AIIB wants to engage private sector in Asian infrastructure

AIIB President elect Jin Liqun

AIIB President elect Jin Liqun

Asian infrastructure: The Asian Infrastructure Investment Bank (AIIB) will do its utmost to engage the private sector in the development of Asia’s infrastructure, its President elect  Jin Liqun said over the weekend. Speaking at press conference to mark the end of the Singapore Summit, he said that the new bank intended to act as a platform from which private-sector companies could invest in infrastructure facilities.
“Normally, infrastructure projects have a long gestation period, and involve huge risks,” he said. “So when we step in, it will provide a lot of reassurance to any private sector company thinking of working with local governments in the region.”
Although he was at pains to stress that the AIIB would not be working exclusively with companies from the private sector, he went on to say that they had a big contribution to make as “they are normally cost-effective, focus on profitability, and have much less bureaucracy”.
AIIB57 have so far signed up to the AIIB which will have authorized capital of $100bn/ 75% of this will come from Asian countries who will then be allocated a share according to the size of their economies. Jin was adamant, however, that the AIIB would not “sidestep” low-income countries.
“Because of sustainability issues, it may not be feasible for a number of low-income countries to borrow from the market, the World Bank or the ADB,” he said, “..[but] we can work with the private sector without adding to the public debt of the sovereign government…..Because this is not a purely commercial institution, we cannot simply put the money where we can get the highest returns.”

Source: chinadaily