AIIB Approves Seven New Members, Total Now 77 State Level Investors
China’s Asian Infrastructure Investment Bank (AIIB ) has approved a further seven member nations, adding to the thirteen new members it approved in March. The new members, which are Bahrain, Bolivia, Chile, Cyprus, Greece, Romania and Samoa, bring the total members on board to 77.
The seven prospective members also need to complete the required domestic processes and deposit their first installment of capital with the AIIB before officially joining the bank.
The bank, which began operations at Beijing’s instigation in January 2016, pools financing from its members and repackages these into mutually agreed funds for “Asian investment” projects. AIIB’s largest shareholders include China, India, and Russia.
Related: China’s AIIB – The Facts To Know
Many of these are One Belt, One Road (OBOR) related, with the first AIIB approved loan being for power station investments in Pakistan. More recent loans have been granted to finance US$125 million for a dam project in Indonesia and a further US$100 million for the Indonesian Regional Infrastructure Development Fund. Both the Indonesian projects have been co-financed by the World Bank.
Another US$60 million loan was granted to improve a gas transmission network in Bangladesh, co-financed by the Asian Development Bank (ADB). The new loans increased the multilateral
Several financial institutions exist which are in part responsible for some OBOR financing. These include Russia’s Eurasian Development Bank the BRICS New Development Bank as well as China’s Silk Road Fund. The cost of developing the OBOR routes is expected to top USD8 trillion, a investment expense we examined in some detail in the article “Financing China’s One Belt Road USD8 Trillion Capital Requirements“.
Silk Road Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEAN, China, India, Indonesia, Russia & Vietnam. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout the Asian and Eurasian region. We maintain offices throughout China, South-East Asia, India and Russia. For assistance with OBOR issues or investments into any of the featured countries, please contact us at email@example.com or visit us at www.dezshira.com
Dezan Shira & Associates´ Silk Road and OBOR investment brochure offers an introduction to the region and an overview of the services provided by the firm. It is Dezan Shira´s mission to guide investors through the Silk Road´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the region.
This unique and currently only available study into the proposed Silk Road Economic Belt examines the institutional, financial and infrastructure projects that are currently underway and in the planning stage across the entire region. Covering over 60 countries, this book explores the regional reforms, potential problems, opportunities and longer term impact that the Silk Road will have upon Asia, Africa, the Middle East, Europe and the United States.