The Asian Infrastructure Investment Bank (AIIB) is in the news again after Canada's decision to freeze ties with it. Canadian Finance Minister Chrystia Freeland announced the country's decision on Wednesday (June 14). AIIB global communications director, who is a Canadian, has resigned from his position. Bob Pickard, the official, alleged that AIIB has a marked Chinese influence. Freeland has said that there will be a probe into the allegations and that she did not rule out any outcome of the said investigation.

All this and more has kept AIIB in the news over the years.

<h2>Origins of AIIB</h2>

Chinese President Xi Jinping voiced the concept of a China-led multilateral financial institution in 2013 at an Asia-Pacific Economic Cooperation Summit 2013 in Indonesia. At the time, Xi's idea was widely held to be a move to counter Western dominance in lending funds. The World Bank and the International Monetary Fund are largely viewed as pro-Western institutions.

Watch | Canada pulls plug on AIIB, probes Chinese influence | World Business Watch

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Xi Jinping promoted the idea of the China-led bank as a way to provide financial help to building ports, dams and other important infrastructure in the region.

"In China, we have a folk saying," Xi said at a ceremony in Beijing in 2014 to announce the first 21 nations that had signed up to the concept.

"If you would like to get rich, build roads first, and I believe that is a very vivid description of the importance of infrastructure to economic development."

<h2>How many projects has AIIB funded till now?</h2>

AIIB began operations in January 2016.&nbsp;

According to AIIB's website, it has financed 221 projects till now. This help is worth $42 billion. As of November 2022, India is by far the largest borrower.

<h2>Membership of AIIB</h2>

The AIIB began with 57 founding members. The idea of a China-led bank would make one think that Western countries would be averse to being a member of AIIB. But several Western countries are members. The US was caught off-guard when the UK and other European countries sought membership, says US Congressional Research Service (CRS). AIIB started with 57 founding members.

In the summer of 2016, Canada announced its decision to apply for membership. This was seen as a major gain for Chinese efforts.

The AIIB has 106 approved members now. In comparison, the IMF and World Bank have about 190 member countries each.

Sixteen of the G20 members are AIIB members or prospective ones -- only the United States, Japan, Mexico and the European Union are not.&nbsp;

<h2>Who are the shareholders of AIIB?</h2>

China is the main shareholder of AIIB. It commands 27 per cent voting power. This is considerably greater than India, the second-largest shareholder, which holds eight per cent. According to CRS, this is the largest gap between the top two shareholders at any existing multilateral development bank.

Russia is the third largest, followed by Germany, South Korea, Australia, France, Indonesia, the United Kingdom and Turkey.&nbsp;

<h2>What are the concerns about AIIB?</h2>

The United States and other critics often express the worry that &nbsp;AIIB would set much lower standards for projects. This would then, they say, undermine principles of economic, social and environmental sustainability which other lenders adhere to.

There were also fears that the bank would mainly be used to further China's own economic and political aims. AIIB has always maintained that such fears or claims are misplaced.

"China's wish isn't to create a new instrument of the Chinese state, it is to demonstrate its ability to promote a truly international institution based in China," AIIB's then-vice president Thierry de Longuemar told AFP in 2017.&nbsp;

The World Bank and AIIB signed off a framework for cooperation in common areas of interest in 2017. This, to some extent, allayed the fears that the two world bodies would be competitors of each other.

Also Read | <a href="https://www.wionews.com/business-economy/canada-suspends-ties-with-chinese-led-aiib-over-allegations-of-communist-domination-604695">Canada suspends ties with Chinese-led AIIB over allegations of Communist domination</a>

AIIB has similar agreements with the Asian Development Bank and the European Bank for Reconstruction and Development, as well as cooperating with a range of other international lenders.

The bank has maintained AAA ratings from major rating agencies and holds Permanent Observer status at the United Nations.

<h2>What is the leadership structure at AIIB?</h2>

Since the start, the bank has been headed by Jin Liqun. He is a former vice minister of China's finance ministry.

On its website, AIIB says that "all powers of the Bank are vested in our Board of Governors, which is the highest decision-making body".

Member countries appoint financial officials to the board.

However, Bob Pickard, former global communications director, has claimed that the board of directors is a "window dressing" and that there is a "parallel system" inside the bank.

<h2>India and AIIB</h2>

The AIIB has funded 28 projects in India. These projects are worth $6.7 billion in total. The projects are in various sectors like energy, transport, water and others. The bank has reportedly approved $500 million for Covid-19 Emergency Response Fund.

India and the AIIB signed a $455 million loan agreement to finance Andhra Pradesh Rural Roads Project.

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The Asian Infrastructure Investment Bank (AIIB) is in the news again after Canada's decision to freeze ties with it. Canadian Finance Minister Chrystia Freeland announced the country's decision on Wednesday (June 14).

