Not to say that whatever I'm also here to know what you need, like you came all the way out here. And the g7 is a funny place where 99% happens in closed doors where just a couple of us are are in the room with President we switch out depending on what the thing is. So what if I can be helpful to you just let me know what are the areas and topics and I can't answer everything, but if there are things that I can be helpful on. Okay, that's the one. So, on the record, so we're going to do today, this afternoon, there'll be a side event on PGI that the leaders will host this is the third PGI event since the inception at Ellmau. What makes the PGI initiative the g7 unique is that it is not a new initiative every year. It is a commitment that was made by the g7 leaders for the US led PGI initiative and it has been growing that commitment and re emphasizing it at every g7. The leaders will review the progress that's being made on the commitment and let me just go through what PGI basically is which is the partnership of global infrastructure and investment. It is the idea is that as we look towards global the global economy and where the direction of investment needs to happen, beyond the developed world or be beyond the advanced economies, we have to make sure that there is that the g7 nations are investing in low and middle income countries where the majority of population is going to be into the future. And if we want to have a more just economy, and we want to have the secure world, we have to have investments, especially in different kinds of infrastructure around the world, in the most needed places. That has geostrategic geopolitical implications. It also has for the what we want to offer in the world of a more high standards and high quality investment opportunities that don't result in crushing debt that don't have unfair labor practices that grow the actual GDPs of countries and don't just have investment for the investors benefit and not for the people's benefit. And that was the origin story at PTI. And that was what the leaders are committing to today's event is going to have what we've tried to do last year and again repeating this year is to have the private sector join in as representatives in this discussion. So that leaders can understand what is it that the g7 countries can do to support and create an incentivize more investment by the private sector at the end day. We're not going to solve the global economic inequity of investment through government money. It's going to have to be using taxpayer money in a efficient and productive way to incentivize the private sector to make those investments. So from the United States, we have President Biden invited the CEO, chairman, CEO of Microsoft, Satya Nadella, and the CEO, chairman, CEO of Blackrock, Larry Fink, the Italians, President time presidency and Prime Minister invited four speakers from representing the Italian private sector, at the CEO level, and what they will do is walk through one what they're already doing to support the PGI initiative. There will be an announcement I think you've seen the fact sheet of a $4 billion dollars that has been committed by three major funds, JP BlackRock and Brookfield that will towards investment with PGI aligned investments. There will also be Microsoft has recently announced its investment in a data center in Kenya, and it will announce additional investments in the global digital infrastructure. Let me take one step to say what the US has done what President Biden is going to be articulating at the session this afternoon. Is that when he was at the g7 last year, he announced that the US had mobilized $30 billion. Today he will say that that is up now to $60 billion and that is a long part infrastructure. He will repeat our support for the libido corridor. Which is a rail infrastructure from Angola through Zambia, DRC and hopefully ultimately to the to the other side of the continent. The EU announced at the G 20 that they were joining the US initiative, and today the Italian Prime Ministerial announced that they have joined it with $320 million for the next phase of the quarter. The point of the quarter, as the President will talk about is that it's not just about rail for critical minerals and competition with other countries that are investing there. But that it's it opens the door to digital 5g infrastructure from trusted vendors. It will allow for food security because when you are able to connect countries that are not connected to the global economy, they're able to invest more so the idea is to go across all different types of infrastructure, from physical to digital, to to commercial, and, of course, clean energy. So there will be there's been a significant doubling of the investment by the US the mobilization and we're hoping we're he's going to call on the g7 to continue that ramp up of investment in both Africa, but not only as you know, during the trilateral the President hosted with Prime Minister Rasheeda and President Marcos, the Philippines. We announced the creation of the Luzon corridor which is to do the same thing is to invest in digital clean energy and rebuild the ports. This shows that there's an alternative to the other model that has been investing throughout Africa and Southeast Asia and that this shows that if you insist on higher standards President will talk about that doesn't inhibit that promotes investments, it just from different types of investors. So we're presidents really excited about this event, you know that he's talked a lot about these, these issues as different events. He's very committed that this is our way of reestablishing the what you what the United States and the g7 has to offer. In our approach to low and middle income countries. It is not about AIDS. It is not about charity. It is about partnership. And it's about investment. And that's why having last year having the CEO of Citi Bank and the CEO gap, the largest infrastructure fund in the US and this year having the CEO of Blackrock and Microsoft shows that we are working with the private sector to increase that investment in partnership along high standards. So that is what we're going to be announcing today and look at this. There'll be a discussion among the leaders. We're going to have the president of the World Bank is going to be there Ajay Vanga is going to be there as well as present at the scene of the African Development Bank will join as well. So that we can have the different types of finance there are different types of US influence into this global investment competition that we have.
