AIIB to focus on sustainable infra, connectivity projects

Fresh from its inaugural year, Chinaled Asian Infrastructure Investment Bank (AIIB) will focus on projects geared toward the establishment of sustainable infrastructure and cross border connectivity and mobilization of private capital this year.

In a statement on its website, the newly-founded multilateral development bank said these “strategic priorities” are essential to enable Asia to meet its growing infrastructure demand and support the growing regional economy.

In identifying sustainable infrastructure as a priority area in financing, AIIB said this pertains to “promoting green infrastructure and supporting countries to meet their environmental and development goals.”

It would also prioritize cross-border infrastructure, ranging from roads and rail, to ports, energy and telecoms across Central Asia, and the maritime routes in South East and South Asia, and the Middle East, and beyond.

AIIB said it would also devise this year “innovative solutions” that catalyze private capital in partnership with other multilateral development banks, government and the private sector.

“Guided by these themes, the bank will leverage its relationships with other multilateral development banks and private financiers to meet Asia’s growing infrastructure demands and contribute to social and economic growth in the region,” the bank said.

AIIB president Jin Liqun said the bank already has a strong pipeline for such projects this year.

“We have a strong pipeline of projects in 2017 that will prioritize green infrastructure investments, promote energy efficiency, renewables, clean transport and other projects that help address global warming,” he said.

Since its launch on Jan. 16, 2016, AIIB has welcomed 57 signatory countries and has approved loans of $1.73 billion to support nine infrastructure projects in seven countries – Pakistan, Bangladesh, Tajikistan, Indonesia, Myanmar, Azerbaijan and Oman

In the Philippines the bank is interested in co-financing with other multilateral lending institutions the P23.4 billion Metro Manila Flood Management Project and the P37.8-billion EDSA Bus Rapid Transit system.