The Asian Infrastructure Investment Bank (AIIB) is in the news again after Canada's decision to freeze ties with it. Canadian Finance Minister Chrystia Freeland announced the country's decision on Wednesday (June 14). AIIB global communications director, who is a Canadian, has resigned from his position. Bob Pickard, the official, alleged that AIIB has a marked Chinese influence. Freeland has said that there will be a probe into the allegations and that she did not rule out any outcome of the said investigation. All this and more has kept AIIB in the news over the years. Origins of AIIB Chinese President Xi Jinping voiced the concept of a China-led multilateral financial institution in 2013 at an Asia-Pacific Economic Cooperation Summit 2013 in Indonesia. At the time, Xi's idea was widely held to be a move to counter Western dominance in lending funds. The World Bank and the International Monetary Fund are largely viewed as pro-Western institutions. Watch | Canada pulls plug on AIIB, probes Chinese influence | World Business Watch × Xi Jinping promoted the idea of the China-led bank as a way to provide financial help to building ports, dams and other important infrastructure in the region. "In China, we have a folk saying," Xi said at a ceremony in Beijing in 2014 to announce the first 21 nations that had signed up to the concept. "If you would like to get rich, build roads first, and I believe that is a very vivid description of the importance of infrastructure to economic development." How many projects has AIIB funded till now? AIIB began operations in January 2016. According to AIIB's website, it has financed 221 projects till now. This help is worth $42 billion. As of November 2022, India is by far the largest borrower. Membership of AIIB The AIIB began with 57 founding members. The idea of a China-led bank would make one think that Western countries would be averse to being a member of AIIB. But several Western countries are members. The US was caught off-guard when the UK and other European countries sought membership, says US Congressional Research Service (CRS). AIIB started with 57 founding members. In the summer of 2016, Canada announced its decision to apply for membership. This was seen as a major gain for Chinese efforts. The AIIB has 106 approved members now. In comparison, the IMF and World Bank have about 190 member countries each. Sixteen of the G20 members are AIIB members or prospective ones -- only the United States, Japan, Mexico and the European Union are not. Who are the shareholders of AIIB? China is the main shareholder of AIIB. It commands 27 per cent voting power. This is considerably greater than India, the second-largest shareholder, which holds eight per cent. According to CRS, this is the largest gap between the top two shareholders at any existing multilateral development bank. Russia is the third largest, followed by Germany, South Korea, Australia, France, Indonesia, the United Kingdom and Turkey. What are the concerns about AIIB? The United States and other critics often express the worry that AIIB would set much lower standards for projects. This would then, they say, undermine principles of economic, social and environmental sustainability which other lenders adhere to. There were also fears that the bank would mainly be used to further China's own economic and political aims. AIIB has always maintained that such fears or claims are misplaced. "China's wish isn't to create a new instrument of the Chinese state, it is to demonstrate its ability to promote a truly international institution based in China," AIIB's then-vice president Thierry de Longuemar told AFP in 2017. The World Bank and AIIB signed off a framework for cooperation in common areas of interest in 2017. This, to some extent, allayed the fears that the two world bodies would be competitors of each other. Also Read | Canada suspends ties with Chinese-led AIIB over allegations of Communist domination AIIB has similar agreements with the Asian Development Bank and the European Bank for Reconstruction and Development, as well as cooperating with a range of other international lenders. The bank has maintained AAA ratings from major rating agencies and holds Permanent Observer status at the United Nations. What is the leadership structure at AIIB? Since the start, the bank has been headed by Jin Liqun. He is a former vice minister of China's finance ministry. On its website, AIIB says that "all powers of the Bank are vested in our Board of Governors, which is the highest decision-making body". Member countries appoint financial officials to the board. However, Bob Pickard, former global communications director, has claimed that the board of directors is a "window dressing" and that there is a "parallel system" inside the bank. India and AIIB The AIIB has funded 28 projects in India. These projects are worth $6.7 billion in total. The projects are in various sectors like energy, transport, water and others. The bank has reportedly approved $500 million for Covid-19 Emergency Response Fund. India and the AIIB signed a $455 million loan agreement to finance Andhra Pradesh Rural Roads Project. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Explained | What exactly is the Asian Infrastructure Investment Bank?

In a significant development that could have far-reaching implications for Canada's international relations, the Canadian government has decided to suspend its involvement with the Asian Infrastructure Investment Bank (AIIB). The decision comes as the government investigates claims of substantial interference from the Chinese government within the institution. The move marks a critical moment in Canada-China relations and raises questions about the future of Canadian infrastructure investments in Asia.

