AIIB approves first loans for projects in four countries
The China-led Asian Infrastructure Investment Bank (AIIB) has approved first set of loans totalling US 509 million dollars to finance projects in four countries viz. Bangladesh, Pakistan, Indonesia and Tajikistan.
These loans for the four projects were approved in Board of Directors meeting of AIIB held at its headquarters in Beijing, China.
- Bangladesh: US 165 million dollars loan for a Power Distribution System Upgrade and Expansion Project.
- Indonesia: US 216.5 million dollars loan for a National Slum Upgrading Project. It is expected to be co-financed with the World Bank.
- Pakistan: US 100 million dollars loan for Shorkot-Khanewal Section of National Motorway M-4. It will be co-financed with the Asian Development Bank (ADB) and the United Kingdom’s Department for International Development (DFID).
- Tajikistan: US 27.5 million dollars loan for the Dushanbe-Uzbekistan Border Road Improvement Project. It will be co-financed with the European Bank for Reconstruction and Development (EBRD).
These loans will have an interest rate of London Interbank Offered Rate (LIBOR) plus 1.15 % and a repayment period of 25 years with 5 years in grace period. These projects spanning in the energy, transport and urban development sectors will help to bridge the region’s critical infrastructure financing gap. It will also help to strengthen regional connectivity.