May 1, 1998 No. 108

CANADIAN INSTITUTION LEADING NEWLY ESTABLISHED ASIAN EQUITY INFRASTRUCTURE FUND

Foreign Affairs Minister Lloyd Axworthy today welcomed the establishment of a US$400 million Asia Equity Infrastructure Fund, with lead sponsorship by the Caisse de dépôt et placement du Québec (CDPQ) and support from the Asian Development Bank (AsDB). The fund was announced by the CDPQ at AsDB's annual meeting held in Geneva April 29 to May 1.

"This fund, the largest Canadian-led investment fund in the Bank so far, represents a significant contribution to further strengthening the links between Canada and the Asia-Pacific region," said Mr Axworthy, who is Governor for Canada of the Asian Development Bank. "It also testifies to the excellent relationship that has developed over more than 30 years between Canada and the Asian Development Bank."

As lead sponsor, the CDPQ will contribute US$200 million and, as co-sponsor, the AsDB will contribute US$20 million. The balance will be raised from within the private sector in both Canada and Asia. The AsDB-CDPQ agreement establishing the fund constitutes the largest single joint project between the AsDB and a Canadian institution.

The Asia Equity Infrastructure Fund will invest in infrastructure projects in energy, environment, transportation and telecommunications. It will take a proactive approach in countries such as Malaysia, the Philippines and Thailand, among others. The turning point in discussions between the CDPQ and the AsDB was the high-level meeting that took place in Manila during the 1997 Team Canada visit.

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For further information, media representatives may contact:

Debora Brown

Office of the Minister of Foreign Affairs

(613) 995-1851

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca