AIIB (Asian Infrastructure Investment Bank) news

[ahojunk]

China-led AIIB plans to limit investment in coal power
JANNE SUOKAS
2017/01/26

Multilateral development banks have moved to limit their funding of cheap but highly-polluting coal-fired power plants. (Photo: stevepb, Pixabay)


In a bid to live up to its environmentally friendly values, the Asian Infrastructure Investment Bank (AIIB) is planning to adopt strict limits to investment in coal power.

Launched by China as a “lean, clean and green” lender to invest in infrastructure projects in Asia, the AIIB opened for business a year ago with 57 member countries and US$100 billion in capital.

Its draft energy strategy, released on Tuesday, puts emphasis on renewable energy and raising energy efficiency, likely disappointing coal producers and countries that were hoping the Beijing-based bank would adopt a looser policy towards coal power investment than the World Bank.

The proposed strategy, which will be approved after a final consultation round in the bank’s annual meeting in June, said the AIIB would focus on “supporting and accelerating its members’ respective transitions toward a low-carbon energy mix”.

“Carbon efficient oil and coal-fired power plants would be considered if they replace existing less efficient capacity or are essential to the reliability and integrity of the system, or if no viable or affordable alternative exists in specific cases, particularly in low income countries,” read the paper (pdf) which also ruled out investment in nuclear power projects.

Following pressure from environmental groups and countries including the United States and United Kingdom, multilateral development banks have in recent years moved to limit their funding of cheap but highly-polluting coal-fired power plants.

The Washington-based World Bank announced in 2013 that it will stop financing coal plants except in rare cases where no feasible alternatives are available while the Japanese-led Asian Development Bank now says it only supports coal projects that use high-efficiency and low-emissions technologies.

Joachim von Amsberg, AIIB vice-president of strategy and policy, told The Times in an interview on Monday that the bank was determined to be seen as a modern, environmentally-friendly lender.

“There’s a strong consensus that AIIB has to be a green bank and the portfolio has to show that it’s a green bank and if the portfolio is full of coal projects you won’t look like a green bank,” he said but added that there was “live discussion among member countries” about the issue.

Australia, a major coal producer and an AIIB founding member, has reportedly been lobbying for the bank to acknowledge the importance of the fossil fuel in its energy strategy. India and Indonesia have previously said they hope the AIIB will finance coal projects in their countries.

Asia’s daunting energy needs

The AIIB’s energy strategy comes as China is increasingly taking the lead in the fight against global warming in the wake of Donald Trump’s election as the new US president. Trump has both called climate change a hoax invented by the Chinese and vowed to withdraw his country from the 2015 Paris climate change treaty.

Von Amsberg said in his interview with The Times that “we have to implement Paris [the climate change agreement] if we want to be relevant in the world. Yet there’s a tension with the tremendous need for expanding electricity supply in member countries.”

Estimating that Asia’s energy investment would amount to US$18 trillion by 2040, the AIIB’s draft strategy said countries in the region faced "daunting challenges" to meet their energy needs to sustain economic growth while moving towards a less carbon-intensive energy mix.

The Chinese-led development bank plans to invest US$2.5 billion this year, after lending US$1.73 billion last year to projects that included a gas-fired power plant in Myanmar, a power grid upgrade in Bangladesh, and a hydropower extension project in Pakistan.

The bank’s website currently lists several proposed projects related to energy, including two projects in India aimed at improving energy supply and efficiency, and a solar power plant project in Kazakhstan.

 

[ahojunk]

A win for Australia, our coal exports.

========
China-backed bank swings behind coal-powered generators

• The Australian
• 12:00AM February 3, 2017
• DENNIS SHANAHAN
• Political Editor
  Canberra
  
  

The Turnbull government has had a significant win for the future of investment in modern coal-fired power stations in Asia and Australian exports by getting the $100 billion Asian Infrastructure Investment Bank to drop its ban on financing coal-powered electricity generators.

