Narendra Modi to inaugurate third AIIB annual meet in Mumbai today: All you need to know about China-led bank

Prime Minister Narendra Modi will inaugurate the third annual meeting of the Asian Infrastructure Investment Bank (AIIB) on 26 June in Mumbai. The meeting, spread across three venues - the NCPA, the Oberoi and the Trident --  will see those in charge discuss ways to fix the region's creaking infrastructure.

The Department of Economic Affairs under the finance ministry, the Centre and the Asian Infrastructure Investment Bank (AIIB) will jointly host the two-day meeting.

The theme for this year's meeting is 'Mobilising Finance for Infrastructure: Innovation and Collaboration'. The event will see leaders from various organisations and government share ideas and experiences for creating a sustainable future via sound infrastructure investment, the finance ministry said in a statement.

 Narendra Modi to inaugurate third AIIB annual meet in Mumbai today: All you need to know about China-led bank

The third annual meeting of the Asian Infrastructure Investment Bank will be held on 25 and 26 June. Reuters.

This year will also see the roll out of the Asian Infrastructure Forum, which will gather infrastructure practitioners for a project-driven discourse, focused on matching innovative finance to critical infrastructure needs, reported the PTI .

Monsoon rains notwithstanding, the two-day meet will host policy makers, ministers from AIIB member countries, participants from partner institutions, the private sector and civil society. Moreover, experts from a range of fields will be present to lead discussions and share insights on addressing Asia's infrastructure gap in an environmentally and socially friendly manner, the statement said.

Apart from the prime minister, Finance Minister Piyush Goyal and Economic Affairs Secretary Subhash Chandra Garg will also be present during the course of the meeting .

The Mumbai meeting will provide a platform for several seminars that focus on topics including mobilising finance for infrastructure, gender and infrastructure, and connectivity within and beyond Asia,. There will also be 'Host Country Seminars' on topics including the sources and instruments of financing and new technology choices and alternatives, alongside a panel discussion with the chief ministers of various states, it added.

What is the AIIB?

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. The bank commenced operations in January 2016 with 57 founding members and now has 86 approved members from around the world, according to its website.

India is the second-largest shareholder in the Beijing-headquartered lender and also the largest borrower, accounting for commitments to the tune of USD 1.2 billion of the overall USD 4.5-billion committed so far.

AIIB vs World Bank / ADB

The AIIB is the youngest of the three lenders. China-led AIIB is viewed as Asia's response to the West-dominated Asian Development Bank (ADB) and the World Bank (WB). The United States, which initially opposed the formation of the AIIB, is still not a member. However, its allies Canada, Germany, the UK, Australia and South Korea have joined the AIIB.

The three lenders operate in similar spaces. AIIB's motive is more or less self-explanatory. On the other hand, the ADB and the WB, founded in 1966 and 1945 respectively and tasked with reducing poverty, bankroll socio-economic development projects.

And, cooperation is their mantra. Since it was floated, the AIIB and the Manila-based ADB have co-financed four infrastructure projects -- in Bangladesh, Georgia, Pakistan and India, with cumulative loans amounting to over $700 million. Similarly, the AIIB and the Washington-headquartered WB have co-financed five projects -- a natural gas pipeline in Azerbaijan, power generation in Pakistan, and projects in Indonesia to improve dam safety, develop regional infrastructure and rebuild slums, reported Reuters.

With inputs from PTI and Reuters

Updated Date: Jun 26, 2018 07:37:07 IST