ADB, KfW expand cofinancing partnership with additional $2 billion

The Asian Development Bank (ADB) and KfW, the German state-owned development bank, agreed to expand their existing co-financing partnership with an additional $2 billion over the next 4 years in order to support continued economic development in the Asia and Pacific region.

“Germany is one of ADB’s original shareholders, and we have long had a very productive partnership with KfW, together financing more than $5 billion in energy, climate, and urban infrastructure projects over the last 5 years,” said ADB Vice-President Mr. Ahmed M. Saeed. “Our new MOU builds on this good work and commits us to a deepening of our partnership in support of inclusive and sustainable development across Asia and the Pacific.”

The additional funds will build on the successful $2 billion co-financing partnership that ADB and KfW launched in 2014 and renewed in 2017 for an additional $2 billion. The partnership (2014–2019) yielded 14 co-financed projects focused on education, energy, health, industry and trade, and public sector management. The $4 billion provided by KfW for these projects was complemented with $5.8 billion from ADB.

At the signing event, ADB and KfW also signed an MOU for a collaborative cofinancing arrangement for an additional €200 million ($221 million) for the Fiscal and Public Expenditure Management Program, Subprogram 3, in Indonesia. An earlier MOU was signed for the project for €300 million on the sidelines of the 52nd Annual Meeting of ADB’s Board of Governors in Fiji.

Germany is the second-largest bilateral co-financier of ADB projects. The additional co-financing from KfW will help ADB address the region’s vast infrastructure needs, estimated by ADB at $1.7 trillion annually until 2030 including climate adaptation and mitigation costs.

Original source: ADB
Published on 08 November 2019