Memorandum of Understanding signed on 11 May, at EBRD Annual Meeting in London
The European Bank for Reconstruction and Development (EBRD) and Asian Infrastructure Investment Bank (AIIB) have agreed to deepen cooperation between the two organisations as they promote economic development and investment across countries where they are both active.
A Memorandum of Understanding (MOU) that sets out a framework for strategic and operational cooperation was signed on 11 May by EBRD President Sir Suma Chakrabarti and Jin Liqun, President of the AIIB, during the 25th Annual Meeting and Business Forum of the EBRD in London.
The EBRD has been a strong supporter of the AIIB from its inception and shared with the AIIB its experiences in such areas as investment processes and the development of infrastructure and energy projects.
Sir Suma attended the AIIB’s inaugural meeting on 16 January in Beijing.
Speaking at the MOU signing, the EBRD President said: “I very much welcome the role that the AIIB will play in helping to narrow the huge infrastructure investment gap that emerging economies face. We have already built up close ties with the AIIB and shared our own experiences. I now look forward to strengthening this association and working together on joint projects.”
AIIB President Jin said: “Today we take another important step forward in deepening our collaboration with the EBRD, aiming to address the significant funding needs for infrastructure investment across Asia and the rest of the world. We are grateful for the steady support provided by the EBRD during our establishment process, and look forward to continuing to build on this meaningful partnership in the years ahead.”
The MOU notes that that the EBRD and AIIB serve common members and regions and share common objectives.
It says cooperation will take place in the form of regular dialogue at the level of senior management, exchanges of information on respective policies and strategies and on activities in common areas where the banks invest.
The two institutions have already started cooperation on the ground. The first joint project, a road linking Dushanbe, Tajikistan, with the Uzbek border, will form part of the east-west highway in Central Asia. The EBRD Board of Directors has just approved the project for financing, and the AIIB Board is expected to consider AIIB financing in June. The two banks are currently considering other joint infrastructure projects in Central Asia.
The AIIB, located in Beijing, is a multilateral development bank that focuses on the development of infrastructure and other productive sectors in Asia, including energy and power, transport and telecommunications, rural infrastructure and agricultural development, water supply and sanitation, environmental protection, urban development and logistics.
The EBRD is a multilateral bank committed to the development of market-oriented economies and the promotion of private and entrepreneurial initiative in more than 30 countries from Morocco to Mongolia and from Estonia to Egypt.