AIIB (Asian Infrastructure Investment Bank) news

[ahojunk]

Poland to invest hundreds of millions into AIIB
February 25, 2016

The Sejm has completed the first reading of a bill ratifying the creation of the Asian Infrastructure Investment Bank (AIIB). No MP declared any objections to the bill, paving the way for Poland to fully participate in its formation.

The Bank is a new Chinese initiative, designed to be an alternative for international financial institutions dominated by the USA, such as the IMF or the World Bank. It will simultaneously act as an engine for infrastructural investments and the economic development of China. Along with 56 other countries, Poland signed a deal on the June 29, 2015 declaring that it would engage in the bank’s creation.

Vice-minister of Foreign Affairs Katarzyna Kacprzyk told the members of the Sejm that “the decision to involve Poland in this undertaking was supported by a thorough analysis,” which showed that the deal would be beneficial for Poland. She also added that the establishment of the bank would help strengthen relations between China and Poland as well as other Asian countries, giving Polish businesses more opportunities to expand in those regions.

The AIIB’s capital is to amount to $100 billion; each individual country’s contribution will depend on its GDP and the purchasing power of its currency.

 

[TaiShang]

AIIB will address Taiwan's membership bid under 'One China' principle
Xinhua, April 13, 2016

The Chinese mainland said Wednesday that the Asian Infrastructure Investment Bank (AIIB) would address the issue of Taiwan's membership request under the "One China" principle.

An Fengshan, spokesperson of the Taiwan Affairs Office of the State Council, made the remarks at a regular press conference on Wednesday.

At the same briefing, when answering a question about the decision by Taiwan's legislature authority to delete an article that prohibited the alteration, deletion or defacing of travel documents it issued, An said the Chinese mainland had already made clear that it opposed all "Taiwan independence" secessionist activities.

 

[TaiShang]

ADB official joins AIIB
Xinhua, April 15, 2016

The Asian Infrastructure Investment Bank (AIIB) has appointed Hamid Sharif, an official of the Asian Development Bank (ADB), as the first Director General of compliance, effectiveness and integrity (CEI).

"I am delighted to announce Mr. Sharif's appointment to this important leadership position," AIIB President Jin Liqun said in a statement on Thursday.

"The CEI Unit plays a fundamental role in the Bank's governance and Mr. Sharif brings with him more than two decades of rich experience in the public and private sectors," Jin said.

The Director General of the CEI Unit reports to the Board of Directors of AIIB. The CEI Unit's mandate includes monitoring and evaluating the Bank's portfolio, ensuring policy compliance, and overseeing internal and external grievance procedures.

Sharif is currently ADB country director for China where he oversees a 10 billion U.S. dollar investment portfolio.

 

[ahojunk]

World Bank joins AIIB on financing for joint projects
2016-04-14 08:56 | Xinhua | Editor:Li Yan

World Bank and the AIIB on Wednesday signed the first co-financing framework agreement, paving the way for their cooperation on joint projects this year.

World Bank President Jim Yong Kim (R) and Asian Infrastructure Investment Bank (AIIB) President Jin Liqun sign the first co-financing framework agreement at the headquarters of World Bank in Washington D.C., the United States, April 13, 2016. (Photo: Xinhua/Yin Bogu)

 

[TaiShang]

AIIB, ADB Sign MOU on Cooperation
2016-05-02

A photo taken on Jan. 13, 2016 shows a logo carved on a stone outside the office building of the Asian Infrastructure Investment Bank (AIIB) in Beijing. Photos of the newly decorated office building were released on Jan. 13, 2016. The unveiling ceremony is scheduled to be held between Jan. 16 and 18 in Beijing. [Photo: CFP]

The Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) on Monday signed a memorandum of understanding (MOU) to strengthen cooperation, the AIIB said in a statement.

The two financial institutions inked the MOU in the German city of Frankfurt, where the ADB is holding its 49th annual meeting of its board of governors.

The agreement sets the stage for jointly-financed projects. Discussions have already begun about the co-financing of road and water projects.

The first of these projects is expected to be Pakistan's M4 highway, a 64-kilometer motorway connecting Shorkot to Khanewal in Punjab Province, according to the statement.

AIIB and ADB agreed to strengthen co-operation, including co-financing, at the strategic and technical levels on the basis of "complementarity, value added, institutional strengths and comparative advantages, and mutual benefit," according to the MOU.

