TOKYO, May 1 (KUNA) -- The Asian Development Bank (ADB) and the China-proposed Asian Infrastructure Investment Bank (AIIB) agreed on Friday to jointly work for Asia's development.
The agreement came during a meeting of ADB President Takehiko Nakao and AIIB Secretary General of the Multilateral Interim Secretariat Jin Liqun on the sidelines of ADB's annual meeting in Azerbaijan's capital Baku, according to a press release from the ADB.
Nakao and Jin discussed future collaboration including co-financing, and confirmed their commitment to working together for Asia, the multilateral development finance institution said.
They acknowledged the large infrastructure gap in the region, the critical role of infrastructure in supporting sustainable development and poverty reduction, and the importance of safeguard policies on environmental and social impacts of projects, the ADB said.
"The ADB will cooperate and co-finance with AIIB on infrastructure financing across Asia by using our long experience and expertise in the region," Nakao said.
They also agreed to continue sharing necessary information and further discuss concrete options for collaboration. The ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members, mostly from the region, as well as the US, the UK and Germany. In 2014, the bank assistance totaled USD 22.9 billion, including co-financing of USD 9.2 billion.
The AIIB, founded in 2014, is expected to be formally established by the end of this year, China's state-run Xinhua News Agency reported Wednesday.
The bank will be an international financial institution to fund infrastructure projects in Asia with initial subscribed capital of USD 50 billion and planned authorized capital of USD 100 billion, the report said. China has said the AIIB is intended to play a complementary role alongside existing multilateral development banks and that it will draw experience from these banks to operate more cost-effectively and efficiently. AIIB's more than 50 founding members, which have the right to help define the bank's rules, include Kuwait, Saudi Arabia, Oman, Qatar, the United Arab Emirates and Iran. (end) mk.ibi