Within the framework of its continuous efforts to mobilize more resources and expertise to implement development projects in its member countries, the Islamic Development Bank (IDB) signed a Framework Co-financing Agreement (FCA) with Korea Development Bank (KDB) at IDB headquarters in Jeddah yesterday.
Under the FCA, each bank will earmark $ 1 billion to co-finance public private partnership (PPP) projects in IDB member countries over the next three years. The common pipeline of projects for co-financing would be based on the two institutions' shared understanding of the development needs of the target countries and best practice concepts on development financing. The agreement aims to target projects in infrastructure, agriculture, human development and development of the private sector.
Signing the agreement, IDB Vice President Abdulaziz Al-Hinai said IDB welcomed the opportunity to work with KDB and hoped the co-financing platform would help mobilize governments and the private sector to work hand in hand and develop high quality infrastructure projects in the IDB member countries using the PPP model.
KDB Executive Director Won Il-kim stated that the PPP model has been successfully applied in Korea and with this co-financing arrangement, his institution hopes to share its relevant experience and know-how of the model with IDB mainly in the Middle East and North Africa region, and develop key infrastructure projects such as energy, power, transportation, etc., especially in the private sector.