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Power plants, maritime infrastructure to be first AIIB-financed projects
Finance Minister Bambang Brodjonegoro has said power plants and maritime infrastructure will be Indonesiaâs first projects to be financed through the Asian Infrastructure Investment Bank (AIIB) after this multilateral finance institution begins full operation at the end of 2015 or at the beginning of 2016
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inance Minister Bambang Brodjonegoro has said power plants and maritime infrastructure will be Indonesia's first projects to be financed through the Asian Infrastructure Investment Bank (AIIB) after this multilateral finance institution begins full operation at the end of 2015 or at the beginning of 2016.
'Projects we will develop using AIIB funds are electricity plants and maritime infrastructure,' he said as quoted by Antara on Tuesday.
The minister was speaking after he signed an agreement on the AIIB establishment and attended a string of bilateral meetings in Beijing on Monday evening.
Bambang added that there might be several other projects included because Indonesia had a lot of identifie development needs.
'Thus, to accelerate infrastructure development in supporting Indonesia's economic growth, the projects need to be immediately realized,' he said.
Indonesia, together with 56 other AIIB-founding countries led by China, signed articles on the establishment of the new institution at the Great Hall of the People, Beijing, on Monday.
Chinese President Xi Jinping initiated the establishment of the AIIB during the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting in Bali, Indonesia, in October 2013.
AIIB is a multilateral development bank designed to give financial support to both government and private institutions for the development of infrastructure in Asia.
Indonesia has committed to inject US$672.1 million worth of capital into the AIIB, which it will pay within five years. Indonesia ranks eighth among countries with the largest capital in the multilateral bank.
'For Indonesia, the AIIB is one of the financing source options for infrastructure development acceleration,' said Bambang. Moreover, he said, the bank will focus on commercial and large-scale infrastructure projects, such as highways, toll roads, ports and airports.
'The Word Bank [WB] and Asian Development Bank [ADB] are financing developments in general terms, including in education and health. Although they have allocations for infrastructure development, they aren't enough as the funds must be shared with other development sectors,' said Bambang.
'Projects financed by the WB and ADB are not allowed to involve private companies. Those two finance agencies have also prohibited coal-based power plant developments,' he said.
The minister said the AIIB was open to projects that involve private companies. It could also provide financial support for coal-powered electricity plants, as long as they used environmentally friendly technology. (ebf)(+++)
