The Asian Development Bank (ADB) and the Export–Import Bank of China (China Eximbank) have together signed a cofinancing agreement that will make available at least $3 billion for projects in developing Asia.
Under the agreement, signed today at ADB's 42nd annual meeting in Bali, the countries will make $3 billion available over three years starting June 2009.
The agreement follows an understanding signed by the two parties in March 2006 and aims to make it simpler for governments, sub-sovereign borrowers and private firms to access financing, particularly for infrastructure projects, the ADB said in a release.
ADB had estimated $4.7 trillion in funding between 2006 and 2015 for Asia Pacific to meet its developmental potential.
The pact was signed by Ursula Schaefer-Preuss, Vice-President, Knowledge Management and Sustainable Development at ADB and Vice-President Li Jun at China Eximbank.
"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," he added.
ADB and China Eximbank will hold annual meetings to decide on the projects to be cofinanced and work towards harmonising their procedures.
The cofinancing 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 Initiative.