AIIB (Asian Infrastructure Investment Bank) news

[ahojunk]

China-led AIIB gives Brazil and South Africa extra year to join
Two of multilateral lender’s biggest members missed deadline to ratify entry

MARCH 28, 2017 by: Emily Feng and Tom Mitchell in Beijing The China-led Asian Infrastructure Investment Bank has given two of its largest members an extra 12 months to complete the formal process for joining the institution after they missed a deadline at the end of last year.

Brazil and South Africa were among the highest-profile countries to join the multilateral lender, which was established by Beijing to make its mark in international finance and was opposed in its infancy by the US. Of the bank’s 57 inaugural members, Brazil was the only South American country while South Africa was one of only two African nations.

Both countries are also members of the so-called Brics club alongside Russia, India and China, which recently joined forces to form the Shanghai-based New Development Bank.

“AIIB matters are currently being processed,” a South African finance official told the Financial Times. “Our immediate focus has been on the New Development Bank.”

Brazilian officials declined to comment on why they missed the December 31 2016 deadline, which was stipulated in the AIIB’s articles of association. Members can receive an extension if approved by a majority of the bank’s governors.

Under former president Dilma Rousseff, Brazil fell behind on payments to dozens of international organisations, blaming a lack of funds. Ms Rousseff’s impeachment in August 2016 may have led to further delays.

“We extended the deadline because some members needed more time based on the different domestic processes they had to ratify,” an AIIB spokesperson said, adding that “everything is on track” for them to join by the end of this year.

Three other inaugural AIIB members — Malaysia, Kuwait and Spain — also missed last year’s deadline. Malaysian and Spanish officials said they would be formally admitted by the end of 2017. Kuwaiti officials could not be reached for comment.

Last week the AIIB approved 13 new applicants including two additional countries from South America and two from Africa. A surge in applications from Africa and Latin and South America is expected to change the complexion of the bank, whose original members hailed largely from Asia and western Europe.

The AIIB can only support projects in its member countries. On Tuesday it announced it would lend $285m to three new infrastructure projects in Indonesia and Bangladesh.

The AIIB has earmarked $225m for municipal infrastructure and improvements to 63 dams and reservoirs in Indonesia, while the remaining $60m will fund gas pipelines in Bangladesh. Indonesian officials had previously requested environmentally controversial financing for coal-fired plants, which the AIIB is still deliberating.

AIIB will co-finance the projects with the World Bank and the Asian Development Bank. In building up its portfolio, the bank has largely relied on partnerships.

Since its formal establishment last year the AIIB has lent $2bn to 12 projects, mainly in the areas of energy and transport.

Additional reporting by David Pilling, Joe Leahy, Tobias Buck and Jeevan Vasagar

 

[TaiShang]

Very good infographics by the China Daily.

http://www.chinadaily.com.cn/business/chinadata/2017-04/13/content_28903424.htm

 

[LowPost]

Very good infographics by the China Daily.

http://www.chinadaily.com.cn/business/chinadata/2017-04/13/content_28903424.htm

Good to see it contains a list of approved loans. I think I've missed something over the past few months.

 

[ahojunk]

AIIB to visit Egypt to study infrastructure investment opportunities: Nasr

AIIB allocated $10-15bn for infrastructure projects in countries where it has operations, including Egypt

Hisham Salah April 24, 2017

Egypt Minister of Investment and International Cooperation Sahar Nasr

Minister of Investment and International Cooperation Sahar Nasr held a meeting with the vice president and chief investment officer of the Asian Infrastructure Investment Bank (AIIB), D. J. Pandian, during her visit to Washington to participate in the World Bank’s spring meeting.

Both sides discussed ways of increasing cooperation between Egypt and the AIIB, especially in the fields of sanitation, energy, and transportation. The AIIB is preparing a visit to Egypt soon to study the opportunities for investment.

Nasr stated that she looks forward to more cooperation with the AIIB, as infrastructure is one of the government’s priorities, according to its programme for development.