"I am delighted to take a further step forward in our partnership with ADB," AIIB president Jin Liqun said. "AIIB looks forward to deepening our already strong relationship and expanding our collaboration as we seek to address the significant infrastructure financing needs in the Asia region."

"ADB has been working closely with AIIB throughout its establishment process. We will further strengthen cooperation in the areas of sustainable growth, poverty reduction, and combatting climate change," said ADB president Takehiko Nakao.

Through co-financing, knowledge transfer, and joint policy dialogues with member countries, the two institutions will work together across the areas of energy, transportation, telecoms, rural and agriculture development, water, urban development, and environmental protection.

The two institutions will undertake regular high-level consultations and data collection to implement the Sustainable Development Goals and the COP21 climate agreement, according to the statement.

AIIB, located in Beijing, was formally established in Beijing in December last year and started operation in January.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, ADB is owned by 67 members -- 48 from the region. In 2015, ADB assistance totaled 27.2 billion U.S. dollars, including co-financing of 10.7 billion U.S. dollars.

 

[TaiShang]

EBRD, AIIB deepen cooperation with MOU
Xinhua, May 12, 2016

The Asian Infrastructure Investment Bank (AIIB) and the European Bank for Reconstruction and Development (EBRD) agreed on Wednesday to deepen cooperation between their two organizations.

The two development banks signed a Memorandum of Understanding (MOU) at the EBRD's annual meeting here.

Under the MOU, the banks agree to deepen their promotion of economic development and investment in countries where both are active.

The EBRD said in a statement that it had been a strong supporter of the AIIB from its inception and shared with the AIIB its experiences in such areas as investment processes and the development of infrastructure and energy projects.

The EBRD statement quoted AIIB President Jin Liqun as saying: "Today we take another important step forward in deepening our collaboration with the EBRD, aiming to address the significant funding needs for infrastructure investment across Asia and the rest of the world. We... look forward to continuing to build on this meaningful partnership."

EBRD President Sir Suma Chakrabarti said: "I very much welcome the role that the AIIB will play in helping to narrow the huge infrastructure investment gap that emerging economies face. We have already built up close ties with the AIIB and shared our own experiences. I now look forward to strengthening this association and working together on joint projects."

The MOU notes cooperation will take place in the form of regular dialogue at the level of senior management, exchanges of information on respective policies and strategies and on activities in common areas where the banks invest.

The two institutions have already started cooperation, according to the EBRD statement. The first joint project, a road linking Dushanbe, Tajikistan, with the Uzbek border, will form part of the east-west highway in Central Asia.

The EBRD board of directors has just approved the project for financing, and the AIIB board is expected to consider AIIB financing in June, the statement said.

The two banks are currently considering other joint infrastructure projects in Central Asia, it added.

 

[ahojunk]

It is very good to see Russia playing an active role in AIIB.

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Putin invites AIIB to participate in Russian projects
Thu May 19, 2016 8:46 AM

Russian President Vladimir Putin invited the China-led Asian Infrastructure Investment Bank (AIIB) to take up projects in Russia.

Russian President Vladimir Putin invited the Asian Infrastructure Investment Bank (AIIB) to participate in the development of national projects in Russia.

“We can offer a number of projects: railway system expansion, developing infrastructure along the Northern Sea Route and in special economic zones of the [Russian] Far East,” said Putin at a meeting with the AIIB President Jin Liqun on Wednesday.

The Russian President also expressed the hope that the AIIB would play an important role in the global financial system complementing the International Monetary Fund (IMF).

The AIIB head came to Sochi to take part in the ASEAN-Russia Summit that will be held on May 19-20.

China officially launched the AIIB in January – a bank which is seen as an emerging rival to powerful Western-led financial institutions such as the World Bank, the Asian Development Bank and the International Monetary Fund.

The AIIB – that was founded in October 2014 - is part of Beijing’s efforts to change the unwritten rules of global development finance.

It was created to invest in infrastructure projects in the Asia-Pacific region. In October 2014, the Articles of Agreement establishing the bank were signed by 21 states.

The China-led bank has 57 members from Asia, Europe, Latin America, Africa and Oceania. Along with China, India and Russia have received the largest share of votes on the board of directors.