Established in 2016 with its headquarters in Beijing, the AIIB aimed to invest in sustainable infrastructure projects in Asia and beyond. Canada applied for membership in 2016 and formally entered the institution in 2018, committing a 1 percent membership stake worth $995 million. However, recent allegations of Chinese interference have prompted the Canadian government to take action.

Government's Decision

Finance Minister Chrystia Freeland made the announcement, declaring an immediate halt to all government-led activities at the AIIB, Bloomberg reported. This decision comes shortly after the resignation of Bob Pickard, a Canadian national and the AIIB's global head of communications. Pickard took to Twitter to express his concerns, stating that Communist Party members dominate the bank and have a toxic culture. His resignation has further fueled the controversy surrounding the AIIB.

<blockquote class="twitter-tweet">
I have tendered my resignation as the global comms chief of <a href="https://twitter.com/AIIB_Official?ref_src=twsrc%5Etfw">@AIIB_Official</a>. As a patriotic Canadian, this was my only course. The Bank is dominated by Communist Party members and also has one of the most toxic cultures imaginable. I don’t believe that my country’s interests are…
— Bob Pickard (@BobPickard) <a href="https://twitter.com/BobPickard/status/1668871011968663553?ref_src=twsrc%5Etfw">June 14, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Investigation into Chinese Interference

The Canadian government's decision to suspend involvement with the AIIB stems from the need to investigate the alleged Chinese interference. The Department of Finance has been instructed to lead an immediate review of the claims raised and of Canada's overall involvement with the institution, as per a Bloomberg report. This investigation aims to shed light on the extent of Chinese influence within the AIIB and its potential impact on Canadian interests.

This development comes at a time when the Canadian government is already facing criticism over handling alleged Chinese interference in recent Canadian election campaigns.&nbsp;

Future of Canadian Infrastructure Investments

Canada's decision to suspend its involvement with the AIIB raises questions about the future of Canadian infrastructure investments in Asia. As a member of the AIIB, Canada had committed a substantial stake worth $995 million. With the suspension of activities, the Canadian government will likely reassess its participation and the potential risks associated with continued involvement.

Experts cited by Bloomberg suggest that Canada's move to investigate and suspend involvement with the AIIB highlights the growing concerns about Chinese influence on global financial institutions. The outcome of the investigation will determine the path forward for Canada and its engagement with the AIIB. It also underscores the larger geopolitical challenges faced by countries balancing economic interests with national security concerns in an increasingly interconnected world.

In a significant development that could have far-reaching implications for Canada's international relations, the Canadian government has decided to suspend its involvement with the Asian Infrastructure Investment Bank (AIIB).

In a significant development that could have far-reaching implications for Canada's international relations, the Canadian government has decided to suspend its involvement with the Asian Infrastructure Investment Bank (AIIB). The decision comes as the government investigates claims of substantial interference from the Chinese government within the institution. The move marks a critical moment in Canada-China relations and raises questions about the future of Canadian infrastructure investments in Asia. Established in 2016 with its headquarters in Beijing, the AIIB aimed to invest in sustainable infrastructure projects in Asia and beyond. Canada applied for membership in 2016 and formally entered the institution in 2018, committing a 1 percent membership stake worth $995 million. However, recent allegations of Chinese interference have prompted the Canadian government to take action. Government's Decision Finance Minister Chrystia Freeland made the announcement, declaring an immediate halt to all government-led activities at the AIIB, Bloomberg reported. This decision comes shortly after the resignation of Bob Pickard, a Canadian national and the AIIB's global head of communications. Pickard took to Twitter to express his concerns, stating that Communist Party members dominate the bank and have a toxic culture. His resignation has further fueled the controversy surrounding the AIIB. I have tendered my resignation as the global comms chief of @AIIB_Official. As a patriotic Canadian, this was my only course. The Bank is dominated by Communist Party members and also has one of the most toxic cultures imaginable. I don’t believe that my country’s interests are… — Bob Pickard (@BobPickard) June 14, 2023 Investigation into Chinese Interference The Canadian government's decision to suspend involvement with the AIIB stems from the need to investigate the alleged Chinese interference. The Department of Finance has been instructed to lead an immediate review of the claims raised and of Canada's overall involvement with the institution, as per a Bloomberg report. This investigation aims to shed light on the extent of Chinese influence within the AIIB and its potential impact on Canadian interests. This development comes at a time when the Canadian government is already facing criticism over handling alleged Chinese interference in recent Canadian election campaigns. Future of Canadian Infrastructure Investments Canada's decision to suspend its involvement with the AIIB raises questions about the future of Canadian infrastructure investments in Asia. As a member of the AIIB, Canada had committed a substantial stake worth $995 million. With the suspension of activities, the Canadian government will likely reassess its participation and the potential risks associated with continued involvement. Experts cited by Bloomberg suggest that Canada's move to investigate and suspend involvement with the AIIB highlights the growing concerns about Chinese influence on global financial institutions. The outcome of the investigation will determine the path forward for Canada and its engagement with the AIIB. It also underscores the larger geopolitical challenges faced by countries balancing economic interests with national security concerns in an increasingly interconnected world.

