(Yicai Global) April 24 -- The World Bank and the Asian Infrastructure Investment Bank signed a memorandum in Washington on April 23 to further cooperation, state-owned news agency Xinhua reported.
In a statement the same day, The World Bank said the agreement would function as a cooperative framework in development financing, people-to-people exchanges and other fields for both parties, laying a foundation for their mutual coordination and collaboration at a regional and national level.
The World Bank has closely cooperated with AIIB since its launch, said Jim Yong Kim, president of the global financial institution. In his view, joint efforts between multilateral development institutions are essential to efficiently mobilizing scare resources, attracting private sectors and catering for development demand.
Conclusion of the memorandum complies with the new-type internationalized ideas that AIIB adheres to, enhancing the relationship between both parties, Jin Liqun, president of AIIB, said in the same statement. The pair hope the partnership will yield more positive results in Asia.
Last April, the World Bank and AIIB saw their inaugural co-financing framework agreement. So far, the two have launched five co-financing projects in such countries as Pakistan, Azerbaijan and Indonesia. The Asian bank is also in partnership with an international finance corporation subordinate to the World Bank Group on a project in Myanmar.
Both institutions are discussing potential co-financing projects for this and next year.
On April 22, various multilateral development organizations, including the World Bank and AIIB, pledged to start more co-financing projects and encourage the involvement of private investors in major infrastructure initiatives, in a bid to promote the sustainable and inclusive growth of the world economy.
As an intergovernmental multilateral development organization in Asia, AIIB gives top priority to supporting infrastructure construction. It aims to accelerate the pace of interconnectivity and economic integration through the continent, and improve China's cooperation with other Asian countries and regions. The Beijing-based firm is the first multilateral financial institution initiated and set up by China, with USD100 billion in authorized capital.