Can I just quickly clarify you said GA P BlackRock and Brookfield where the three year gap
Yeah, and that's in the it's in the fact sheet. So it's I think it's it's embargoed till this afternoon. Till the event. I believe that right. Yeah, okay. Environmental Defense starts, but you'll have everything I've said on those projects will be detailed, where you'll just start
with the Italian commitment. That's for us. Are
we on background now? Or are we so let's go with the background and just clarify and clarify what it is. Let's just you'll see in the fact sheet we'll identify exactly what their Italian investment is. I just thought that will be embargoed till let letting them announce it at the session, but it will be towards the rail project.
Do you be Italian commitment was for the rail project to broadly, they're
committed broadly to PGI, but that commitment dollar commitment that they're making today is towards the latter for libido, three of 20 is going to be towards the libido or dollars. That is I believe in dollars,
just since we're still clarifying numbers is the goal for the president. He is committing or he's announcing $60 billion, right. And that's out of the 200 billion correct goal for the US and
until up until now. Right? It's been 60 billion
and it's 220 27. Correct.
That is where the US was our original commitment.
And then for the overall AGI. It's 600 for 2027. Is that correct? And where are we now?
I don't have that number. I can try to get that for you. I don't know what I don't know what if you notice if you count up everybody else what they have done? I think you can ask them but I think the leaders will be the other leaders will be discussing what they have done to date
and the goal is still 600 So us 200 Out of the 600.
Yes, whatever we've said as the goal. Goal, we're not we're not changing it. We're not.
Now we're going into the Background section, senior administration. Sure Can I ask you how much of the meetings today is going to be a focus on offering developing countries an alternative to the future of China to offering some of the cheaper, easier pop up infrastructure that they've done in countries like Africa?
I think we're very, the g7 leader has been very open about the fact that in conversation with heads of state in Africa and in other regions of the world. As they look at the report you've got you should always when you have an investment opportunity. Are you Where are you going to be in a few years from now? Are the communities around that investing project going to going to benefit or not? Is this going to increase corruption or decrease? Are these companies that are looking to benefit the broader GDP growth or not? Are you going to end up with a sugar rush of an investment now where you will spend the next 10 years 20 years under crushing debt those are the questions that we've encouraged our friends around the world to ask. You can look at any number of investments in infrastructure and mining energy, where the workers in that facility tend to come from the host country of the investor, not local employment. The local employees are underpaid. Right for child labor. The conditions the working conditions are very poor and 10 years later, these workers are still going home every night on a dirt road to kind of dark dirt road to homes and towns without electricity without cities without schools and without hospitals and clinics. And the investor has taken billions of dollars in profit. If that is the opportunity. We want to the g7 leaders are saying we want we have an alternative and it may not be as as easy and it may not be as fast. But it will actually developed a GDP strengthening and we'll deliver for the people that work in the facility. The cities around it the communities there will actually benefit and not just a number of small number of government officials. I think that we can now see and I think you know, I'll tell you this, every head of state from these countries that we have met with the President has met with has told him I prefer to work with an American company and g7. Australia, South Korea. I just need them to invest. So we heard that that we needed to up our game. And the private sector told us we don't invest there because we don't have certain conditions. So the g7 said let's step up and President Biden has been very focused on this. What do we need to do with the hour admittedly smaller dollars, but turning them into incentive dollars? And so this was an announcement in Ellmau that some took with some skepticism whether the US and its allies are people to deliver on this and I think what we're seeing today was shovels already in the ground construction already happening. And we get every almost every head of state that comes in from these regions is told the president How do I become a pediatric? How do I how do you focus on on me because it's driving business and that is what having Larry Fink hear from Blackrock to join what Citibank said Yes, last year in gap is the ultimate proof. This is American money, they can find easy investments today. There's a lot of opportunities for investment in OECD countries. And now they're coming here to talk about their investments in these countries that would not have happened without the PGI.
