AIIB (Asian Infrastructure Investment Bank) news

[TaiShang]

Belt and Road continues to collapse.

***

AIIB approves applications of six more countries

Xinhua Published: 2018-12-19


The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its Board of Governors has approved the membership applications of six more countries, bringing AIIB's total approved members to 93.

The new group of approved members is comprised of Algeria, Ghana, Libya, Morocco, Serbia and Togo.

Logo of the Asian Infrastructure Investment Bank (AIIB) [File photo: VCG]

"Within three years, AIIB's membership has increased from the 57 founders to 93 approved members from almost every continent. This shows our member's commitment to multilateral cooperation and strengthens AIIB's role in the international financial community," said AIIB Vice President and Corporate Secretary Sir Danny Alexander.

"The growing membership of the Bank in Europe and Africa also reflects the importance for growth and development of inter-regional connectivity, especially sustainable infrastructure that opens access to new markets in Asia and beyond."

The six prospective members will officially join AIIB once they complete the required domestic processes and deposit the first capital installment with the Bank. Shares allocated to the new prospective members come from AIIB's existing pool of unallocated shares.

AIIB said it expects to continue welcoming new members in the future.

http://chinaplus.cri.cn/news/business/12/20181219/225311.html

 

[JSCh]

Opinion: Unlike U.S., China sacrifices private gains for AIIB prosperity
Bian Yongzu
2018-12-25 22:31 GMT+8

Editor's Note: Bian Yongzu is deputy director of the Department of Industry, Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author's opinion, and not necessarily the views of CGTN.

With the latest accession of six prospective members, the total number of AIIB members has expanded to 93. This is a remarkable result for a 3-year-old multilateral cooperation agency, which is the first to be set up under the leadership of developing countries.

AIIB: High-standard multilateral development bank

In 2018, AIIB approved about 3.3 billion US dollars. It finances projects in 13 countries of six regions, including East Asia, Southeast Asia, South Asia, Central Asia, West Asia and Africa, covering many fields such as transportation, energy, telecommunications and urban development.

More importantly, all kinds of public and private capital have been leveraged by loans from the AIIB. Up to now, more than 7.5 billion U.S. dollars have been invested in approved projects, leveraging a total investment of 35 billion dollars. This has filled the gap in infrastructure financing in developing countries.

AIIB: An important complement to the current system

An exterior look of the AIIB. /VCG Photo

For a long time, the excessive financial tools used by Western developed countries have exacerbated the imbalance in the world economy. Since the financial crisis, central banks around the world have released huge liquidity and even adopted negative interest rates.

As the Federal Reserve enters the cycle of raising interest rates and as the ECB and Bank of Japan begin to downsize or wean off quantitative easing, the direction of global capital flows has gone on the reversal.

As a result, commodity prices and some economies have experienced great turbulence, and the international financial order has fallen into serious dysfunction.

Accelerating the reform of the international economic order is an important part of the structural reform of the world economy. Different from the Bretton Woods era, the U.S. dollar is no longer the only international currency. However, it remains the dominant one in many ways.

More than half of international transactions are settled in U.S. dollars. The U.S. dollar accounts for around 63 percent of foreign exchange reserves and 87 percent of foreign exchange transactions. This pattern fails to reflect the latest development in the world economy or the interests of emerging economies.

The establishment of the AIIB has precisely addressed this dilemma. It provides financial support to more developing countries and aids their infrastructure. In this way, the AIIB helps to promote local economic growth, improve people's livelihood and reduce their reliance on the IMF.

AIIB President Jin Liqun talks with Neil Bush, former U.S. president George H.W. Bush, about Sino-U.S. relations. /VCG Photo

This will also enhance the status of member countries in the current system and help to correct the ongoing imbalance.

AIIB's mechanism innovation: A template for existing multilateral institutions

Unlike what the U.S. did to the World Bank, China has not sought veto power in the AIIB. On the contrary, China has made greater concessions to other countries, especially small countries.

According to the design rules, the AIIB's equity is distributed based on GDP, with Asian members accounting for 75 percent of the equity and countries outside Asia sharing the remaining 25 percent. Since the AIIB mainly invests in the interconnectivity of Asian infrastructures, its practice ensures that things are in the best interests of Asian countries.

In terms of the GDP-based equity distribution, China should have 30 percent of the shares. As 15 percent of the votes go to the founding members, China actually holds only 26.06 percent of the votes. Such a design allows countries with smaller GDPs to have relatively large voting power, thus taking care of the interests of more member states.

