Prospects of cooperation with the Asian Infrastructure Investment Bank discussed in Ukimet Uyi
Today in Ukimet Uyi, within the framework of the XI Astana Economic Forum, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev met with the President of the Asian Infrastructure Investment Bank (AIIB) Jin Liqun.
The discussion focused on issues of cooperation with AIIB and implementation of joint infrastructure projects in various sectors of the country’s economy. The priority areas of financing were identified to be energy, transport, logistics, urban and rural infrastructure and others sectors. Considering that Kazakhstan is an important logistics and transport hub in the Central Asian region, the prospects of AIIB’s participation in the transport sector within the framework of the Nurly Zhol Program were discussed as well.
Joint plans for concluding a Framework Agreement between Kazakhstan and AIIB on infrastructure investments and the establishment of an AIIB regional office in Kazakhstan were also considered. Representative offices of similar international financial and multilateral development institutions such as the World Bank, ADB, EBRD, IDB and others have already been established in our country. The Astana International Financial Center was named the key platform for establishing the bank’s office.
For reference: The proposal for establishing the Asian Infrastructure Investment Bank was first expressed by President Xi Jinping during the Asia-Pacific Economic Cooperation Business Summit in Bali (October 7, 2013).
The Bank was established on December 25, 2015 by the entry into force of the AIIB Articles of Agreement and was officially launched on January 16, 2016. The main purpose of creating the AIIB was to promote economic development, create prosperity and improve the interaction of infrastructure in Asia by investing in infrastructure and other productive sectors. An important principle of the bank’s activity is openness for all countries willing to assist regional and global economic development. At the same time, the right of the decisive vote will remain with Asian countries.
Kazakhstan is a co-founder of AIIB and hosted negotiations on the development of a Memorandum of Understanding on the establishment of the bank, which took place in April 2014.
On October 24, 2014, the Memorandum of Understanding on the creation of AIIB between 22 potential founding members of AIIB was signed. The authorized capital of AIIB is $ 100 billion and is distributed proportionally (75/25) among regional and non-regional members.
The largest shareholders of the bank are China ($ 29,780.4 million), India ($ 8,667.3 million), Russia ($ 6,536.2 million), and others. AIIB is headquartered in Beijing.
Over the two years of operation, the number of AIIB member countries has increased to 84. Kazakhstan’s total share in AIIB (subscribed capital) is $ 729.3 million (0.793%). Kazakhstan is included in the regional country group of the Russian Federation together with countries such as Iran and Tajikistan.
At present, AIIB’s portfolio of infrastructure projects includes 25 projects, financed jointly with other international financial partners, for a total of about $ 20 billion. At the same time, AIIB’s share was $ 4.39 billion, including those financed by AIIB independently (without the participation of other MFIs) consisting of 6 projects worth $ 1.2 billion.
Recall, Jing Liqun held the posts of Vice President for ratings of the Asian Development Bank and Vice Executive Director for China in the World Bank and the Global Environment Facility. He was a member of Hubert Humphrey in the program “Higher Mathematics” at Boston University. He worked as Chairman of China International Capital Corporation Limited, the first joint investment bank in China, as well as Chairman of the Supervisory Board of the China Investment Corporation and the International Forum of Sovereign Wealth Funds. He is the inaugural President and Chairman of the Board of Directors of the Asian bank.
Source: Government of the Republic of Kazakhstan