Can I just follow up in terms of how the corridors fit into the broader broader PGI? Is it kind of scaling down with ambition on focusing on libido and Luzon as the focus of PGI, or is that like this, the flagship projects? And if I may just add, since we're talking about corridors, what is happening with the India UAE Israel corridor, is that still going on or has the war change that at all in terms of timelines,
let me start with the purchase. The corridors are a scale of ambition not scaled out. The quarters are saying instead of investing we have a certain amount of dollars that we can that we can use of public money and investment whether it's from the United States and our partners, and our allies. If we invest in 40 or 60 countries, then we're spreading our dollars. So what we wanted to do with the President want to do is to say let's focus on a smaller subset of countries but go deeper. So if you look at the libido corridor of what the US, the US and other countries have gone, it's an investment in rail, in five in mobility mobile in mobile capability and fiber optic cables in mobile money in clean energy. I think the US alone financed $2.7 billion in clean energy in Angola, just an angle and increasing that turning that into investments into food. Security. In that region that you can do you can go deeper when you are able to focus on a smaller subset of countries that are interlinked or regions that are intuitive. It also has enormous geopolitical implications and the relationship with the United States in some of these countries has improved dramatically. Because of this. We tend to focus for many years about security, when really the driver in this era that we live in is economics and in competition, and we're signaling that we are we were famous for coming in we say a lot of nice things. You have a lot of expectations and then we'll walk away the other people come in don't say very much believe a check behind. So the time has come to change. And we we needed to do over the last two years is to prove that with the President President Biden said is is real. And the only way to do that is to actually have investments that materialize in the ground. And so the corridor Bovino quarter expands beyond these three countries. It stretches out. Kenya is where Kenya state visit you saw one of the biggest deliverables was the data center with Microsoft, Google announcing a pilot tool that's going to come from Asia to Africa, but most importantly, when it arrives in Kenya, we helped facilitate so that it connects with an African company liquid that is going to take that cable and connect it from Kenya to Uganda, to Rwanda to DRC, Zambia, Zimbabwe, South Africa, that is a game changer. Because if you are not connected to high speed capability, you have no chance of catching up to the very fast developments. that are happening around the world. We're talking today about cloud computing and 5g. If you're not connected to 5g, by the time we get to 60 around the world, you won't be able to catch up. So that's an and I will tell you, governments are coming to us and saying you're actually for the first time America is on the field investing. And that is changing not just our economics, but it's changing our geopolitical relationships in the region. As far as I met the quarter that we announced, President Biden announced together with Prime Minister Modi Crown Prince of Saudi Arabia and, and President UAE Sheikh Mohammed bin Zayed with President Van der Leyen and other European leaders. That is absolutely still a project that is going to move forward. The ambition is high. I think it is also if you remember that was just before October 7, horrific attacks. And it's a I think it's a symbol of what the Middle East could look like, and a vision of interconnectivity between South South Asia South and Southeast Asia, to Europe through the Middle East, on with clean energy and hydrogen and technology and fiber optic cables and allowing for goods and services to be able to be connected in a cheaper faster way where the Middle East the Gulf in particular is now a connecting corridor between two to three continents. That is, what the Middle East future should look like. And I believe it will. So the ambition is still there. We are We continue our discussions with with a partners of this order. There's a lot of work that needs to be done in order to put this together. And, and I expect us to continue to to work towards implementation.
Just a follow up since you're talking about energy in that region. You've spoken in the past about how a natural gas field off the coast of Gaza to generate revenues that would benefit the Palestinians. But in late October, maybe early November, Israel announced that it would issue licenses for Israeli and international companies for gas exploration there. So what is the US position now on this issue of caution benefit of these gas reserves off the coast of Ghana?