AIIB President Jin Liqun speaks at an international forum on the Belt and Road Initiative cooperation in Beijing, China, July 2, 2018. /VCG Photo

In order for all member states to have a say on AIIB's governance, three-quarters of the voting rights and two-thirds of the members' consent must be obtained in the choice of president. Although China currently has the veto power, with more members joining AIIB, China's voting power will continue to decline, probably to less than 25 percent.

The U.S. is acting the other way around. In order to guarantee its veto power at the IMF, the World Bank and other institutions, the United States does not hesitate to raise the bar for major issues to pass.

China, on the contrary, has made it clear that even if China's voting power drops, it will not raise the bar, clearly demonstrating AIIB's difference from the existing systems.

Therefore, the AIIB, as a multilateral financial institution, has made remarkable achievements in just three years. It meets the urgent needs of the world for development, pursues a fairer, more transparent and more inclusive system, and also rides on the global trend. All these factors are the fundamental reasons for its success.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com.)

 

[TaiShang]

Opinion: The secrets lie in AIIB's success

Liu Zhiqin
2019-01-17

Editor's note: Liu Zhiqin is a senior fellow at Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author's opinions, and not necessarily the views of CGTN.


The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank proposed by China and jointly established by 57 countries on December 25, 2015. It began operations on January 16, 2016, and it has now grown to 93 approved members worldwide.

The AIIB is a masterpiece in international banking history. Although it has only been established for three years, it has won international fame.

A friend of mine who is a senior banker in Europe has spoken highly of the AIIB, saying that the institution is very international, very rational and very regional, due to its structure and philosophies of development.

In retrospect, there were only about 50 countries announced joining the bank in 2016. At the time, no one was confident that the bank would be so international after three years. The function of the bank is very clear and very simple: to support the infrastructure projects in Asian countries and other parts of the world.

The market demands for infrastructure items reached about 1 trillion U.S. dollars each year, but the international market, including the Asian Development Bank (ADB), the World Bank and European banks could not provide enough funds to the needy. The AIIB is designed to figure it out.

Jin Liqun, president of the AIIB, speaks during the Group of Thirty (G30) International Banking Seminar in Washington, DC, U.S., October 15, 2017. /VCG Photo

I still remember that a friend of mine who owned a big company in China had asked the ADB to lend money to build a water processing factory, and they had to wait three years till their application was approved. The internal evaluation time at the bank is too long for urgent projects. But such a case would never happen with the AIIB, due to the bank having a management mechanism that is more effective and shortens the time a project needs.

Until now, the AIIB has invested in Russia, India, Pakistan, and some other countries with a total of 200 billion U.S. dollars in local projects. These projects will create millions of jobs for local markets and improve the standard of living in many rundown areas.

From this point of view, we can see that the AIIB is an international bank that supports projects related to countries along the Belt and Road Initiative (BRI). Serving the related countries, it is clear that the AIIB is as important as the ADB and the World Bank regarding global cooperation.

Time files, while the scale and the staff of the AIIB have rapidly increased. The top management had shown its determination to avoid any possible traps that may result in bureaucracy. The bank had attached great importance to increasing efficiency and transparency in operating and communicating within a number of countries.

The questions and inquiries from different parts of the world have been highly respected and given feedback in due time. That's why the AIIB could get rid of Parkinson's Law to keep itself dynamic, vivid and active in the market.

“Parkinson's Law" is the relation between the time needed and actions you have taken to complete a particular task. Sometimes it needs a lot of people to finish one thing in a limited time frame. The AIIB has a special mechanism to make the best use of human resources by allocating people to positions they are specializing in. Therefore, it is able to limit the effects of "Parkinson's Law."

AIIB's Vice President Thierry de Longuemar speaks during an interview in Beijing, June 2, 2017. /VCG Photo

Along with the development of the world economy, the demand for funds to support infrastructure projects will become more multinational. Japan and the U.S. will see that the AIIB can develop well with support from all member countries. Although the institution has the time and resources to wait out the U.S. and Japan joining the family, we hope that they will not wait too long due to the rapid development of the world economy.

New challenges are still ahead and reform and self-discipline will also become key elements to fulfilling all obligations and commitments of AIIB to the whole world. These new challenges will primarily include the spread of protectionism and nationalism around the world.

Major countries are trying to intensify trade tensions and make more policy barriers in order to slow down the speedy development of emerging markets. More importantly, a few of these nations have tried to shift their financial crises to poor countries, increasing conflicts in certain areas, such as Latin America and Eastern Europe.

