April 3, 2015 / 3:18 AM / 4 years ago

ADB plans to co-finance projects with China's lenders: China Daily

Asian Development Bank (ADB) President Takehiko Nakao delivers a speech at China Development Forum, in Beijing March 22, 2015. REUTERS/Jason Lee

SHANGHAI (Reuters) - The Asian Development Bank (ADB) plans to work with China’s lenders to co-finance Asian projects outside China, ADB vice-president Stephen Groff was quoted on Friday as saying.

ADB has signed a memorandum of understanding with the China Development Bank (CDB) and Export-Import Bank of China to “look for opportunities outside China,” the China Daily newspaper reported from its interview with Groff.

The ADB had not yet identified appropriate projects for co-investment, Groff noted.

The moves toward cooperation come amid the emergence of new institutions such as the China-led Asian Infrastructure Investment Bank, with initial capital of $50 billion.

The ADB has a capital base of S165 billion, while the China Development Bank’s total assets stand at $1.6 trillion.

“It can be $1 from the ADB, $1 from the World Bank, $1 from the AIIB, and (we will) encourage multiple additional dollars from other sources,” Groff told the newspaper.

“The ADB has a goal of eliminating poverty in the Asia-Pacific region. We aim to achieve this goal largely through infrastructure,” he said.

Last month, ADB President Takehiko Nakao said that it could cooperate with the AIIB through co-financing if the ADB’s standards for loans were met.

Reporting by Brenda Goh; Editing by Eric Meijer

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