June 12, 2018
The funding will go towards six projects in India, including US$500 million for the Mumbai Metro, US$455 million for rural roads in Andhra Pradesh as well as US$200 million to the National Investment and Infrastructure Fund (NIIF)
Prior to the latest funding, AAIB had loaned US$1.2 billion in another six infrastructure projects. The bank is looking to increase investment in India’s high-growth industries spanning energy, transportation, infrastructure and waste management
Apart from rural roads in Madhya Pradesh, AIIB is helping build metro rail network in Bengaluru, electricity transmission infrastructure in southern Indian states, rural road connectivity in Gujarat as well as upgrade power infrastructure in Andhra Pradesh
As part of its agenda to invest in infrastructure platforms and services with high growth potential, AIIB has focussed investments in energy and utilities, transportation and logistics and other sectors such as telecommunications, healthcare and education
The Asian Infrastructure Investment Bank (AIIB) has sanctioned US$1.9 billion in loans to support infrastructure projects across India this year, according to a report by the The Economic Times on June 12, citing the manager of the bank’s investment operations, Najeeb Haider. The Beijing-based multilateral development bank indicated that the funding will go towards six projects in India, including US$500 million for the Mumbai Metro, US$455 million for rural roads in Andhra Pradesh as well as US$200 million to the National Investment and Infrastructure Fund (NIIF). Prior to the latest funding, AAIB had loaned US$1.2 billion in another six projects. The bank is looking to increase investment in India’s high-growth industries spanning energy (conventional fuel, electricity and renewable energy), transportation, infrastructure and waste management.
In India, the bank, which boasts of funding commitment of around US$100 billion, has financed both public and private-sector projects. Mr Haider told the ET that the bank has prioritised investment in sustainable infrastructure that are socially, economically and environmentally sustainable. Earlier this year, the AIIB approved a US$140 million loan for projects to improve rural connectivity in the central Indian state of Madhya Pradesh (MP ). The funding, which will go into improving livelihoods, education and mobility for about 5,640 villages, will benefit about 1.5 million rural residents. This project was co-financed by the World Bank, which itself has signed multiple loan agreements to support a variety of developmental projects in India, ranging from nutrition and healthcare to rural road connectivity and landscape and water resource management.
Apart from rural connectivity projects in Madhya Pradesh, AIIB is helping build metro rail network in the southern city of Bengaluru in Karnataka, electricity transmission infrastructure across southern Indian states, rural road connectivity in the western state of Gujarat as well as upgrade power supply system and infrastructure in the southern state of Andhra Pradesh. As part of its agenda to invest in infrastructure platforms and services companies with high growth potential that derive their revenues principally from India, AIIB has focussed investments in; 1) Energy and utilities (renewable energy, electric transmission and distribution networks, water and wastewater systems, smart cities); 2) Transportation and logistics (roads, airports, bridges, ports, railways, waterways, logistics); 3) Other sectors such as telecommunications, healthcare and education.