Despite the challenges ahead, I firmly believe that AIIB is capable of performing even better in 2019.

https://news.cgtn.com/news/3d3d774d3359444d32457a6333566d54/share_p.html

 

[TaiShang]

AIIB signs rural roads project worth US$455M with India

Xinhua, March 1, 2019

Photo taken on Jan. 17, 2016 shows the stone monument in front of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in downtown Beijing, capital of China. [Photo/Xinhua]

The Asian Infrastructure Investment Bank (AIIB) and the government of India on Thursday signed a 455-million-U.S.-dollar loan to finance a rural roads project in India's southern state of Andhra Pradesh.

The rural roads project will connect some 3,300 habitations in the Indian state with a population of more than 250, and benefit around 2 million people, said a statement released by India's Finance Ministry.

The AIIB, a multilateral development bank headquartered in Beijing, began operations in January 2016. India is the second largest shareholder in the AIIB and its largest borrower.

The objective of the rural roads project in Andhra Pradesh is to improve road transport connectivity in previously unserved communities by providing all weather rural roads in all 13 districts of the state.

The project plans to construct rural roads to provide first connectivity, construct cross drainage works and bridges to complete missing links and structures, provide approaches to educational institutions and health care centers, construct rural roads passing through tribal areas, and upgrade earthen and gravel roads to asphalt-based roads.

This was the third major project signed by the AIIB in Andhra Pradesh, the other two being in power sector and water sector.

The successful completion of the project will result in increased agricultural productivity and industrial development (agro-industries, in particular) through improved connections to markets with more favorable prices for agricultural inputs and outputs.

Also, it will reduce travel time and hence giving better access to schools and hospitals for the rural population, resulting in improved healthcare and increase in literacy levels. Better access roads to habitations also will result in setting up of more schools and healthcare centers around the habitations which are considered unviable by service providers without such roads, resulting in further improvement of healthcare, literacy levels and overall quality of life, said the statement.

http://www.china.org.cn/business/2019-03/01/content_74518212.htm

 

[TaiShang]

AIIB boosts common development of Asia, world

By Yuan Jirong, Zhao Yipu and Zhou Hanbo (People's Daily) 09:05, April 18, 2019

The China-sponsored Asian Infrastructure Investment Bank (AIIB) has approved $7.5 billion in loans to support infrastructure projects in 13 countries of six regions, including East Asia, Southeast Asia, South Asia, Central Asia, West Asia and Africa, driving almost $40 billion of capital into infrastructure projects over the past three years since its opening on Jan. 16, 2016.

Photo taken on Dec. 21, 2015 shows the sign of the Asian Infrastructure Investment Bank (AIIB) in Beijing, capital of China. (Xinhua/Li Xin)

To date, the new-type multilateral development bank, with a mission to promote infrastructure connectivity, has expanded its membership from 57 founders to 93 approved members.

In the past three years, the AIIB demonstrated internationalism, normative operation and high standards in its governance structure, policy standards and operation mode, winning wide recognition in the international society.

It received the top-level rating by three major credit rating agencies in the world, and assigned a zero-risk weighting by the Basle Committee on Bank Supervision (BCBS), a body that serves as an influential arbiter for the best standards in financial regulation worldwide.

As an important platform that promotes the building of a community of shared future for mankind, the AIIB will continue to inject new vitality to regional and common development of the world.

In December 2018, the AIIB approved a loan of $400 million for a water supply program in Andhra Pradesh, India, aiming to provide safe drinking water through piped water supply to 3.3 million people in the region, where severe water pollution and poor water purifying equipment affected people’s health.

The AIIB has approved nine loan projects in India including the water supply program, totaling over $2 billion. Most of these loans were used to improve the transportation, electricity supply, water supply and other infrastructure-related areas, according to the AIIB.

India is the largest borrower of the AIIB, and the loans have improved the infrastructure in the country, said Jagannath Panda, a researcher from India’s Institute for Defence Studies and Analyses (IDSA).

He told People’s Daily that the Mumbai metro line 4, a project that received AIIB funding, will reduce 35-percent amount of traffic in downtown, thus greatly improving the city’s traffic.

Bangladesh is another country that suffers from outdated infrastructure, especially power shortages.

The first loan granted by the AIIB to Bangladesh was aimed to improve power supply for the country - a $60-million capital that went to a greenfield 220-megawatt combined cycle power plant in Bhola island in the Barisal district of Bangladesh. Upon completion, the project will increase power generation by around 1,300 megawatt hours annually.

