Asian Infrastructure Investment Bank

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region. The bank currently has 82 members as well as 20 prospective members from around the world.[1] The bank started operation after the agreement entered into force on 25 December 2015, after ratifications were received from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock.[4]

"AIIB" redirects here. For other uses, see AIIB (disambiguation).

Asian Infrastructure Investment Bank
AbbreviationAIIB
Formation16 January 2016 (2016-01-16) (Open for business)
25 December 2015 (2015-12-25) (Entry into force Articles of Agreement)
TypeRegional Investment Bank
Legal statusTreaty
PurposeCrediting
HeadquartersBeijing, China
Region served
Asia and Oceania
Membership
102 Members[1]
Official language
English[2]
Key people
Jin Liqun[3] (President)
Main organ
  • Board of Governors
  • Board of Directors
Websitewww.aiib.org
Asian Infrastructure Investment Bank
Simplified Chinese亚洲基础设施投资银行
Traditional Chinese亞洲基礎設施投資銀行
Alternative Chinese name
Simplified Chinese亚投行
Traditional Chinese亞投行
China
This article is part of a series on the
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China
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The United Nations has addressed the launch of AIIB as having potential for "scaling up financing for sustainable development"[5] and to improve the global economic governance.[6] The starting capital of the bank was $100 billion, equivalent to ​2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.[7]

The bank was proposed by China in 2013[8] and the initiative was launched at a ceremony in Beijing in October 2014.[9] It received the highest credit ratings from the three biggest rating agencies in the world, and is seen as a potential rival to the World Bank and IMF.[10][11]

History

The proposal for the creation of an "Asian Infrastructure Investment Bank" was first made by the Vice Chairman of the China Center for International Economic Exchanges, a Chinese thinktank, at the Bo'ao Forum in April 2009. The initial context was to make better use of Chinese foreign currency reserves in the wake of the global financial crisis.[12]

The initiative was officially launched by China's Paramount leader Xi Jinping on a state visit to Indonesia in October 2013.[13] The Chinese government has been frustrated with what it regards as the slow pace of reforms and governance, and wants greater input in global established institutions like the IMF, World Bank and Asian Development Bank which it claims are heavily dominated by American, European and Japanese interests.[14]

In April 2014, Chinese Premier Li Keqiang delivered a keynote speech at the opening of the Boao Forum for Asia and said that China was ready to intensify consultations with relevant parties in and outside Asia on the preparations for the Asian Infrastructure Investment Bank.[15][16]

The Asian Development Bank Institute published a report in 2010 which said that the region requires $8 trillion to be invested from 2010 to 2020 in infrastructure for the region to continue economic development.[14][17] In a 2014 editorial, The Guardian newspaper wrote that the new bank could allow Chinese capital to finance these projects and allow it a greater role to play in the economic development of the region commensurate with its growing economic and political clout.[18] But until March 2015, China in the ADB has only 5.47 percent voting right, while Japan and US have a combined 26 percent voting right (13 percent each) with a share in subscribed capital of 15.7 percent and 15.6 percent, respectively. Dominance by both countries and slow reforms underlie China's wish to establish the AIIB, while both countries worry about China's increasing influence.[19]

In June 2014 China proposed doubling the registered capital of the bank from $50 billion to $100 billion and invited India to participate in the founding of the bank.[20][21] On 24 October 2014, twenty-one countries signed a Memorandum of Understanding (MOU) regarding the AIIB in Beijing, China: Bangladesh, Brunei, Cambodia, India, Kazakhstan, Kuwait, Laos, Malaysia, Myanmar, Mongolia, Nepal, Oman, Pakistan, Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.[22] Indonesia's joining was slightly delayed due to their new presidential administration not being able to review the membership in time. Indonesia signed the MOU on 25 November 2014.[23]

The U.S. allegedly tried to keep Australia and South Korea from becoming prospective founding members, after they expressed an interest in it.[24] However, both Australia and South Korea applied to join the bank in March 2015.[25][26][27]

Hong Kong's Financial Secretary John Tsang announced in his budget speech in February 2015 that the territory would join the AIIB.[28] It did however not become one of the prospective founding members and negotiated as part of the Chinese delegation.

