World Bank and AIIB sign first co-financing framework agreementStaff writer ▼ | April 15, 2016
World Bank Group President Jim Yong Kim and Asian Infrastructure Investment Bank President Jin Liqun signed the first co-financing framework agreement between the two institutions.
Institutions The co-financing of World Bank-AIIB investment projects
In 2016, the AIIB expects to approve about $1.2 billion in financing, with World Bank joint projects anticipated to account for a sizable share.
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 Group invested $18.8 billion in infrastructure in the fiscal year ending June 30, 2015.
The institution will leverage even 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 World Bank and the AIIB are currently discussing nearly one 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 AIIB, located in Beijing, aims to promote regional cooperation in addressing development challenges by working with other multilateral and bilateral development institutions.
It is expected to advance sustainable economic development and to improve infrastructure in Asia. ■