Home News AIIB funded 13 projects worth US$2.2 billion, Indonesia gets $225 million

AIIB funded 13 projects worth US$2.2 billion, Indonesia gets $225 million

Photo by AIIB

JAKARTA (TheInsiderStories) – President Jin Liqun declared that Asian Infrastructure Investment Bank (AIIB) has successfully financed 13 projects with value of US$2.2 billion since the agency established. In the 2nd Annual Meeting in Jeju, South Korea, AIIB also announced has added three members Tonga, Argentina and Madagascar, bringing the Bank’s total approved membership to 80.

Finance Minister Sri Mulyani Indrawati remarked, AIIB has funded several projects in Indonesia such as slum upgrade, dam operation improvement, and safety project phase 2 with combined value of US$225 million.

For information, Indonesia is the eighth largest shareholders with capital deposit of $672 million to be paid in 5 years. With this contribution, Indonesia has 3.36% out of the entire AIIB’s capital.

In his speech, Jin Liqun stressed it, since last meeting one year ago, the Bank’s approved membership has expanded from 57 to 77 and will reach 80 in near time. In most of Asia, infrastructure is now all the rage, He said.

The importance of quality investment in infrastructure and regional connectivity cannot be overstated. Much too often, it is not just a question of the quality of individual projects in and of itself.

What matters is the overall impact of infrastructure development and is most crucial is to make sure that all the infrastructure projects are coordinated, balanced, and integrated in a way so that maximum benefits can be garnered.

“An airport or sea port should not wait for the construction of roads or railways connecting it to be completed. A power plant should not wait for the transmission or distribution system to be finished. That is why we in AIIB place emphasis on a sound strategy for resource allocation in the context of national and regional connectivity and development,” Jin Liqun stated.

Chine-led AIIB, was set up to help meet the estimated $26 trillion need for infrastructure spending in Asia through 2030. The Bank has pledged to use its investments to help members fulfill their commitments to the Paris climate accord.

AIIB is a new multilateral development bank founded to bring countries together to address the daunting infrastructure needs across Asia and beyond. Headquartered in Beijing, AIIB’s mission is to improve economic and social development in Asia by investing in high quality, financially viable and environmentally friendly infrastructure projects.

AIIB announced that the Bank’s third Annual Meeting of the Board of Governors will be held in Mumbai, India in June 2018. India is the Bank’s second largest shareholder and is becoming an increasingly important geography for AIIB investments.

The first AIIB Annual Meeting of the Board of Governors was held in Beijing, China in 2016. The second Annual Meeting of the Board of Governors was held in Jeju, Republic of Korea in 2017.

(Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com)