The AIIB-funded power upgrade project will increase power supply and improve local industrial development and people’s livelihood in Bangladesh, where the severe power shortage is curbing the economic growth and the progress of poverty reduction, said Dr. Ahsan H. Mansur, Executive Director of the Policy Research Institute of Bangladesh (PRI).

Among the AIIB-financed projects in Indonesia, the National Slum Upgrading Project had the most remarkable achievements, improving the livelihood for tens of millions of impoverished residents.

The project was officially launched by the Indonesian government in April 2016, aiming to improve the living conditions in targeted slums via upgrading urban infrastructure such as water supply, power supply and roads.

Two months later, the AIIB, forming a team with the World Bank, announced $433 million of financing for the project. Half of the capital was contributed by the China-sponsored organization.

There are over 29 million Indonesians living in slums, according to the estimate of George Soraya from the World Bank who is in charge of the project.

More than 9.7 million impoverished people across the country will directly benefit from the slum upgrading project, and millions of other residents in Indonesia will also share the benefits.

AIIB’s first loan project to the Philippines aims to improve flood management in selected areas of Metro Manila. The aging drainage system in the Philippine capital was built in the 1970s, and there always are traffic paralysis and casualties during the typhoon season between June and October each year when floods hit the city frequently.

According to the plan of the AIIB, the project will upgrade 36 pumping stations and construct 20 new ones, rebuild urban waterways, and repair garbage treatment facilities and drainage pipelines. It will also house the relocated people.

AIIB documents show that the project will cover 2,900 hectares, benefiting about 970,000 people from 210,000 households.

With AIIB’s loans, Tajikistan in Central Asia has boosted key projects including a city roads and flyovers project in its capital Duschanbe, the Dushanbe-Uzbekistan Border Road Improvement Project and the Nurek Hydropower Rehabilitation Project.

“These projects have directly changed the lives of local people and facilitated national development,” said Sayfullo Safarov, first deputy director of the Center for Strategic Studies under the President of Tajikistan.

In recent years, Tajikistan has significantly improved its infrastructure by making use of AIIB’s loans.

The AIIB has played an important role in Asia’s development, Safarov said, adding that the AIIB's projects improving the poor infrastructure are conducive to stimulating the local development vitality.

 

[TaiShang]

AIIB approves first investment in Nepal

Source:Xinhua Published: 2019/6/10 17:27:39

AIIB)'s Board of Directors has approved a loan of up to 90 million US dollars for a hydropower project in Nepal, its first project in the country.

The Upper Trishuli-1 Hydropower Project will increase the country's power generation by almost 20 percent, helping to reduce acute power shortages in Nepal, according to a statement from the multilateral development bank.

The Upper Trishuli-1 Hydropower Project is a 216-megawatt greenfield run-of-river hydropower plant to be developed on the Trishuli river under a build-own-operate-transfer model.

The AIIB has also provided Nepal with 900,000 US dollars for the proposed Tamakoshi V Hydroelectric Project and one million dollars for the proposed Power Distribution System Upgrade and Expansion Project from its Project Preparation Special Fund which provides grants to support the preparation of projects in eligible AIIB members.

"AIIB's investment will provide much-needed, long-term financing for a vital infrastructure project," said AIIB Director General Dong-ik Lee.

"We are confident that our investment will demonstrate the viability of Nepal's sustainable energy sector to other potential private-sector investors," Lee said.

 

[oprih]

Good, murican pussies and indians and their biowarfare armpits are still not invited.

 

[Bussard Ramjet]

Belt and Road continues to collapse.

***

AIIB approves applications of six more countries

Xinhua Published: 2018-12-19


The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its Board of Governors has approved the membership applications of six more countries, bringing AIIB's total approved members to 93.

The new group of approved members is comprised of Algeria, Ghana, Libya, Morocco, Serbia and Togo.

Logo of the Asian Infrastructure Investment Bank (AIIB) [File photo: VCG]

"Within three years, AIIB's membership has increased from the 57 founders to 93 approved members from almost every continent. This shows our member's commitment to multilateral cooperation and strengthens AIIB's role in the international financial community," said AIIB Vice President and Corporate Secretary Sir Danny Alexander.

"The growing membership of the Bank in Europe and Africa also reflects the importance for growth and development of inter-regional connectivity, especially sustainable infrastructure that opens access to new markets in Asia and beyond."

The six prospective members will officially join AIIB once they complete the required domestic processes and deposit the first capital installment with the Bank. Shares allocated to the new prospective members come from AIIB's existing pool of unallocated shares.