It is worth mentioning that the AIIB has allocated $10-15bn over the next 5-6 years for infrastructure projects in the countries where it has operations, including Egypt.

The projects are in fields of energy, transportation, urban and rural development, and logistical services.

.

 

[onebyone]

AIIB grants US$160 mln loan for Indian power project
BUSINESS
By Deng Junfang 2017-05-03 18:53 GMT+8

The Asian Infrastructure Investment Bank (AIIB) has approved a loan of 160 million US dollars to finance a power project in India, the bank said on Wednesday. The project, co-financed with the World Bank, is part of the Indian government's 24x7 Power for All program, and will strengthen the power transmission and distribution system in the southeastern Indian state of Andhra Pradesh.

The AIIB said in a statement that the project is approved with the objective of strengthening the power transmission and distribution system in the state of Andhra Pradesh.

President of Asian Infrastructure Investment Bank (AIIB) Jin Liqun speaks at a news conference in Beijing, January 17, 2016. /VCG Photo

"AIIB supports its members in their transition toward a low-carbon energy mix by promoting the improvement of energy efficiency, such as upgrading the existing transmission and distribution networks," said AIIB President Jin Liqun.

The project "will be the starting point for AIIB to extend its assistance to other countries in Asia moving towards an 'Energy for all' initiative," said D.J. Pandian, vice president and chief investment officer of AIIB.

Customers get a shave in a barber shop in Kotla Mubarakpur, New Delhi, India, on Thursday, August 2, 2012. A series of failures and excessive demand on the national grid knocked out power for 640 million people in northern and central India on July 31, a day after a separate blackout left 360 million in seven states without lights. /VCG Photo

The AIIB was established in 2015 and started operation in January 2016 with 57 founding members and an authorized capital of 100 billion US dollars. Its aim is to provide financing for infrastructure improvements and projects in Asia.

The bank’s membership has increased to 70 this year, with 13 new members approved in March. India is the second largest shareholder after China.

Related stories:
AIIB approves loans for transport projects in Oman
AIIB first year in review: more members, more investment
AIIB president pushes for further cooperation with US
Bank of Japan governor welcomes the expansion of AIIB

https://news.cgtn.com/news/3d6b444e79637a4d/share_p.html?from=singlemessage&isappinstalled=1

 

[onebyone]

Why the EU must engage with the AIIB
Both the European Union and its member states must not underestimate the economic and financial benefits that may come from closer relations with China
On 12 March, 2017, the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) decided to expand its membership from 57 to 70 members. These new additions include three “non-regional perspective members” (Belgium, Hungary and Ireland) from Europe. So far, 17 EU member states have joined or applied for membership in the AIIB.

According to its President Jin Liqun, this is a sign of the AIIB’s growing attractiveness as a leading international financial institution. The AIIB is making significant progress in its outreach efforts.

It signed a memorandum of understanding on April 1, 2017, with the New Development Bank on infrastructure and sustainable development. And the forthcoming second annual meeting of the Board of Governors in South Korea this June will host more than 1,500 delegates from the AIIB’s membership, partner institutions as well as civil society organisations.

Asian Infrastructure Investment Bank boss Jin Liqun. Photo: AFP/Imaginechina
In less than two years since its official establishment, the AIIB has promoted itself as a serious and consistent alternative to Western-led international financial institutions, most obviously the World Bank and the Asian Development Bank (ADB).

Its growing attractiveness derives in particular from China’s intention to present the AIIB as an institution able to reform and complement the post-World War II global economic governance domain promoted by the Bretton Woods institutions.

More clearly, the decision to launch the AIIB came as a direct result of China’s growing frustration together with that of other developing countries over only playing a marginal role within the existing international financial system.

Why then have some EU member states decided to join the AIIB if China’s initiative represents an effort to promote a distinctive but to some extent post-Western model of global financial governance?

Two main reasons stand out.

First, China is rapidly recasting itself as a leading player within multilateral institutions. China is still far from overtaking the United States in terms of global economic predominance.

