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Asian Development Bank and Islamic Development Bank Sign $4bn cofinancing agreement

25 September 2008 12:49 (UTC +04:00)

The AFB Office in Baku said the deal will allow the two banks to work together on projects in common member countries (Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan).
The agreement calls on both institutions to provide up to $2 billion equivalent each over the next three years to finance projects in their common member countries.
The agreement â€” which is the first of its kind â€” is based on a three-year business plan that includes a common vision, strategic framework, and best practice ideas in development financing.
The cofinancing will mainly target transactions in the infrastructure (including irrigation), utilities, and urban sectors. However, it may also cover education, health and other sectors in selected countries.
Azerbaijan has been a member of the IDB since 1992 and the ADB since 1999. Azerbaijan has received about $200 million from the IDB and $300 million from the ADB over this period.