In early March 2015, the United Kingdom's Chancellor of the Exchequer, George Osborne, announced that the UK had decided to apply to join the Bank, becoming the third Western country to do so after Luxembourg and New Zealand.[29] The announcement was criticised by the U.S. Obama Administration. A US government official told Financial Times, "We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power." The official further stated that the British decision was taken after "no consultation with the US."[30] In response, the UK indicated that the subject had been discussed between Chancellor Osborne and US Treasury Secretary Jack Lew for several months preceding the decision. It was further stated that joining the bank as a founding member would allow the UK to influence the development of the institution. By encouraging Chinese investments in the next generations of nuclear power plants, Osborne announced that "the City of London would become the base for the first clearing house for the yuan outside Asia."[31]

Following the criticism, the White House National Security Council, in a statement to The Guardian, declared,

Our position on the AIIB remains clear and consistent. The United States and many major global economies all agree there is a pressing need to enhance infrastructure investment around the world. We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks. Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards […] The international community has a stake in seeing the AIIB complement the existing architecture, and to work effectively alongside the World Bank and Asian Development Bank.[32]

Several other European states – including Germany, France and Italy – followed the UK's decision to join the AIIB in March.[33] German Finance Minister Wolfgang Schäuble stated, "We want to contribute our long-standing experience with international financial institutions to the creation of the new bank by setting high standards and helping the bank to get a high international reputation."[34] In March 2015, the South Korean Ministry of Strategy and Finance announced that it, too, is planning to join the AIIB, citing its potential in helping South Korean companies win deals in infrastructural projects as well expanding South Korea's influence in international banking as a founding member.[35] States could indicate their interest in becoming a Prospective Founding Member until 31 March 2015.

Negotiations took place in the framework of five Chief Negotiators Meetings (CNMs) which took place between November 2014 and May 2015. The Articles of Agreement, the legal framework of the bank, were concluded in the fifth CNM. It was signed on 29 June 2015 by 50 of the named 57 prospective founding members in Beijing, while the other seven signed later.

On 25 December 2015, the Articles of Agreement entered into force. On 16 January 2016, the board of governors of the bank convened its inaugural meeting in Beijing and declared the bank open for business. Jin Liqun was elected as the bank's president for a five-year term. 17 states (Australia, Austria, Brunei, China, Georgia, Germany, Jordan, Luxembourg, Mongolia, Myanmar, the Netherlands, New Zealand, Norway, Pakistan, Singapore, South Korea and the United Kingdom) together holding 50.1% of the initial subscriptions of Authorized Capital Stock, had deposited the instrument of ratification for the agreement, triggering entry into force, and making them all founding members[36] and bringing the Articles of Agreement, the bank's charter, into force. 35 other states followed later, taking the amount of Authorized Capital Stock held by the 29 members of the bank to 74%.

AIIB within PRC policy thinking

Fostering long-term economic development

The Asian Infrastructure Investment Bank can be construed as a natural inter-national extension of the infrastructure-driven economic development framework that has sustained the rapid economic growth of China since the adoption of the Chinese economic reform under chairman Deng Xiaoping. It stems from the notion that long-term economic growth can only be achieved through systematic, and broad-based investments in infrastructure assets – in contrast with the more short-term "export-driven" and "domestic consumption" development models favored by mainstream Western Neoclassical economists and pursued by many developing countries in the 1990s and the first decade of the 21st century with generally disappointing results.[37][38]

Infrastructure as regional integration and foreign policy tool

In his 29 March 2015 speech at the Boao Forum for Asia (BFA) annual conference, Chinese leader Xi Jinping said:

