Finance Minister AMA Muhith left for Beijing on Wednesday to attend the opening ceremony of AIIB.
Bangladesh expects big-time funding for major infrastructure projects from the China-sponsored Asia Infrastructure Investment Bank (AIIB), says Finance Minister AMA Muhith.
“We want AIIB, that is piloted by the China which is the world’s second largest economy,” Muhith told bdnews24.com before leaving for Beijing.
He will participate in the opening ceremony of the AIIB in the Chinese capital.
“Bangladesh is now a role model for the developing world. We have posted 6 percent GDP growth over the past few years despite a global recession. We have attracted global attention,” Muhith said.
But the finance minister said Bangladesh will need big time funding from AIIB, to develop its infrastructure to propel and sustain big ticket growth.
“We are doing the Padma bridge with our own resources. But we need many such projects to boost our infrastructure. For that, we need AIIB funding, we want it to come to our help as does World Bank and Asian Development Bank,” Muhith told bdnews24.com.
“We want AIIB funding big time.”
The AIIB will be formally launched on Jan 16 at Beijing after it has been in the works for the last two years.
Chinese Prime Minister Li Keqiang will launch the AIIB and the inaugural ceremony will be marked by cultural events.
Altogether 57 nations have been approved as founder members of the AIIB—among them many US allies, like the UK and Germany.
The only important US ally to stay away from the AIIB is Japan.
Muhith will join AIIB’s Board of Governors meeting as the finance minister of a member state.
He is also scheduled to hold a one-to-one with AIIB President-designate Jin Liqun.
Muhith, who has been serving as the finance minister for the seventh year, said Bangladesh’s biggest success is to lift itself to a lower-middle income country.
“But we do not want to stop here; we have a long way to go. In the last seven years, the government’s priority was power, energy and infrastructure.”
But Muhith admitted that has deprived sectors like education, health and employment.
“So we will now focus on education, health and employment now.
“Our goal is to do things that are sustainable,” he said.
The finance minister hoped AIIB will fund infrastructure development in Bangladesh.
Muhith, however, ruled out any adverse impact on relations with the World Bank and ADB after Bangladesh joined the AIIB. “Why should that happen? The World Bank is a separate issue; they invest across the globe and AIIB will focus on infrastructure development in Asia.”
He, however, said that it seems to him the Asian Development Bank (ADB) is ‘a bit concerned’. “But our relations will not be affected.”
Signing ceremony of the Asian Infrastructure Investment Bank in Beijing on Oct 24, 2014. Photo: Reuters
The AIIB is starting with an initial fund of $100 billion, which is two-third of ADB’s fund and half the World Bank’s.
Muhith said Bangladesh now needs large-scale investments for climbing to a growth rate of 8 to 10 percent. “We had been stuck in the 6 percent growth trap. I hope we will break out of it from this year and it would be more than 7 percent.”
The finance minister said that Bangladesh is now ready for large investments and it would welcome any investments from any agencies.
He said that trade relations with China is now ‘pretty good’. “They are investing in some of our big projects and that’s why we will benefit from joining the bank led by it.”
In September last year, Bangladesh decided to join AIIB after which, State Minister for Finance MA Manna went to China to sign the MoU.
China is funding $50 billion of AIIB’s $100 billion paid-up capital, the rest is being funded by the 56 other member states.
Announced by Chinese President Xi Jinping during the 2013 Asia Pacific Economic Cooperation Summit, the bank has become one of China’s biggest foreign policy success.
Despite the opposition of Washington, major US allies such as Australia, Britain, Germany, Italy, the Philippines and South Korea have joined.
The bank will focus on financing projects in power, transport, and urban infrastructure well as regional connectivity in Asia, Jinping had said at that time.
AIIB President-designate Jin Liqun met Prime Minister Sheikh Hasina during his Bangladesh visit in November last year and had said that the bank’s first investment will be in Bangladesh.
Source: Bd news24