16 July 2015: The World Bank and China have agreed to establish a US$50 million trust fund to help reduce poverty. The agreement reinforces the Bank’s growing partnership with China, which is the Bank’s third-largest shareholder and an important contributor to the Bank’s International Development Assistance (IDA) and Global Infrastructure Facility. The fund was agreed to during an official visit to China by World Bank Group President Jim Yong Kim.

The trust fund will enhance cooperation between China and the World Bank Group, and leverage financial and knowledge-based resources to help developing countries achieve inclusive and sustainable development. In addition, the fund will finance investment projects, operations, knowledge development and human resource cooperation.

President Kim also met with Secretary General Jin Liqun of the Asian Infrastructure Investment Bank (AIIB) Multilateral Interim Secretariat. They agreed to expand cooperation and explore opportunities for joint project financing. The AIIB is expected to be operational by the end of the year. Jin indicated that projects for co-financing will be identified in October-November 2015.

The AIIB Multilateral Interim Secretariat and the World Bank are already working together on matters related to institutional governance, organizational structure, social and environmental safeguards, and procurement procedures. [World Bank Press Release]