[T]he Chinese economy is deeply integrated with the global economy and forms an important driving force of the economy of Asia and even the world at large. […] China's investment opportunities are expanding. Investment opportunities in infrastructure connectivity as well as in new technologies, new products, new business patterns, and new business models are constantly springing up. […] China's foreign cooperation opportunities are expanding. We support the multilateral trading system, devote ourselves to the Doha Round negotiations, advocate the Asia-Pacific free trade zone, promote negotiations on regional comprehensive economic partnership, advocate the construction of the Asian Infrastructure Investment Bank (AIIB), boost economic and financial cooperation in an all-round manner, and work as an active promoter of economic globalization and regional integration[15]

Xi insisted also that the Silk Road Fund and the Asian Infrastructure Investment Bank would foster "economic connectivity and a new-type of industrialization [in the Asia Pacific area], and [thus] promote the common development of all countries as well as the peoples' joint enjoyment of development fruits."[15][39]

Articles
  Prospective members (regional)
  Members (regional)
  Prospective members (non-regional)
  Members (non-regional)
Signed29 June 2015
LocationBeijing, China
Effective25 December 2015
ConditionRatification by 10 states, comprising 50% of initial subscriptions of capital stock[2]
Signatories57
Parties72 (96% of initial subscriptions of capital stock)[40]
DepositaryGovernment of the People’s Republic of China[2]
LanguagesChinese, English (used in disputes) and French[2]

The Articles of Agreement form the legal basis for the Bank. 57 Prospective Founding Members (PFM) named in annex A of the agreement are eligible to sign and ratify the Articles, thus becoming a member of the Bank. Other states, which are parties to the International Bank for Reconstruction and Development or the Asian Development Bank may become members after approval of their accession by the bank.[4]

The Articles were negotiated by the Prospective Founding Members, with Hong Kong joining the negotiations via China.[41][42]

Members

The 57 Prospective Founding Members can become Founding Members through:

  • Signing the Articles of Agreement in 2015
  • Ratifying the Articles of Agreement in 2015 or 2016

All Prospective Founding Members have signed the Articles, 52 of which have ratified them, comprising 92% of the shares of all PFM. The formal actions towards becoming a Founding Member are shown below, as well as the percentage of the votes and of the shares, in the event all prospective founding states become parties, and no other members are accepted.

In March 2017, 13 other states were granted prospective membership: 5 regional (Afghanistan, Armenia, Fiji, Timor Leste and Hong Kong, China) and 8 non-regional: Belgium, Canada, Ethiopia, Hungary, Ireland, Peru, Sudan and Venezuela. In May 2017, 7 states were granted prospective membership: 3 regional (Bahrain, Cyprus, Samoa) and 4 non-regional (Bolivia, Chile, Greece, Romania). In June 2017, 3 other states were granted prospective membership: 1 regional (Tonga) and 2 non-regional (Argentina, Madagascar).[43] In 2018, 7 other states were granted prospective membership: 1 regional (Lebanon) and 6 non-regional (Algeria, Ghana, Libya, Morocco, Serbia, Togo).[44][45] In 2019, 7 other states were granted prospective membership: 7 non-regional (Djibouti, Rwanda, Benin, Côte d'Ivoire, Guinea, Tunisia, Uruguay).[46] They become members after finishing their domestic procedures. As of 16 May 2020, the total number of countries approved for membership of AIIB is 102 (Regional Members: 44, Non-Regional Members: 36, Prospective Members: 22).[47]

