Berlin, Germany: German development bank KfW will cofinance up to US $2 billion over three years with Asian Development Bank (ADB) to promote development in the Asia and Pacific region, particularly in Bangladesh, India, Indonesia, Mongolia, and Vietnam.
The KfW cofinancing will focus on energy, urban infrastructure, climate change, small and medium enterprise financing, vocational training and regional integration.
ADB President Takehiko Nakao signed a Memorandum of Understanding (MOU) for cofinancing in KfW's Berlin office with Member of the Executive Board of KfW Group Norbert Kloppenburg.
Parliamentary State Secretary and ADB Governor Hans Joachim Fuchtel and Member of the Management Committee of KfW Development Bank Roland Siller were also present.
"The midterm review of ADB's strategic framework emphasised the importance of scaling up and expanding cofinancing to leverage additional resources for development," Nakao said.
"This partnership will enable ADB to help its developing member countries strengthen key sectors that will contribute to their overall development."
Under the terms of the MoU, the two parties agreed to intensify cofinancing and exchange of information for broader cooperation and improved aid effectiveness in making available resources for common development objectives.
Germany is the fourth largest bilateral cofinancier of ADB projects after Japan, France, and Republic of Korea. As of the end of 2013, it had financed more than US $700 million for 11 ADB-assisted investment projects in Bangladesh, India, Mongolia, Pakistan and Vietnam.
KfW carries out financial cooperation as one of its most important instruments for development cooperation. It works to reduce poverty, ensure that globalisation affords opportunities for everyone, protects the climate, conserves natural resources and safeguards peace.