China-backed Asian Infrastructure Investment Bank (AIIB) has approved its first four loans totaling $509 million to finance four projects including one for Bangladesh.
The Board of Directors approved the loans on Friday within six months of the Bank’s journey. Three of the four projects, except Bangladesh, are co-financing operations with World Bank, Asian Development Bank (ADB) and UK aid.
“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,” AIIB’s President Jin Liqun said.
“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”.
The bank is being seen as an alternative to the World Bank where the US and Japan have strong dominance. It was formally launched in January. Bangladesh is among the founding members.
The approved loan for Bangladesh is $165 million for a Power Distribution System Upgrade and Expansion Project.
The project is designed to expand electricity coverage by providing 2.5 million new service connections in rural areas, and to upgrade two grid substations and convert 85 circuit-km overhead distribution lines into underground cables in northern Dhaka.
The Project will supplement the Bank’s development partner efforts by providing additional financial resources to connect more rural and urban consumers, further reduce distribution losses, and improve the quality and reliability of power supply in Bangladesh.
Upon completion, according to the Bank, the project is expected to benefit about 12.5 million people in rural areas and therefore create a significant and sustained impact on many economic and social dimensions.
The other projects are: 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 UK aid 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).
“We are very pleased that three of these projects are joint co-financing operations with our development partners, ADB, EBRD and the World Bank,” the President said in a statement.
“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,” he said.
Source: bdnews24