AIIB in­vests in Myan­mar

The Myanmar Times - - Business -

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.

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