Canada suspends involvement with China-backed bank amid interference probe

In a significant development, Canada has decided to suspend its involvement with the Asian infrastructure investment bank, also known as the AIIB. Finance Minister Chrystia Freeland made the announcement today, declaring an immediate halt to all government-led activities at the bank. This move comes as the Canadian government launches an investigation into alleged substantial interference from the Chinese government within the institution.

Canada pulls plug on AIIB, probes Chinese influence | World Business Watch

Canadian Finance Minister Chrystia Freeland said on Wednesday (June 14) that Canada is freezing ties with the China-led Asian Infrastructure Investment Bank (AIIB) while it probes allegations that it is dominated by the Chinese Communist Party. Freeland said she did not rule out any outcome of the investigation. There are chances that Ottawa will pull out of the bank it officially joined in 2018.

AIIB's global communications director, a Canadian, announced Wednesday that he had resigned from his position and criticised that the bank was "dominated by the Communist Party". AIIB has said that the allegation was baseless and disappointing.

"The Government of Canada will immediately halt all government-led activity at the bank. And I have instructed the Department of Finance to lead an immediate review of the allegations raised and of Canada's involvement in the AIIB," Freeland told reporters.

She said as the world's democracies worked to limit their strategic vulnerabilities to authoritarian regimes, they must be clear about the ways such governments exercised their influence.

"The review I am announcing today is to be undertaken expeditiously. And I am not ruling out any outcome following its completion," she said.

Watch | World bank chief on US China rivalry

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&nbsp;

&nbsp;

Reuters reported&nbsp;the Chinese embassy in Ottawa as saying in an email that "the claim that AIIB is controlled by the Communist Party of China&nbsp;is nothing but a lie".

PM Justin Trudeau was in office when Canada joined AIIB. He had attracted criticism from the Conservatives in the opposition. They have long demanded that Ottawa pull out of the bank, alleging&nbsp;that the bank is a tool for China to export authoritarianism.

Canada's relations with China have been frosty for the last five years. Canadian finance minister's remarks mark a new low in relations between the two countries.

Also Read | <a href="https://www.wionews.com/business-economy/dont-see-china-as-a-rival-new-world-bank-chief-ajay-banga-604676">'Don't see China as a rival': New World Bank chief Ajay Banga</a>

The Royal Canadian Mounted Police on Tuesday said that it was investigating allegations that China attempted to intimidate a Canadian federal Conservative legislator. Canada, in the&nbsp;past, has accused China of trying to interfere in its affairs in many ways. This includes illegal police stations and other means. Beijing denies all such allegations.

<h2>What former communications chief said</h2>

Bob Pickard, a former communications chief at AIIB told AFP that he left China hastily over concerns for his safety.

Speaking from Tokyo, he said the bank "serves China's interest" and the Chinese Communist Party (CCP) wields "undue" influence over every aspect of its operations.

"It's a resource to the geopolitical goals of the PRC (People's Republic of China)... in practice, I believe it serves China's interest," he told AFP.

He said that AIIB directed its lending mainly to countries China is focussing on to set up its massive Belt and Road Initiative (BRI).

"These are not disconnected ventures, the Belt and Road initiative and the AIIB... these are similar kinds of countries that China has been trying to cultivate politically."

(With inputs from agencies)

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&nbsp;

Canadian Finance Minister Chrystia Freeland said on Wednesday (June 14) that Canada is freezing ties with the China-led Asian Infrastructure Investment Bank (AIIB) while it probes allegations that it is dominated by the Chinese Communist Party.

