China-led AIIB and multilateral funding agency ADB will co-finance a $100-million loan for India to improve power transmission networks and expand the use of solar and wind energy. The loan, approved by Board of Directors of the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB), involves co-financing of $50 million from the Manila-based Asian Development Bank (ADB).
Since the AIIB commenced operations in 2016, the two sides have co-financed four projects, including the M4 expressway in Pakistan with $100 million from each bank. The second is a natural gas production and transmission project in Bangladesh, with an aggregate financing of $227 million, including $167 million from the AIIB.
According to ADB chief economist Yasuyuki Sawada, the two banks could cooperate to meet Asia’s huge infrastructure investment needs.Sawada said that infrastructure needs in Asia and the Pacific stand at about $1.7 trillion per year, and there is a finance gap of $500 billion per year.