Asian Development Bank (ADB) Vice-President Wencai Zhang met with New Development Bank (NDB) Vice President and Chief Operations Officer Xian Zhu on the sidelines of the World Bank-International Monetary Fund Annual Meetings to discuss progress on projects for cooperation.
The two institutions have been working to identify their first projects for cofinancing. Preparatory work is underway on two potential projects in India—the Mumbai Metro Railway Project in Maharashtra and Indore Metro Railway Project in Madhya Pradesh. Project appraisals have recently begun for both projects, for which ADB and NDB teams are working to complete due diligence, finalize costs, and determine cofinancing arrangements.
“ADB and NDB are making good progress as we look to expand cooperation and leverage each other’s financing to maximize development benefits in our member countries,” Zhang said.
A memorandum of understanding on cooperation was signed by ADB President Takehiko Nakao and NDB President K.V. Kamath in Manila in July 2016. Through cofinancing and joint knowledge work, the two institutions will work together in areas such as renewable energy, energy efficiency, clean transportation, sustainable water management, and sewage treatment.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.
NDB is a new multilateral development bank based in Shanghai. It was setup in 2015 by five BRICS countries focusing on infrastructure and sustainable development. In the first year of operations, NDB provided infrastructure financing of $1.5 billion to member countries.