The Beijing-led Asian Infrastructure Investment Bank and the US-dominated World Bank – originally seen as rivals – have signed an agreement to co-finance projects.
As part of the deal signed on Thursday – which comes as the AIIB prepares to announce its first batch of loans – the two banks are discussing nearly a dozen jointly financed projects in sectors including transport, water and energy in Central Asia, South Asia, and East Asia.
The AIIB is expected to begin lending from the second quarter of this year, after its high-profile inauguration in January. China’s Asian neighbours, such as Pakistan, are expected to benefit.
The two banks said the AIIB expected to approve US$1.2 billion in funds for development projects this year, with “a sizeable share” expected to go on joint projects with the World Bank.