Despite opposition from Washington, many US allies including Australia, Britain, German, Italy, the Philippines and South Korea have agreed to join the AIIB in recognition of China's growing economic clout.

Authorities have said that the bank aims to provide financial facilities for a chain of development projects including the construction of dams, ports, power plants and telecommunications networks across Asia.

The AIIB is headquartered in Beijing and its lean structure will be overseen by an unpaid, non-resident board of directors which, architects say, would save it money and friction in decision-making.

 

[TaiShang]

The AIIB head came to Sochi to take part in the ASEAN-Russia Summit that will be held on May 19-20.

AIIB's participation in regional forums is very critical to render the institution a regional and international one.

AIIB should indeed prioritize Russia in order both to explore the immense investment potential in the Northeastern parts of the country and to send a clear message to the US and its minions who are hopelessly trying to coerce Russia into submission by unilaterally levying sanctions.

Any sanction against Russia should have been ratified by a UNSC resolution (where Russia is a permanent member); otherwise, it is unilateral and illegal.

 

[ahojunk]

Change of government in Canada, hence the change in attitude and policy. The new Canadian government realizes that "money talks, bullsh*t walks" .....
It's better late than never. But Canada has to wait for an invitation to join.

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Canada ‘actively considering’ another crack at joining the AIIB, Asia’s burgeoning banking giant
Gordon Isfeld | May 23, 2016 1:18 PM ET

Canada will have to wait for a formal invitation from Asian International Investment Bank because the previous Conservative government did not commit to joining the fledgling investment organization before the original deadline.

OTTAWA – Reading between the lines, it’s clear to see in recent statements by government officials that Canada is close to joining the Asian International Investment Bank — the newest, and one of the largest, money lenders for global development.

Finance Minister Bill Morneau acknowledged as much over the weekend as he and his Group of Seven counterparts wrapped up their economic summit in Sendai, Japan. While not confirming an agreement was all but done, Morneau said Ottawa has “a positive perspective on the impact that it (the AIIB) can have on infrastructure investment and the impact on the global economy.”

“I think we’re waiting for the bank to take the next step, and we’re actively considering our position and see the positive outcomes that this new bank can have for the economy,” the minister told Canadian reporters in a weekend conference call.

The federal government has been monitoring the growing number of members of the Beijing-based investment bank, in the works since 2013 but only officially launched at the start of this year with almost 60 country members.

The AIIB — seen as a possible financing competitor for the Washington-based International Monetary Fund and the Paris-based Organization for Economic Development and Co-operation — will hold its inaugural annual general meeting June 25 and 26 in Beijing.

The previous Conservative government did not commit to joining the fledgling investment organization before the original deadline. Now, Canada will need to wait for a formal invitation — something that could be issued during or shortly after the June AGM.

The new Liberal government sees the AIIB as a “positive force for infrastructure investment … and as the bank considers its possibility for inviting other members, we’ll come forward with our decision,” Morneau said.

“I can tell you one thing that came up clearly in those meetings (in Sendai) is the importance of the Asia Pacific region,” he added.

“These meetings, for us, are a very positive opportunity to demonstrate our leadership on important international issues — but also to send a message to our G7 colleagues that Canada is back, that we’re engaged and we want to be a global leader. It is, for us, also a good opportunity to promote our trade and investment goals in Canada and our … important strong relationship with the Asia Pacific region.”

Morneau added that the region is “a fast-growing partner for Canada,” with two-way trade amounting to $170 billion a year. “Our goal, of course, is to create new markets for Canadian-made goods and help consumers with better selection.”

“We’re looking forward to strengthening our relationships and our partnerships in the Asia Pacific region,” he told reporters in the conference call.

Chrystia Freeland, Canada’s minister of international trade, said in a recent speech that it was “very clear” that not joining the AIIB earlier “was a lost opportunity of the previous government.”

The Finance Department, in a statement in mid-May, emphasized that the government is “giving careful consideration to joining the Asian Infrastructure Investment Bank.”

However, the department said, the AIIB “has yet to formally indicate that it is accepting new members.”

 

[ahojunk]

EIB president visits China to strengthen ties on climate change, AIIB
By Liang Linlin, Shuai Rong

BRUSSELS, May 27 (Xinhua) -- The European Investment Bank (EIB) President Werner Hoyer embarked on a five-day visit to China on Thursday, seeking to enhance cooperation on addressing climate change and strengthen ties with the Asian Infrastructure Investment Bank (AIIB).

