ADB, KfW Scale Up Cofinancing Partnership with Additional $2 Billion
The Asian Development Bank (ADB) and KfW, the German state-owned development bank, today agreed to scale up their existing cofinancing partnership with an additional $2 billion over the next 3 years to continue promoting development in the Asia and Pacific region.
A memorandum of understanding (MOU) for cofinancing was signed by ADB Senior Advisor in the Strategy, Policy, and Partnerships Department Kenji Yuhaku, KfW Director for East and Southeast Asia Joachim Schumacher, and KfW Regional Manager for East and Southeast Asia Michael Gruber at a ceremony at ADB headquarters in Manila.
“ADB appreciates KfW's strong interest in the region's development, Since 2014, we have worked together to finance almost $6 billion in energy, urban infrastructure, climate finance, and pandemic support, The current cofinancing MOU has proven to be successful, and we look forward to continue building on this growing partnership in Asia and the Pacific” said Yuhaku.
Schumacher said: “ADB and KfW are closely linked through a mutually trustful cooperation, ADB is KfW’s key partner in Asia, and we are seeking to further expand our cooperation, I am honored and grateful to be able to extend the joint MOU on cofinancing by another $2 billion until the end of 2025, Thereby, we lay the foundation for further years of fruitful cooperation and for a green and just transition in Asia.”
The new agreement will build on the successful cofinancing partnership ADB and KfW launched in 2014 for $2 billion, and renewed in 2017 and 2019 for an additional $4 billion.
The partnership (2014–2021) yielded 25 cofinanced projects focused on energy, industry and trade, and public sector management. The $5.78 billion provided by KfW for these projects was complemented with $8.85 billion from ADB.
Germany is the second largest bilateral cofinancier of ADB projects. The additional cofinancing from KfW will help ADB address the region’s vast infrastructure needs, estimated at $1.7 trillion annually until 2030, including climate adaptation and mitigation costs.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty, Established in 1966, it is owned by 68 members—49 from the region.
