World Bank Group President Jim Yong Kim and Asian Infrastructure Investment Bank President Jin Liqun have signed the first co-financing framework agreement between the two institutions.
The agreement outlines the co-financing parameters of World Bank-AIIB investment projects, and paves the way for the two institutions to jointly develop projects this year.
The World Bank Group invested US$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.
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.