Canadian Finance Minister Chrystia Freeland said on Wednesday (June 14) that Canada is freezing ties with the China-led Asian Infrastructure Investment Bank (AIIB) while it probes allegations that it is dominated by the Chinese Communist Party. Freeland said she did not rule out any outcome of the investigation. There are chances that Ottawa will pull out of the bank it officially joined in 2018. AIIB's global communications director, a Canadian, announced Wednesday that he had resigned from his position and criticised that the bank was "dominated by the Communist Party". AIIB has said that the allegation was baseless and disappointing. "The Government of Canada will immediately halt all government-led activity at the bank. And I have instructed the Department of Finance to lead an immediate review of the allegations raised and of Canada's involvement in the AIIB," Freeland told reporters. She said as the world's democracies worked to limit their strategic vulnerabilities to authoritarian regimes, they must be clear about the ways such governments exercised their influence. "The review I am announcing today is to be undertaken expeditiously. And I am not ruling out any outcome following its completion," she said. Watch | World bank chief on US China rivalry × Reuters reported the Chinese embassy in Ottawa as saying in an email that "the claim that AIIB is controlled by the Communist Party of China is nothing but a lie". PM Justin Trudeau was in office when Canada joined AIIB. He had attracted criticism from the Conservatives in the opposition. They have long demanded that Ottawa pull out of the bank, alleging that the bank is a tool for China to export authoritarianism. Canada's relations with China have been frosty for the last five years. Canadian finance minister's remarks mark a new low in relations between the two countries. Also Read | 'Don't see China as a rival': New World Bank chief Ajay Banga The Royal Canadian Mounted Police on Tuesday said that it was investigating allegations that China attempted to intimidate a Canadian federal Conservative legislator. Canada, in the past, has accused China of trying to interfere in its affairs in many ways. This includes illegal police stations and other means. Beijing denies all such allegations. What former communications chief said Bob Pickard, a former communications chief at AIIB told AFP that he left China hastily over concerns for his safety. Speaking from Tokyo, he said the bank "serves China's interest" and the Chinese Communist Party (CCP) wields "undue" influence over every aspect of its operations. "It's a resource to the geopolitical goals of the PRC (People's Republic of China)... in practice, I believe it serves China's interest," he told AFP. He said that AIIB directed its lending mainly to countries China is focussing on to set up its massive Belt and Road Initiative (BRI). "These are not disconnected ventures, the Belt and Road initiative and the AIIB... these are similar kinds of countries that China has been trying to cultivate politically." (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Canada suspends ties with Chinese-led AIIB over allegations of Communist domination

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman participated in the 6th Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB) via video conference on Tuesday.

Every year at the Annual Meeting, the Board of Governors meets to take key decisions on important matters relating to AIIB, and its future vision. India is a founding member and the second-largest shareholder in AIIB.India also has one of the largest project portfolios within AIIB.&nbsp;

This year`s annual meeting has been jointly organized by AIIB and the Government of the United Arab Emirates on the theme of "Investing Today and Transforming Tomorrow".The finance minister shared her thoughts in the Governor`s Roundtable Discussion on the theme "COVID-19 Crisis and Post-COVID Support".

Sitharaman appreciated AIIB`s prompt actions in providing financial support to Member Countries, including India, in their efforts to contain and combat COVID-19.The Finance Minister said that the social protection and economic stimulus packages brought out by the Government of India, along with timely structural reforms in various sectors, have been pivotal in India`s economic recovery process.

The stimulus packages, including the credit guarantee scheme for microfinance institutions, boosters for project exports through National Export Insurance Account, additional subsidies for fertilizers, free food grains for 800 million people under the Pradhan Mantri Garib Kalyan Yojana, and several welfare schemes with a strong public health focus, helped to effectively and efficiently boost the economy and protect lives and livelihoods, especially of the poor and vulnerable.

Sitharaman emphasised the Government of India`s successful drive to rapidly vaccinate its citizens, administering over 1 billion vaccines - a milestone achieved with the help of the strong scientific and technological ecosystem in India.

The Finance Minister also highlighted India`s "Vaccine Maitri" initiative, a global health outreach, under which 70 million doses of the `Made in India` COVID-19 vaccines have been supplied to 95 countries and UN entities, including nearly 20 million doses to 47 countries under the COVAX facility and more than 12 million vaccine doses as a grant to 47 countries and UN peacekeepers.Sitharaman pointed out that the current crisis and the looming climate crisis have reinforced the importance of Multilateral Development Banks (MDBs) and the urgency for supplementing country efforts with multilateral development finance.&nbsp;

In this context, she highlighted some of the expectations from the Bank, including the need to explore investment opportunities in the creation and development of assets in social infrastructure sectors; to further intensify private sector capital mobilisation for inclusive and green development; and to set up a Resident Board and Regional Offices to ensure accountability, transparency and quality of operations and investments.

Sitharaman assured India`s cooperation and support to the AIIB for its future endeavours as a leading financial institution.&nbsp;

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman participated in the 6th Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB) via video conference on Tuesday.

