DCD WKP(2014)2 ADD PROV.pdf
EFIC has several reinsurance agreements, including for infrastructure projects, with other export credit
agencies globally, including the EXIM Banks of the US and China as well as Japan’s Nippon Export and Investment
Insurance. Furthermore, it also has co-operation agreements with multilateral agencies such as the AsDB, the
Multilateral Investment Guarantee Agency (MIGA) of the World Bank and the African Trade Insurance Agency
A notable example of Australia’s support to the enabling environment is its technical assistance to national
and sub-national governments in Indonesia through the “Indonesia Infrastructure Initiative” to enable them to address
obstacles to private investment in infrastructure, particularly in the water and sanitation sector. Australia also
channels the funding for this initiative through the Indonesia Infrastructure Support Trust Fund (IISTF), a World
Bank-managed Trust Fund and the AsDB Trust Fund. In early 2013, Australia pledged AUD 3 million towards
establishing a PPP centre in Indonesia, in order to assist the Ministry of Finance to build capacity in designing and
managing PPPs. This PPP centre, if successful, could be the first of various PPP centres financed by Australia
throughout the region.
Project Preparation Facilities
The G20 has identified the need to increase resources for project preparation—including Project
Preparation Facilities (PPFs)—in order to enhance private investment for infrastructure. Australia supports the
African Water Facility (AWF), hosted by the African Development Bank. Following the Infrastructure Consortium of
Africa (ICA)’s study on PPFs in Africa, Australia is committed to explore the effectiveness of PPFs in Asia in
promoting long-term investment for infrastructure during its presidency of the G20 in 2014, with a view to identify
appropriate G20 actions to increase infrastructure investment in low income countries.
AusAID’s 2011 infrastructure policy states Australia’s commitment to support green infrastructure—in
particular renewable energy—in its development co-operation. However, as Australia does not directly support the
private sector to participate in developing country infrastructure in its development co-operation programme, there is
no explicit policy on how to support the private sector in renewable energy projects.
As DFAT does not directly provide support to the private sector for participation in infrastructure, there are
no relevant evaluations. However, EFIC screens all transactions to determine their potential for environmental and
social impact. Project Finance transactions are also reviewed against the Equator Principles, an association of which
EFIC is a member.
AusAID, Annual Reports for 2011 and 2012.
AusAID, Infrastructure Strategy 2011.
OECD, Development Co-operation Peer Review Australia 2013.
Opinion, The Australian, 26 November 2013.