DRIVE: leveraging public funding to catalyse private investment

DRIVE (Development-Related Infrastructure Investment Vehicle), the Dutch government’s flagship instrument for financing public infrastructure in developing countries is at the heart of this approach. Managed by Invest International on behalf of the Ministry of Foreign Affairs, DRIVE provides concessional financing to support high-impact infrastructure projects that would otherwise struggle to reach financial close.

Over the past decade, DRIVE has supported a diverse portfolio of projects in water, transport and climate-resilient infrastructure. As it marks its tenth anniversary, DRIVE has demonstrated how blended finance can deliver both
development outcomes and opportunities for Dutch businesses abroad. Recent projects illustrate this impact. In Guinea, the construction of five new bridges in Conakry has significantly improved urban mobility, reducing congestion and improving access to jobs and services. In Morocco, the Idriss I Dam rehabilitation project is strengthening water security and climate resilience in a region increasingly affected by drought. These projects showcase how Dutch engineering expertise, combined with concessional financing, can deliver sustainable infrastructure solutions.

Petra Vernooij, Director Public at Invest International:

“By combining public and private finance, and by leveraging instruments such as DRIVE, Invest International ensures that Dutch companies remain at the forefront of global infrastructure solutions. At the same time, these partnerships deliver real impact on the ground: safer cities, improved water security, and stronger, more resilient economies.”

The DRIVE funded waste-to-energy plant in Johannesburg, South Africa, is an excellent example of a sustainable infrastructure solution in which 31% of Johannesburg’s municipal waste is converted into renewable energy solving two problems at once while also creating additional jobs.

This is the country’s first large-scale waste-to-energy plant, converting 500,000 tonnes of garbage annually into 25 megawatts of electricity, which is enough to power approximately 19,000 households. The construction phase alone creates 2,633 jobs, while the operational plant will employ 35 people permanently. By preventing methane from escaping landfills and displacing fossil fuel electricity, the plant avoids nearly 198,000 tonnes of CO2 equivalent emissions each year.

The Dutch government recently updated its policy framework to strengthen the way Dutch expertise is positioned in international infrastructure projects. The most recent adjustment introduces a clearer form of tied financing, enabling Dutch companies to participate more easily in projects in low- and middle income (LMIC) countries. By linking funding more explicitly to the involvement of Dutch businesses where appropriate, DRIVE contributes to both local impact and the international competitiveness of the Netherlands. This approach allows Dutch companies to apply their expertise, particularly in areas such as water management, climate adaptation, and resilient infrastructure, while supporting local sustainable development objectives.