Baku, Azerbaijan, May 4
By Anvar Mammadov - Trend:
The Asian Development Bank (ADB) has signed first ever joint advisory agreement for public-private partnership with the world banks, the head of the office of public-private partnership of ADB Ryuichi Kaga said at a briefing May 4.
The agreement was signed within the framework of the 48th meeting of the Governing Council (of ADB) in Baku.
He said that this agreement, which is a joint consultative basis between the multilateral development bank and international commercial banks, has been signed by banks from Japan, Canada and Australia, including the Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Credit Agricole CIB, HSBC, Mizuho Bank , Macquarie Capital, Societe Generale and Sumitomo Mitsui Banking Corporation.
"Given the enormous needs of Asia in infrastructure, governments of the Asia-Pacific region need more opportunities to finance and improve the efficiency of work on infrastructure projects," said Kaga.
Under the agreement, the ADB and these eight banks will be able to cooperate in providing independent consultation to governments of developing countries of Asia in order to improve the structuring of public-private partnership. This, in turn, will make these countries more attractive to the private sector.
The developing Asia must spend $8 trillion on the development of national infrastructures until 2020, according to the ADB. Governments hope to attract most of these funds through the public-private partnership.
The cost of the agreement is $64 million, $40 million of which are provided by Japan.
Edited by CN
Follow the author on Twitter: @Anvar_Mammadov