Two WB initiatives launched to help developing nations
Monday, 27 April 2009
FE Report
World Bank (WB) Group President Robert B. Zoellick Saturday launched two multi-billion infrastructure investment initiatives to help developing countries withstand the global financial and economic crisis.
The WB's Infrastructure Recovery and Assets (INFRA) platform and the Infrastructure Crisis Facility (ICF), set up by IFC, the WB Group's member focused on private sector investments, will together mobilise more than US$55 billion over the next three years to infrastructure projects in developing countries. Out of this total, US$45 billion is available in lending from the WB and US$10 billion is available via IFC.
The two initiatives will help create jobs and lay the foundations for future economic growth and poverty reduction.
As founding partners in the ICF, the German and French governments were the first to sign a Memorandum of Understanding with the WB Group with the intention to contribute about US$660 million (euro500 million) through Germany's development bank KfW and around US$1.3 billion (euro1 billion) through France's development bank Proparco.
"As developing countries are facing the trials of the global economic crisis, it is vitally important that economic stimulus packages in the developed world are accompanied by support to those that cannot afford multi-billion bailouts," said Zoellick, in launching the new initiatives. "A decline in infrastructure leaves weaker foundations for long-term economic growth that hits the poorest the hardest.
World Bank (WB) Group President Robert B. Zoellick Saturday launched two multi-billion infrastructure investment initiatives to help developing countries withstand the global financial and economic crisis.
The WB's Infrastructure Recovery and Assets (INFRA) platform and the Infrastructure Crisis Facility (ICF), set up by IFC, the WB Group's member focused on private sector investments, will together mobilise more than US$55 billion over the next three years to infrastructure projects in developing countries. Out of this total, US$45 billion is available in lending from the WB and US$10 billion is available via IFC.
The two initiatives will help create jobs and lay the foundations for future economic growth and poverty reduction.
As founding partners in the ICF, the German and French governments were the first to sign a Memorandum of Understanding with the WB Group with the intention to contribute about US$660 million (euro500 million) through Germany's development bank KfW and around US$1.3 billion (euro1 billion) through France's development bank Proparco.
"As developing countries are facing the trials of the global economic crisis, it is vitally important that economic stimulus packages in the developed world are accompanied by support to those that cannot afford multi-billion bailouts," said Zoellick, in launching the new initiatives. "A decline in infrastructure leaves weaker foundations for long-term economic growth that hits the poorest the hardest.