ADB and Korea sign 2 agreements to strengthen co-financing and technical cooperation
The Asian Development Bank (ADB) announced that it has signed two agreements with the Republic of Korea to enhance joint efforts to provide additional financing and technical assistance to ADB’s developing member countries.
The two agreements were signed by the ADB President Mr Takehiko Nakao and Korean Deputy Prime Minister and Minister of Strategy and Finance Mr Dong Yeon Kim, at the ADB's 51st Annual Meeting in Manila.
Since joining ADB in 1966, the Republic of Korea has contributed US$7.62 billion in capital subscription and contributed and committed US$701.42 million to Special Funds. It has also provided US1$1.6 billion in loan co-financing for 17 ADB projects in the areas of skills development, railway, power generation and transmission, urban and rural development, and regional cooperation.
The first memorandum of understanding (MOU) is to expand Korea’s co-financing support for ADB projects in Asia and the Pacific. The MOU renews the co-financing partnership between Korea and ADB, which started in 1993.
Under the MOU, Korea will provide US$650 million of concessional loans through its Economic Development Cooperation Fund in the next 3 years to co-finance ADB projects and programs.
“The MOU will pave the way for ADB and the Republic of Korea to jointly make a more profound impact on the ground in the priority areas of transport, energy, environment, health, public governance, education, and information and communication technology (ICT),” said ADB President Mr Nakao.
The second agreement signed is the cooperation agreement on the Korea-Asia and Pacific (Korea-AP) Tech Corp Program. Under this new program, qualified young experts from various sectors in Korea will contribute to technical capacity building in ADB’s developing member countries based on their needs. ADB will help identify areas where support may be needed by countries in such areas as ICT and clean energy.
“We believe that this program, through enhancement of personnel and technical exchange, will make a significant contribution to the developing countries in the region to cope with the challenges we are facing, such as the 4th Industrial Revolution,” said Deputy Prime Minister Kim. Deputy Prime Minister Kim is also the Governor for the Republic of Korea in ADB.