IDB, ADB INK US$4 BLN CO-FINANCING PACT

DUBAI, Sept 18 (Bernama) -- The Asian Development Bank (ADB) and the Islamic Development Bank (IDB) have signed a co-financing agreement that allows them to collaborate on projects in common member countries.

Under the agreement, both institutions are to provide up to US$2 billion
(US$1=RM3.45) each over the next three years to finance projects in countries
like Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz
Republic, Maldives, Pakistan, Tajikistan, Turkmenistan and Uzbekistan.

In a statement, IDB said the co-financing will mainly target transactions
in infrastructure (including irrigation), utilities and urban sectors.

It may also cover education, health and other sectors in selected
countries, it added.

The pact, touted to be 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.

"This agreement provides a new platform from which both institutions will
attempt to raise third-party funds for investments in common member
countries.

"This is a breakthrough in collaboration between international financial
institutions," said Juan Miranda, ADB's Central and West Asia Department
director-general.

Walid Abdelwahab, IDB's country operations (Asia) director, said the
agreement would take both parties into a long-term partnership mode.

He described the pact as consistent with ADB's Strategy 2020 and Vision
1440H of the IDB.

Principal director of co-financing operations of ADB, Werner Liepach, said:
"Co-financing is a precondition for effective development work these days and
what is particularly enriching in this case is that we have two multilateral
development institutions working together on a common platform for the benefit
of their common clients."
-- BERNAMA