A $750 million infrastructure investment fund targeting cleaner energy and industrial transformation projects across Southeast and South Asia has become the first initiative supported under a new financing partnership between Japan and the World Bank Group.
The investment marks the first project under the Dynamic Response for Invigorating Value Chains and Energy Security (DRIVE) framework, established in June 2026 to strengthen energy security, supply chain resilience and private sector investment across Asia.
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will invest up to $50 million in the Emerging Asia Infrastructure Credit Fund alongside the Japan International Cooperation Agency (JICA).
The fund, managed by Global Infrastructure Partners, part of BlackRock, is targeting $750 million to finance private companies investing in cleaner technologies, energy efficiency and industrial transformation.
Investment targets energy and industrial infrastructure
The Emerging Asia Infrastructure Credit Fund was established under a Singapore government initiative to support the region’s transition towards cleaner energy.
Its investment strategy focuses on financing projects that reduce carbon emissions, improve energy efficiency and support the modernisation of industrial operations.
The fund will provide financing to private companies developing and implementing projects across Southeast and South Asia.
The initiative is intended to address financing requirements associated with upgrading energy infrastructure and introducing lower-carbon technologies into industrial operations.
The IFC’s commitment of up to $50 million, alongside JICA’s participation, is designed to help attract additional private investment into the fund.
The World Bank Group said the financing approach would support projects that diversify energy sources, strengthen energy security and reduce exposure to supply chain disruptions.
The announcement did not identify individual infrastructure projects that will receive financing or specify when the fund expects to reach its $750 million target.
DRIVE framework supports $10bn Japanese initiative
The DRIVE framework was launched in June 2026 by World Bank Group President Ajay Banga and Japan’s Minister of Finance, Katayama Satsuki.
It complements Japan’s $10 billion Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), which aims to strengthen the resilience of energy systems and supply chains across the region.
DRIVE combines World Bank Group financing and technical expertise with Japanese development finance capabilities.
The framework is intended to help countries respond to disruptions in energy and supply chains while reducing their vulnerability to future economic shocks.
Katayama said the first investment represented progress in implementing the partnership.
“Strengthening resilience of Asia’s energy supply chains is essential,” she said.
“Japan is advancing POWERR Asia, including through DRIVE, and I welcome the first joint project under DRIVE.”
She added that Japan would continue working with the World Bank Group to strengthen energy and economic resilience across Asia.
Private capital mobilisation central to financing approach
A principal objective of the partnership is to increase the availability of private financing for infrastructure and industrial development projects.
The World Bank Group and Japan intend to use public and private investment, risk-sharing instruments and technical assistance to support projects that may otherwise face financing barriers.
The first DRIVE investment demonstrates this approach through participation in a privately managed infrastructure credit fund.
Rather than directly financing an individual power generation or industrial facility, the initiative will provide capital through an investment vehicle supporting multiple private sector projects.
Ajay Banga said the partnership was intended to connect energy security with economic development and employment.
“Reliable, affordable energy powers businesses, creates jobs, and helps economies withstand shocks,” he said.
“This first project puts our partnership with Japan to work—bringing in private capital to strengthen energy security and help industries grow across Asia.”
Further infrastructure investments planned
Following the initial investment, the World Bank Group and Japan will pursue additional opportunities under the DRIVE framework and POWERR Asia initiative.
Future cooperation will involve Japanese development finance institutions, including JICA and the Japan Bank for International Cooperation (JBIC).
The partners plan to combine financing, risk-sharing mechanisms and technical expertise to support investment in energy systems, industrial infrastructure and supply chain resilience.
The approach is intended to develop a broader pipeline of projects capable of attracting commercial investment while supporting long-term economic growth.
Although the first investment has been announced, the institutions have not disclosed a timetable or funding allocations for subsequent DRIVE projects.
The Emerging Asia Infrastructure Credit Fund will serve as the initial financing vehicle under the partnership, with its targeted $750 million capital base intended to support multiple cleaner energy and industrial transformation investments across the region.
