonnes per annum and 18 million tonnes, respectively, over the life of the two funds.
Investing in Inclusive Infrastructure with GuarantCo	GuarantCo provides affordable and sustainable infrastructure credit solutions in low-income countries and fragile states across Africa and Asia. It funds essential infrastructure, develops local capital markets and helps economies grow by mobilising additional capital towards the Sustainable Development Goals (SDGs) aiming to reduce poverty. It applies a gender inclusion lens to its infrastructure investments and operations. The project received CAD$40 million from Global Affairs Canada and since 2005 GuarantCo has closed 57 transactions in 22 countries, enabled US$5.8 billion of investments, created 234,000 jobs and provided 45 million people with improved access to infrastructure.

EU

Toolkit: Global Gateway

Example project	Details
Digital4Devlopment Hub	This is a multi-stakeholder platform that promotes new international partnerships on digital transformation between the EU and its Member States and partner countries in Africa, Asia, Latin America, the Caribbean and EU Eastern Neighbourhood. Its mission is to promote a human-centric approach to digital transformation by facilitating multi-stakeholder dialogues, sharing digital expertise and fostering investments of diverse European and global partners.
Africa-EU Green Energy Initiative	It will contribute to the development and integration of regional energy markets and the implementation of a strong continental Africa Single Electricity Market, which aims at creating the world’s largest electricity market interconnecting all 55 African Union Member States, which would boost green growth. By joining forces with initiatives such as Power Africa, the EU will support renewable energy, energy efficiency, the just transition and the greening of local value chains, including through the development of the renewable hydrogen sector by unlocking business opportunities in both the supply and demand side for energy intensive industries.
Extension of the TransEuropean Transport Network (TEN-T)	In line with the Economic and Investment Plans and Partnerships with its neighbouring regions, the EU enhances sustainable connectivity, by supporting the extension of the Trans-European Transport Network (TENT) and its connection with the EU wide network, advancing the regulatory environment and promoting EU and international standards, including in the area of road safety.

Italy

Example project	Details
ILLUMINA: Access to energy for local development and women’s empowerment	The project aims to improve living conditions and resilience to vulnerable communities in Mozambique, promoting local development and women’s empowerment. The project has increased the availability of and the access to energy services technologies for domestic and commercial use. Moreover, it has built capacities among local stakeholders and providers along the energy supply chain.
Italy-Senegal Agricultural Program (PAIS)	The project aims to improve food security of local populations, reduce rural poverty and support economic growth and rural development in Senegal. The project supports Senegal’s food sovereignty through land reclamation and sustainable and gender responsive food production practices; empowerment of women and young farmers in rice cultivation, horticulture, post-harvest processing and marketing of agricultural products; strengthened the technical skills of beneficiaries and stakeholders; and improved institutional governance in agriculture.
“FAIRE L’ECOLE PLUS” - Quality Education Infrastructure	The overall objective is to support the Government of Senegal in disseminating and promoting high quality, equitable and inclusive education, in line with SDG4 and national policies. It will strengthen Senegal’s inclusive education programmes by improving access to educational services, consolidating the system’s governance capabilities, revitalizing pedagogical support provided to teachers, schools and the educational community.

France

Example project	Details
Great Green Wall Accelerator	The Great Green Wall (GGW) is a flagship rural development programme of the African Union – to combat land degradation and desertification, climate change, biodiversity loss, poverty and food insecurity in the Sahel. The project aims to restore 100 million hectares of degraded land in 11 countries, capture 250 million tonnes of carbon and create 10 million green jobs by 2030. In order to reach these objectives by 2030, France launched a GGW Accelerator at the One Planet Summit in January 2021 in Paris. The GGW Accelerator structured approach is based on five pillars including in particular “Climate resilient infrastructures and access to renewable energy” (pillar 3). Up until now, financial commitments of about US $19 billion have been pledged by several donors (World Bank Group, African development Bank, European Commission, European Investment Bank, Green Climate Fund, International Fund for Agricultural Development, Global Environment Facility, Food and Agriculture Organization, French Development Agency) and some projects are already being implemented on the ground,while 48% of the commitments have already been leveraged.
STOA	STOA is the French Investment Fund for Infrastructures in developing countries. Jointly run by Agence française de développement and Caisse des dépôts et consignations, it has a €600 million capital to invest in equity and leverage funds from the private sector for greenfield projects between 10 to 50 M€ each, on the period 2017 to 2040. Half of STOA projects are located in Africa and 75% have a climate co-benefit. So far, STOA has invested €318 million in 13 projects.

Japan

Example project	Details
Japan ASEAN Connectivity Initiative	Japan has been strengthening ASEAN connectivity both in hard and soft infrastructure with a focus on the ongoing ¥2 trillion worth of land, sea, and air corridor connectivity and providing training for 1,000 individuals from 2020 to 2022 for ASEAN countries.
Mass Rapid Transport System Project in Delhi	Mass Rapid Transport System Project in Delhi aims to promote the modal shift and reduce CO2 emissions (total reduction of 22 million tonnes is expected between 2002 and 2032) by utilizing Japanese company’s energy saving technology, “Regenerative Braking System”. In addition, in order to improve safety and resilience in construction works, Japanese safety standards such as ensuring wearing helmets and safety shoes have been introduced at construction sites.

Germany

Example project	Details
InsuResilience Global Partnership (IGP)	The InsuResilience Global Partnership works to protect 500 million poor and vulnerable people annually against climate and disaster shocks by 2025 (Vision 2025). Founded by the G7 in Elmau in 2015, the IGP is an inclusive, multi-stakeholder platform that promotes the use and scale-up of prearranged Climate and Disaster Risk Finance and Insurance (CDRFI) solutions. This enables vulnerable countries to respond faster, reliably and cost-effectively to a disaster, and be better prepared for climate and disaster risks. IGP currently comprises around 110 members including countries, private sector companies, civil society organizations, academia and implementing partners whose work is being implemented in over 100 countries through 28 programs. Its governing body, the High Level Consultative Group has adopted wide-ranging initiatives on SMART Premium and Capital Support Principles as well as Gender-smart approaches to Climate and Disaster Risk.
Local Vaccine Production in Africa	The Vaccine Manufacturing Working Group (VMWG), established this year and co-chaired by Germany and South Africa, has supported the COVAX Manufacturing and Supply Chain Taskforce, established within ACT-A. The VMWG’s primary objective has been to support the work on ensuring equitable access to vaccines, particularly for low and middle income countries (LMICs) through increasing global vaccine manufacturing capacity. The VMWG’s workplan covered three areas: (i) improving supply inputs to vaccine manufacturing and increasing supply of vaccines to COVAX; (ii) increasing manufacturing capacity; and (iii) fostering new and expanded sustainable capacity in LMICs. The initiative has raised vaccine manufacturing-related issues in international fora and in multilateral organisations and presented a report with concrete recommendations to the G20.