As Malcolm Turnbull, Scott Morrison, Josh Frydenberg, Matt Canavan and Arthur Sinodinos spearhead a Coalition drive to secure reliable low-cost energy in Australia and protect coal and gas export earnings, the federal government has convinced the China-sponsored AIIB to curtail its “socially acceptable” policy of not lending money to build gas- or coal-fired power stations in Asia. The new guidelines open up the $100bn in infrastructure loans — of which Australia has pledged almost $5bn — to finance the latest clean coal-powered stations in developing Asian nations seeking to provide electricity to 500 million people.

Yesterday the Prime Minister and Treasurer said the Clean Energy Finance Corporation could also provide finance for coal-fired power generation if it reduced greenhouse gas emissions.

“A project that did involve coal that had the effect of reducing emissions would be or should be eligible for finance,” Mr Turnbull said. “Whether it had the appropriate private-sector backing is another matter.”

“Part of the problem we got into here is the way in which energy policy has been turned into an ideological battlefield.”

The government and the mining industry objected to the AIIB’s original guidelines that supported “socially acceptable” renewable power but shut out nuclear, coal and gas electricity generation, which are the backbone of Australia’s energy exports.

Treasury argued that in the interests of helping people throughout Asia without electricity, coal should have a significant role in power generation.

The new guidelines still state the AIIB, which describes itself as a “green bank”, wants to accelerate transition to low-carbon energy but allows for the financing of gas-fired power generation and “carbon-efficient and coal-fired power plants” if they replace less efficient power stations or in “low- income countries” with no alternative.

The Treasurer welcomed the change, which will provide options for poorer nations and help sustain Australian coal exports.

“Australia’s national interest demands that coal continue to be part of our future energy equation, not just here in Australia, but around the world,” Mr Morrison told The Australian.

“That is why following our strong representations, I am pleased that the AIIB has now put fossil-fuel generation investments back into mix for their energy sector strategy, which is now under discussion.

“This is an important and practical recognition by the AIIB of the role that fossil fuels will continue to play in the energy mix of most of its member countries and that investments can support and accelerate the transition toward a low-carbon energy mix using lower-carbon emissions from fossil fuels.

“But it’s even more important that the Australian government continues to ensure that we explore all the options here in our energy market and that we keep all the opportunities we have to drive the transition to maintain and build a competitive energy advantage into the future.”

Mr Morrison extended the Coalition’s attack on Labor, backing the Prime Minister’s defence of the future of coal to ensure cheaper and reliable energy for businesses and households.

“The Turnbull government understands that high electricity costs are eroding household budgets and hurting business balance sheets as they seek to remain competitive and give their employees greater job security, more hours and better wages,” he said.

“These impacts are felt most keenly in regional communities across Australia already struggling with the transition from the mining boom. Cutbacks in energy-intensive and electricity-reliant industries flows on to the local business and supply chain, causing further economic and financial hardship in those communities. Bill Shorten and Labor’s ‘ideology first’ pursuit of reckless renewable energy targets is designed to shut down Australian industry, put people out of work and cheer on the closure of power stations like Hazelwood, despite the devastating impact for local communities.”

The objectives of the AIIB — set up to lend to countries such as Indonesia, Pakistan, Myanmar, Vietnam, India, Laos, Cambodia, Bangladesh and Thailand for ports, rail, roads and electricity generation — are aimed at boosting economic growth and providing power to 500 million people.

The fledgling bank says setting principles to decide finance for energy projects is not easy because “green” energy “may not be economically justified, considering the assumptions traditionally used”. It also says project selection should be “technology neutral”.

When then treasurer Joe Hockey committed Australia to becoming a founding member of the AIIB in 2015 — against the wishes of the US — he cited growing exports as a prime reason. Australia committed $932 million in paid capital, with a pledge for $3.7bn on call after Tony Abbott and Mr Hockey decided to risk “choosing China over the US”.

Mr Hockey told parliament: “Membership of the bank will provide valuable trade and economic opportunities for Australia. Australian firms will benefit from improved infrastructure throughout the region, which will also help our commodity exporters. The bank will help build new and improved infrastructure, which in turn will drive increased demand for our commodities and for Australian services.”

At the time Australia and Japan were concerned US and EU influence on global development banks was preventing lending to developing Asian nations, who wanted to build nuclear or “clean-coal” power stations because of climate change considerations.

