WB welcomes signing of agreement on AIIB
Washington: World Bank President Jim Yong Kim today welcomed the signing of the articles of agreement by the founding members of the China-led USD 100 billion Asian Infrastructure Investment Bank (AIIB).
“I congratulate all founding members of the Asian Infrastructure Investment Bank on the establishment of the new development institution today,” he said in a statement.
“More funding for infrastructure will help the poor, and we are pleased to be working with China and others to help the AIIB hit the ground running,” he said.
Noting that the developing world’s infrastructure investment needs are too huge for any single institution, he said the world spends about USD 1 trillion a year on infrastructure, but the vast majority of that goes to developed countries.
Emerging markets and low-income countries face an annual gap of USD 1 trillion to USD 1.5 trillion in infrastructure spending, the World Bank said.
“We view the AIIB as an important new partner that shares a common goal: ending extreme poverty,” he said.
“With strong environment, labor and procurement standards, the AIIB will join us and other development banks in addressing the huge infrastructure needs that are critical to ending poverty, reducing inequalities, and boosting shared prosperity,” he added.
The AIIB will have authorised capital of USD 100 billion, and Asian countries will contribute to up to 75 per cent of the total capital. Each member will be allocated a share of the quota based on their economic size.
The bank is designed to finance infrastructure construction in the continent and is expected to go into operation later this year.