The call came at a meeting today between IDB President, Dr. Ahmed Mohamed Ali, and a high-level delegation from ADB, led by its President Haruhiko Kuroda. The meeting took place at IDB Headquarters in Jeddah.

The two Presidents reaffirmed their commitment to enhance development efforts in member countries, in line with the Paris Declaration and the Accra High-Level Forum on Aid Effectiveness. They also called for stronger institutional and operational cooperation in line with the framework cofinancing agreement, signed between IDB and ADB in September 2008.

That agreement earmarks up to US$4.0 billion in cofinancing by the two institutions in common member countries over a three-year period (2009-2011). The two banks have 13 common member countries in Asia (Afghanistan, Azerbaijan, Bangladesh, Brunei, Indonesia, Kazakhstan, Kyrgyz Republic, Malaysia, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan).

The visit provided an opportunity to review bilateral cooperation between the two institutions. The Presidents also discussed recent global developments — including the financial crisis and high food costs — and the impacts these were having on member countries.

Mr. Kuroda praised IDB’s leadership role in Is lamic finance and its various programs and initiatives, particularly in Asia. The two Presidents agreed to further diversify and enhance cooperation in cofinancing, Islamic finance, renewable energy, risk management, and knowledge sharing.

Mr. Kuroda’s visit is designed to give new impetus to ongoing bilateral cooperation, and to forge a new strategic partnership between IDB and ADB.

Recent joint activities by the two institutions included plans for the establishment of the Islamic Asia Infrastructure Fund, a Shariah-compliant private equity fund, of up to US$500 million. The Fund will target equity investment to promote private sector participation in infrastructure projects in common member countries. Other activities include the development of a private hydropower plant in Pakistan, the rehabilitation & upgrading of an irrigation and water resources project in Afghanistan and, most recently, the financing of a renewable solar-based energy project in Bangladesh.