 

[Daniel808]

More countries seek to join China's Asian Infrastructure Investment Bank

By Elizabeth Shim

| Jan. 25, 2017 at 2:49 PM

Chinese President Xi Jinping (R) greets British Prime Minister Theresa May during the G20 Summit in Hangzhou, the capital of Zhejiang Province, on September 5, 2016. Britain is a member of the China-led Asian Infrastructure Investment Bank, an organization that is gaining more members as the United States is taking steps to withdraw from existing trade deals.



Jan. 25 (UPI) -- An increasing number of African, European and Latin American states are setting their sights on membership in the China-led Asian Infrastructure Investment Bank, as U.S. President Donald Trump is taking steps to repeal existing trade agreements with Mexico and the Asia-Pacific.

The Financial Times reported 25 more countries are seeking membership in the AIIB, a development that is encouraging Beijing to push forward as the front-runner on economic globalization.

In early January, Chinese President Xi Jinping had warned an audience at the World Economic Forum in Davos of the perils of economic protectionism.

Beijing has also been promoting its free trade agreement, the Regional Comprehensive Economic Partnership, or RCEP, as a competitor to the Trans-Pacific Partnership, a multilateral trade agreement from which Trump withdrew U.S. participation this week.

AIIB president Jin Liqun told FT the boost in membership could help the $100 billion bank and China's standing in the global economy.

"Now that China has developed, it is our turn to contribute," Jin said.

New potential members include Ireland, Canada, Ethiopia and Sudan, according to the report.

The AIIB also has not ruled out U.S. or Japanese participation.

"The door is open to others, and though we are not soliciting their membership, they can come to us," said AIIB vice president Sir Danny Alexander.

The increased interest in AIIB comes as Trump is following through on his pledges to restrict trade.

According to a Goldman Sachs analysis released last week, Trump's policies may primarily target China, but other countries in the region, including South Korea and Taiwan, could be adversely affected by U.S. import cuts.

"China has the highest production multiplier [at three times], but Taiwan and South Korea would have the most negative economic impact due to their greater reliance on trade," the analysis read, according to CNBC.

http://www.upi.com/Top_News/World-N...Infrastructure-Investment-Bank/7191485371428/

Asian Infrastructure Investment Bank (AIIB) getting Bigger day by day.

 

[ahojunk]

The previous post was from the Aussie perspective.
This is from the Chinese perspective.

========
Australia welcomes AIIB’s proposed coal energy investment rules
JANNE SUOKAS
2017/02/03

A coal reclaimer in Australia's Kooragang Island. (Photo: KYM FARNIK, Flickr)

The Australian government has reportedly welcomed the Asian Infrastructure Investment Bank’s (AIIB) latest energy strategy proposal, saying it is important to allow investment in modern coal-fired power stations.

The Beijing-based AIIB is currently soliciting comments for its energy strategy which will be approved in June to guide the US$100 billion bank’s investments in the sector.

The draft strategy (pdf), which was released last week for the final consultation round, seeks to strike a balance between responding to Asia’s daunting energy needs and cutting down emissions to combat pollution and climate change.

The paper said the AIIB would focus on supporting the transition toward a low-carbon energy mix but would consider financing gas-fired power stations and “carbon efficient oil and coal-fired power plants” if they replace existing less efficient capacity, or if there are no viable alternatives, especially in low income countries.

“Australia’s national interest demands that coal continues to be part of our future energy equation, not just here in Australia, but around the world,” Treasurer Scott Morrison told The Australian on Thursday.

“That is why, following our strong representations, I am pleased that the AIIB has now put fossil-fuel generation investments back into mix for their energy sector strategy, which is now under discussion.”

Australia is one the AIIB's 57 founding members and a major coal producer globally, with its exports of the fossil fuel going mostly to China, Japan, South Korea and other countries in the region.

The country’s government and coal industry had reportedly been alarmed by the AIIB’s first draft (pdf) released in October that put priority on renewable energy and raising energy efficiency.

It said coal- and oil-fired power plants “would exceptionally be considered if cleaner technologies are not available for well-founded energy security or affordability reasons”.

Although the second draft continues to place limits on coal and oil energy investments, Australia’s Morrison said it was an “important and practical recognition by the AIIB” that fossil fuels continued to play a role in the energy mix of most of its member countries.

