ADB, IsDB to co-finance projects in common member countries

Riyadh, Saudi Arabia: The Asian Development Bank (ADB) and the Islamic Development Bank (IsDB) signed a landmark co-financing agreement that will allows both parties to work together on projects in common member countries, which include Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

The agreement calls on both institutions to provide up to $2 billion equivalent each over the next three years to finance projects in their common member countries.

The agreement, which is 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.

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.