G7 leaders proposed a plan to compete with China's Belt and Road Initiative, including US President Joe Biden and UK Prime Minister Boris Johnson.
Digital Desk: US President Joe Biden and other G7 leaders have announced enterprising plans to raise $600 billion in funding by 2027 to deliver transparent and game-changing infrastructure projects in developing countries such as India, which is also seen as a counterstrike to China's Belt and Road Initiative.
The Partnership for Global Infrastructure and Investment (PGII), announced on Sunday during the G7 Summit, is a relaunch of a scheme announced at last year's G7 meeting in England.
President Biden stated that the plan would benefit everyone. Biden also added, "The G7 nations launched the Partnership for Global Infrastructure and Investment (PGII) today."
Making a buzz on social media platforms, one of his tweets read: "Collectively, we aim to mobilise nearly $600 billion from the G7 by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people."
"To be clear, the G7's announcement of a new global infrastructure partnership does not constitute aid or charity. Instead, it is an investment that will benefit everyone, including the American people, and boost all of our economies, "Biden took to Twitter.
Chinese President Xi Jinping criticised the multi-trillion-dollar Belt and Road Initiative (BRI) for putting many developing countries in debt.
However, the PGII has been hailed as a viable alternative to China's ambitious BRI. President Xi established the BRI in 2013 to finance emerging countries to build infrastructures such as ports, roads, and bridges.
The PGII scheme would allow countries to "see the concrete benefits of partnering with democracies," President Biden said.
The White House said the US would mobilise hundreds of billions of dollars and deliver quality, sustainable infrastructure that makes a difference in people's lives worldwide.
The United States intends to mobilise $200 billion for PGII over the next five years through grants, Federal financing, and leveraging private sector investments.
In addition, G7 partners will seek additional capital from like-minded partners such as multilateral development banks, development finance institutions, sovereign wealth funds, and others.
The US International Development Finance Corporation (DFC) will invest up to $30 million in Omnivore Agritech and Climate Sustainability Fund 3, an impact venture capital fund that invests in entrepreneurs building the future of agriculture, food systems, climate, and the rural economy in India, according to a White House fact sheet.
White House fact sheet also stated that the Fund aims to invest in companies that promote climate resilience and adaptation in India and improve smallholder farms' profitability and agricultural productivity. To reach its target capitalisation of $130 million, the Fund plans a $65 million first close in September 2022 and a final close in 2023.
According to the fact sheet, DFC expects to raise $30 million in private capital through this investment.
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