Conflicting expectations

China launched the AIIB in 2015 to finance the construction of power plants, railways, roads and other infrastructure across Asia.

With many regarding the bank as China’s alternative to existing Western-led development banks, countries such as India and Indonesia expressed hopes that it would adopt a looser approach than the World Bank which in 2013 stopped financing coal plants except in rare cases.

The AIIB has however said it would be a “lean, clean and green” lender.

“There’s a strong consensus that AIIB has to be a green bank and the portfolio has to show that it’s a green bank and if the portfolio is full of coal projects you won’t look like a green bank,” Joachim von Amsberg, AIIB vice-president of strategy and policy, told The Times last week.

Von Amsberg admitted there was “live discussion” among the member countries on the coal issue, as well as a tension between implementing the Paris climate deal and responding to the “tremendous need for expanding electricity supply in member countries”.

The AIIB said it had received 38 comments from NGOs, think tanks, business groups and private firms during the first round of consultation that ended in November.

It said comments on fossil fuels, and coal in particular, were mostly restrictive (pdf).

The second and final consultation round will end in early March with the AIIB’s board expected to approve the energy strategy in June.

Australia is the sixth largest member country in the AIIB with a US$3.7 billion stake and 3.8 percent of votes.

China is the largest member country with a US$29.8 billion stake and 28.7 percent of voting power, followed by India, Russia, Germany and South Korea.

The AIIB plans to invest US$2.5 billion this year, after lending US$1.73 billion last year to projects that included a gas-fired power plant in Myanmar, a power grid upgrade in Bangladesh, and a hydropower extension project in Pakistan.

.

 

[TaiShang]

More countries seek to join China's Asian Infrastructure Investment Bank

By Elizabeth Shim

| Jan. 25, 2017 at 2:49 PM

Chinese President Xi Jinping (R) greets British Prime Minister Theresa May during the G20 Summit in Hangzhou, the capital of Zhejiang Province, on September 5, 2016. Britain is a member of the China-led Asian Infrastructure Investment Bank, an organization that is gaining more members as the United States is taking steps to withdraw from existing trade deals.



Jan. 25 (UPI) -- An increasing number of African, European and Latin American states are setting their sights on membership in the China-led Asian Infrastructure Investment Bank, as U.S. President Donald Trump is taking steps to repeal existing trade agreements with Mexico and the Asia-Pacific.

The Financial Times reported 25 more countries are seeking membership in the AIIB, a development that is encouraging Beijing to push forward as the front-runner on economic globalization.

In early January, Chinese President Xi Jinping had warned an audience at the World Economic Forum in Davos of the perils of economic protectionism.

Beijing has also been promoting its free trade agreement, the Regional Comprehensive Economic Partnership, or RCEP, as a competitor to the Trans-Pacific Partnership, a multilateral trade agreement from which Trump withdrew U.S. participation this week.

AIIB president Jin Liqun told FT the boost in membership could help the $100 billion bank and China's standing in the global economy.

"Now that China has developed, it is our turn to contribute," Jin said.

New potential members include Ireland, Canada, Ethiopia and Sudan, according to the report.

The AIIB also has not ruled out U.S. or Japanese participation.

"The door is open to others, and though we are not soliciting their membership, they can come to us," said AIIB vice president Sir Danny Alexander.

The increased interest in AIIB comes as Trump is following through on his pledges to restrict trade.

According to a Goldman Sachs analysis released last week, Trump's policies may primarily target China, but other countries in the region, including South Korea and Taiwan, could be adversely affected by U.S. import cuts.

"China has the highest production multiplier [at three times], but Taiwan and South Korea would have the most negative economic impact due to their greater reliance on trade," the analysis read, according to CNBC.

http://www.upi.com/Top_News/World-N...Infrastructure-Investment-Bank/7191485371428/

Asian Infrastructure Investment Bank (AIIB) getting Bigger day by day.

The ADB has 67 members. If the AIIB adds 25-27 new members, it will grow larger than the ADB.

 

[Daniel808]

The ADB has 67 members. If the AIIB adds 25-27 new members, it will grow larger than the ADB.

