AEPW attracts co-investor in Indonesia plastics diversion effort

The Beijing-based Asian Infrastructure Investment Bank (AIIB) and the Singapore-based Alliance to End Plastic Waste (AEPW) say they have launched a cofinancing initiative “focused on integrated solid waste management services and solutions” in more than 10 cities and districts in Indonesia.

A signing ceremony for a letter of intent was held in Samarkand, Uzbekistan, to solidify a collaborative effort AIIB says “will enable AEPW to contribute concessional resources into the solid waste management for sustainable urban development project in Indonesia via AIIB’s project-specific window.” AIIB calls AEPW its “inaugural private partner through this specific window.”

“This is a vital step in our shared ambition to forge an impactful partnership during a critical juncture for sustainable development,” says Rajat Misra, an AIIB acting vice president for investment. “This partnership will strengthen institutional capacity for solid waste management at both the national and subnational levels,” he adds.

AEPW’s investment of $21.5 million “complements the blended finance project financing package in Indonesia, accelerating the shift toward a circular economy that tackles the challenges of mismanaged waste, particularly plastic waste,” states AIIB.

The newly announced funding package includes AIIB’s planned financing of $150 million over the course of the next five years.

The announced cofinancing “may be complemented with further concessional resources [and] is in addition to the $2 million project preparation grant from AEPW, and facilitated by AIIB, for best practices on climate, environmental and social standards for developing circular and end-to-end waste management solutions,” states the development bank.

Through the project, AIIB says it will strive to provide solid waste management services that are “climate-aligned,” including recycling-related circular economy principles that can help serve some 9 million Indonesians.

This project will focus on waste management infrastructure, building the capacity of regional organizations and companies and “catalyzing community change behavior while addressing livelihood concerns faced by informal sector workers,” according to AIIB.

“In a circular economy, products and materials are kept in use for as long as possible through ‘reuse, reduce and recycle’ strategies,” adds AIIB.

The Asian Infrastructure Investment Bank describes itself as a $100 billion development bank with a mission to finance infrastructure in Asia and beyond, including projects that are “green, technology-enabled and promote regional connectivity.”

The Alliance to End Plastic Waste describes itself as a global not-for-profit organization with a mission “to end plastic waste in the environment and to advance a circular economy for plastics.”