AIIB approves $509m first phase projects, $216.5 million for Indonesia
JAKARTA (TheInsiderStories) – The Asian Infrastructure Investment Bank’s Board of Directors has approved its first 4 loans totaling $509 million to finance four projects. Three of the four projects are co-financing operations with multilateral development bank (MDB) partners.
The approved loans are:
– a $165 million loan for a Power Distribution System Upgrade and Expansion Project in Bangladesh;
– a $216.5 million loan for a National Slum Upgrading Project in Indonesia, expected to be co-financed with the World Bank;
– a $100 million loan to finance the Shorkot-Khanewal Section of National Motorway M-4 in Pakistan, co-financed with the Asian Development Bank (ADB) and the United Kingdom’s Department for International Development (DFID); and
– a $ 27.5 million loan for the Dushanbe-Uzbekistan Border Road Improvement Project in Tajikistan, co-financed with the European Bank for Reconstruction and Development (EBRD).
“I am delighted to announce that AIIB’s Board of Directors has today – just six months after the Bank’s inauguration — approved the first group of loans. These projects, which span the energy, urban development and transport sectors, will help to bridge the region’s critical infrastructure financing gap and strengthen regional connectivity,” AIIB’s President Jin Liqun noted.
“We are very pleased that three of these projects are joint co-financing operations with our development partners, ADB, EBRD and the World Bank. This has been an outstanding and tangible demonstration of multilateral cooperation that has expanded the pool of financing available to our joint member countries. We are working on a number of additional projects and look forward to bringing them to our Board for its approval later this year,” Jin Liqun said.
The Bank’s Vice President and Chief Investment Officer, DJ Pandian, welcomed the new investments noting, “The Bank places tremendous importance on ensuring that its investments lead to positive results and measureable outcomes for its clients and will improve the lives of the millions of people in the different regions of Asia.”
The Bank, which supports infrastructure development and regional connectivity in Asia, is targeting lending of approximately $1.2 billion in 2016.
A $216.5 million loan to Indonesia for a National Slum Upgrading Project aims to improve access to urban infrastructure and services in targeted slums in Indonesia. This financing supports the Government’s program of urban slum infrastructure investment in the central and eastern parts of the country.
The project will finance institutional strengthening and capacity building for the responsible ministries and agencies and sub-projects will support primary and secondary infrastructure improvement and site development, and select construction. The project also provides contingency financing for disaster response.
Direct and indirect beneficiaries of the project are expected to include 9.7 million slum dwellers living in 154 cities. Slum dwellers are likely to experience significant betterment of living conditions due to improvements in access to urban infrastructure and services. The Project is expected to be co-financed by the World Bank which will be the lead co-financier. (*)
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Source: The Insiderstories
AIIB approves 9m first phase projects, 6.5 million for Indonesia