Country / Region Prospective Founding
Member status		 Signature
(Articles)[40]		 Ratification or Acceptance
(Articles)[40]		 Total Subscriptions
(Amount of Shares in
millions USD)[2]		 Voting Power
(Number of Votes)[2]
 Afghanistan13 October 201786.62,624
 Algeria27 December 20195.01,698
 Argentina5.01,700
 Armenia
 Australia3 April 2015[48]29 June 201510 November 20153,691.239,323
 Austria11 April 2015[49]29 June 20153 December 2015500.87,539
 Azerbaijan15 April 2015[50]29 June 201524 June 2016254.15,072
 Bahrain24 August 2018103.62,967
 Bangladesh[lower-alpha 1]24 October 201429 June 201522 March 2016660.59,136
 Belarus17 January 201964.12,474
 Belgium10 July 2019284.64,679
 Benin27 May 20205.01,698
 Bolivia26.11,911
 Brazil12 April 2015[51]29 June 20155.0[52] 2,300
 Brunei[lower-alpha 1]24 October 201429 June 201512 October 201552.43,055
 Cambodia[lower-alpha 1]24 October 201429 June 201517 May 2016 62.33,154
 Canada19 March 2018995.411,765
 Chile10.01,750
 China[lower-alpha 1]24 October 201429 June 201526 November 201529,780.4300,215
 Cook Islands1 June 2020}0.51,653
 Côte d’Ivoire26 February 20205.01,698
 Cyprus27 June 201820.02,131
 Denmark12 April 2015[51]27 October 201514 January 2016369.56,226
 Djibouti
 Ecuador1 November 20195.01,698
 Egypt14 April 2015[53]29 June 201512 August 2016650.59,036
 Ethiopia13 May 201745.82,389
 Fiji11 December 201712.52,056
 Finland12 April 2015[51]29 June 20157 January 2016310.35,634
 France2 April 2015[54]29 June 201516 June 20163,375.636,167
 Georgia12 April 2015[51]29 June 201514 December 201553.93,070
 Germany1 April 2015[55]29 June 201521 December 20154,484.247,253
 Ghana21 February 20205.01,698
 Greece20 August 201910.01,933
 Guinea12 July 20195.01,698
 Hong Kong7 June 2017765.19,462
 Hungary16 June 2017100.02,931
 Iceland15 April 2015[50]29 June 20154 March 201617.62,707
 India[lower-alpha 1]24 October 201429 June 201511 January 20168,367.386,084
 Indonesia[lower-alpha 1]25 November 2014[23]29 June 201514 January 20163,360.736,018
 Iran7 April 2015[56]29 June 20156 January 20171,580.815,057
 Ireland23 October 2017131.33,244
 Israel15 April 2015[50]29 June 201515 January 2016749.99,910
 Italy2 April 2015[54]29 June 201513 July 20162,571.828,129
 Jordan7 February 201529 June 201525 December 2015119.23,723
 Kazakhstan[lower-alpha 1]24 October 201429 June 201518 April 2016729.39,704
 Kenya
 South Korea11 April 2015[49]29 June 201511 December 20153,738.739,798
 Kuwait24 October 20144 December 2015536.0
 Kyrgyzstan9 April 2015[57]29 June 201511 April 201626.82,799
 Laos[lower-alpha 1]24 October 201429 June 201515 January 201643.02,961
 Lebanon
 Libya
 Luxembourg27 March 2015[58]29 June 20159 December 201569.73,228
 Madagascar27 June 20185.01,698
 Malaysia24 October 201421 August 2015[59]27 March 2017109.53,626
 Maldives31 December 2014[60]29 June 20154 January 20167.22,603
 Malta9 April 2015[57]29 June 20157 January 201613.62,667
 Mongolia[lower-alpha 1]24 October 201429 June 201527 November 201541.12,942
 Morocco
 Myanmar[lower-alpha 1]24 October 201429 June 20151 July 2015264.55,179
   Nepal[lower-alpha 1]24 October 201429 June 201513 January 201680.93,340
 Netherlands12 April 2015[51]29 June 201516 December 20151,031.312,724
 New Zealand5 January 2015[61]29 June 20159 December 2015[62]461.57,146
 Norway14 April 2015[53]29 June 201522 December 2015550.68,037
 Oman[lower-alpha 1]24 October 201429 June 201521 June 2016259.25,123
 Pakistan[lower-alpha 1]24 October 201429 June 201522 December 20151,034.112,753
 Papua New Guinea
 Peru154.63,196
 Philippines24 October 201431 December 20156 December 2016979.112,202
 Poland15 April 2015[50]9 October 201520 April 2016[63]831.810,729
 Portugal15 April 2015[50]29 June 20158 February 201765.03,181
 Qatar[lower-alpha 1]24 October 201429 June 201524 June 2016604.48,575
 Romania28 December 2018153.03,461
 Russia14 April 2015[64]29 June 201528 December 20156,536.267,773
 Rwanda16 April 20205.01,698
 Samoa[lower-alpha 1]6 March 20182.11,948
 Saudi Arabia13 January 2015[65]29 June 201519 February 20162,544.627,857
 Serbia15 August 20185.01,698
 Singapore[lower-alpha 1]24 October 2014[66]29 June 201510 September 2015250.05,031
 South Africa15 April 2015[50]3 December 2015590.5
 Spain11 April 2015[49]29 June 201519 December 20171,761.520,026
 Sri Lanka[lower-alpha 1]24 October 201429 June 201522 June 2016269.05,221
 Sudan18 September 201859.02,521
 Sweden15 April 2015[50]29 June 201523 June 2016630.08,831
  Switzerland28 March 2015[67]29 June 201525 April 2016706.49,475
 Tajikistan13 January 2015[65]29 June 201516 January 201630.92,840
 Thailand24 October 2014[66]1 October 201520 June 20161,427.516,686
 Timor-Leste22 November 201716.02,091
 Togo
 Tonga
 Tunisia
 Turkey10 April 2015[68]29 June 201515 January 20162,609.928,510
 United Arab Emirates5 April 2015[69]29 June 201515 January 20161,185.714,268
 United Kingdom28 March 2015[67]29 June 20153 December 20153,054.732,958
 Uruguay28 April 20205.01,698
 Uzbekistan[lower-alpha 1]24 October 201429 June 201530 November 2016219.84,729
 Vanuatu[lower-alpha 1]6 March 20180.51,653
 Venezuela209.03,740
 Vietnam[lower-alpha 1]24 October 201429 June 201511 April 2016663.39,164
Unallocated Shares1,844.7
Grand Total100
44 Regional
30 non-Regional
26 prospective		100
100.00% of shares		100
100.00% of shares		100,0001,148,383
  Regional members

