World Bank Group president Jim Yong Kim and New Development Bank (NDB) President KV Kamath on Friday signed a memorandum of understanding between the two institutions, to strengthen cooperation in addressing the world's enormous infrastructure needs.
The memorandum formalises the World Bank Group-NDB knowledge partnership that has accompanied the establishment of the NDB and paves the way for the two institutions to explore country-level cooperation, a World bank release stated.
''I'm delighted that today we are formalizing our partnership,'' Kim said. ''Signing this agreement enables our institutions to strengthen our collaboration. When the world's multilateral banks work closely together, and support development that promotes inclusive growth in low- and middle-income countries, the poor and the vulnerable benefit the most.''
NDB and WBG's cooperative efforts will focus primarily on infrastructure. Currently, 1.2 billion people lack access to electricity and 2.4 billion lack basic sanitation services. In the fiscal year ending June 30, 2016, the World Bank Group invested $25 billion in infrastructure.
The agreement between the NDB and WBG highlights potential common areas of interest, including exploring and pursuing opportunities for the co-financing of projects; facilitating knowledge exchange regarding their operations, in accordance with their respective policies and procedures; exploring and pursuing opportunities for advisory services; and facilitating secondments and staff exchanges.
"I am very pleased to sign this memorandum of understanding together with World Bank Group President Kim," Kamath said. "We greatly appreciate timely support offered by the World Bank Group throughout our establishment process, and look forward to advancing and deepening our cooperation. We at the NDB, will listen, learn and collaborate to promote sustainable infrastructure development in our member countries."
The NDB, located in Shanghai, aims to promote infrastructure and sustainable development with an initial focus on BRICS countries, complementing the efforts of other financial institutions to realise the common goal of global growth. In February 2016, the NDB became fully operational, the release said.