Published: 27th Apr, 2019
The China-sponsored Asian Infrastructure Investment Bank (AIIB) has approved $7.5 billion in loans to support infrastructure projects in 13 countries of six regions, including East Asia, Southeast Asia, South Asia, Central Asia, West Asia and Africa, driving almost $40 billion of capital into infrastructure projects over the past three years since its opening on Jan. 16, 2016.
To date, the new-type multilateral development bank, with a mission to promote infrastructure connectivity, has expanded its membership from 57 founders to 93 approved members.
About
AIIB and India:-
- India is the largest borrower of the AIIB.
- In December 2018, the AIIB approved a loan of $400 million for a water supply program in Andhra Pradesh, India, aiming to provide safe drinking water through piped water supply to 3.3 million people in the region, where severe water pollution and poor water purifying equipment affected people’s health.
- It has approved nine loan projects in India including the water supply program, totaling over $2 billion.
- Most of these loans were used to improve the transportation, electricity supply, water supply and other infrastructure-related areas, according to the AIIB.
AIIB and Asia-
- AIIB granted loan to Bangladesh to improve power supply for the country - a $60-million capital that went to a green field 220-megawatt combined cycle power plant in Bhola island in the Barisal district of Bangladesh.
- Among the AIIB-financed projects in Indonesia, the National Slum Upgrading Project had the most remarkable achievements, improving the livelihood for tens of millions of impoverished residents.
- There are over 29 million Indonesians living in slums, according to the estimate of George Soraya from the World Bank who is in charge of the project.
- AIIB’s loan project to the Philippines aims to improve flood management in selected areas of Metro Manila.
- With AIIB’s loans, Tajikistan in Central Asia has boosted key projects including a city roads and flyovers project in its capital Duschanbe, the Dushanbe-Uzbekistan Border Road Improvement Project and the Nurek Hydropower Rehabilitation Project.
AIIB- as a Multilateral Bank:-
- In the past three years, the AIIB has demonstrated internationalism, normative operation and high standards in its governance structure, policy standards and operation mode, winning wide recognition in the international society.
- It has received the top-level rating by three major credit rating agencies in the world, and has assigned a zero-risk weighting by the Basle Committee on Bank Supervision (BCBS).
- The bank was proposed by China in 2013 .It received the highest credit ratingsfrom the three biggest rating agencies in the world, and is seen as a potential rival to the World Bank and IMF.
Significance
As an important platform that promotes the building of a community of shared future for mankind, the AIIB is expected to continue to inject new vitality to regional and common development of the world. The AIIB has played an important role in Asia’s development, it’s projects are improving the poor infrastructure that is conducive in stimulating the local development vitality.
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