With just short time, what AIIB achieve until today is indeed very amazing @TaiShang
Love it

World Bank, we are coming

 

[TaiShang]

AIIB: A Dream Provider

New bank has a bright future, says adviser

NO. 5-6 FEBRUARY 2, 2017

AIIB President Jin Liqun speaks at the opening ceremony of the institution’s First Annual Meeting of the Board of Governors in Beijing on June 25, 2016 (XINHUA)

On January 16, the Asian Infrastructure Investment Bank (AIIB) celebrated its first anniversary. As a budding multilateral financial institution, it has delivered a satisfying report: $1.73 billion worth of loans were issued to nine energy and infrastructure construction projects in seven countries, and among the G7, only the United States and Japan have not submitted an application to join the institution.

What will the AIIB do in its second year? Yukio Hatoyama, former Japanese Prime Minister and an AIIB advisor, published an op-ed in People's China, a Japanese-language monthly publication, on these topics. An edited translation of the article follows:

In September, 2016, I attended the AIIB advisory committee meeting, where I expressed my opinion, based on my own understanding of the world, on what kind of role the AIIB should play in the current global climate and which path the institution should follow in the future.

The globalizing world we live in has seen a rise of anti-globalization and populism. Wars and terrorist attacks, which are mostly rooted in poverty, are still rampant. Eliminating poverty is crucial for world peace. Thus, the Belt and Road Initiative and AIIB-boosted infrastructure investment, proposed by Chinese President Xi Jinping, are of great significance. Through these mechanisms, the Eurasian continent will gain faster and long-term development, which will help contain the spread of terrorism. At the meeting, I stressed that economic growth and integration would ensure regional peace.

The United States: in or out?

Speaking of the global situation, Donald Trump's election victory really caught the Japanese Government off guard. Even though he announced the United States would withdraw from the Trans-Pacific Partnership Agreement (TPP) after he took office, Japan's congress still passed the TPP, urged on by Prime Minister Shinzo Abe, despite strong disagreement from opposition parties.

I have always thought the TPP is not good for Japan, so I was very pleased with Trump's announcement on withdrawal. The purpose of the agreement, in essence, is to safeguard and cultivate global companies, but the excessive spreading of such companies will give birth to many problems, including populist sentiment. It is surprising that the Japanese Government has stuck to its decision to keep the TPP despite Trump's announcement. This is especially confusing, given that Japan usually follows the United States on political decisions.

On November 10, 2016, James Woolsey, a national security advisor in Trump's campaign team, wrote that the Obama administration's opposition to the AIIB was a "strategic mistake" in an op-ed in the South China Morning Post.

This might signal the United States is going to join. One of the reasons why TPP is not attractive enough to Trump is that China is not a member. Discussing free trade in the Asia-Pacific region without China is actually self-conflicting. To Trump, it is unimaginable to talk about such a trade framework while excluding China.

AIIB, on the contrary, is a bank with China at its core. Besides the infrastructure construction of the entire Eurasian continent, the AIIB has also ambitiously included African and American infrastructure construction in its agenda. After serious consideration of the benefits from cooperation, Trump might agree to have a finger in the pie.

If the United States was to join, Japan would follow suit. Following U.S. footsteps in diplomacy is actually a great misfortune for Japan. Japan should make forecasts of the Trump administration's possible foreign policy changes and prepare its responses in advance. If there's a hint of the United States joining the AIIB, Japan should make it open and clear that the country is going to join before Washington's official statement.

Building the East Asian Community

Compared to the widespread globalization movement, "me being the priority" is treated as the criterion of diplomatic policy for some countries. This ideology might infect Japan. Now the country attaches too much importance to its U.S. alliance, and vigorously propagates the "China Threat" rhetoric. To some degree, it is a form of populism.

In other words, Japan is flexing its power and alleged superiority to an imaginary enemy it has created. The country has gradually lost itself amid two decades of economic downturn. In recent years, Tokyo has claimed the government is trying to build a powerful country and strong economy to unite its people. Abe is using this to secure high approval ratings and consolidate political power.

In the House of Representatives election in 2012, Abe pledged to "take back Japan." Which era of Japan does he want back? This is a question lingering in the heads of both the Japanese and the international community.

