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AIIB, World Bank planning closer project cooperation

By CHEN JIA (China Daily) Updated: 2015-07-17 10:27

AIIB, World Bank planning closer project cooperation

Jin Liqun (right), secretary-general of the AIIB Multilateral Interim Secretariat, and Jim Yong Kim, president of the World Bank, sign cooperation agreements between the two institutions in Beijing on Thursday. [Photo/China Daily] 

Multilateral organizations to promote effective ways of member nations working together

The Asian Infrastructure Investment Bank and the World Bank are seeking more effective ways of cooperation and are considering several co-financing projects, according to a senior official.

Jin Liqun, secretary-general of the AIIB Multilateral Interim Secretariat, held discussions with World Bank President Jim Yong Kim on Thursday to discuss cooperation between the two institutions. The two sides agreed to explore opportunities for joint financing projects in the coming months.

"We plan to identify the projects for possible co-financing in the fall," said Jin.

"Based on my time at the World Bank as an alternate executive director, I am fully confident that close cooperation between the two sides will improve lives of citizens in the member countries."

Jin said that since the establishment of the Multilateral Interim Secretariat last November, the World Bank has been very generous in sharing its expertise, experience and global good practices with the secretariat.

The AIIB Multilateral Interim Secretariat and the World Bank are working together, having exchanged views on matters such as institutional governance, organizational structure, social and environmental safeguards and procurement procedures, according to the World Bank.

"I congratulate Secretary-General Jin Liqun and all prospective founding members on the great progress made in establishing the AIIB," said Kim.

"More funding for infrastructure will help the poor, and we are pleased to be working with China and others to help the AIIB hit the ground running," he said.

The prospective founding members of the AIIB signed the Articles of Agreement last month and the bank is expected to be operational by the end of the year.

An official signing ceremony to establish the bank's operational framework, attended by representatives of the 57 nations that applied to be founding members, took place in Beijing on June 29.

Jin, formerly with the World Bank and Asian Development Bank, has been nominated to head the bank.

According to the AIIB framework, the bank will have authorized capital of $100 billion. China has a 30.34 percent stake in it and 26.06 percent of the votes.

Zhang Xiaoqiang, vice-chairman of the China Center for International Economic Exchanges, said that the AIIB and the World Bank are complementary and not rivals, and they can work together to raise funds for regional infrastructure construction projects.

So far, China is the World Bank's third-largest shareholder and an important contributor to the International Development Association, the institution's fund for the poor, as well as the Global Infrastructure Facility, an international platform that facilitates the preparation and structuring of infrastructure public-private partnerships.

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