The Asian Infrastructure Investment Bank (AIIB) could approve up to US$2.5 billion in loans in 2017, the bank has said after its first full year in business.
The Beijing-based lender, which has committed US$1.73 billion across nine projects since it began in 2015, has lined up more than 20 potential projects worth around US$3.5 billion. Half of these could get approvals within the next 12 months, according to DJ Pandian, Vice President, AIIB.
“AIIB’s core mission is to promote Asia’s social and economic development by investing in projects that will connect people, services and markets,” said Jin Liqun, President of AIIB, on the bank’s first anniversary on 16 January 2017.
Commitments made since the AIIB’s inception include transport, energy and urban development projects in countries such as Bangladesh, Indonesia and Tajikistan.
“We believe only by working collaboratively can we hope to address the growing need for transportation networks, urban development, clean water supplies and low-carbon power within Asia,” added Liqun.
Investments in 2017 will focus on green infrastructure, as well as cross border rail, roads, ports and telecoms. Also included in its agenda is the mobilisation of private capital through the bank’s partnerships with multilateral development banks, governments and private financiers.
AIIB’s modest projection reflects its immaturity as new staff join the ranks and the bank finalises its policies. Matching AIIB’s lending goals meanwhile is the Shanghai-based New Development Bank, also known as the BRICS bank, which announced last year its own intentions to lend US$2.5 billion this year.
The bank currently employs around 80 staff and has 57 signatory countries committed to its agenda. The bank could increase its staff to 156 in 2017 and increase the number of member countries to 90, following expressions of interest from around 30 nation applicants.