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman participated in the 6th Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB) via video conference on Tuesday. Every year at the Annual Meeting, the Board of Governors meets to take key decisions on important matters relating to AIIB, and its future vision. India is a founding member and the second-largest shareholder in AIIB.India also has one of the largest project portfolios within AIIB. This year`s annual meeting has been jointly organized by AIIB and the Government of the United Arab Emirates on the theme of "Investing Today and Transforming Tomorrow".The finance minister shared her thoughts in the Governor`s Roundtable Discussion on the theme "COVID-19 Crisis and Post-COVID Support". Sitharaman appreciated AIIB`s prompt actions in providing financial support to Member Countries, including India, in their efforts to contain and combat COVID-19.The Finance Minister said that the social protection and economic stimulus packages brought out by the Government of India, along with timely structural reforms in various sectors, have been pivotal in India`s economic recovery process. The stimulus packages, including the credit guarantee scheme for microfinance institutions, boosters for project exports through National Export Insurance Account, additional subsidies for fertilizers, free food grains for 800 million people under the Pradhan Mantri Garib Kalyan Yojana, and several welfare schemes with a strong public health focus, helped to effectively and efficiently boost the economy and protect lives and livelihoods, especially of the poor and vulnerable. Sitharaman emphasised the Government of India`s successful drive to rapidly vaccinate its citizens, administering over 1 billion vaccines - a milestone achieved with the help of the strong scientific and technological ecosystem in India. The Finance Minister also highlighted India`s "Vaccine Maitri" initiative, a global health outreach, under which 70 million doses of the `Made in India` COVID-19 vaccines have been supplied to 95 countries and UN entities, including nearly 20 million doses to 47 countries under the COVAX facility and more than 12 million vaccine doses as a grant to 47 countries and UN peacekeepers.Sitharaman pointed out that the current crisis and the looming climate crisis have reinforced the importance of Multilateral Development Banks (MDBs) and the urgency for supplementing country efforts with multilateral development finance. In this context, she highlighted some of the expectations from the Bank, including the need to explore investment opportunities in the creation and development of assets in social infrastructure sectors; to further intensify private sector capital mobilisation for inclusive and green development; and to set up a Resident Board and Regional Offices to ensure accountability, transparency and quality of operations and investments. Sitharaman assured India`s cooperation and support to the AIIB for its future endeavours as a leading financial institution.

Indian finance minister participates in AIIB board meet

The Asian Infrastructure Investment Bank (AIIB) has achieved initial progress as a new-type multilateral development bank over the past three and half years since its establishment, and entered the stage of stable development, its president Jin Liqun said

AIIB has entered stage of stable development: president

Cash-strapped Pakistan is likely to receive investments for development projects, including roads and sewerage plants, worth USD 1.4 billion by the China-led Asian Infrastructure Investment Bank (AIIB), according to a media report.&nbsp;

The Beijing-based AIIB is considering investment in the Karachi Bus Rapid Transit (BRT) project, Rawalpindi's Ring Road project, Lahore Waste Water Management project and Karachi Water and Sewerage Service project among others, the Express Tribune reported on Friday.&nbsp;

"Work on projects amounting to $4 million is in progress while projects worth $1 billion are awaiting approval, Laurel Ostfield, AIIB head of communications, said on Thursday.

Last month, Pakistan said that Saudi Arabia headquartered Islamic Development Bank was providing it with&nbsp;three-year $4.5 billion oil financing facility, which will ease pressure on its balance-of-payments.

Pakistan is also negotiating an $8 billion bailout package from the International Monetary Fund (IMF) to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy.

The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Imran Khan assumed office in August last year and has received financial help to a great extent.

Pakistan's close ally China is already building the $50 billion China-Pakistan Economic Corridor.&nbsp;

Launched in 2015, CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea.

Ostfield said the AIIB desired to launch even more development projects in Pakistan in the future.&nbsp;

Currently, the AIIB is considering investing in the $100-million Karachi Bus Rapid Transit project, she said.

Ostfield said that Asia needs connectivity and investment from the private sector and the AIIB, for the first time, is presenting its report in Pakistan.

"We are focusing on eight markets including Pakistan,"&nbsp;she said, adding the AIIB runs the projects on merit without any discrimination among member states.&nbsp;

"No economy can develop without making an investment in infrastructure,"&nbsp;Ostfield stated.&nbsp; 
 
Noting that AIIB was also looking into projects related to renewable energy, she said, "Pakistan holds immense potential in power produced from hydel sources. Pakistan incurs a higher cost on road construction."

"We must have our focus on environment-friendly projects,"&nbsp;she said.

She said strong infrastructure and cross-border mobility were among top priorities of the Asian infrastructure bank.&nbsp;

Cash-strapped Pakistan is likely to receive investments for development projects, including roads and sewerage plants, worth USD 1.4 billion by the China-led Asian Infrastructure Investment Bank (AIIB), according to a media report.

