1) FACT SHEET: President Biden/G7 Leaders Formally Launch Partnership for Global Infrastructure and Investment
At the G7 Leaders’ Summit in Schloss Elmau, Leaders will formally launch the Partnership for Global Infrastructure (PGII) to mobilize hundreds of billions of dollars and deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world, strengthens and diversifies our supply chains, creates new opportunities for American workers and businesses, and advances our national security.
Today, President Biden will announce that the U.S. aims to mobilize $200 billion for PGII over the next 5 years through grants, Federal financing, and leveraging private sector investments. Together with G7 partners, we aim to mobilize $600 billion by 2027 in global infrastructure investments. And this will only be the beginning. The United States and its G7 partners will seek to mobilize additional capital from other like-minded partners, multilateral development banks, development finance institutions, sovereign wealth funds, and more.
President Biden will release a Presidential Memorandum to execute the PGII across four priority pillars that will define the second half of the 21st century . . . :
Tackling the climate crisis and bolstering global energy security through investments in climate resilient infrastructure, transformational energy technologies, and developing clean energy supply chains across the full integrated lifecycle, from the responsible mining of metals and critical minerals; to low-emissions transportation and hard infrastructure; to investing in new global refining, processing, and battery manufacturing sites; to deploying proven, as well as innovative, scalable technologies in places that do not yet have access to clean energy.
Developing, expanding, and deploying secure information and communications technology (ICT) networks and infrastructure to power economic growth and facilitate open digital societies—from working with trusted vendors to provide 5G and 6G digital connectivity, to supporting access to platforms and services that depend upon an open, interoperable, secure, and reliable internet and mobile networks with sound cybersecurity.
Advancing gender equality and equity—from care infrastructure that increases opportunities for economic participation by women, to improved water and sanitation infrastructure that addresses gender gaps in unpaid work and time use – in order to boost the global economic recovery by ensuring that half the population is not forced to sit on the sidelines.
Developing and upgrading the infrastructure of health systems and contributing to global health security through investments in patient-centered health services and the health workforce; vaccine and other essential medical product manufacturing; and disease surveillance and early warning systems, including safe and secure labs. Addressing the current pandemic and preventing and preparing for the next one is crucial to U.S. economic and national security.
President Biden will announce flagship projects of PGII, along with additional projects that have been undertaken over the past year. PGII will demonstrate how millions of dollars can mobilize tens or hundreds of millions in further investments and tens or hundreds of millions can mobilize billions.
With support from the U.S. Department of Commerce and the Export-Import Bank of the United States (EXIM), U.S. firm AfricaGlobal Schaffer (Washington, DC), in collaboration with U.S. project developer Sun Africa (Miami, FL), signed a contract with the Government of Angola to develop a $2 billion solar project in four southern Angola provinces. . . .
In collaboration with G7 members as well as the European Union and multilateral organizations, the U.S. International Development Finance Corporation (DFC) is disbursing a $3.3 million technical assistance grant to Institut Pasteur de Dakar (IPD) for early-stage project development for an industrial-scale flexible multi-vaccine manufacturing facility in Senegal with potential annual capacity of millions of doses of COVID-19 and other vaccines, potentially using both viral vector and mRNA technologies. . . .
U.S. telecommunications company SubCom (Eatontown, NJ), awarded a $600 million contract, to build the Southeast Asia–Middle East–Western Europe 6 submarine telecommunications cable that will connect Singapore to France through Egypt and the Horn of Africa. . . .
The U.S. Government with U.S. firm NuScale Power LLC (Tigard, OR) will provide $14 million in support for the Front-End Engineering and Design study for Romania’s deployment of a first-of-its-kind small modular reactor (SMR) plant. . . . [
https://www.state.gov/united-states-takes-next-step-in-supporting-innovative-clean-nuclear-technology-in-europe/]
The U.S. Agency for International Development (USAID) will aim to commit up to $50 million over five years to the World Bank’s new global Childcare Incentive Fund – $200 million public-private partnership to address the gap in suitable childcare infrastructure; boost women’s employment opportunities, productivity and income, and broader economic growth; and promote human capital and early learning for children. . . .
DFC will invest up to $25 million in the Uhuru Growth Fund I-A, which will provide needed growth capital to small-and medium-sized enterprises in West Africa – including women-led businesses. . . .
The Digital Invest program will leverage $3.45 million in State and USAID funding to mobilize up to $335 million in investment capital for internet service providers and financial technology companies in Africa, Asia, and Latin America that use secure network equipment and advance competition and choice in emerging markets. . . .