Populism and isolationism are catching on globally. In this context, I want to stress the importance of building the East Asian Community. Wealth transfers during the process of globalization. Some people might feel a sense of crisis. Therefore, they begin to advocate the idea of "safeguarding my own nation," which evolves into populism. This perception can lead to competition between countries. To avoid fierce confrontation, the world needs a framework with wider coverage and a mechanism under which parties can talk in times of unavoidable disputes. The important thing is resolving disputes through dialogue and then coming up with a solution agreed on by all.

This is where the value of the East Asian Community lies. Some may say, "look, the EU community is not working; the U.K. chose to leave the EU; doomsday is coming to Greece, where financial crisis is spreading." But in my opinion, those could be lessons we can learn from. We can suspend monetary integration; free passage in the community is likely to induce populism; an increase in migration will pose a threat to local workforces, etc. We need necessary restrictions on the unconstrained migrant flows among members of the community. The EU can be viewed as a negative example in this respect, while it is worth learning from its successful practice as a war-free community. We could also reach an agreement among East Asian Community members to not wage wars in the region.

The AIIB had a smooth start in its first year. I am hopeful for its future development. The institution should build on its existing experience and achievements and explore new fields in 2017. For instance, a railway network traversing the Eurasian continent can be built through the Silk Road Economic Belt, increasing connectivity of the Asian and European continents. A common future shared by all mankind will dispel wars among countries. The AIIB can help deliver this vision to the world. Learning from the past and accumulating fruitful results—it's a great start.

I expect the AIIB to grow rapidly, and I will do my part to facilitate its development.

***

Mr. Hatoyama is a true scholar and statesman. If he were in office today, Trump would not be able yo bully Japan.

 

[ahojunk]

Iran AIIB Membership Unlocks Investment Potentials
Monday, February 13, 2017

Iran's membership in Asian Infrastructure Investment Bank has strengthened the country's economic clout in the region, said the head of Economy Ministry's Department of Banking and Insurance Affairs.

"In addition to reviving our international relations, AIIB membership has presented us with a great opportunity to tap a great potential for resources and investment," Alireza Khatounzadeh Abyaneh also told Shada.ir, a news website affiliated with the Economy Ministry.

Khatounzadeh noted that another significant impact of this cooperation at the global level is that it facilitates foreign investment in Iran.

"Due to our budget limitations and a shortage of funds, benefiting from these resources for our infrastructure projects is of great importance and based on AIIB's statutes, Iran is eligible to use its resources not only in its infrastructure projects but also to undertake similar projects in other member countries and move toward sustainable economic development," he said.

"Aside from investment, the collaboration and interaction spirit created by AIIB grants us the opportunity to experience and utilize the technical capabilities of other countries for the development and progress of our economy."

Asked about Iran's position in the Silk Road project after its membership in AIIB, the official said, "Since China is the founder of AIIB and also the force behind the New Silk Road and as Iran is located on the Silk Road, the northeastern provinces will be able to use the bank's resources for infrastructure [projects]."

One of the most popular terms for China’s diplomatic achievements in 2014 is arguably its strategy of “One Belt, One Road,” i.e., the New Silk Road Economic Belt, which links China with Europe through Central and Western Asia, and the 21st Century Maritime Silk Road, which connects China with Southeast Asian countries, Africa and Europe.

Banking Effects

Khatounzadeh said AIIB membership can also improve the domestic banking sector and Iran can realize the vision of becoming the hub of banking industry in the region by 2025 following its AIIB membership.

An international financial institution, the AIIB aims to support infrastructure development in the Asia-Pacific region. It was proposed by the government of China and consists of 57 member states, or the “founding members”.

The bank is widely regarded as a strong and emerging rival to western lenders, namely the International Monetary Fund and the World Bank, both headquartered in Washington.

AIIB operates with a capital of $100 billion, equivalent to two-thirds of the capital of the Asian Development Bank and about half of the World Bank.

Along with 26 other initial founding member states, Iran signed the the bank's constitution on June 29 in Beijing and currently holds 15,808 shares, or 1.61% of all the shares, granting the country a 1.63% voting rights.

Iranian lawmakers approved the proposal of Iran’s membership in AIIB in late August and President Hassan Rouhani enacted the law in early October.