The trip marks the first visit to China by a president of the Europe's long-term lending institution since 2007, the EIB said in a statement, adding that the key focus of the visit is to strengthen partnership with China to better tackle climate change.

"Tackling climate change is a global challenge and since 2010 has been the main focus of the European Investment Bank's engagement in China. China is a key partner for the EU's bank and together we look forward to achieving our common goals in the years ahead," Hoyer was quoted as saying ahead of the visit.

The EIB believed Hoyer's visit would enable the bank and its Chinese partners to strengthen cooperation to support crucial investment in China, according to the statement. The EIB will work with the Chinese side to back climate-related investment, Hoyer was quoted as saying in the statement.

The EIB is the world's largest lender for climate-related investment and a global leader in issuing green bonds.It provided 20.6 billion euros (23.05 billion U.S. dollars) for climate-related project worldwide in 2015, according to figures released by the EIB.

Last year, EIB support for climate finance outside Europe represented 30 percent of overall lending, and the EIB said it is committed to raise the share of climate financing outside the EU in developing countries to 35 percent by 2020.

ENHANCING TIES WITH AIIB

On the agenda is also enhancing relations with the AIIB, the China-initiated multilateral bank joined by more than 10 European countries. During the trip, the EIB is expected to ensure frequent, regular and strategic dialogues with the AIIB.

The two sides have worked "closely" during AIIB's creation, Hoyer told Xinhua during an interview, adding he was impressed by China's openness when consulting with the EIB on technical and financial experience.

The EIB will work with AIIB to streamline joint financing of projects, it said.

The EIB has its permanent representative in Beijing with an office operating for years.

Chinese Mission to the EU said China and Europe have accelerated their financial cooperation under the Belt and Road Initiative and the European Investment Plan since the start of this year.

The two sides have held technical working group meetings on investment cooperation with EIB experts involved.

China proposed to launch the Belt and Road Initiative in 2013, seeking to link the country with Europe through central and western Asia via the Silk Road Economic Belt and connect China with southeast Asian countries, Africa and Europe through the 21st Century Maritime Silk Road.

As infrastructure construction forged a vital part of the initiative, Beijing launched the establishment of the AIIB, a complement to the existing international financial system focusing on infrastructure investment. The bank started operation in January.

The European Commission, the bloc's executive body, launched the European Investment Plan in November 2014, aiming to boost Europe's economy and help decrease the jobless rate. China became the first non-EU country to announce its contribution to the plan in September 2015.

 

[TaiShang]

Change of government in Canada, hence the change in attitude and policy. The new Canadian government realizes that "money talks, bullsh*t walks" .....
It's better late than never. But Canada has to wait for an invitation to join.

---------------------
Canada ‘actively considering’ another crack at joining the AIIB, Asia’s burgeoning banking giant
Gordon Isfeld | May 23, 2016 1:18 PM ET

View attachment 307323
Canada will have to wait for a formal invitation from Asian International Investment Bank because the previous Conservative government did not commit to joining the fledgling investment organization before the original deadline.

OTTAWA – Reading between the lines, it’s clear to see in recent statements by government officials that Canada is close to joining the Asian International Investment Bank — the newest, and one of the largest, money lenders for global development.

Finance Minister Bill Morneau acknowledged as much over the weekend as he and his Group of Seven counterparts wrapped up their economic summit in Sendai, Japan. While not confirming an agreement was all but done, Morneau said Ottawa has “a positive perspective on the impact that it (the AIIB) can have on infrastructure investment and the impact on the global economy.”

“I think we’re waiting for the bank to take the next step, and we’re actively considering our position and see the positive outcomes that this new bank can have for the economy,” the minister told Canadian reporters in a weekend conference call.

The federal government has been monitoring the growing number of members of the Beijing-based investment bank, in the works since 2013 but only officially launched at the start of this year with almost 60 country members.

The AIIB — seen as a possible financing competitor for the Washington-based International Monetary Fund and the Paris-based Organization for Economic Development and Co-operation — will hold its inaugural annual general meeting June 25 and 26 in Beijing.

The previous Conservative government did not commit to joining the fledgling investment organization before the original deadline. Now, Canada will need to wait for a formal invitation — something that could be issued during or shortly after the June AGM.

