Asian Infrastructure Investment Bank (AIIB)
The Chinese government announced proposals for the establishment of the Asian Infrastructure Investment Bank in Oct. 2013. Articles of agreement, which form the bank’s legal basis, were adopted in May 2015 and the institution was formally launched in Dec. that year, with an initial capitalization of US$100bn.
Aims and Activities. The bank aims to provide financial backing for infrastructure development projects in Asia and to promote regional co-operation to address development challenges. It approved its first four projects within six months of launching, of which three were joint ventures with existing institutions (the single solo project being a scheme to electrify 2·5m. rural homes in Bangladesh). At its inaugural annual meeting in June 2016 the bank signed off projects worth in excess of US$500m.
Organization. The senior decision-making body is the Board of Governors, comprising one governor from each member state. A Board of Directors, made up of 12 Governors, oversees the day-to-day running of the organization. There is also a Secretariat, headed by the Secretary-General.
Members. By the end of 2015, 57 nations (37 regional and 20 non-regional) had signed the founding Articles of Agreement and had until the end of 2016 to ratify them in order to secure membership. On 25 Dec. 2015 the AIIB came into force when ratification passed the statutory requirement of at least ten countries holding over 50% of initial capital stock subscriptions. As of Feb. 2017, 50 countries had become full members.
Official languages: Chinese, English and French.
Headquarters: 9 Financial St., Xicheng District, Beijing, China.
President: Jin Liqun (China).