But the AIIB is just one among many initiatives supported by China in the field of economic governance. The Belt and Road Initiative, formerly known as One Belt, One Road (Obor), the Silk Road Fund, the Regional Comprehensive Economic Partnership (RCEP) and the BRICS New Development Bank are all representative of a new, sophisticated, and to some extent, alternative approach supported by leaders in Beijing in order to implement China’s multilateral diplomacy and foreign economic policies at the global level.

Three silk roads stretching from China to Southeast Asia Europe and Africa, Jan 2017.
Second, and given this context, the EU and its member states are becoming aware of the need to pragmatically interact with China as a key strategic partner, particularly within the field of new multilateral economic initiatives such as the AIIB.

The AIIB may indeed overlap with other EU initiatives like the Juncker Plan. And the international community may not look all that favourably on China’s hegemonic role in the AIIB, with 29.8% of the voting share and 34.6% of the money invested in the bank held by China. Yet the AIIB has already declared its intention to collaborate with other leading multilateral development banks such as the World Bank, the ADB and the European Bank for Reconstruction and Development.

The majority of financed projects within the AIIB are expanding in parallel with the Obor development plan through Southeast Asia, Central Asia and the Middle East, making China’s investment plans and foreign economic polices stronger than ever before.

The EU should learn how to deal with China with a single voice, while strengthening its own role as a global player within Chinese-led global institutions and regional initiatives.

The EU needs to prioritise its interests at the global level, and contend with China’s foreign economic policy and strategy toward the European continent.

China and the EU must further cooperation in order to overcome discrepancies around their investment strategies in the field of global economic governance.

The AIIB represents a first attempt by China to provide alternative solutions in the global financial sector while promoting a more proactive foreign policy at the international level. Both the EU and its member states must not underestimate the economic and financial benefits that may come from closer engagement with China.

Silvia Menegazzi is Postdoctoral Research Fellow at LUISS Guido Carli University in Rome.

This article was originally published in East Asia Form.

http://www.atimes.com/article/eu-must-engage-aiib/

 

[Shotgunner51]

China-led AIIB approves seven new members ahead of new Silk Road summit
Sat May 13, 2017 | 11:35am BST

The logo of Asian Infrastructure Investment Bank (AIIB) is seen at its headquarter building in Beijing January 17, 2016. REUTERS/Kim Kyung-Hoon

The China-backed Asian Infrastructure Investment Bank (AIIB) said on Saturday it had approved seven new members to join the bank, a day before China's biggest diplomatic event of the year kicks off.

Leaders from 29 countries will attend China's new Silk Road forum in Beijing on Sunday and Monday, an event orchestrated to promote President Xi Jinping's vision of expanding links between Asia, Africa and Europe underpinned by billions of dollars in infrastructure investment.

Delegations from around the world will attend including the United States and North Korea.

The new members are Bahrain, Bolivia, Chile, Cyprus, Greece, Romania and Samoa, bringing the bank's total membership to 77 countries.

The bank's president Jin Liqun held a joint press conference with Chilean President Michelle Bachelet to announce the new members.

"Better infrastructure across Asia will allow Chilean goods to access new markets, more investment in Chilean infrastructure in turn will further bind together the two great continents of Asia and Latin America," said Jin.​

"We think there are a lot of projects that can link Asia with or through Latin America," said Bachelet, adding that she had spoken with Jin about the possibility of investing in a Trans-Pacific optic fibre cable to improve digital connectivity between Asia and Latin America.​

"The cable could be considered a part of the 'One Belt, One Road Initiative' and transform the Pacific Ocean into a bridge between our regions," she added, using another name for China's "Belt and Road Initiative" or new Silk Road plan.​

Other investments could include tunnels and highways across the Andes Mountains and ports to link Latin America and South America to Asia, Bachelet added.

Thirteen prospective new AIIB members from around the world, including Canada, were approved in March.

