IDB, ADB sign $4 billion co-financing accord

IINA – IDB, ADB sign $4 billion co-financing accord

The Islamic Development Bank (IDB) and Asian Development Bank (ADB) signed a landmark co-financing agreement which will allow them to work together on projects in common member countries (Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan). The agreement calls on both organizations to provide up to $2 billion equivalent each over the next three years to finance projects in their common member countries. The agreement, the first of its kind, is based on a three-year business plan that includes a common vision, strategic framework, and best practice ideas in development financing, IDB said in a statement yesterday.

The co-financing will mainly target transactions in the infrastructure (including irrigation), utilities, and urban sectors. However, it may also cover education, health and other sectors in selected countries. “This agreement is unique, timely and in line with the Accra High Level Forum and other international declarations on development effectiveness and harmonization”, said Vice President Cisse of the Islamic Development Bank.

“In addition, this agreement provides a new platform form which both institutions will attempt to raise third party funds for investments in the common member countries. This is a breakthrough in collaboration between international financial institutions”, said Juan Miranda, director general of the Central and West Asia Department of the Asian Development Bank.

…Separately, another MoU was signed between the Turkish International Cooperation and Development Agency (TIKA) and the Islamic Development Bank Group on Sunday formulating a comprehensive agreement of cooperation between the partners in promoting economic and social development of their common countries…TIKA, acting on behalf of the government of the Republic of Turkey, is dedicated to contributing towards sustainable social and economic development in partner countries through technical cooperation activities and development projects. Given the similar realm of visions of both institutions, the partnership between IDB and TIKA aims to better facilitate development in their member countries.

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