The Asian Infrastructure Investment Bank (AIIB)
- The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond.
- Headquartered in Beijing, AIIB commenced operations in January 2016 and have now grown to 84 approved members from around the world.
- By investing in sustainable infrastructure and other productive sectors today, it will better connect people, services and markets that over time will impact the lives of billions and build a better future.
- Our foundation is built on the lessons of experience of successful private sector companies and existing multilateral development banks.
- Our core principles are openness, transparency, independence and accountability and our mode of operation is “Lean, Clean and Green“.
- AIIB have signed a co-financing framework agreement with the World Bank.
- It also signed Memorandums on joint cooperation and co-financing with: The Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank and Inter-American Investment Corporation, the New Development Bank, and the World Bank Group.
- It partners with private financial institutions and cooperate with other partners in the public and non-governmental sectors.
- According to the Articles of Agreement (AOA) of AIIB, the Bank will “provide or facilitate financing to any member, or any agency, instrumentality or political subdivision thereof, or any entity or enterprise operating in the territory of a member, as well as to international or regional agencies or entities concerned with economic development of the Asia region.”
- Furthermore, the AOA permits the Bank to provide financing in a variety of ways, including, inter alia, making loans, investing in the equity capital of an enterprise, and guaranteeing, whether as primary or secondary obligor, in whole or in part, loans for economic development.
- In addition, the Bank may underwrite, or participate in the underwriting of, securities issued by any entity or enterprise for purposes consistent with its purpose.
How AIIB are organized
- Good governance is our hallmark and we strive to operate at the highest possible standards in transparency and accountability.
- All powers of the Bank are vested in our Board of Governors, which is the highest decision-making body under the Articles of Agreement.
The AIIB Under International Law
- The AIIB is an international organization established by the AIIB Articles of Agreement (entered into force December 25, 2015), a multilateral treaty, the Parties to which comprise the Membership of the Bank.
- Accordingly, the AIIB is both constituted, and governed, by public international law, the sources of which include applicable international conventions, customary international law, general principles of law and subsidiary means for the determination of rules of law.
- Notwithstanding its international legal personality independent of that of its Members, the AIIB, unlike States, does not possess general competence. In other words, it may only exercise those powers expressly or impliedly bestowed upon it by the Articles of Agreement.
- In the furtherance of the AIIB’s mandate, internal legislation is issued by the governance organs of the AIIB, deriving its effect from the Articles of Agreement. The resulting organization and effect of such legislation is established by the AIIB’s Internal Legal Framework.
India and AIIB
- India is the largest borrower. The main areas are energy, transportation and also funds in India that work on broader infrastructure projects, as well as urban infrastructure and smart cities.
- India is the first country where we have committed to more than $1 billion of financing.
- India is the second-largest shareholder in the AIIB, China continues to enjoy a large enough vote share that it exercises an effective veto over the bank’s funding decisions.