ADB and China Eximbank sign co-financing
By Richard High05 May 2009
The Asian Development Bank (ADB) and The Export-Import Bank of China (China Eximbank) have signed a co-financing agreement worth US$3 billion for projects in developing Asia.
The agreement, signed at the ADB's 42nd Annual Meeting in Bali, Indonesia (4 to 5 May), will be used over three years starting in June this year.
"Access to sanitation, power and transportation links is still very poor in many parts of Asia. Massive amounts of funds are needed to address that if we are to reduce poverty in the region," said Ursula Schaefer-Preuss, vice-president, knowledge management and sustainable development at ADB.
"This agreement with China Eximbank will ensure funds get systematically directed towards those and other urgent projects that will help the region weather the current global downturn."
ADB and China Eximbank will now determine projects to be co-financed and work towards "harmonizing their procedures", said an ADB statement.
The co-financing framework agreement is part of ADB's drive to further strengthen partnerships with regional financing institutions to pool and coordinate funding under the Asian Infrastructure Financing
The agreement builds on a memorandum of understanding (MoU) signed by the two in March 2006 and aims to make it simpler for governments, sub-sovereign borrowers and private firms to access financing, particularly for infrastructure projects. ADB estimates that Asia will need US$ 4.7 trillion between 2006 and 2015 if it is to meet its developmental potential.
The agreement was signed by Ursula Schaefer-Preuss, vice-president, knowledge management and sustainable development at ADB and China Eximbank vice-president Li Jun.