The Asian Development Bank (ADB) and Bank of China (BoC) have agreed to explore a broad range of fresh opportunities for collaboration, including in the areas of regional trade finance, clean energy and infrastructure development, microfinance and institutional capacity building.
As a strategic investor, ADB has conducted five technical assistance projects for BoC since 2006, covering corporate governance, environmental safeguards, anti-money laundering, anti-corruption, and operational risk management. It has also provided training under ADB’s Trade Finance Facilitation Program for BoC staff. ADB is currently the fifth largest shareholder of BoC and plans to remain a long-term strategic investor.
ADB said that it is looking to expand its Trade Finance Facilitation Program with support from BoC to reduce costs and risks, and increase trade among ADB’s developing member countries. The two institutions will also explore co-financing of infrastructure projects for developing countries, and potential opportunities for promoting the development of public-private partnerships, small- and medium-enterprise financing, climate change finance, microfinance, and the use of credit guarantees.
BoC and ADB are also working to establish a regular staff exchange program, with two corporate staff from BoC set to work in ADB’s South Asia Department later this year on infrastructure-related projects.
Philip Erquiaga, director general of private sector operations department at ADB, said: “ADB and BoC foresee several opportunities for enhanced collaboration in important areas over coming years with priorities including climate change and low-carbon development, infrastructure investment, regional trade finance, small- and medium-enterprise (SME) financing, microfinance, joint research and knowledge sharing, and corporate governance and risk management improvement.”