The new Liberal government sees the AIIB as a “positive force for infrastructure investment … and as the bank considers its possibility for inviting other members, we’ll come forward with our decision,” Morneau said.

“I can tell you one thing that came up clearly in those meetings (in Sendai) is the importance of the Asia Pacific region,” he added.

“These meetings, for us, are a very positive opportunity to demonstrate our leadership on important international issues — but also to send a message to our G7 colleagues that Canada is back, that we’re engaged and we want to be a global leader. It is, for us, also a good opportunity to promote our trade and investment goals in Canada and our … important strong relationship with the Asia Pacific region.”

Morneau added that the region is “a fast-growing partner for Canada,” with two-way trade amounting to $170 billion a year. “Our goal, of course, is to create new markets for Canadian-made goods and help consumers with better selection.”

“We’re looking forward to strengthening our relationships and our partnerships in the Asia Pacific region,” he told reporters in the conference call.

Chrystia Freeland, Canada’s minister of international trade, said in a recent speech that it was “very clear” that not joining the AIIB earlier “was a lost opportunity of the previous government.”

The Finance Department, in a statement in mid-May, emphasized that the government is “giving careful consideration to joining the Asian Infrastructure Investment Bank.”

However, the department said, the AIIB “has yet to formally indicate that it is accepting new members.”

Then Canada will just be a regular member, but not a founding member. Still better than nothing.

 

[ahojunk]

Wow! 100 members by end of year. That's very good progress.

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AIIB president says bank to have 100 members by year end
Source: Xinhua | 2016-06-01 14:52:49 | Editor: huaxia

World Bank Group President Jim Yong Kim (R) and Asian Infrastructure Investment Bank(AIIB) President Jin Liqun shake hands after signing the first co-financing framework agreement at the headquarters of World Bank in Washington D.C., the United States, April 13, 2016. (Xinhau/Yin Bogu)


BEIJING, June 1 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) will expand its membership from 57 to nearly 100 countries and regions this year, AIIB president Jin Liqun said.

Some 30 countries are waiting to join the AIIB, 20 have expressed "firm commitment," Wednesday's China Daily cited Jin as saying.

While the United States and Japan have declined to join the bank, Jin said all countries would work together, regardless of the bank membership.

"The door will remain open," Jin said, adding that U.S. and Japanese companies will be treated equally and fairly by the AIIB, according to the newspaper.

According to the AIIB chief, the bank will announce its the first round of infrastructure projects this month, and the second and third rounds by the end of the year.

Jin said the bank will extend funding to non-Asian countries with "strong economic relations" with the continent and from physical infrastructure projects to sectors including education, health care, and urban planning and management.

Beijing-based AIIB was officially established late last year. With authorized capital of 100 billion U.S. dollars, it prioritizes investment in energy, power generation, transportation, rural infrastructure, environmental protection and logistics.

 

[ahojunk]

This is good news. OBOR is helping AIIB and vice versa.

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BRICS bank, AIIB ready to follow China by financing Moscow-Kazan high-speed railroad
Business & Economy June 03, 15:48 UTC+3

The total cost of the Moscow-Kazan high-speed railway line is estimated at $16.9 bln, while the section may later be extended to China, connecting the two countries across Kazakhstan

SOCHI, June 3. /TASS/. The New Development Bank BRICS (NDB BRICS) and Asian Infrastructure Investment Bank (AIIB) are ready to follow China by financing Moscow-Kazan high-speed railroad, First Vice-President of Russian Railways state-owned monopoly Alexander Misharin said Friday.

"We’ve met the head of the bank (NDB BRICS - TASS) to demonstrate our model, they are satisfied with it and say they will follow suit in case we strike a bargain with Chinese banks. The New Development Bank BRICS can invest up to $500 mln. AIIB is a big bank, which can invest billions but it’s not going to be the first, it may be the second," he said, adding that "potentially they are ready."

Earlier Misharin said that Russian Railways had applied for finances from the New Development Bank for a few infrastructure projects, including the Moscow-Kazan high-speed railroad, and planned to apply to the Asian Infrastructure Investment Bank for funds.

The total cost of the Moscow-Kazan high-speed railway line is estimated at 1.068 trillion rubles ($16.9 bln). The Moscow-Kazan section may later be extended to China, connecting the two countries across Kazakhstan.