Strengthening relations with Asian powers through infrastructure development is Iran’s main objective in joining the bank.

Abbas Akhoundi, the minister of roads and urban development, requested the bank's Chinese executive to send a delegation from AIIB to Tehran to witness development projects at close range and discuss possible collaboration.

 

[ahojunk]

AIIB committed to investing in Nepal’s infra: Chief
- Post Report, Kathmandu

Prime Minister Pushpa Kamal Dahal (third right), Finance Minister Krishna Bahadur Mahara (second left) Industry Minister Nabindra Raj Joshi (centre), Nepali Congress President Sher Bahadur Deuba (third left), CPN-UML Chairman KP Oli (right), and Asian Infrastructure Investment Bank President Jin Liqun (second right) attend Nepal Investment Summit-2017 in Kathmandu on Thursday. Post Photo: KESHAV THAPA


Mar 3, 2017- Asian Infrastructure Investment Bank (AIIB) has expressed its commitment to work with the Nepal government and Nepali private sector to make a meaningful difference in the country’s economic and social development through investment in infrastructure and other productive sectors.

Addressing the inaugural session of Nepal Investment Summit 2017, AIIB President Jin Liqun said the bank has an important role to play in teaming up with the government and the private sector to address infrastructure challenges of Nepal.

“In Nepal, we will invest in projects that are financially sustainable and environmentally friendly, and are accepted by the local people,” said Liqun. “As a multilateral development bank, a part of our job is to help countries pick projects which improve their social and economic outcomes.”

Liqun assured AIIB’s help to tap natural resources for the benefit of the Nepali people. Currently, Nepal has submitted proposals for five infrastructure projects to AIIB for possible financing. The list includes two energy projects, two road projects and one urban infrastructure project.

Sharada-Babai Hydropower Project, a storage type project planned to be built on the Babai and Sharada rivers, and Nepal Distribution System Upgrading and Extension Project which aims to modernise the electricity distribution system of Nepal Electricity Authority, are energy-related projects on the list.

Pokhara-Beni Jomsom Road Upgradation and Samakhusi-Tokha-Chhahare Road Upgradation and Extension Project are two road projects for which Nepal has sought funds from the multilateral lender.

The fifth scheme is Urban Infrastructure Improvement Project which aims to improve infrastructure in 18 districts in Tarai by upgrading facilities in 18 municipalities which serve as district headquarters.

India also reiterated its commitment to partner Nepal in its aspirations for economic growth by attracting foreign investment. Indian Finance Minister Arun Jaitley, speaking at the summit, suggested Nepal to make its environment favourable for international investors.

According to Jaitley, Investors from all over the world are looking at areas to invest, and countries that make their environment friendly assuring safety of and return on investment will be the recipient of investment.

“If an investment along with creating jobs generates profit, it will encourage others to make investment which will create more jobs,” Jaitley explained the virtuous cycle of how an investment attracts another investment. “Such investment and return on investment will increase the government revenue which can be used to build the infrastructure.”

Such infrastructure, according to the Indian finance minister will attract more investment creating more employment and prosperity. He urged the government to welcome any investment if it increases economic activity, creates job and develops infrastructure. “What should matter is construction of infrastructure and its contribution towards economy, not who builds its,” he said.

Jaitley also expressed Indian interest in investing in sectors like hydropower, rail network, irrigation, health and education, transmission lines and road, among others.


Published: 03-03-2017 11:21

http://kathmandupost.ekantipur.com/...itted-to-investing-in-nepals-infra-chief.html

 

[JSCh]

AIIB approves 13 new applicants, expands membership to 70
Xinhua | Updated: 2017-03-23 11:27

BEIJING - The Asian Infrastructure Investment Bank (AIIB) announced Thursday that its Board of Governors has adopted resolutions approving 13 applicants to join the bank, bringing the bank's total approved membership to 70.

A spokesperson of AIIB made the announcement at a press conference. This is the first time the multilateral development bank has welcomed new prospective members since its inception.

The approved applicants are five regional prospective members -- Afghanistan, Armenia, Fiji, China's Hong Kong and Timor Leste -- and eight non-regional prospective members, namely Belgium, Canada, Ethiopia, Hungary, Ireland, Peru, Sudan and Venezuela.

