The Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) on Monday signed a memorandum of understanding (MOU) to strengthen cooperation, the AIIB said in a statement.
The two financial institutions inked the MOU in the German city of Frankfurt, where the ADB is holding its 49th annual meeting of its board of governors.
The agreement sets the stage for jointly-financed projects. Discussions have already begun about the co-financing of road and water projects.
The first of these projects is expected to be Pakistan's M4 highway, a 64-kilometer motorway connecting Shorkot to Khanewal in Punjab Province, according to the statement.
AIIB and ADB agreed to strengthen co-operation, including co-financing, at the strategic and technical levels on the basis of "complementarity, value added, institutional strengths and comparative advantages, and mutual benefit," according to the MOU.
"I am delighted to take a further step forward in our partnership with ADB," AIIB president Jin Liqun said. "AIIB looks forward to deepening our already strong relationship and expanding our collaboration as we seek to address the significant infrastructure financing needs in the Asia region."
"ADB has been working closely with AIIB throughout its establishment process. We will further strengthen cooperation in the areas of sustainable growth, poverty reduction, and combatting climate change," said ADB president Takehiko Nakao.
Through co-financing, knowledge transfer, and joint policy dialogues with member countries, the two institutions will work together across the areas of energy, transportation, telecoms, rural and agriculture development, water, urban development, and environmental protection.
The two institutions will undertake regular high-level consultations and data collection to implement the Sustainable Development Goals and the COP21 climate agreement, according to the statement.
AIIB, located in Beijing, was formally established in Beijing in December last year and started operation in January.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, ADB is owned by 67 members -- 48 from the region. In 2015, ADB assistance totaled 27.2 billion U.S. dollars, including co-financing of 10.7 billion U.S. dollars.
