New World Bank Group partnership with Pacific Island countries focuses on jobs and resilience

Asian Development Bank (ADB) President Masato Kanda announced on May 5, 2026 in Samarkand, Uzbekistan, that ADB will mobilize $50 billion by 2035 to help countries build cross-border power grids across the Asia and Pacific region. The initiative aims to lower energy costs, improve reliability, and expand clean energy trade through new financing approaches, policy support, and partnerships, according to a press release by ADB. The announcement was made during a Governors’ Seminar held at ADB’s 59th Annual Meeting. Kanda highlighted ADB’s role in shifting from standalone projects toward integrated regional systems. The effort targets one of the world’s most complex regions in terms of connectivity.

The $50 billion Pan-Asia Power Grid Initiative (PAGI) was launched on May 3 as a regional flagship platform. It is designed to accelerate cross-border electricity trade, integrate renewable energy at scale, and improve power reliability and affordability across Asia and the Pacific. The seminar where Kanda spoke focused on PAGI and its contribution to growth, resilience, and energy security. ADB positioned the initiative as central to building a more connected, resilient, and prosperous region. The platform brings together a broad set of stakeholders under a unified regional framework.

Through PAGI, ADB aims to integrate 20 gigawatts of renewable energy, connect approximately 22,000 circuit kilometers of transmission lines, improve energy access for 200 million people, and create 840,000 jobs by 2035. ADB is using its convening power to bring together governments, regulators, utilities, the private sector, and development partners. The goal is to align policies, phase in investments, and remove regulatory barriers that often delay regional infrastructure. ADB has supported complex, pioneering cross-border projects, including the Bangladesh–India power grid interconnection and a monsoon wind power project in the Lao People’s Democratic Republic. These initiatives have also mobilized private capital through blended finance.

To accelerate power grid interconnection in Southeast Asia, ADB launched the Regional Connectivity Fund with support from Australia, Canada, Germany, the United Kingdom, and the European Union. The fund provides risk reduction and project preparation financing at early stages, helping to attract larger public and private investment.

“The $50 billion Pan-Asia Power Grid Initiative (PAGI) is designed to build the infrastructure needed for a more connected, resilient, and prosperous Asia and Pacific,” Kanda said. He added, “Countries that stay connected attract investment and weather shocks better than those that turn inward. Connectivity is the answer to fragmentation.”

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. It works with members and partners to solve complex challenges, using innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the planet. Founded in 1966, ADB is owned by 69 members, 50 of which are from the region. The initiative announced in Samarkand underscores ADB’s move toward integrated regional systems for energy security. It reinforces the bank’s long-term commitment to cross-border cooperation across Asia and the Pacific.