Dependent territories

The Articles of Agreement provide for non-sovereign entities to become members of the bank. In addition to the requirements for sovereign states, the membership of dependent territories must be supported by the state responsible for its external relations.

Non-members

The Czech Republic,[70] Nigeria, Iraq,[71] Colombia,[72] Ukraine are considering joining the AIIB as members. Mexico, Japan and the United States have no immediate intention to participate. Taiwan's request to become a Prospective Founding Member was rejected by China as it does not consider the former to be a sovereign state.[73]

  • Taiwan applied for PFM to join the AIIB via Taiwan Affairs Office on 31 March, possibly under the name "Chinese Taipei",[74][75] but was rejected by the Multilateral Interim Secretariat of the AIIB on 13 April, without any reason stated. However, China claims that there is the possibility for Taiwan to obtain membership at a later date.[73] China's Foreign Ministry spokeswoman Hua Chunying said that Taiwan should avoid creating a "two Chinas" or "one China, one Taiwan" situation.[76] ROC Finance Minister Chang Sheng-ford announced in April 2016 that Taiwan was not being treated with "dignity" or "respect" during the registration process and Taiwan eventually chose to leave the decision to join to the new president.[77]

United States – No commitment

  • The United States' officials have expressed concerns about whether the AIIB would have high standards of governance, and whether it would have environmental and social safeguards.[78] The United States is reported to have used diplomatic pressure to try and prevent key allies, such as Australia, from joining the bank,[79] and expressed disappointment when others, such as Britain, joined.[66][78] The US' opposition to the AIIB, as well as its attempt to dissuade allies from joining was seen as a manifestation of a multifaceted containment strategy. The failure of that approach in this case was widely acknowledged as a strategic blunder.[80]