China plans to extend a loan in the amount of 400 bln rubles ($6.2 bln) loan for 20 years for the high speed railway construction and allocate over 100 bln rubles as a contribution to the equity capital of the special project vehicle.

The Moscow-Kazan High Speed Railway’s total length will stand at around 770 kilometers. Trains may go at a speed of 350-400 kilometers per hour, and the time en route between the two cities could be 3-3.5 hours against the current 14 hours.

More:
http://tass.ru/en/economy/879988

 

[ahojunk]

AIIB is starting to be functional and beneficial to its members ...... For a start, AIIB is co-financing with ADB. Aha, Japan and US are trying to get a piece of the action through the back door.

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Pakistan project gets first ADB, AIIB co-financing scheme
10 Jun 2016 at 16:50

MANILA - The Asian Development Bank and the newly established Asian Infrastructure Investment Bank are embarking on their first co-financing scheme, with the former approving on Friday a $100 million loan for a highway construction project in Pakistan.

The Manila-based ADB said the China-led AIIB, which started operations in January, is expected to provide a loan of the same amount later this month, while Britain's International Development Department has committed $34 million in grant.

"This is a historic milestone for ADB and AIIB as we jointly aim to meet the pressing infrastructure needs in Asia and the Pacific region," ADB president Takehiko Nakao said in a statement.

The project involves building the remaining 64-kilometre-long, four-lane stretch of the M-4 National Motorway that connects Shorkot and Khanewal in Punjab province, the ADB said.

"The project has strategic value to Pakistan as it supports north-south connectivity, new trade and business opportunities, which will boost jobs and cut poverty," Nakao added.

Amid speculation that the AIIB was established to rival the 50-year-old ADB and erode its role in the region, Nakao said earlier that he and AIIB president Jin Liqun have discussed since last year plans for co-financing as they acknowledge the huge requirement for infrastructure investment in the region.

With an authorised capital stock of $100 billion, the AIIB was formally established in December last year by more than 50 founding member countries including Thailand.

The ADB, on the other hand, was established in 1966 and is currently owned by 67 members, of which 48 are from the region. It said that in 2015, the bank's assistance through loans, grants, technical assistance and co-financing totaled $27.2 billion.

Japan and the United States -- major contributors to the ADB -- have chosen not to join the AIIB yet, saying its operation lacks transparency.

 

[TaiShang]

AIIB is starting to be functional and beneficial to its members ...... For a start, AIIB is co-financing with ADB. Aha, Japan and US are trying to get a piece of the action through the back door.

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Pakistan project gets first ADB, AIIB co-financing scheme
10 Jun 2016 at 16:50

MANILA - The Asian Development Bank and the newly established Asian Infrastructure Investment Bank are embarking on their first co-financing scheme, with the former approving on Friday a $100 million loan for a highway construction project in Pakistan.

The Manila-based ADB said the China-led AIIB, which started operations in January, is expected to provide a loan of the same amount later this month, while Britain's International Development Department has committed $34 million in grant.

"This is a historic milestone for ADB and AIIB as we jointly aim to meet the pressing infrastructure needs in Asia and the Pacific region," ADB president Takehiko Nakao said in a statement.

The project involves building the remaining 64-kilometre-long, four-lane stretch of the M-4 National Motorway that connects Shorkot and Khanewal in Punjab province, the ADB said.

"The project has strategic value to Pakistan as it supports north-south connectivity, new trade and business opportunities, which will boost jobs and cut poverty," Nakao added.

Amid speculation that the AIIB was established to rival the 50-year-old ADB and erode its role in the region, Nakao said earlier that he and AIIB president Jin Liqun have discussed since last year plans for co-financing as they acknowledge the huge requirement for infrastructure investment in the region.

With an authorised capital stock of $100 billion, the AIIB was formally established in December last year by more than 50 founding member countries including Thailand.

The ADB, on the other hand, was established in 1966 and is currently owned by 67 members, of which 48 are from the region. It said that in 2015, the bank's assistance through loans, grants, technical assistance and co-financing totaled $27.2 billion.

Japan and the United States -- major contributors to the ADB -- have chosen not to join the AIIB yet, saying its operation lacks transparency.

Maybe Japan desires to cooperate with the AIIB institutionally through its ADB rather than joining in it as a member. This is likely to assuage US concerns. Big price for a lack of foreign policy sovereignty.