"Expanded membership to Africa, Europe and South America, along with the addition of further members in Asia shows the level of global commitment towards the bank's mission and illustrates the momentum that has gathered since 20 countries signed initial memoranda on establishing the bank less than three years ago," said Jin.​

(Reporting by Sue-Lin Wong; Editing by Eric Meijer)

http://uk.reuters.com/article/uk-china-silkroad-aiib-idUKKBN1890AY

 

[TaiShang]

The new members are Bahrain, Bolivia, Chile, Cyprus, Greece, Romania and Samoa, bringing the bank's total membership to 77 countries.

77 and counting.

Come on, Japan. Why would you be the last to jump onto the bandwagon? Sooner or later, you are in, after all.

 

[TaiShang]

Cyprus minister confirms membership in AIIB
Xinhua | Updated: 2017-05-20

NICOSIA - Cyprus has become a full member of the Asian Infrastructure Investment Bank (AIIB), the country's Finance Minister Haris Georgiades said Friday.

Joining the AIIB is an indication that Cyprus intends to strengthen its ties with the Asian economies, he said in a written statement.

"The participation of Cyprus in the AIIB widens the scope of economic diplomacy and also the prospects of access by Cyprus to investment funds," Georgiades said.

The China-proposed multilateral institution was launched in Beijing in January 2016, with the aim to fund infrastructure projects mainly in the Asia-Pacific region.

Cyprus is among the seven countries accepted recently by AIIB's Board of Governors. The others are Greece, Romania, Bahrain, Samoa, Bolivia and Chile. The recent expansion brings AIIB's membership to 77.

 

[TaiShang]

AIIB expects to sign 85 members by year's end
chinadaily.com.cn | Updated: 2017-05-22

Asian Infrastructure Investment Bank (AIIB) President Jin Liqun attends a news conference at the AIIB headquarters in Beijing, August 31, 2016. [Photo/Agencies]


The China-backed Asian Infrastructure Investment Bank expects to grow its membership to 85 by the end of this year, bank president Jin Liqun said on Saturday.

China won broad support for the establishment of AIIB, with 57 founding members, Jin said at the Jiangsu Development Summit in Nanjing, East China's Jiangsu province.

"By the end of this year, a total of 85 countries and regions will become AIIB's members," Jin said.

Jin said that the Belt and Road Initiative and the AIIB are both great initiatives.

Reflecting on the process of setting up the new bank and securing support from founding members, he said China had shown its willingness to serve the world using the experience of reform and opening up.

"Though the Belt and Road Initiative doesn't cover all AIIB members, we will put more efforts in the future and believe more and more countries will join the AIIB," Jin added.

With 57 signatories at its launch in January 2016 and the approval of 13 prospective members in March 2017, AIIB aims to provide financing to address the daunting infrastructure needs across Asia.

 

[cirr]

AIIB expands membership to 84

2017-12-19 14:27 Xinhua Editor: Li Yahui

The Asian Infrastructure Investment Bank(AIIB) announced Tuesday that its board of governors had approved the Cook Islands, Vanuatu, Belarus and Ecuador to join the Bank.

The addition brings AIIB's total approved membership to 84.

"The steady expansion of our membership represents a vote of confidence in AIIB by the international community," said AIIB President Jin Liqun.

The four 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 AIIB's existing pool of unallocated shares.

Since its launch in January 2016, AIIB's approved membership has risen from 57 to 84, expanding reach within Asia and across the world.

"As we start our third year of operations, we look forward to further expanding our membership and strengthening our role in the international financial community," said Sir Danny Alexander, AIIB vice president and corporate secretary.

Headquartered in Beijing, the AIIB is a multilateral development bank focused on infrastructure investment, with a mission to improve social and economic outcomes in Asia and beyond.

Earlier this month, the AIIB approved a 250-million-U.S. dollar loan for a natural gas project in China and a 335-million-U.S. dollar loan for an electric metro project in Bangalore, India.

http://www.ecns.cn/business/2017/12-19/285063.shtml

 

[TaiShang]

AIIB, ADB to co-finance more projects this year: ADB president

CGTN
2018-01-13

Asian Development Bank (ADB) President Takehiko Nakao said on Friday that the ADB and the Asian Infrastructure Investment Bank (AIIB) are exploring co-financing several development projects this year.

