AIIB in News

1. AIIB, ADB’s first co-financing for road project in Pakistan

The China led Asian Infrastructure Investment Bank and the Asian Development Bank (ADB) have joined hands for financing its first project in Pakistan worth nearly $300 million.

The project in Pakistan which will be taken for co-financing is the M4 highway project, a 64-kilometer stretch of motorway connecting Shorkot to Khanewal in Punjab province.

2. World Bank and AIIB sign first joint agreement

The World Bank and the Asian Infrastructure Investment Bank (AIIB) have signed a co-financing agreement, the first between the two banks.

The agreement will allow the institutions to finance development projects together, thetwo institutions said in a joint statement.

The banks are discussing "nearly one dozen" co-financed projects in sectors including transport, water and energy in Central Asia, South Asia and East Asia, they said.

The AIIB expects to approve about $1.2 billion in financing in 2016, with World Bank joint projects accounting for "a sizable share" of these, it said.

Under the agreement, the World Bank will prepare and supervise the co-financed projects "in accordance with its policies and procedures in areas like procurement, environment and social safeguards", it said.

3. D.J. Pandian appointed Vice-Presidents of AIIB

D. J. Pandian, a former bureaucrat known for holding a string of key positions with the Government of Gujarat, has been appointed as one of the five Vice-Presidents of the newly-established Asian Infrastructure Investment Bank (AIIB).

Dr. Pandian has been appointed as the Chief Investment Officer (CIO) of the lender, whose role is to focus on infrastructure development in Asia.

4. Asian Infrastructure Investment Bank launched by Chinese President

Chinese President Xi Jinping officially launched Asian Infrastructure Investment Bank (AIIB) in Beijing. The opening ceremony of AIIB is attended by representatives of 57 member countries.

Key Facts -

• With authorised capital of $100 billion and subscribed capital of $50 billion, Beijing-based AIIB will invest in sectors including energy, transportation, urban construction, and logistics as well as education and healthcare.
• The bank was formally established in Beijing on December 25, 2015.
• The headquarter of AIIB is located in Beijing, China.
• Chairman - Chinese Finance Minister, Lou Jiwei.
• First President of AIIB- China’s former Finance Minister, Jin Liqun
• In all 57 countries have joined as founding members, while the US and Japan have stayed out.
• Largest shareholders of AIIB – China – 30.34%, India - , 8.52%, Russia - 6.66%
• Their voting shares of – China - 26.06%, India -7.5 %, Russia - 5.92 %.
• Based on the shareholding, India is expected to get the Vice-President’s post.
• The AIIB will work together with multilateral development banks, including the World Bank and the Asian Development Bank, to facilitate Asian infrastructure construction and sustainable development.
• India elected to new AIIB Bank’s First Board - Dinesh Sharma, Additional Secretary of Ministry of Finance elected to the 12-member board.
• Union Finance Minister of India Arun Jaitley is the designated governor of the AIIB from the country.

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