The Asian Development Bank (ADB) and the Export-Import Bank of Korea (KEXIM) today signed a memorandum of understanding (MOU) to co-advise on public-private partnerships (PPPs) in Asia and the Pacific.
The MOU will allow the establishment of an indicative framework for cooperation and collaboration between ADB and KEXIM to provide transaction co-advisory services on PPPs in the region involving Korean sponsors and contractors.
“KEXIM has been an important institution not only in the growth of the Republic of Korea over the decades, but also in the economic development and growth in Asia and the Pacific,” said Ryuichi Kaga, Head of ADB’s Office of Public-Private Partnership. “We are pleased to partner and work with KEXIM to provide valuable advisory services to help improve and support the development and financing of infrastructure projects in the region through PPP.”
KEXIM is an export credit agency established by the Government of the Republic of Korea and plays an active role in facilitating infrastructure development in Asia and the Pacific through financing and advisory services. The MOU was signed at the ADB Headquarters by Mr. Kaga, Head of ADB’s Office of Public-Private Partnership, and Mr. YoungKee Kim, Director General of the Business Development Group of KEXIM.
“The agreement will combine ADB’s global expertise and KEXIM’s rich experience to provide more effective and efficient PPPs in the region. The MOU will facilitate sharing expertise and experience between ADB and KEXIM by jointly advising on projects that involve Korean companies and Korean financial institutions active in the region,” said Mr. Kim.
The agreement will allow ADB and KEXIM to share their knowledge and expertise to private-sector players and state-owned enterprises in the Republic of Korea. The arrangement will also provide KEXIM a support platform to conduct preliminary due diligence on projects and clients, and set out recommendations to include international best practices on PPP transactions.
It is estimated that the region would need about $1.7 trillion per year in infrastructure investments through 2030. The agreement is expected to help meet this need by structuring viable and bankable projects through co-advisory services.