Japan – "Under Consideration" / No commitment

  • Masato Kitera, Tokyo's envoy in Beijing, stated previously that Japan might join the AIIB.[81] Japanese Finance Minister Tarō Asō previously indicated interest in joining the AIIB, but later switched his stance. Yoshihide Suga, Japan's Cabinet Secretary, told the public that Japan was still seeking China's full explanation of the AIIB as he stated, "As of today, Japan will not join AIIB and a clear explanation has not been received from China" and "Japan is dubious about whether (the AIIB) would be properly governed or whether it would damage other creditors". He also stated that Japan is no longer considering whether or not to join the bank. The Japanese Government Spokesman also announced that Japan would not join the AIIB. Japanese prime minister Shinzō Abe also added that Japan does not need to join the bank.[82] But two years later, in May 2017, Shinzō Abe said join the AIIB, created in part to fund the initiative, could be an option if governance questions were resolved.[83] Toshihiro Nikai, secretary-general of the ruling party Liberal Democratic Party, suggested join the AIIB.[84]

Shareholding structure

The Authorized Capital Stock of the bank is 100 billion US Dollars, divided into 1 million shares of 100 000 dollars each. Twenty percent are paid-in shares (and thus have to be transferred to the bank), and 80% are callable shares.[2] The allocated shares are based on the size of each member country's economy (calculated using GDP Nominal (60%) and GDP PPP (40%)), whether they are an Asian or Non-Asian Member, and the number of shares determines the fraction of authorized capital in the bank.[4][85][86][87] Of the prospective founding members, three states decided not to subscribe to all allocated shares: Malaysia, Portugal and Singapore,[88] resulting in 98% of available shares to be subscribed.[2]

Three categories of votes exist: basic votes, share votes and Founding Member votes. The basic votes are equal for all members and constitute 12% of the total votes, while the share votes are equal to the number of shares. Each Founding Member furthermore gets 600 votes. An overview of the shares, assuming when all 57 Prospective Founding Members have become Founding Members is shown below (values in bold do not depend on the number of members):[89]

Vote Type% of Total VotesTotal VotesVote per MemberChina
(Largest PFM)		Maldives
(Smallest PFM)
Basic votes12138,5102,4302,4302,430
Share votes85981,514Varies297,80472
Founding Member votes334,200600600600
Total1001,154,224varies300,834 (26.1%)3,102 (0.3%)

Governance

The bank's governance structure is composed of the Board of Governors[90] as the top-level and highest decision-making body.[91] It is composed of 1 governor for each member state of the bank and in principle meets once a year.[91] The board of directors, composed of 12 governors, each representing one or more member is responsible for daily operations and tasks delegated to it by the board of governors. Nine of those members are from within the Asia-Pacific region and three representing members outside the region.[91]

Of the non-regional directors, 1 constituency is made up of EU member states having the Euro as their currency, and 1 from other European countries.[92]

New members are considered for admission only once a year. An overview of the constituencies is shown below:[93]

