Lender to boost regional ties

By Zheng Yangpeng (China Daily) Updated: 2015-06-30 08:49

What is the relationship between the AIIB and the Belt and Road Initiative?

The AIIB is not set up exclusively for the Belt and Road. They are two separate initiatives. But if there are appropriate projects along the Belt and Road, the AIIB could fund them.

Key features of the AIIB

1. China retains veto power over major decisions made by the AIIB (as the largest shareholder with about 30 percent share, and about 26.16 percent of total voting rights). But China will not seek permanent veto power in future.

2. The text of the AoA is in English, Chinese and French. Its official working language will be English.

3. The AIIB's public procurement contracts will be open to all countries, not just those from member countries, as currently practiced by the Asian Development Bank.

4. A non-resident board of directors will be created to seek ways of optimizing resources and streamlining bureaucracy. Both the World Bank and the ADB have resident boards of directors.

5. The bank will fund ordinary operations from within its own resources. Any "special" operations will be financed from a Special Fund. Both types of operation may seek financing from other sources.

6. The bank will be headquartered in Beijing, with other possible related agencies or offices located elsewhere.

Stepping stones to creating a new bank

2013

Oct 2: President Xi Jinping proposes the establishment of the Asian Infrastructure Investment Bank to promote connectivity and economic integration in Asia.

2014

April 10: Premier Li Keqiang announces at the Boao Forum that China is ready to "intensify consultations with relevant parties in and outside Asia on the preparations for the AIIB".

Jin Liqun, former chairman of investment bank China International Capital Corp and vice-president of the Asian Development Bank, is appointed secretary-general of the Multilateral Interim Secretariat for Establishing the AIIB.