"The interest in joining AIIB from around the world affirms the rapid progress we have made to establish the bank as an international institution," said Jin Liqun, president of AIIB.

"I am very proud that AIIB now has members from almost every continent, and we anticipate further applications being considered by our Board of Governors later this year," he said.

The 13 prospective members will officially join AIIB once they complete the required domestic processes and deposit the first installment of capital with the bank.

The shares allocated to the new prospective members come from the bank's existing pool of unallocated shares, according to AIIB.

With 57 signatories at its establishment in 2015, AIIB aims to provide financing to address the daunting infrastructure needs across Asia.

 

[Kiss_of_the_Dragon]

Reuters reports Thursday that the China-led Asia Infrastructure Investment bank has approved thirteen new members to join. The members include Canada, which was a previous holdout partly at the behest of the US.

The Obama administration looked weak when it tried to pressure allies against joining the AIIB, an attempt that looks even sillier in hindsight than it did at the time. Is it time for the US to swallow its pride and join now, lest they look even more foolish should they want to participate even further down the road?

The answer is probably yes, despite the fact that they won’t consider it. The win for China would be temporary, and the US influence in the Bank would only further dilute China’s pull within the institution. But, for now, the US is content to be the odd man out.

http://www.atimes.com/article/aiib-time-us-join/

--------------------------------------------

Glad that Canada is taking part of AIIB now, I'm pretty sure if US join, Japan will beg to be the member too.

 

[TaiShang]

Reuters reports Thursday that the China-led Asia Infrastructure Investment bank has approved thirteen new members to join. The members include Canada, which was a previous holdout partly at the behest of the US.

The Obama administration looked weak when it tried to pressure allies against joining the AIIB, an attempt that looks even sillier in hindsight than it did at the time. Is it time for the US to swallow its pride and join now, lest they look even more foolish should they want to participate even further down the road?

The answer is probably yes, despite the fact that they won’t consider it. The win for China would be temporary, and the US influence in the Bank would only further dilute China’s pull within the institution. But, for now, the US is content to be the odd man out.

http://www.atimes.com/article/aiib-time-us-join/

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Glad that Canada is taking part of AIIB now, I'm pretty sure if US join, Japan will beg to be the member too.

Now the AIIB is bigger the ADB in terms of membership (at 67).

The AIIB's worldwide regional penetration is now bigger than the ADB.

I am waiting for Taiwan to join under Taiwan, China title, enjoying the immense benefits from joining in infrastructure work. It would be a great boost for Taiwan's machinery industry.

 

[Kiss_of_the_Dragon]

Now the AIIB is bigger the ADB in terms of membership (at 67).

The AIIB's worldwide regional penetration is now bigger than the ADB.

I am waiting for Taiwan to join under Taiwan, China title, enjoying the immense benefits from joining in infrastructure work. It would be a great boost for Taiwan's machinery industry.

Remember the, on 8 May 2015 Obama gave a speech at the Nike factory in Oregon. There, he said:
“We have to make sure America writes the rules of the global economy and we should do it today while our economy is in a position of global strength. If we don’t write the rules for trade around the world, guess what, China will. And they’ll write those rules in a way that gives Chinese workers and Chinese businessmen the upper hand.”

American like to make a self fulfilling prophecy statement. When US join AIIB, they will not be the one to write the rule in AIIB and worst they will not be the foundation member to edit and take part of the rule.

 

[TaiShang]

American like to make a self fulfilling prophecy statement. When US join AIIB, they will not be the one to write the rule in AIIB and worst they will not be the foundator member to edit and take part of the rule w

They missed the train to become a founding member. The remaining option for them is to become a regular member, which is still something.

But they will never enjoy a dominating/hegemonic status that they enjoy (along with Japan) at the ADB.

Calling the ADB "ASIAN" and then giving an equally highest share to it is in fact a contradiction in terms.

@Daniel808 , our prediction of the AIIB growing larger than the ADB has come earlier than I anticipated.

With just short time, what AIIB achieve until today is indeed very amazing @TaiShang
Love it

World Bank, we are coming.

 

[terranMarine]

The map on wiki could use an update