World Bank, AIIB sign co-financing framework agreement

The World Bank and the Asian Infrastructure Investment Bank (AIIB) today signed the first co-financing framework agreement paving the way for joint projects.
In 2016, the AIIB expects to approve about USD 1.2 billion in financing, with World Bank joint projects anticipated to account for a sizable share, a media release said.
The agreement in this regard was signed by World Bank Group President Jim Yong Kim and Asian Infrastructure Investment Bank President Jin Liqun.
"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," said Kim.

"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," he said.
Some 1.2 billion people in the world lack access to electricity and 2.4 billion people don't have access to basic sanitation services.

The World Bank has invested USD 18.8 billion in infrastructure in the fiscal year ending June 30, 2015.
The institution will leverage more private finance through new partnerships, such as the Global Infrastructure Facility and the growing portfolios of the International Finance Corporation and the Multilateral Investment Guarantee Agency.

"The AIIB is very grateful for the generous and timely support offered by the World Bank Group throughout our establishment process, and we look forward to a long and fruitful relationship with ongoing cooperation in project co-financing and other areas," Jin said.
According to an official release, the World Bank and the AIIB are currently discussing nearly a dozen co-financed projects in sectors that include transport, water and energy in Central Asia, South Asia and East Asia.
Under the agreement, the World Bank will prepare and supervise the co-financed projects in accordance with its policies and procedures in areas like procurement, environment and social safeguards.

The China-backed Asian Infrastructure Investment Bank, in which India is the second largest shareholder, was inaugurated in January by President Xi Jinping.
With authorised capital ofUSD 100 billion and subscribed capital of USD 50 billion,the AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare. It is expected to advance sustainable economic development and to improve infrastructure in Asia.
Located in Beijing, AIIB aims to promote regional cooperation in addressing development challenges working with other multilateral and bilateral development institutions.