I think these two are separate issues Israel has its offshore. There's a specific field offshore Gaza is owned by the Palestinian Authority. Since the Obama administration there beneficiation is over how to to explore whether or not it was a commercial project there are private sector entities involved. We when the time is right. I've always believed that we would like to see that develop for the benefit of the Palestinian people and their economy. There is there are different pathways to get there we are we'll continue to support Palestinians already working with Egypt, which is important because of the proximity to Egypt, Egyptian facilities, but this would be another benefit once we achieve a ceasefire and able to talk about growing the Palestinian economy. There's no reason if there are commercial interests there that they should not be able to develop their benefit on the
PGA as a whole and avoided saying the word China might you to explain what means in terms of the other. I mean, obviously, that this, this project is positioned to sort of be a counterpart for or an alternative to the Belton road. This meeting here has a lot of stern messages for China. There's the overcapacity issue. There's this PGI you know revising or not revising, but like not revising but revitalizing or energizing and PGI
continuing, doubling down so we're not revitalises is ongoing. Okay,
and then you're hitting China on the depths. So is this the anti China g7 summit?
Bucha is not anti anything. It is promoting what we believe is in the best interest of economic growth and fair and equitable economic growth for low and middle income countries. I'm very anti, since this is a it's a message of anti it's, it's a message of what we're for. And if the China is a major investor in Africa in Southeast Asia and around the world, as long as they operate, and they make their investments in a manner that is fair, transparent, that benefits of people they should absolutely be involved in anywhere they'd like to be. But the goals should be a globally diversified ecosystem. That that supports economic growth worldwide. That supports GDP growth and economic resilience in low and middle income countries as they are in other parts of the world. Right now we have a situation where certain parts of the clean energy and the technology supply chain are held in one country in one region. 97% of graphite is processed in China. So it's not just about the United States. It's about having a globally diversified supply chain for the US and around the world looked at President what we learned from COVID is that this is something we have to address at home. And that's what the IRA was about, and the build act and chips and so we have to make sure that we have the supply chain at home that we have, from mining, to processing to batteries, to chips to semiconductors. It won't be enough to do with just at home. Even if we do if we're able to achieve everything that our ambitious ambitions, desire. It still won't be enough so we have to work with our allies and we have to work around the world. We also have a responsibility as United States to make sure that the world the global economy is well supplied. And we can't have our supply chains having the same constraint that we saw in oil in the 20th century in the 1970s. So we have to have where OPEC control a small number of countries controlled the entire global supply. So we have to make sure that there's a diversification there so PGI is something that is about developing a win win where it is a it is good for the countries that we are investing in, because it is a way to do it with growth and strength for them and good for the United States and for the global economy.
But I think the question is rather to TGA but I'm saying that the message that's coming out of this beautiful place here is one a G seven is raising concerns in a louder way or a more unified way about China on issues ranging from supply chains to debt to I
think the Jesus g7 countries are sorry.
I mean, there's just you know, there's so many different components. There's the support for Russia, there's infrastructure, there's the debt and so
I think the g7 leaders are calling, calling out issues as they see them, in some cases, the agenda that they see what is good for the global economy and where the world needs to go in a more peaceful to a peaceful and more secure and prosperous world. And if it on specific I don't think it's about projecting to countries or regions as a whole but rather on every specific issue. Call me out what who is responsible what the pathway is to to get into that better, not better, prosperous, secure and safe world. So I, again, I don't think anybody's being shy in this g7 about how they see what is impeding a world that is that is better off. I just I'll leave it there.
I'm sure but the first did you have the pleasure slash misfortune of being in the first session?
I was on my way here. Okay.
I was just gonna ask if there's anything about that we should know but how it's going so far. I mean, a lot of this is pre prescribed, as you know by the tenant leaders get here. Thanks. To both of you had a hard work of staff, etcetera. How's it going to?
Look, I think that this g7 There was a lot of a lot of pre work was was done, representing the leaders. The leaders have very strong views on a number of issues. The communique. Draft is pretty much done. We're almost there. Briefly more about that later today. A lot of thorny issues that were addressed but these are leaders that have now seen each other quite often over the last couple of years. And I think there's a lot for them to discuss privately. And I don't use a lot of daylight between leaders on the most important issues
do use incense. Is there any sense of urgency given that so many of them are facing elections that this could be the last time and certainly this broader group gets together with some potentially changes of government and several of these countries, do they? And of course the University of Russia enrollment do they sense they can try to cram stuff up the door.
