On July 23, 2021, the Chinese International Contractors’ Association (CHINCA) and Asian Infrastructure Investment Bank (AIIB) jointly organized the “Forum on Financing Partnership for Green Infrastructure Transition”, as a part of the 12th International Infrastructure Investment and Construction Forum (IIICF) in Macao SAR, China. The Sino-German Center for Sustainable Development (CSD) was invited to share a German perspective and GIZ’s experience.
Climate change and environmental degradation areexistential threats to the world. The need for transition to green and low carbon economies has put forward tremendous challenges and opportunities for infrastructure investment for it not only impacts on the transformation of energy structure, transportation modalities, industry mix, technology innovation and other socio-economic development areas but also nurtures new industries and markets.
Financing partnership is considered crucial for infrastructure projects that support green transition. The forum provided a platform for the discussion on financing partnership by engaging with various stakeholders and modalities.
During the opening speeches, Sir Danny Alexander, Vice President and Secretary-General of AIIB, and the Chairman of CHINCA, Mr. Fang Qiuchen, emphasized the urgency of green infrastructure transformation and the importance of multi-stakeholder approaches for realizing it. Mr. Hagen Ettner, the German Director of the CSD, introduced the three main ways by which GIZ is contributing to green infrastructure transition and financing partnerships through bilateral, regional, and global projects in all infrastructure subsectors.
Firstly, GIZ provides technical support to partner initiatives. One example is the Programme for Infrastructure Development in Africa (PIDA) which GIZ is implementing on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). It supports the infrastructure departments of the African Union Commission and the African Union Development Agency to develop infrastructure initiatives including the Integrated Infrastructure Corridor, select Africa’s priority regional infrastructure projects, provide project preparation and delivery services, and facilitate private sector engagement.
Secondly, GIZ helps integrate technical and financial cooperation in infrastructure projects. In the project German-Indonesian Climate Initiative, for example, the German Development Bank KfW provides low-interest and promotional loans up to 2.5 billion Euros for infrastructure projects while GIZ provides complementary advisory services, identifies potential infrastructure projects, and prepares preliminary assessment. This integration of financial cooperation implemented through KfW and technical cooperation implemented through GIZ can lead to better development results while lowering risks for financing partners.
Furthermore, in the framework of the Sino-German Center for Sustainable Development, GIZ cooperates with CHINCA and its member companies on triangular infrastructure projects to facilitate sustainable development and realize the Sustainable Development Goals (SDG) in developing countries. GIZ and CHINCA co-identify, co-finance and co-implement projects together with CHINCA’s member companies and stakeholders in third countries. The combination of Chinese enterprises’ contribution and German technical cooperation can add value for all parties involved.
The 12th IIICF “Join Hands for New Development of International Infrastructure Cooperation” was jointly hosted by CHINCA and the Macao Trade and Investment Promotion Institute on July 22-23 in Macao SAR, China. The IIICF 2021 included a total of 31 conferences and special events and was attended by around 1,300 guests from 71 countries and regions.