China-led AIIB Could Play a Role in Asean Power Grid, Says Bank President

It marks 10th year with plan to double annual lending by 2030 and focus on green projects

- Lim Min Zhang

BEIJING — China's answer to the World Bank marked its 10th year with a pledge to double its annual lending by 2030 and focus on green projects, including in Southeast Asia.

These projects could include the Asean power grid, a plan for an electricity network to connect all 10 Asean countries.

The three-day annual meeting of the Asian Infrastructure Investment Bank (AIIB) in Beijing this week was attended by more than 3,500 people from about 100 countries, including Chinese Premier Li Qiang.

The China-led bank, founded in 2015, has to date approved more than 320 projects in 38 countries, worth some US$60 billion (S$76.3 billion).

Modelled after other multilateral development banks (MBDs) such as the Asian Development Bank (ADB), the AIIB has grown from 57 founding members — including Singapore, Kazakhstan and Saudi Arabia, as well as US allies the UK, Germany and France — to 110 members today, behind only the World Bank, with 189. The US and Japan are not AIIB members.

In his speech on June 26, Mr Li said the AIIB's successful operation has been a "useful supplement" to traditional multilateral development institutions, and has brought about "incremental reform" to global financial governance.

"Its unique shareholding formula and decision-making rules reflect the new changes in the international economic landscape and raise the voice and influence of emerging markets and developing countries," he said.

The bank has developing countries as its majority shareholders, with China being by far the largest shareholder at about 27 per cent. The bank markets itself as being based on multilateralism and international standards, and has rejected suggestions that it is controlled by Beijing.