AIIB said it expects to continue welcoming new members in the future.

http://chinaplus.cri.cn/news/business/12/20181219/225311.html

AIIB has nothing to do with Belt and Road. Many countries that totally reject Belt and Road, like India, are also a part of AIIB. AIIB's loans have also not been linked a lot with Belt and Road.

Good, murican pussies and indians and their biowarfare armpits are still not invited.

You must be an idiot. India is a member of AIIB, and has been a big receiver of AIIB loans.

 

[JSCh]

Luxembourg to host AIIB's 2019 annual meeting
Source: Xinhua| 2019-06-12 15:41:03|Editor: xuxin

BEIJING, June 12 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) said Tuesday that Luxembourg will host its 2019 annual meeting on July 12 and 13.

This will be the first time that AIIB's annual meeting has been hosted outside of Asia since its founding over three years ago.

Europe has provided much assistance to the AIIB and Luxembourg is a founding member of the bank, AIIB Vice President Danny Alexander said when explaining why Luxemburg will host the meeting.

We hope the meeting will promote connectivity between Asia and Europe, he said, adding that the second Asian Infrastructure Forum will also be held as part of the meeting.

The annual meeting will bring together AIIB's governors and directors to engage with delegations from members, partner institutions, business leaders, civil society and experts from a range of fields.

The AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, it began operations in January 2016 and has now grown to 97 members worldwide.

 

[JSCh]

AIIB approves membership of Benin, Djibouti and Rwanda
Source: Xinhua| 2019-07-13 20:56:25|Editor: xuxin

LUXEMBOURG, July 13 (Xinhua) -- The China-initiated Asian Infrastructure Investment Bank (AIIB) on Saturday approved the membership of Benin, Djibouti and Rwanda, bringing AIIB's total approved membership to 100.

The decision was made unanimously by AIIB's Board of Governors at its fourth annual meeting held in Luxembourg.

The three prospective non-regional members will officially join AIIB once they complete the required domestic processes and deposit the first capital installment with the Bank.

"AIIB members collectively account for 78 percent of the world's population and 63 percent of global GDP. With the backing of all of our members, we are building a lean, clean, and green institution that can help to support their sustainable development," said AIIB President Jin Liqun.

Under the theme "Cooperation and Connectivity," the fourth annual meeting of AIIB kicked off in Luxembourg on Friday, for the first time outside Asia, drawing over 1,000 AIIB officials, representatives from members and partner institutions, business leaders and experts.

The AIIB, a multilateral development bank investing in sustainable infrastructure and other productive sectors in Asia and beyond, began operations in January 2016.

 

[Nilgiri]

You must be an idiot. India is a member of AIIB, and has been a big receiver of AIIB loans.

Two of his accounts literally thanked post #769....LOL.

A very bright bulb indeed.

 

[Bussard Ramjet]

Two of his accounts literally thanked post #769....LOL.

A very bright bulb indeed.

Good catch!

 

[Stranagor]

AIIB to Invest in China's Health Crisis Infrastructure to Check Virus

XU WEI
DATE : FEB 10 2020/SOURCE : YICAI

AIIB to Invest in China's Health Crisis Infrastructure to Check Virus

(Yicai Global) Feb. 10 -- The Asian Infrastructure Investment Bank is in talks with the Chinese government to boost the country's emergency public health infrastructure, the lender said on its website today.

AIIB stands ready to back China through public health infrastructure loans to meet the country's direct and longer-term public health needs, the Beijing-based financial institution said, but without elaborating.

"Public health infrastructures contribute directly to final global public goods for health provision and indirectly," The World Health Organization said. "Further investment from multilateral partners, such as AIIB, can help strengthen China's public health infrastructure, which can have a lasting and global health impact."

"People from over 50 nations work at AIIB and we have all made China our home. With the full impacts of this epidemic still unknown, we want to do our part as residents of China to help stop its spread," said AIIB President Jin Liqun.

"In line with AIIB's mission, we will also work with the Government of China to identify effective public health infrastructure investments that will prevent the rapid spread of future outbreaks," Jin added.

To give back to the community where AIIB staff live and work, the bank is also matching staff donations to purchase medical equipment to help China control the spread of the epidemic.

