ADB, China Eximbank Ink Cofinancing Agreement

4 May 2009, BALI, INDONESIA - The Asian Development Bank (ADB) and The Export–Import Bank of China (China Eximbank) have together earmarked at least US$3 billion that will be available for projects in developing Asia. The framework cofinancing agreement, signed today at ADB's 42nd Annual Meeting in Bali, will be utilized over three years starting June 2009. The pact was signed by Ursula Schaefer-Preuss, Vice-President, Knowledge Management and Sustainable Development at ADB and Vice-President Li Jun at China Eximbank. The agreement builds on a memorandum of understanding signed by the two parties in March 2006 and aims to make it simpler for governments, sub-sovereign borrowers and private firms to access financing, particularly for infrastructure projects. ADB estimates that Asia will need $4.7 trillion between 2006 and 2015 if it is to meet its developmental potential. "Access to sanitation, power and transportation links is still very poor in many parts of Asia. Massive amounts of funds are needed to address that if we are to reduce poverty in the region," said Ms. Schaefer-Preuss. "This agreement with China Eximbank will ensure funds get systematically directed towards those and other urgent projects that will help the region weather the current global downturn." ADB and China Eximbank will hold annual meetings to determine the projects to be cofinanced and work towards harmonizing their procedures. The cofinancing framework agreement is part of ADB’s drive to further strengthen partnerships with regional financing institutions to pool and coordinate funding under the Asian Infrastructure Financing Initiative.