World Bank and AIIB sign first co-financing agreement

World Bank and AIIB Presidents Jim Yong Kim and Jin LiqunJim Yong Kim and Jin Liqun, respectively presidents of the World Bank and AIIB, have signed their first co-financing agreement in a move that paves the way for the two organisations to jointly develop projects by the end of the year, the World Bank announced by press release yesterday.
Initiatives under discussion include transport, water and energy in Central Asia, South Asia and East Asia. Under the new framework, the World Bank is expected prepare and supervise the co-financed projects in accordance with its policies and procedures in areas like procurement, environment and social safeguards.
“I am delighted that today we are raising our partnership to a new level,” President Kim said. “Signing this agreement enables our institutions to finance development projects together, and that is an important first step toward working with a new partner to address the world’s huge infrastructure needs. As the world’s multilateral development banks collaborate ever more closely, leveraging each other’s financing and expertise, the people who will benefit the most will be the world’s poor.”