I think the sense of urgency is the fact that we are now two years into into a devastating war that came from the invasion, Putin's invasion into Ukraine that we are in a war in Gaza. That was a result of the October 7 attacks that the leaders feel like there's an urgency with the deal that President Biden is addressed in his speech last week. For that to be accepted in the dissent. Leaders are committed to that. I think that's the sense of urgency. And on the economic side. We're coming out we're still in the world that comes out of COVID Narcos benefiting from a very strong economy, but making sure that it's a more that the g7 nations are the leaders of the global economy are in a competitive position of strength into the future. I think that's the sense of urgency here. g7 members are all democracies. That's the point. So you are there's they're always facing elections and change of governments and so on. That's nothing new for anybody sitting around that table.
Does the President have a bestie at the table or the leaders who's particularly close?
I love all my children.
Escalation play into the sense of urgency.
We are very concerned about the escalation on the blue line between Israel and Lebanon over the last I would say about two weeks we've seen the major escalation. Secretary Blinken was in Israel just a couple of days ago and l talks on this issue. We have had consistent and urgent conversations at different times between Israel and Lebanon over the last eight months from the very beginning of this crisis from day one, to keep this this from developing into a fallout war that would have implications towards could have issues for escalation. To beyond elsewhere in the region. We will we the most important thing about the hostage release and ceasefire deal what's on the table now is that if it's achieved it can have an impact. And so that is an opportunity for us to be able to bring this topic to a full close. We have had discussions between his own webinar and with sorry, with both Israel and Lebanon, on how that would work. It is not we have said this clearly before it is not enough to just have a ceasefire in Gaza. There has to be specific arrangements in Lebanon on the on that border because returning to the status quo ante of October 6 in Lebanon is not unacceptable are a viable option. There has to be an agreement that allows Israelis to return to their homes in the north with the security with security guarantees that it is not October 6 of this year, sitting right on the blue line. So but again, we have an opportunity if we if the parties could agree to a ceasefire as outlined by the President to quiet not just the Green Card not just a godson but also seen the yesterday a record barrage missiles by
Israel. Some of the some of the countries have started and be specific pledges towards the 50 billion are becoming clear in the last couple of hours. Is there anything you can share but when the US will pick up that 50 So
I think the leak will come a little bit later today. Specific details let me just say this that I can say this on the record this has been a this is a very important issue. Saying that I would say Jake Sullivan is taking the lead on from its inception to making sure that this to bring us to where we are today. He has worked really just diligently and round the clock to get us to this point. This is a critical moment and achievement. And President has one felt this is important to be able to take the steps we need in this in this moment in the conflict. So I will help. I'll literally give you the details of the 50 billion and how that's going to help the mechanics of it will work. But I don't want to I don't want to just brush it off to the leave I wanted to make sure you understand this is how important this has been to us to the to the President and and that's why because it's been so important to the President. Jake has really just worked so tirelessly personally. To make
this happen. We help people understand why it's so important. Now given that you know these things they take time a lot of money when you profile for 2025 when the payments will need it. Why is it so important to get this stuff? Now?
We're back we're back up look when we talk about the sanctions, right? And all the policies on the financial side wanted to make sure that
the trainer's has the answers to you know, I'm gonna let Billy kind of talk through the details and they'll give you more and more pieces gonna rock with the fun. Exactly.
You mentioned that the World Bank. Well.
