World Bank Signs Co-Financing Agreement with AIIB
The world bank along with the Asian Infrastructure Investment Bank AIIB signed the first co-financing framework agreement that will pave the way for the cooperation on joint projects this year. the signed agreement outlines co-financing parameter of the World Bank and AIIB investment projects. For this year AIIB is expected to approve around $1.2 billion in financing with the World Bank join projects that is anticipated to account for a large share although no details on how big the share the World Bank have on the said joint projects.
The World Bank and AIIB are discussing around 12 co-financed projects in sectors ranging from transport, energy and water in Central Asia, East and South Asia. Based on the agreement, World Bank will prepare and supervise the co-financed projects in areas covering environment, procurement and social safeguards. AIIB is grateful on the generosity and the timely support of the World Bank on the established process and is looking forward to a fruitful and long relationship with the said cooperation in co-financing projects.
Based on a statement from the World Bank, around 1.2 billion people in the world don’t have access to electricity and 2.4 billion people don’t have access to basic sanitation services. By signing the agreements will enable their institutions to finance development projects and is said to be an important step in working towards a new partner that will address the world’s largest infrastructure needs.