G20 china_web

Investing in infrastructure
It focuses solely on infastructure
but allows for a broad definition
Green and cross-border infastructure
are among its clearly defined targets
ISTOCK IMAGES
Jin Liqun
Gardens by the Bay is part of a strategy by the
Singapore government to transform Singapore
from a "Garden City" to a "City in a Garden"
Bank, the International Monetary Fund,
the G20, the World Trade Organization and
other initiatives.
This is particularly true now, at a time
when the global economic environment is
complex and when the actions of AIIB can
provide a steadying force for growth.
A different approach
As the newest member of the MDB
family, the AIIB cannot stray too
far from the practice of existing
MDBs. We are not wildly
different, but we have striking
new features to justify our
raison d’être.
Like other MDBs, we seek
a high leverage of shareholder
capital. We also share the same
governance and core principles. Our
environmental and social standards are
the same and our operational policies and
institutional documents have benefited
tremendously from other MDBs’ expertise.
AIIB is different from other MDBs in that
we have a razor-thin focus, but a broadly
defined mandate. We are focused solely on
infrastructure and only on project finance,
yet we have a broad definition of what
constitutes infrastructure. This combination
will give us flexibility within our mandate.
$13TR
Government
bonds carrying
negative yields
As a more focused institution, AIIB
seeks to make a significant contribution
to address infrastructure gaps, especially
in three areas.
First, we will fully devote our efforts
to develop green infrastructure, helping
countries address environmental challenges
and the Paris Agreement commitments.
Second, we will prioritise cross-border
infrastructure. It is important to
have a new type of multilateral
financial institution that
contributes to intra- and
inter-regional connectivity
through infrastructure
investment, facilitating trade
and cross-border investment
while pushing for a broad-based
reduction in poverty and peace.
Third, we will focus on mobilising
private capital for infrastructure, which is
necessary if we are to meet the enormous
infrastructure needs.
We believe the AIIB is well poised
to weather any storm in the toughest
of global economic and financial
environments.
Our success depends on a clear,
implementation of sound governance and
management, and persistence in adherence
to best practices as we move forward. G20
President
Asian Infrastructure
Investment Bank
Jin Liqun was appointed the
inaugural President of the Asian
Infrastructure Investment Bank
(AIIB) in January 2016, having
served as President-Designate
since September 2015. Previously,
he was Secretary-General of the
Multilateral Interim Secretariat
(MIS), which prepared the
legal, policy and administrative
frameworks required for
establishing the AIIB. Before
working on the AIIB, Jin served
in top management at the China
International Capital Corporation
Ltd, China Investment Corporation
and the International Forum of
Sovereign Wealth Funds, as well as
the Asian Development Bank and
China’s Ministry of Finance.
www.aiib.org
G7G20.com September 2016 • G20 China: The Hangzhou Summit 133