AIIB invests in Myanmar
The Chinese-led Asian Infrastructure Investment Bank (AIIB) has approved its first loan for a Myanmar project.
The bank will make a US$20 million loan to the 225-megawatt Myingyan gasfired power plant, which is also receiving support from the Asian Development Bank and the World Bank’s International Finance Corporation.
The IFC will be providing a $58 million senior loan, but will share a portion of this with AIIB, Vikram Kumar, the IFC’s country manager for Myanmar, told The Myanmar Times.
The ADB is proposing a $42.2 million loan to the project, which ADB principle country specialist Peter Brimble said previously was notable as the only Myanmar power project to use an international-standard bidding process. Singapore-listed Sembcorp won the tender, and owns an 80 percent stake in the project.
The AIIB signed memoranda of understanding for jointly financed projects with the ADB and the World Bank earlier this year. But AIIB president Jin Liqun told The Myanmar Times in May that his development bank was also searching for solo projects.
Mr Jin said that power and transport were the two most likely sectors for early AIIB involvement in Myanmar.