AfDB and Korea Sign Supplementary Technical Cooperation Agreement
Dakar, Senegal, 18 May 2009 – Within the framework of the 2009 Annual Meetings, the African Development Bank (AfDB) Group and Korea signed a Supplementary Technical Cooperation Agreement on Thursday, May 14, 2009, in Dakar to further enhance collaboration between the two sides.
The agreement was signed by the AfDB Vice President for Operations (Regional and Country Programmes), Aloysius Ordu, and the Deputy Director-General of the International Finance Bureau in the Strategy and Finance Ministry, Jeong Eun-Bo, on the sidelines of the Annual Meetings.
Under the agreement, Korea will make available to the Bank Group an additional grant of KRW 6.60 billion, or roughly US$ 5 million as the first replenishment to the Korea-Africa Economic Cooperation Conference (KOAFEC) Trust Fund, which was established in December 2007 with an initial contribution of US$ 5 million. In times of global financial crisis, this is indeed a substantial contribution from the Korean government to help boost the economic development on the continent.
With this Supplementary Technical Cooperation Agreement now in place, the KOAFEC Action Plan for 2009-2010 will be fully implemented to further promote development knowledge sharing, agriculture and rural development, ICT and human resources development which are of critical importance to Africa’s sustained growth. Korea’s remarkable economic development over the past decades and its willingness to share development knowledge and experiences through KOAFEC arrangement certainly inspire and encourage Africa, especially in times of difficulties.
This initiative is a confirmation of the common development focus and represents a continuation of the fruitful cooperation between Korea and the Bank. It will further consolidate the existing strong relationship between both parties. The new resources from Korea will continue to be utilized for the implementation of the KOAFEC Action Plan and other activities, thereby reinforcing the mutual commitment to promote sustainable development on the continent.
Under the first phase of the KOAFEC Trust Fund, ten activities have, so far, been financed for a total of US$ 3.81 million. The replenishment is expected to go a long way in further consolidating the strong relationship between Korea and Africa, on the one hand, and between Korea and the Bank Group, on the other, particularly in making valuable contributions to current development initiatives on the continent. These initiatives, developed under the aegis of the Bank Group’s strategic partnership, clearly demonstrate the Korean government’s strong commitment to assist the Bank’s regional member countries (RMCs) in meeting some of the economic development challenges.
Korea remains one of Africa’s strong and steadfast development partners and that of the African Development Bank, in particular. The cooperation between the Bank Group and Korea has been based on the fundamental convergence of the Bank Group Strategy and the overall principles that underlie Korea’s assistance to developing countries. Both support poverty reduction and the realization of MDGs on the continent. They also share a deep commitment to promote human resources development and to provide development assistance to African countries. In line with these shared values, Korea’s assistance to the Bank has, in the past, been considerable and varied.
This has ranged from strong support to the replenishment of the African Development Fund with a total contribution of UA 155 million to the fruitful Technical Cooperation Agreements which have been concluded between 1998 and 2007. Within the framework of these agreements, Korea has financed 17 projects for a total commitment of US$ 5.19 million. Under the MOU on Co-financing Activities between the Government of Korea and the AfDB in October 2008, Korea has earmarked US$ 200 million for 2009-2011 to co-finance public sector projects in Africa.