ADB, WB body to back foreign investment in Asia

ADB, WB body to back foreign investment in Asia

Agence France-Presse, Manila

A World Bank agency and the Asian Development Bank (ADB) agreed Monday to support foreign direct investment (FDI) in Asia through lending and the provision of investment guarantees, a joint statement here said.

ADB and the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, "will support joint projects in which one or both will provide investment guarantees, in combination with ADB direct assistance, such as loans or equity investments," the statement said.

MIGA executive vice president Motomichi Ikawa said after the Manila signing that the step signals "our commitment to increasing the flows of foreign investment in the region."

ADB vice president for finance John Lintjer said "this partnership creates a powerful combination -- MIGA's experience in political risk, and ADB's regional expertise and resources.

"Together, they strengthen our hand for private sector development and reducing poverty in Asia."

FDI inflows in Asia stood at US$65.65 billion in calendar 2000, slightly below the $70.70 billion level during the Asian crisis in 1997-1998.

MIGA and the ADB said they were already collaborating on their first project -- the expansion and rehabilitation of a toll road leading to the Philippines capital being undertaken by the Manila North Tollways Corp.