Monday 27 June 2016

Lending agency AIIB approves first batch of loans

Asian Infrastructure Investment Bank or AIIB has approved 165 million U.S. dollars in loans for a Bangladesh project – the first batch of loan for the country from the China-led development bank. The banks Board of Directors approved its first 4 loans totaling 509 million U.S.dollars to finance 4 projects including that one of Bangladesh. Three of the 4 projects are co-financing operations with multilateral
development bank (MDB) partners. The three other approved loans are a 216.5 million U.S. dollars loan for Indonesia, a 100 million U.S. dollars loan for Pakistan and a 27.5 million loan for Tajikistan. These projects, which span the energy, urban development and transport sectors, will help to bridge the regions critical infrastructure financing gap and strengthen regional connectivity. The Bank, which supports infrastructure development and regional connectivity in Asia, is targeting lending of approximately 1.2 billion U.S. dollars in 2016.
The approved loans are:
216.5 million U.S. dollars loan for a National Slum Upgrading Project in Indonesia, expected to be co-financed with the World Bank;
100 million U.S. dollars loan to finance the Shorkot-Khanewal Section of National Motorway M-4 in Pakistan, co-financed with the Asian Development Bank (ADB) and the United Kingdoms Department for International Development (DFID); and
27.5 million U.S. dollars loan for the Dushanbe-Uzbekistan Border Road Improvement Project in Tajikistan, co-financed with the European Bank for Reconstruction and Development (EBRD); a165 million U.S. dollars loan for a Power Distribution System Upgrade and Expansion Project in Bangladesh;
AIIB, launched formally in December last year, is an international financial institution that particularly aims to support the building of infrastructure in the Asia-Pacific region. The AIIB expects to lend 10 to 15 billion U.S. dollars a year to members for at least five years.

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