Country of DirectorCountries of AlternatesOther Constituencies
 Saudi Arabia United Arab Emirates
 Qatar		 Bahrain
 Jordan
 Oman
 Pakistan Turkey
 Georgia		 Azerbaijan
 Brunei
 Kyrgyzstan
 Philippines Thailand
 Malaysia		 Bangladesh
 Maldives
   Nepal
 Russia Kazakhstan
 Iran		 Belarus
 Tajikistan
 China Hong Kong
 Canada Egypt Ethiopia
 Ghana
 Guinea
 Madagascar
 Rwanda
 Australia Vietnam Cook Islands
 New Zealand
 Singapore
 United Kingdom Sweden
 Norway		 Denmark
 Hungary
 Iceland
 Poland
 Romania
  Switzerland
 France Germany
 Italy		 Austria
 Belgium
 Cyprus
 Finland
 Greece
 Ireland
 Luxembourg
 Malta
 Netherlands
 Portugal
 Spain
 India
 Indonesia Cambodia
 Myanmar		 Afghanistan
 Laos
 Sri Lanka
 Timor-Leste
 South Korea Israel
 Uzbekistan		 Fiji
 Mongolia
 Samoa
Unallocated:
 Algeria
 Benin
 Côte d'Ivoire
 Ecuador
 Serbia
 Vanuatu
Senior Management of AIIB
Country Name Position in AIIB
China Jin Liqun President
United Kingdom Danny Alexander Vice President and Corporate Secretary
Russia Konstantin Limitovskiy Vice President, Investment Operations (Region 2)
India D. J. Pandian Vice President, Investment Operations (Region 1)
Germany Joachim von Amsberg Vice President - Policy and Strategy
Indonesia Luky Eko Wuryanto Vice President and Chief Administration Officer
New Zealand Gerard Sanders General Counsel
Germany Martin Kimmig Chief Risk Officer

 New Zealand
United Kingdom		 Andrew Cross Chief Financial Officer

Reception

The former President of the World Bank, Jim Yong Kim, has said that the need for infrastructure in developing countries is great so that the activities of new organizations would be welcome.[94]

Geopolitical implication in Asia and beyond

There is no consensus in the United States about the role of the AIIB. G. John Ikenberry (Princeton University) sees the AIIB as part of "China's emerging institutional statecraft,"[95] but argues that it is not clear whether the institution will tie China more deeply into the existing order or become a vehicle to challenge the order. Phillip Lipscy (Stanford University) argues that the United States and Japan should support the AIIB to encourage China's peaceful global leadership and discourage China from pursuing coercive or military options.[96] On the other hand, Paola Subacchi (Chatham House) argues that the AIIB represents a threat to US-dominated global governance.[97]

Think-tanks such as Chatham House, the China Studies Centre at the University of Sydney and the World Pensions Council (WPC) have argued that the successful establishment of a new supranational financial powerhouse headquartered in PRC would be facilitated by the large number of participating developed economies.[98][99] These experts observe that the establishment of the Beijing-based AIIB does not necessitate rivalry, when economic cooperation is possible,[98] and that the decision by the UK to participate advances its own interests even if some of its allies are opposed.[99]

Environmental record

As the bank is still in its early years, it has no environmental record. Several organisations have however expressed their concerns over environmental policy of the proposed bank because of the high stake of China in the bank's business. Although the proposed bank declared "AIIB will learn from the best practice in the world and adopt international standards of environmental protection," Oxford scholar of economics and energy policy Yuge Ma has argued that this may be complicated in developing Asian countries.[100]

Comparison with ADB and IBRD
($ million)
AIIBADB[101]IBRD[102]
Established201619661944
Date as of31 December 2016[103]31 December 2017[104]31 December 201730 June 2018
Member.[47]Total578467189
(Regional, Non-regional, Prospective)34, 16, 740, 20, 2448, 19, 0–
Credit ratingUnratedAAAAAAAAA
CapitalSubscribed90,32795,001151,169274,730
Paid-in18,06519,0007,56316,456
Total assets17,79518,973182,381403,056
Lending1,7304,220101,126183,588

Lending results

2016

During 2016, AIIB committed a total of $1.73 billion to nine projects, among which six projects are joint initiatives with other international lenders such as the World Bank and the Asian Development Bank. It had achieved its loan target of $1.2 billion for the first year.[105][106]

2016 AIIB lending[105][106]
Approval dateCountryPurposeAmount M$Co-lenders
24 June 2016TajikistanRoad improvement27.5European Bank for Reconstruction and Development
24 June 2016BangladeshPower distribution lines165.0none
24 June 2016PakistanMotorway construction100.0Asian Development Bank and United Kingdom's Department for International Development
24 June 2016IndonesiaRedevelopment of poor districts216.5World Bank
27 September 2016PakistanHydropower plant300.0World Bank
27 September 2016MyanmarCombined Cycle Gas Turbine power plant20.0International Finance Corporation, the Asian Development Bank and certain commercial lenders
8 December 2016OmanRailways36.0none
8 December 2016OmanPort facilities265.0none
21 December 2016AzerbaijanGas pipeline600.0A number of other multilateral development banks including the World Bank and other commercial entities
Total1,730.0


