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Asian Infrastructure Investment Bank (AIIB)

Topics Covered: Important International institutions, agencies and fora, their structure, mandate.

Asian Infrastructure Investment Bank (AIIB):


Context:

Centre signs $304 million pact with AIIB for power transmission network in Assam.

  • The fund will be utilised for the ‘Assam Intra-State Transmission System Enhancement Project’, aiming to improve reliability, capacity and security of the power transmission network in the state.

What is AIIB?

Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond.

The Parties (57 founding members) to agreement comprise the Membership of the Bank.

  • It is headquartered in Beijing.
  • It commenced operations in January 2016.

Aim:

By investing in sustainable infrastructure and other productive sectors today, it aims to connect people, services and markets that over time will impact the lives of billions and build a better future.

Membership:

  • There are more than 100 members now.
  • Fourteen of the G-20 nations are AIIB members including France, Germany, Italy and the United Kingdom.

Voting Rights:

  • China is the largest shareholder with 26.61 % voting shares in the bank followed by India (7.6%), Russia (6.01%) and Germany (4.2 %).
  • The regional members hold 75% of the total voting power in the Bank.

Various organs of AIIB:

Board of Governors: The Board of Governors consists of one Governor and one Alternate Governor appointed by each member country. Governors and Alternate Governors serve at the pleasure of the appointing member.

Board of Directors: Non-resident Board of Directors is responsible for the direction of the Bank’s general operations, exercising all powers delegated to it by the Board of Governors.

International Advisory Panel: The Bank has established an International Advisory Panel (IAP) to support the President and Senior Management on the Bank’s strategies and policies as well as on general operational issues.

InstaLinks:

Prelims Link:

  1. AIIB vs ADB vs WB.
  2. Members of AIIB.
  3. Top shareholders.
  4. Voting powers.
  5. AIIB supported projects in India.

Mains Link:

Write a note on the Asian Infrastructure Investment Bank (AIIB).

Sources: the Hindu.