"We have been cooperating well," Nakao told Xinhua at the ADB headquarters in Manila.

Nakao said he met with AIIB officials and had "serious discussions about how to do things better in each bank and how we can support the development of (member) countries."

Already, he said the ADB and the AIIB had four co-financing projects in India, Bangladesh, Pakistan and Georgia.

Nakao said it's good with the AIIB around because "we can now cooperate in these projects for co-financing."

Nakao said ADB officials will make a trip to Beijing to meet with its AIIB counterparts. No date has been set yet for the meeting, he added.

https://news.cgtn.com/news/31676a4d78677a6333566d54/share_p.html

***

Unlike the Western pundits and China-alarmists suggested, the AIIB is not a rival to the ADB, but a partner. And now this is being proven in solid action.

 

[TaiShang]

AIIB inks natural gas deal with Chinese firm to improve air quality

CGTN
2018-03-20 17:24

The Asian Infrastructure Investment Bank (AIIB) signed a natural gas project with a Chinese company Monday to improve the air quality in Beijing.

It marks the AIIB's first loan in China for a natural gas project. The 250-million-US dollar loan will fund a project to connect 216,750 households in approximately 510 villages to the natural gas distribution network.

"It is the common responsibility of the international community, including multilateral development banks, to tackle climate change. With substantial support of the board of directors of the AIIB, this project hopes to contribute to meet this global agenda," AIIB President Jin Liqun said at the signing ceremony.

The project, undertaken by the Beijing Gas Group Company, will entail construction of natural gas distribution networks in villages and low-pressure gas pipelines and household connections.

Upon completion and after subtracting the emissions from burning natural gas, the project is expected to reduce annual carbon dioxide emissions by 595,700 tonnes, particulate matter by 3,700 tonnes, sulfur dioxide by 1,488 tonnes and nitrogen oxide by 4,442 tonnes, according to the statement.

 

[TaiShang]

AIIB approves two new applicants, expands membership to 86

CGTN
2018-05-02

The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its board of governors has adopted resolutions approving applications from Papua New Guinea and Kenya to join the bank, bringing its total approved membership to 86.

"We're very happy to welcome Papua New Guinea and Kenya as prospective members of AIIB," AIIB Vice President and Corporate Secretary Danny Alexander said.

"AIIB now has 86 approved members from six continents. This shows a strong commitment to promoting infrastructure development through rules-based multilateral cooperation with high standards of governance," Alexander said.

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

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

With 57 signatories at its launch in January 2016, the Beijing-headquartered AIIB aims to improve social and economic outcomes in Asia and beyond by investing in sustainable infrastructure and other productive sectors.

 

[TaiShang]

AIIB approves 400 mln USD loan for India's drinking water project

Source: Xinhua Published: 2018/12/8

About 3.3 million people in Andhra Pradesh of India will have access to safe drinking water following the approval of a loan of 400 million US dollars by the Asian Infrastructure Investment Bank (AIIB).

The project aims to provide safe drinking water through a piped water supply, which is expected to have a positive impact on women and girls in affected communities as hauling water from communal taps is mainly carried out by women and girls.

The work requires a significant amount of time that could otherwise be spent on more productive activities, such as education.

Since women and girls have more frequent contact with water that may be contaminated, this project will also reduce health risks and health expenditures for women in Andhra Pradesh.

"Extending piped water supply is a major development priority of the government of India," said AIIB Vice President and Chief Investment Officer D. J. Pandian.

"We are supplementing the ongoing and proposed programs locally in Andhra Pradesh and are directly contributing to India's achievements under Sustainable Development Goal 6 to ensure access to water and sanitation for all."

The project is part of an integrated approach to water and sanitation improvement in India. Funding will come from AIIB as well as from programs by the Government of India and the Government of Andhra Pradesh.

With more than 80 approved members, the AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, it began operations in January 2016.