2017
2017 AIIB lending[105][106]
Approval dateCountryPurposeAmount M$Co-lenders
22 March 2017IndonesiaRegional Infrastructure Development Fund Project100.0World Bank
22 March 2017IndonesiaDam Operational Improvement and Safety Project Phase II125.0World Bank
22 March 2017BangladeshNatural Gas Infrastructure and Efficiency Improvement Project60.0Asian Development Bank
2 May 2017IndiaAndhra Pradesh 24x7 – Power For All160.0World bank and Government of Andhra Pradesh
5 June 2017GeorgiaBatumi Bypass Road Project114.2Asian Development Bank
15 June 2017IndiaIndia Infrastructure Fund150.0Other investors
15 June 2017TajikistanNurek Hydropower Rehabilitation Project, Phase I60.0World Bank and Eurasian Development Bank
4 July 2017IndiaGujarat Rural Roads Project329.0Government of Gujarat
4 September 2017EgyptEgypt Round II Solar PV Feed-in Tariffs Program17.5International Finance Corporation and other lenders
27 September 2017IndiaTransmission System Strengthening Project100.0Asian Development Bank and Power Grid Corporation of India
27 September 2017PhilippinesMetro Manila Flood Management Project207.60World Bank
8 December 2017IndiaBangalore Metro Rail Project – Line R6335.0European Investment Bank and other lenders
8 December 2017OmanBroadband Infrastructure Project239.0none
8 December 2017ChinaBeijing Air Quality Improvement and Coal Replacement Project250.0Beijing Municipality, China CDM Fund and Beijing Gas
Total

2018
2018 AIIB lending[105][106]
Approval dateCountryPurposeAmount M$Co-lenders
9 February 2018BangladeshBhola IPP60.0none
11 April 2018IndiaMadhya Pradesh Rural Connectivity Project140.0World Bank
24 June 2018IndiaNational Investment and Infrastructure Fund100.0Government of India
24 June 2018TurkeyTuz Golu Gas Storage Expansion Project600.0World Bank, Islamic Development Bank, BOTAS and commercial loans
24 June 2018IndonesiaStrategic Irrigation Modernization and Urgent Rehabilitation Project250.0World Bank
28 September 2018IndiaAndhra Pradesh Rural Roads Project455.0Government of Andra Pradesh
28 September 2018EgyptSustainable Rural Sanitation Services Program300.0World Bank
28 September 2018TurkeyTSKB Sustainable Energy and Infrastructure On-lending Facility200.0none
7 December 2018IndonesiaMandalika Urban and Tourism Infrastructure Project248.39Government of Indonesia
7 December 2018IndiaAndhra Pradesh Urban Water Supply and Septage Management Improvement Project400.0Government of Andhra Pradesh

2019
2019 AIIB lending[105][106]
Approval dateCountryPurposeAmount M$Co-lenders
26 March 2019BangladeshPower System Upgrade and Expansion Project120.0Government of Bangladesh and Power Grid Corporation of Bangladesh
26 March 2019LaosNational Road 13 Improvement and Maintenance Project40.0Government of Laos, NDF and IDA
4 April 2019Sri LankaReduction of Landslide Vulnerability by Mitigation Measures Project80.0Government of Sri Lanka
4 April 2019Sri LankaColombo Urban Regeneration Project200.0Government of Sri Lanka and private partner
21 May 2019 Nepal Upper Trisuli I Hydropower Project 90.0ADB, IFC, Korean Consortium

See also

Notes
  1. Signatories of the Memorandum of Understanding

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