Xi launches Asian Infrastructure Investment Bank

Xi launches Asian Infrastructure Investment Bank

Xi launches Asian Infrastructure Investment Bank

China-backed Asian Infrastructure Investment Bank (AIIB) in which India and 56 countries have joined as founding members was formally opened here today by President Xi Jinping who said the institution would boost investment and contribute to the development of the region.

"This is a historical moment," Xi said addressing the opening ceremony of the bank, which along with the BRICS New Development Bank (NDB) is expected to expand infrastructure financing, rivalling the World Bank and Asian Development Bank.

An Indian delegation headed by Dinesh Sharma, additional Secretary in the Ministry of Finance attended the opening ceremony. In all 57 countries have joined as founding members while the US and Japan have stayed out. Xi, while speaking at the glitzy event here, hailed the bank's future.

"The funding and inauguration of the AIIB will effectively boost investment to support infrastructures development in Asia. It will serve to channel more resources, particularly private investment, into infrastructures projects," he said.

Xi also highlighted steps he said would ensure the AIIB becomes a "truly international, rule-based and high standard institution in all aspects, involving its governance structure, operation policy, procurement policy and human resources management".

The US-backed ADB today said it "has started identifying potential co-financing projects with AIIB in such areas as transport, renewable energy, urban and water".

The AIIB was formally established in Beijing on December 25, 2015. Chinese Finance Minister Lou Jiwei was elected as the first Chairman of the AIIB council.
China's former Finance Minister, Jin Liqun was elected the first AIIB president.

With authorised capital of USD 100 billion and subscribed capital of USD 50 billion, Beijing-based AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.

China, India and Russia are the three largest shareholders, taking a 30.34 per cent, 8.52 per cent, 6.66 per cent stake respectively in the newly formed Bank.Their voting shares are calculated at 26.06 per cent, 7.5 per cent and 5.92 per cent.

Based on the share holding, India is expected to get the Vice President post. The opening of the AIIB marked a milestone in the reform of the global economic governance system, Lou said in an interview earlier.

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, Lou said.

Asian Development Bank (ADB) President Takehiko Nakao in message has congratulated the AIIB.