Chinese bike-sharing company ofo signed a strategic partnership agreement on Tuesday with the United Nations Development Program (UNDP), pledging $15 million over the next five years to support the UN entity's peacekeeping work around the globe.

The money, which will disbursed at the rate of $3 million a year, will go toward UNDP's work in China, but will also support the program's core operating budget as well as its work throughout the rest of the world, it said.

"It's the first time we've had a partnership of this kind with a private sector company," said Michael O'Neill, UN assistant secretary-general and UNDP director of external relations.

"We do work closely with companies from different sectors around the world - with NGOs for example - but this is the first partnership of this kind that includes support for our core operating budget," he said.

Dai Wei, founder and CEO of the 2-year-old Beijing-based ofo, said that his company's goals of low-carbon, low-footprint transport aligned with those of the UNDP.

"Our vision is for people of all nations and cultures across the globe to enjoy cycling as a way of life, and also for protecting the environment and making the world a better place," Dai said.

"Our partnership with the UNDP on the One Kilometer Initiative is an important step to achieving that vision. Working together, we can be confident that more nations and their citizens will embrace green and low-carbon travel," he said.

The partnership comes at a time when ofo, a $2 billion business, is eager to expand abroad, with the company looking to operate in 20 cities by the end of 2017, and hoping to grow to 100 countries by 2020.

Ofo recently completed a $450 million round of investment from investors like Didi Chuxing, CITIC and Matrix China. It also announced that Ant Financial, an Alibaba affiliate that operates the Alipay payments platform, was added as an investor.

Dai said that ofo's expansion into the US will start on college campuses, similar to how the company grew in China.

Dai said that the company is in talks with several universities in California, and after a weekend visit to Boston for the Harvard China Forum, talks with Harvard are ongoing.

Ofo, known for its yellow bicycles in China, will have roughly 20 million bikes by the end of the year, most of them in China. The company provides 830 million rides in 81 cities across four countries and currently operates in Singapore and the US, with plans to begin operations in the US in the next six months.

Dai said he estimates bikes will cost $1 per hour to rent, much lower than $4 half-hour ride that Citi Bike in New York charges its riders.

"Yesterday I wanted to try the Citi Bike, but I thought it was a little bit expensive for me," Dai laughed. "I think the price can be more affordable in the future. But their bikes are very good."

amyhe@chinadailyusa.com