Cash-strapped Pakistan is likely to receive investments for development projects, including roads and sewerage plants, worth USD 1.4 billion by the China-led Asian Infrastructure Investment Bank (AIIB), according to a media report. The Beijing-based AIIB is considering investment in the Karachi Bus Rapid Transit (BRT) project, Rawalpindi's Ring Road project, Lahore Waste Water Management project and Karachi Water and Sewerage Service project among others, the Express Tribune reported on Friday. "Work on projects amounting to $4 million is in progress while projects worth $1 billion are awaiting approval, Laurel Ostfield, AIIB head of communications, said on Thursday. Last month, Pakistan said that Saudi Arabia headquartered Islamic Development Bank was providing it with three-year $4.5 billion oil financing facility, which will ease pressure on its balance-of-payments. Pakistan is also negotiating an $8 billion bailout package from the International Monetary Fund (IMF) to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy. The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Imran Khan assumed office in August last year and has received financial help to a great extent. Pakistan's close ally China is already building the $50 billion China-Pakistan Economic Corridor. Launched in 2015, CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea. Ostfield said the AIIB desired to launch even more development projects in Pakistan in the future. Currently, the AIIB is considering investing in the $100-million Karachi Bus Rapid Transit project, she said. Ostfield said that Asia needs connectivity and investment from the private sector and the AIIB, for the first time, is presenting its report in Pakistan. "We are focusing on eight markets including Pakistan," she said, adding the AIIB runs the projects on merit without any discrimination among member states. "No economy can develop without making an investment in infrastructure," Ostfield stated. Noting that AIIB was also looking into projects related to renewable energy, she said, "Pakistan holds immense potential in power produced from hydel sources. Pakistan incurs a higher cost on road construction." "We must have our focus on environment-friendly projects," she said. She said strong infrastructure and cross-border mobility were among top priorities of the Asian infrastructure bank.

China-led AIIB likely to invest $1.4 billion for development projects in Pakistan

The China-led Asian Infrastructure Investment Bank (AIIB) will be different from institutions like the World Bank because it has a greater understanding of the developing world&#39;s needs, officials said on Sunday at its first annual meeting. 
 
Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. 
 
The AIIB, which intends to invest $1.2 billion this year, has said it is aiming to meet international standards of governance, though some members say there is still work to be done. 
 
Speaking on the final day of the bank&#39;s inaugural annual meeting, Chinese Finance Minister Lou Jiwei said the AIIB needed to establish its niche. 
 
&quot;The AIIB needs to establish its comparative advantage relative to existing multilateral development banks like the World Bank,&quot; Lou said. 
 
&quot;Compared with the Asian Development Bank, World Bank and other multilateral development banks, the AIIB&#39;s advantage lies in its keener understanding of the successful experience and lessons of developing countries&#39; years of development.&quot; 
 
The AIIB&#39;s board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for reconstruction and development. 
 
The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. 
 
AIIB President Jin Liqun said it was the focus on infrastructure that specifically marked out the bank as different and that they were committed to the concept of international best practice. 
 
&quot;The question is, how do you define international best practice? I will not agree to anything which could be considered international best practice unless this kind best practice incorporates the development experience of China and many countries in Asia and elsewhere over the last three or four decades,&quot; Jin said. 
 
&quot;So our bank would like to have the development experience, the so-called international best practice, reflecting the experience of China, India (and) so many countries in Asia. So we should have a different model of development.&quot; 
 
The AIIB is also looking to expand its numbers this year and will take applications for new members through the end of September. 
 
(Reuters)

The Asian Infrastructure Investment Bank's board approved its first four deals worth $509 million for reconstruction and development

The China-led Asian Infrastructure Investment Bank (AIIB) will be different from institutions like the World Bank because it has a greater understanding of the developing world's needs, officials said on Sunday at its first annual meeting. Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. The AIIB, which intends to invest $1.2 billion this year, has said it is aiming to meet international standards of governance, though some members say there is still work to be done. Speaking on the final day of the bank's inaugural annual meeting, Chinese Finance Minister Lou Jiwei said the AIIB needed to establish its niche. "The AIIB needs to establish its comparative advantage relative to existing multilateral development banks like the World Bank," Lou said. "Compared with the Asian Development Bank, World Bank and other multilateral development banks, the AIIB's advantage lies in its keener understanding of the successful experience and lessons of developing countries' years of development." The AIIB's board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for reconstruction and development. The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. AIIB President Jin Liqun said it was the focus on infrastructure that specifically marked out the bank as different and that they were committed to the concept of international best practice. "The question is, how do you define international best practice? I will not agree to anything which could be considered international best practice unless this kind best practice incorporates the development experience of China and many countries in Asia and elsewhere over the last three or four decades," Jin said. "So our bank would like to have the development experience, the so-called international best practice, reflecting the experience of China, India (and) so many countries in Asia. So we should have a different model of development." The AIIB is also looking to expand its numbers this year and will take applications for new members through the end of September. (Reuters)

China praises AIIB's greater understanding of developing world

The Asian Infrastructure Investment Bank (AIIB) stressed its independence from China at its first annual meeting today, saying it plans to cooperate with other development banks and add new members, including Hong Kong.&nbsp; 
 
Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region.&nbsp; 
 
The AIIB, which intends to invest $1.2 billion this year, said it is aiming to meet international standards of governance, although some members say there is still work to be done.&nbsp; 
 
And in response to concern that China, its biggest backer, will dominate, the AIIB said it answers to all its shareholders. 
 
