Ex-Ante Evaluation
1. Name of the ProjectCountry: Asian Countries
Project: Asia Climate Partners LP(Investment project under the Private Sector Investment Finance)
Signing Date: December 11, 2015
Investee: Asia Climate Partners LP
2. Background and Necessity of the Project
Asian countries have achieved relatively firm economic growth. IMF and UN
agencies forecast that further economic growth, population increase andurbanization are highly expected for Asian countries. 40% of energy demand will
be consisted by non-OECD countries in Asia, and additional 2,559GW capacity
will be required to meet the demand. In 2012, 80% of energy source in non-OECD
Asian countries was comprised of fossil fuel. IAEA forecasts that 50% of CO2
emissions in the world will be from Asian countries by 2030. The region suffersfrom serious natural disasters and deforestation, therefore climate change
adaptation and mitigation are the urgent agenda for the region and it is also
important to achieve low carbon economic growth in the region for the wholeworld.
Japanese government promotes “Strengthening partnership with Asiancountries for climate change” which is saying “mobilizing private financing via
public investment in the climate related area”. Also, in East Asia Low Carbon
Growth Partnership Dialogue under the East Asia Summit in October 2014,
Japanese government mentions importance of effective and concrete measures topromote regional cooperation by sharing the expertise of each country.
In addition, JICA’s participation in Asia Climate Partners LP (“ACP”) is a firstconcrete transaction under the “Partnership for Quality Infrastructure” policy of
the Government of Japan (May 2015), and falls under the policy’s the second
pillar: “Collaboration between Japan and Asia Development Bank (“ADB”)”.
3. Project description(1) Project Objective
The Project targets commercially-oriented private equity investments
across a variety of environmentally supportive, low-carbon transactions
throughout developing Asia, and dedicated to investing in renewable energy,
clean technology, natural resource efficiency, water, agriculture, forestry andother climate-friendly companies and transactions that are structured to1

generate market-driven, risk-adjusted returns and have a positiveenvironmental and social impact. Through the investment, further investment
mobilization from the private sectors into climate financing in developing
countries in Asia will be expected to achieve.
(2) Project Site/Target Area
ADB Developing Member Countries**Exclude the countries where new Japanese ODA Loan operation is noteligible.
(3) Project Component(s)① Equity Investment Amount: [undisclosed]② Project Outline: The Project supports through investing to the fund, whosetargets the companies with a variety of environmentally supportive,
low-carbon transactions throughout developing Asia, and dedicated toinvesting in renewable energy, clean technology, natural resource efficiency,
water, agriculture, forestry and other climate-friendly companies andtransactions that are structured to generate market-driven, risk-adjusted
returns and have a positive environmental and social impact.
③ General Partner: Asia Climate Partners General Partner Ltd (JointVenture between ADB, ORIX Corporation and Robeco Group)④ Estimated Fund size : [undisclosed](4) Schedule
End in May 2026 (Investment Period: November 2014 ~ May 2021,Divestment Period: May 2021 ~ May 2026. Twice options for extension, )(5) Environmental
andSocial
Consideration/Poverty
Reduction/Social
Development① Environmental and Social Considerationa) Category: FIb) Reason for Categorization: This project is designed to provide financing tofinancial intermediaries. Sub-Projects cannot be specified prior to JICA'sapproval for financing, and they may have environmental impacts under theJICA Guidelines for Environmental and Social Considerations (April, 2010)(JICA's Environmental Guidelines).
② Promotion of Poverty Reduction: None
③ Promotion of Social Development (e.g. Gender Perspective, Measure for
Infectious Diseases Including HIV/AIDS Participatory Development,
Consideration for the Person with Disability etc.): None
(6) Collaboration with Other Donors: There are opportunities of Co-investment toACP’s portfolio companies with international development finance institutions(e.g. ADB) under certain conditions.
(7) Other Important Issues: None2

4. Targeted Outcomes(1) Quantitative Effects
Performance Indicators (Operation and Effect Indicator)
Indicator

Baseline(Actual Value in 2014)

Target (2026)(After project completion)

Number of Investment

0[undisclosed]

Equity IRR (%)-[undisclosed]

Reduction of carbon
emission0

Determinedby each investment

Newly constructed
renewable energy0

Determinedby each investment(2) Qualitative Effects
The investment to the fund will contribute for further mobilization from theprivate sectors into climate financing in renewable energy, clean technology,
natural resource efficiency, water, agriculture, forestry and otherclimate-friendly companies. And among the investments from the fund, thetechnology of Japanese Companies may possibly be applied, and it isanticipated that those companies can expand their business in Asia.
5. External Factors and Risk Control(1) Risk during operations and monitoring: The country ceiling is applied tomitigate Country Risk by diversified investments.
(2) Exit Strategy: Exit when the fund period ends.
6. Lessons Learned from Past Projects
The evaluation report of the past fund investment projects point out thatenough information gathering and analysis for exit policy is essential. For thisproject, the exit policy is considered before the approval of investment, therefore
smooth exit from each investment project is expected.
7. Plan for Future Evaluation(1) Indicators to be Used
1) Equity IRR (%)2) Reduction of carbon emission3) Newly constructed renewable energy(2) Timing
Term Closing Year (FY2026)(End of Document)3