The Asian Development Bank (ADB) and the Republic of Korea (South Korea) have entered into a memorandum of understanding (MoU), committing $2 billion in cofinancing for ADB sovereign operations over the next three years. This agreement represents a significant increase from a previous MoU signed in 2021.
The cofinancing provided by the Republic of Korea will be utilized to support various projects, including those related to climate change, transportation, energy, agriculture, education, governance reform, health, and information and communication technology (ICT). Additionally, $800 million of the allocated funds will be specifically earmarked for cofinancing projects in India. The collaboration between the ADB and the Republic of Korea will also facilitate public-private partnerships.
The Republic of Korea will provide $2 billion in cofinancing for ADB sovereign operations over the next three years with climate change-related projects a key focus: https://t.co/1XEvIw2PBm
#ADBAnnualMeeting pic.twitter.com/5WqkaX2PZx— Asian Development Bank (@ADB_HQ) May 4, 2024
Read more: South Korea’s GDP grows 1.3 percent in Q1 2024 driven by export recovery
The MoU not only focuses on financial contributions but also aims to strengthen technical assistance and feasibility studies. This support will be provided through the Republic of Korea e-Asia and Knowledge Partnership Fund, which is administered by the ADB. Established in 2006, this fund plays a crucial role in poverty reduction in Asia and the Pacific by improving access to information and communication technology and fostering knowledge sharing and partnerships.
CAREC climate fund
During a bilateral meeting, ADB President Masatsugu Asakawa expressed gratitude to Republic of Korea Deputy Prime Minister and ADB Governor Choi Sang Mok for their country’s contribution to the replenishment of the Asian Development Fund. Furthermore, the Republic of Korea pledged $3 million as a founding member to the Central Asia Regional Economic Cooperation (CAREC) Climate and Sustainability Project Preparatory Fund.
The CAREC climate fund aims to address financing gaps in realizing climate change goals by preparing viable and climate-resilient regional projects for CAREC countries.
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