&quot;China as much as other shareholders has been very supportive of the governance standards that we&#39;re setting and of the transparency around the bank&#39;s operations,&quot; AIIB vice president Danny Alexander said. 
 
AIIB&#39;s board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development.&nbsp; 
 
The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. 
 
&quot;We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year,&quot; said AIIB President Jin Liqun. 
 
It is crucial for the AIIB to comply with multilateral agency procedures and rules, Chinese Vice-Premier Zhang Gaoli, said at the opening ceremony for AIIB&#39;s annual meeting.&nbsp; 
 
&quot;AIIB should learn from the successful experience of other multilateral agencies and forge close partnership with the World Bank, Asian Development Bank and other institutions,&quot; he said, a commitment which was echoed by the AIIB&#39;s Jin. 
 
The bank, with only 38 full-time staff, needs organization and procedures to be fleshed out, say members.&nbsp; 
 
&quot;The roles of the management and the Board should be more clearly defined. Over the past six months, the basic framework for operation took shape, but there is still much to be done,&quot; Korean finance minister and AIIB governor Ilho Yoo said, adding that it needs to develop its environmental and social framework.&nbsp; 
 
The bank&#39;s lean operation and flexibility as a new organization was a positive for the European Bank for Reconstruction and Development (EBRD), which is partnering on one of AIIB`s first deals.&nbsp; 
 
&quot;What impresses me is the efficiency they go about things. AIIB is a natural partner because they are willing and able to take risk, such as going into private public partnership structures,&quot; said Thomas Maier, the EBRD&#39;s managing director for infrastructure. 
 
Zhang also said that China will contribute $50 million to a new fund set up by the AIIB to support member countries with project preparations.&nbsp; 
 
The AIIB is looking to expand its numbers this year and will take applications for new members through the end of September. 
 
Hong Kong, despite being a special administrative region of China, has applied for membership, and Jin said he is confident Hong Kong will soon be a full member of the bank.&nbsp; 
 
Beijing has been looking for ways to support Hong Kong, which has been convulsed by political turmoil.&nbsp; 
 
(Reuters)

China, the biggest funder, addresses concern that it'll dominate the bank by insisting it's accountable to all shareholders

The Asian Infrastructure Investment Bank (AIIB) stressed its independence from China at its first annual meeting today, saying it plans to cooperate with other development banks and add new members, including Hong Kong. Chinese President Xi Jinping proposed the bank two years ago and it began operations in January, with 57 founding member countries and $100 billion in committed capital, which it plans to invest in projects across the region. The AIIB, which intends to invest $1.2 billion this year, said it is aiming to meet international standards of governance, although some members say there is still work to be done. And in response to concern that China, its biggest backer, will dominate, the AIIB said it answers to all its shareholders. "China as much as other shareholders has been very supportive of the governance standards that we're setting and of the transparency around the bank's operations," AIIB vice president Danny Alexander said. AIIB's board approved its first four deals worth $509 million on Friday, with three projects co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development. The co-financed projects are a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan. A power grid upgrade project in Bangladesh will be solely AIIB financed. "We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year," said AIIB President Jin Liqun. It is crucial for the AIIB to comply with multilateral agency procedures and rules, Chinese Vice-Premier Zhang Gaoli, said at the opening ceremony for AIIB's annual meeting. "AIIB should learn from the successful experience of other multilateral agencies and forge close partnership with the World Bank, Asian Development Bank and other institutions," he said, a commitment which was echoed by the AIIB's Jin. The bank, with only 38 full-time staff, needs organization and procedures to be fleshed out, say members. "The roles of the management and the Board should be more clearly defined. Over the past six months, the basic framework for operation took shape, but there is still much to be done," Korean finance minister and AIIB governor Ilho Yoo said, adding that it needs to develop its environmental and social framework. The bank's lean operation and flexibility as a new organization was a positive for the European Bank for Reconstruction and Development (EBRD), which is partnering on one of AIIB`s first deals. "What impresses me is the efficiency they go about things. AIIB is a natural partner because they are willing and able to take risk, such as going into private public partnership structures," said Thomas Maier, the EBRD's managing director for infrastructure. Zhang also said that China will contribute $50 million to a new fund set up by the AIIB to support member countries with project preparations. The AIIB is looking to expand its numbers this year and will take applications for new members through the end of September. Hong Kong, despite being a special administrative region of China, has applied for membership, and Jin said he is confident Hong Kong will soon be a full member of the bank. Beijing has been looking for ways to support Hong Kong, which has been convulsed by political turmoil. (Reuters)

China-backed AIIB seeks cooperation and new members, beyond 57 founding countries

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