USAID will invest $40 million in the Southeast Asia’s Smart Power Program to decarbonize and strengthen the region’s power system . . . .
DFC will invest up to $30 million in Omnivore Agritech and Climate Sustainability Fund 3, an impact venture capital fund that invests in entrepreneurs building the future of agriculture, food systems, climate, and the rural economy in India. . . .
ABD group (Philadelphia, PA), a project development company, was awarded a $320 million healthcare infrastructure project to renovate or construct over 100 hospitals and clinics across Côte d’Ivoire and has already begun work on 10 locations. . . .
https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/26/fact-sheet-president-biden-and-g7-leaders-formally-launch-the-partnership-for-global-infrastructure-and-investment/
2) Memorandum on the Partnership for Global Infrastructure and Investment
Section 1. Policy. Infrastructure is critical to driving a society’s productivity and prosperity. When done well, infrastructure connects workers to good jobs; allows businesses to grow and thrive; facilitates the delivery of vital services; creates opportunities for all segments of society, including underserved communities; moves goods to markets; enables rapid information-sharing and communication; protects societies from the effects of climate change and public health crises or other emergencies; and supports global connection among nations. . . .
It is therefore the policy of the United States to catalyze international infrastructure financing and development through the PGII, which is designed to offer low- and middle-income countries a comprehensive, transparent, values-driven financing choice for infrastructure development to advance climate and energy security, digital connectivity, health and health security, and gender equality and equity priorities. The PGII will mobilize public and private resources to meet key infrastructure needs, while enhancing American competitiveness in international infrastructure development and creating good jobs at home and abroad. In this effort, the United States is working in close partnership with G7 and other like-minded partners toward infrastructure financing and infrastructure development that are sustainable, clean, resilient, inclusive, and transparent, and that adhere to high standards.
Sec. 2. Approach. In order to meet the enormous infrastructure needs in the developing world, a new approach to international infrastructure development that emphasizes high-standards investment is needed. To meet this challenge and seize this opportunity, the PGII should:
(a) partner with low- and middle-income countries to finance infrastructure across key sectors that advances the four key priorities critical to sustainable, inclusive growth: climate and energy security, digital connectivity, health and health security, and gender equality and equity;
(b) promote the execution of projects in a timely fashion in consultation and partnership with host countries and local stakeholders to meet their priority needs and opportunities, balancing both short- and longer-term priorities;
(c) pursue the dual goals of advancing prosperity and surmounting global challenges, including the climate crisis, through the development of clean, climate-resilient infrastructure that drives job creation, accelerates clean energy innovation, and supports inclusive economic recovery;
(d) support the policy and institutional reforms that are key to creating the conditions and capacity for sound projects and lasting results and to attracting private financing;
(e) boost the competitiveness of the United States by supporting businesses, including small- and medium-sized enterprises in overseas infrastructure and technology development, thereby creating jobs and economic growth here at home;
(f) advance transparency, accountability, and performance metrics to allow assessment of whether investments and projects deliver results and are responsive to country needs, are financially sound, and meet a high standard;
(g) mobilize private capital from both the United States private sector and the private sector in partner countries;
(h) build upon relationships with international financial institutions, including the multilateral development banks (MDBs), to mobilize capital;
(i) focus on projects that can attract complementary private-sector financing and catalyze additional market activity to multiply the positive impact on economies and communities;
(j) coordinate sources of bilateral and multilateral development finance to maximize the ability to meet infrastructure needs and facilitate the implementation of high standards for infrastructure investment;
(k) uphold high standards for infrastructure investments and procurement, which safeguard against bribery and other forms of corruption, better address climate risks and risks of environmental degradation, promote skills transfer, generate good jobs, mitigate risks to vulnerable populations, and promote long-term economic and social benefits for economies and communities; and
(l) align G7 and other like-minded partners to coordinate our respective approaches, investment criteria, expertise, and resources on infrastructure to advance a common vision and better meet the needs of low- and middle-income countries and regions. . . .
https://www.whitehouse.gov/briefing-room/presidential-actions/2022/06/26/memorandum-on-the-partnership-for-global-infrastructure-and-investment/
3) Remarks by President Biden at Launch of the Partnership for Global Infrastructure and Investment
https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/06/26/remarks-by-president-biden-at-launch-of-the-partnership-for-global-infrastructure-and-investment/
4) Statement by Secretary Yellen on President Biden’s Announcement of the PGII
https://home.treasury.gov/news/press-releases/jy0835
5) Millenium Challenge Corporation State of Support for PGII
https://www.mcc.gov/news-and-events/release/pressstmt-062622-mcc-supports-pgii