China
08:46, 03-Oct-2017
AIIB to co-finance power transmission project in India with ADB
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The Asian Infrastructure Investment Bank (AIIB) is helping India improve its power transmission network and expand the use of solar and wind energy with a loan of 100 million US dollars.
The loan also involves 50 million US dollars from the Asian Development Bank (ADB).
It is the fourth time the two major multilateral development banks in Asia co-finance a project since the AIIB began its operation in 2016.
The two sides have teamed up to finance the M4 expressway in Pakistan with 100 million US dollars from each financial institution.
The second time was a natural gas production and transmission project in Bangladesh, with an aggregate financing of 227 million US dollars, including 167 million US dollars from the AIIB.
The third relates to a highway round the port city of Batumi, the second largest city of Georgia, with 114 million US dollars provided by each bank.
In late September, ADB Chief Economist Yasuyuki Sawada said the two banks could cooperate to meet Asia's huge infrastructure investment needs.
Infrastructure needs in Asia and the Pacific stand at about 1.7 trillion US dollars per year, and there is a finance gap of 500 billion US dollars annually, Sawada said.
Even if the ADB and the AIIB "put money together", it's not enough and thus it is necessary to mobilize public and private investment, he noted.
Source(s): Xinhua News Agency