The Asian Infrastructure Investment Bank (AIIB) will join hands with the Asian Development Bank (ADB) in the first co-financing project in Pakistan, a project independent from the plans of China and Pakistan, a statement released by both banks said on Monday, May 2.
China Daily reported that the announcement was made at the sidelines of the ADB's 49th annual board of governors meeting in Frankfurt, Germany, following the signing of a memorandum of understanding between AIIB President Jin Liqun and ADB President Takehiko Nakao.
The report said that the series of road projects includes Pakistan's M4 Highway, a 64-kilometer stretch connecting Shorkot to Khanewal in Punjab Province.
According to Nakao, the project's total financing cost will reach about $300 million, with both banks to contribute equal amounts.
"The agreement sets the stage for jointly financed projects. The AIIB and ADB are already discussing projects for co-financing in the roads and water sectors," the statement said.
Nakao said that the joint financing project came about "just by chance" when asked whether the project has anything to do with the close ties between China and Pakistan.
"The Pakistan project is the most mature one. There is a series of forthcoming projects, which will probably be approved and announced in June," Nakao said.
A total of $2.1 billion in financing, which included 12 projects with the World Bank and the ADB, is expected to be approved by the AIIB this year.
On the other hand, a $46-billion plan for a China-Pakistan economic corridor is currently being implemented by China.
Aside from the project in Pakistan, the AIIB is also planning to finance a road project in Tajikistan as well as a ring road in Almaty, Kazakhstan, a report by Financial Times said.
The Pakistani project was led by the ADB and the AIIB joined later, the report said. The project will be managed by the ADB, in behalf of other co-financiers, while the bidding will be conducted based on the ADB's procurement guidelines and procedures.