"We look forward to working with other multilateral development banks, private partners and other funders who wish to join hands in bolstering China and other members' ability to respond to and deal with epidemics and other public health emergencies. These types of investments will not only improve the health of Chinese citizens but can have a global impact in terms of prevention and education," Jin noted.

https://yicaiglobal.com/news/aiib-to-invest-in-china-health-crisis-infrastructure-to-check-virus

 

[TaiShang]

AIIB eyes new infrastructure trends in post-COVID-19 era

news.cgtn.com

On the eve of celebrating its fifth anniversary in operation, the Asian Infrastructure Investment Bank (AIIB) is rethinking its strategy of financing traditional infrastructure.

The international development bank has identified several key emerging infrastructure trends that will drive the future of investment in previously overlooked infrastructure areas – namely, infrastructure that is green and human-centered, with an eye on technology while enhancing connectivity.

The shift takes place amid the COVID-19 pandemic, which has exposed weaknesses in the infrastructure of many economies, regardless of their development status. It requires the infrastructure sector to manage the short-term public health crisis, as well as mid- to long-term universal challenges like demographic issues, climate change and the ongoing digital transformation.

Jin Liqun, AIIB President and chair of the board, said fostering a health system and addressing climate change are inextricably linked. "We need to promote the intricate emerging pattern of the relationship between climate and health care problems," said Jin. "We will have to explore a new development paradigm that is environmentally smart and ecosystem smart.”

Social infrastructure suffered from underinvestment

Social infrastructure is on the bank's top priority list, as experts said it is one of the weakest links in the global production chain, having suffered from chronic underinvestment. Investment gaps in basic health and education facilities, in particular, have continued to widen in the last decade.

The 2020 Global Infrastructure Index shows that 48 percent of countries surveyed globally tend to favor greater investment in social infrastructure investment, compared with 32 percent that favor traditional economic infrastructure.

Digital infrastructure to become a hot commodity

Besides social infrastructure, digital infrastructure is at the core of ramping up investment, especially in less-developed regions. Experts said COVID-19 has been rapidly heightening awareness of the varied uses of technology in revolutionizing production and life. They said the biggest damper on infra-tech investment fear of having a liquid asset that is likely to underperform.

Although supply chain infrastructure continues to face uncertainties and a slow recovery, experts claim that investing in connectivity for an all-electric future, such as smarter road infrastructure with greater digitalization, is still likely to pay off in the long run. The AIIB believes there should also be a focus on making supply chains more resilient, which implies more investments in warehouse or storage infrastructure.

"We should not separate digital infrastructure from the traditional infrastructure. Indeed, digital infrastructure works in close collaboration with the traditional infrastructure," said Jin, who sees opportunities for investments in connectivity and cross-border infrastructure and has forecast an overhaul of the existing infrastructure to meet the needs of the digital era.

"New infrastructure development boosted by new technologies will bring more immediate benefits and pay off in the long term. Global trade will eventually open up, and those countries who invest smartly would be ready to capitalize on those opportunities," he said.

In its recently released 10-year corporate strategy, AIIB established clear priorities and ambitious targets in its overall share of financing, with 50 percent for climate action by 2025, 25 to 30 percent for cross-border connectivity by 2030 and 50 percent for private sector operations by 2030.

Multilateral development banks indispensable

As global policymakers struggle with the current global health crisis and its immediate aftermath, experts say it is imperative for multilateral development banks, such as the AIIB, to work with the private sector to mobilize much-needed investment. They say a key challenge is to leverage more international capital from the private sector or commercial banks that eye returns.

Jin said it's usually not easy for the private sector to find common ground with multilateral investment banks (MDBs), which pay more attention to development impact. However, he explained that the private sector has been given a bigger role in the new era, with improved environmental and macro policies.

According to Jin, private sector investors may not necessarily look at the highest returns when working with MDBs because their resources are safe.

Over the past five years, the Beijing-initiated organization has nearly doubled in membership since its 2016 launch, making it the second-largest of all multilateral banks around the world. Data shows that it has approved investments in 106 projects totaling nearly $22 billion. The president of AIIB said he's witnessed the development bank's progress in how it operates, including its policies, regulations, staffing and enterprise culture.

As challenges brought about by the pandemic have accelerated change in the overall development of multilateral development banks, the AIIB said it has gained critical experience, the opportunity to further evolve its business model and play a central role in the stability of global finance.

Jin said the bank, like other trend-savvy infrastructure financing investors, will need to remain flexible to navigate the turbulent times ahead to stay the course.

"We will continue to hone our skills and sharpen our investments to deliver products and services that are not only tailored to the clients' immediate needs but also with a view of the long-term development impact," he said, adding that the ultimate goal is to contribute to inclusive and sustainable economic growth and social progress.