Can I just go back to China real quick. I mean, the broader context of the President's foreign policy overall has been this idea of democracies versus authoritarianism and resisting authoritarianism. So I wonder how much of a motivation it is when we're talking about PGI trade or any of the other kind of issues there. Is this this feeling of the g7 The US has to be in these regions. For else. There's an opportunity for authoritarian nations, whether that's China or anyone else, to come in and exert the influence there because there'll be an impact. How much of that is a kind of geopolitical motivation to
100%? That is a major part of the motivation. I think we have to be clear on that when there is a vacuum, it is filled. And that is not a hypothetical. Just looking at the level of what the level of investment that China has done over the last 20 years has resulted in I don't actually blame them for the effort. That they made. They've invested in mining processing infrastructure throughout the world, and that vacuum was filled and what the g7 leaders did an Elmo when the President came in President Biden came and said, We need a response. And it's not a response of $1 for dollar. It's a value proposition that smaller dollars or smarter or also smarter dollars, that it bring in the private sector on a commercial basis will benefit the countries where they're invested and benefit that geopolitical imperative for the United States and for the g7 partners, and that's why it's not a US versus anyone. It's the g7 it is pooling our resources is collaboration, and g7 bringing in other partners, Australia, South Korea have been major partners in this initiative as well.
How do you I mean, how do you reassure nations and I think this is sometimes the case for other g7 countries who look at the US and the instability not just with the presidential race, right, but with Congress and politics in general and say what you're, you're making us choose between these two superpowers, and we're not sure that you're going to be there or that your commitments will be as solid as they will be past November.
I'm not worried the President is not making anybody choose between superpowers. We're presenting an alternative for an investment and partnership and make the choice that is best for you. But here's the deal. If you don't have an alternative on the table, then there is only one option. And everybody will choose a bad investment over knowing this. So President Biden has done is just create that alternative and put it on the table with his leadership at the g7 That's the difference. And by the way, when you bring the private sector and when you bring the multilateral development bank's and then it has a better chance of surviving any political change in any of the countries involved in
the multilateral government thanks.
I thought somebody had a point of clarification.
So you mentioned that you're gonna be there. What? Specific? You know, are you What specifically are you looking for from them at this meeting? Are there going to be commitments? You know, on their part, and can you just say a little bit about the Washington a Roby vision and how that plays into this discussion.
During since last g7. The United States has hosted a couple of PGI finance meetings of bringing together the leaders of American business during on the sidelines on the margins of the UN General Assembly. We hosted a meeting of some of the leaders of I think a very impressive group of the representing all the top banks and funds and asset managers in the United States. So hosted by the US side it was Secretary Blinken, Secretary Yellen and myself. And RJ Bongo was there and the discussion was around. What does the public need to do for the private to invest in countries that they have not invested in to date? And since then, well, they all felt that with the leadership of RJ Vonda at the World Bank, that was an opportunity to create some kind of financial instruments that they can trust and that they can work with. There has been nonstop effort on this with those Wall Street levers with the US government and with the World Bank, to create financial instruments and facilities around guarantees and risk insurance and other things that will are enabling now these new investments. So I think this is a continuation of that we did another session at APEC where which was hosted by a similar group with a few internationals joining in and that was hosted by Secretary Raimondo and myself and again similar conversation, how do we use the MDBs and so on. That was the basis for these these conversations and the work in between incense have been the basis for increasing the private sector investment, the basis for getting the libido quarter, which is a multi billion dollar effort to be able to have support from the FTB the AFC and other governments and now private sector to come in. So that's the role that the World Bank and the African Development Bank are doing. They're spending money on these projects, but they're also creating these instruments. For the first time they will allow American financial institutions that have been reluctant due to risk to invest in whether it's in Sub Saharan Africa, certain parts of Southeast Asia. And then this division. Oh, sorry. It all ties in other words, I think this work is what the Washington Nairobi vision is about. President Ruto will be here tomorrow is about the investments that we're taking in Africa. The approach the new approach to Africa of much more around that really started at the leader Summit in Washington. Was that a couple years ago now of investment in partnership, and President Ruto has been a leader in this and so you're seeing a lot of investment coming into Kenya but also using part of that vision is that President Ruto and using his leadership to expand that to other countries can you speak a little bit about continuity? He just
started questioning brief clarification going back to the 4 million global infrastructure partners.
Yes, sorry. Sorry, I should have used their full
blackbuck acquire. So is it still accurate to say Blackbaud
so they are in the midst of an acquisition that has not been great.
It's very Bloomberg. We don't want to anchor Blackrock
but that's that but but no, but it's important because they until the acquisition closes. These are separate
entities. So BlackRock, JP feels collectively as the 4 billion and
they will invest at least 4 billion
because what
can you just briefly talk about much annuity while we're packing up on the
