KUALA LUMPUR: ASEAN member states will explore suitable financing structures and alternative tools, including Islamic finance solutions, to finance the ASEAN Power Grid (APG) projects as well as sustainable infrastructure development.
In a joint statement here, the 10-member bloc said the financing structures, which offer a broader array of instruments, could more effectively mobilise private sector financing for mega energy grid projects, as well as lay the groundwork for greater private sector participation in sustainable infrastructure development.
“We welcome Malaysia’s efforts to facilitate funding for the APG, which is crucial for enhancing energy security and advancing ASEAN’s low-carbon transition.
“Noting the substantial investment and private capital needed to bring this regional project to fruition, we encourage the participation of multilateral development banks, the private sector, investors, and philanthropists from beyond the region,“ said the joint statement, which wrapped up the 12th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) here, today.
The region-wide initiative, which was introduced in 1997 to connect electricity infrastructure among member states, connects Laos, Thailand, Malaysia, and Singapore, including the Sarawak-Peninsular Malaysia connection via undersea cable.
According to ASEAN secretary-general Dr Kao Kim Hourn yesterday, the APG vision requires an estimated investment of US$764 billion (US$1=RM4.49) for power generation and transmission infrastructure.