30.11.2011, Jeddah, KSA – The Islamic Development Bank Group has concluded a US$ 6 billion Framework Financing Agreement (FCA) with the Manila-based Asian Development Bank to step up co-financing operations.
The FCA, signed on November 25th in Manila, Philippines, aims to promote IsDB - ADB cooperation in their common member countries in such areas as agriculture, food security, rural development, human development, education and health, private sector development and credit insurance.
This follows a similar successful US$ 4 billion agreement (2009-2011) which practically saw eight major infrastructural projects co-financed in six of the member countries of both entities, namely; the Azerbaijan Republic, Bangladesh, Indonesia, Kazakhstan, Pakistan and Uzbekistan, in addition to a Regional Islamic Infrastructure Fund.
Starting back in mid 1970s, collaboration between IsDB and ADB has grown steadily paving the way for closer coordination of activities and financing operations in their common member countries
Ms. Lakshmi Venkatachalam, Vice-President, (Private Sector and Co financing Operations for ADB and Mr. Birama Sidibe, Vice-President (Operations) for IDB Group put their signatures to the US$ 6 billion partnership agreement which envisages a US$ 2.5 billion commitment by IsDB and US$ 3.5 billion of undertakings by ADB.
The two global development partners expect the ongoing cooperation to expand to cover institutional frameworks, knowledge management, regulatory frameworks, policy development, procurement, training, in addition to issues on integrity, experience in decentralization of regional and country offices, Islamic finance and harmonizing of documentation and micro-finance. Collaborating on Managing for Development Results (MfDR) and other issues related to aid effectiveness also feature on the FCA.