Asian Infrastructure Investment Bank (AIIB) President Jin Liqun and Asian Development Bank (ADB) President Takehiko Nakao signed a memorandum of understanding (MOU) here today on the sidelines of ADB’s 49th Annual Meeting of the Board of Governors.

The agreement sets the stage for jointly financing projects. AIIB and ADB are already discussing projects for co-financing in the road and water sectors. The first of these projects is expected to be Pakistan’s M4 highway project, a 64-kilometer stretch of motorway connecting Shorkot to Khanewal in Punjab Province.

"I am delighted to take a further step forward in our partnership with ADB," Jin said. "AIIB looks forward to deepening our already strong relationship and expanding our collaboration as we seek to address the significant infrastructure financing needs in the Asia Region."

"I am very pleased to have this framework of collaboration with a new and strong partner in Asia," said Mr. Nakao. "ADB has been working closely with AIIB throughout its establishment process. We will further strengthen our cooperation in promoting sustainable growth, reducing poverty, and combatting climate change in the region."

Through co-financing, knowledge works, and joint policy dialogues with member countries, the two institutions will work together in the areas including energy, transportation, telecommunications, rural and agriculture development, water, urban development, and environmental protection.

The two institutions will undertake regular high-level consultations between them and joint data collection to promote the implementation of the Sustainable Development Goals and the COP21 climate agreement.

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, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, urban development and logistics.

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 in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including co-financing of $10.7 billion.