Instead of competing with the ADB for lending to development projects, the AIIB is in fact seeking cooperation from the ADB to fill up the huge financing gap, as some US$1 trillion (Bt35 trillion) in fresh loans are needed over the coming decade.

On Monday, Takehiko Nakao, president of the ADB, and Jin signed a memorandum of understanding on the sidelines of the ADB’s 49th annual meeting of its board of governors.

The MoU sets the stage for jointly financing projects, as the AIIB is expected to commence lending soon to prove that it is not solely set up to finance China’s “One Belt, One Road” project.

Initially, the AIIB was seen as a rival to both the World Bank and the ADB in financing development projects, but as the financing need for infrastructure projects in the developing countries is huge, there is room for all players.

The ADB and AIIB are already discussing projects for co-financing in the road and water sectors.

Jin seems to be seeking to learn more from the ADB’s long-standing experience in infrastructure and development lending programmes. This December, the ADB will commemorate its 50th anniversary.

M4 highway project

The highlight of their MoU is Pakistan’s M4 highway project, a 64-kilometre stretch of motorway connecting Shorkot to Khanewal in Punjab province.

The ADB and AIIB agreed to strengthen cooperation, including co-financing, at the strategic and technical levels on the basis of complementarity, value-added, institutional strengths and comparative advantages, and mutual benefit, the MoU states.

“I am very pleased to have this framework of collaboration with a new and strong partner in Asia,” Nakao said.

“ADB has been working closely with AIIB throughout its establishment process. We will further strengthen our cooperation in promoting sustainable growth, reducing poverty and combating climate change in the region,” he said.

Jin said: “I am delighted to take a further step forward in our partnership with ADB.

“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.”

Through co-financing, knowledge work and joint policy dialogue with member countries, the two institutions say they will work together in areas including energy, Jin transport, telecommunications, rural and agriculture development, water, urban development and environmental protection.

The ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration.

Last year, ADB assistance totalled $27.2 billion, including co-financing of $10.7 billion.

The AIIB, located in Beijing, |is a multilateral development| bank that focuses on the development of infrastructure and other productive sectors in Asia, including energy and power, transport and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, urban development and logistics.

The ministry is more confident that the Consumer Price Index will continue growing by 0-1 per cent this year.

That assumes that Dubai crude oil will average US$30-$40 per barrel, the baht will range between 36 and 38 to the US dollar and gross domestic product will expand by 2.8-3.8 per cent.

The CPI last month rose by 0.07 per cent year on year and by 0.55 per cent month on month.

The index for the first four months of this year was still below the same period last year by 0.35 per cent.

The CPI last month was up for the first time since December 2014.

The drought has reduced the |supply of fruits and vegetables and the production of meat.

The global oil price also increased from an average of $35.31 pexr barrel in March to $38.31 in April.

Somkiat said that with the uptrend in prices, the deflationary risk had abated.

Inflation is expected to increase slightly in the following months.

However, if the dry season has been passed and the supply of food has increased, it would lower pressure on inflation, he said.

Last month, food and beverage prices climbed 1.57 per cent on lower supply and high demand for some foods during the Songkran Festival, while non-food-and-beverage prices decreased by 0.76 per cent, in spite of the rising costs of medical services and medicine.Core inflation, which excludes volatile food and fuel prices, firmed slightly by 0.78 per cent year on year and by 0.14 per cent month on month.

Core inflation in the first four months increased 0.7 per cent, which is in line with the Bank of Thailand’s target range of 0.5-3 per cent.

More than 3,000 delegates were expected to attend the meeting, which started yesterday and ends on Thursday.

Under the theme “Cooperating for Sustainability”, this year’s meeting – being held in Frankfurt, the largest financial centre in continental Europe – will highlight the critical importance of sustainable, inclusive development and the need for closer Asian and European linkages to support it.

Germany is the largest European shareholder in the ADB with a stake of 4.3 per cent. It is taking an important step towards supporting the United Nations’ Sustainable Development Goals and redressing climate change.

By 2030, UN member countries around the world are expected to fulfil their obligations towards making this planet a more liveable place.

Hans-Joachim Fuchtel, ADB governor for Germany, said his country’s government would use the annual meeting to provide input for the bank to pursue sustainable policies and advocate for socially and environmentally sustainable development in Asia. The focuses of the meeting will be energy, energy efficiency and climate change; sustainable supply and production chains; vocational education; and sustainable urban development.

The German government wants to mobilise the private sector and the financial industry for the implementation of the global sustainability and climate goals in Asia.

The governors’ seminar on “Structural Reforms: Pathways to Sustained Growth” will examine the factors behind the global economic slowdown and the reforms needed to address constraints and put the world back on a path towards sustained and inclusive growth.

A seminar of ADB and the International Monetary Fund will look at rising financial links between Asia and Europe and how benefits can be expanded and risks mitigated to ensure any future financial shocks can be effectively absorbed.

Delegates will discuss other topics crucial to the issues of sustainability and inclusiveness, such as what is needed to achieve “green” cities, the finance and technology required to mitigate and adapt to the impacts of climate change, and actions necessary to produce high-quality jobs in developing Asia that can help address the region’s growing levels of inequality.

The meeting will also highlight the essential role the private sector increasingly plays in supporting low-income groups, with an awards ceremony to be held for ADB client companies that have developed innovative products and services that have benefited the poor.

Germany will showcase its own innovative approaches to sustainable living in a “City of Sustainability” exhibition with examples of creative cooperation used to resolve urban problems and make cities more green and liveable.

The ADB, based in Manila, is dedicated to reducing poverty in the Asia-Pacific region through inclusive and environmentally sustainable economic growth and regional integration.

Established in 1966, the ADB in December will mark 50 years of development partnership in the region. It is owned by 67 members – 48 from the region.

Last year, ADB assistance totalled US$27.2 billion (Bt948 billion), including co-financing of $10.7 billion.