• Union Minister of Finance and Corporate Affairs Nirmala Sitharaman met Jin Liqun, president, Asian Infrastructure Investment Bank, ahead of the 9th Annual Meeting of Board of Governors of AIIB in Samarkand. 

• Nirmala Sitharaman congratulated Liqun for successfully leading the AIIB and also its rapid growth in lending operations in short span of 9 years. 

• India being the second largest shareholder and the largest client, the AIIB president appreciated India’s contributions to the governance and overall growth of the bank and expressed desire to explore opportunities to further strengthen the ties with India.

Asian Infrastructure Investment Bank

• The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the “infrastructure for tomorrow” — infrastructure with sustainability at its core. 

• It began operations in Beijing in January 2016 and has since grown to 109 approved members worldwide.

• With authorised capital of $100 billion, China is the largest shareholder in the AIIB.

• Its headquarters is situated in Beijing. 

• Unlike most other multilateral development banks set up by advanced economies, AIIB is the first major multilateral development bank where principal contributors are the borrowing members themselves.

• While 75 per cent of the capital is from Asia, several non-Asian regions like Europe, North America, some East African and Latin American countries have also joined the bank as members.

• Working with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

• In 2018, AIIB was granted Permanent Observer status in the deliberations of both the United Nations General Assembly and the Economic and Social Council, the two development-focused principal organs of the global body.

Governance 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. This includes approving the bank’s strategy, annual plan and budget; establishing policies; taking decisions concerning Bank operations; and supervising management and operation of the bank and establishing an oversight mechanism.

• Senior Management: The staff is headed by the president, who is elected by AIIB shareholders for a five-year term and eligible for re-election once. President is supported by senior management, which includes six vice presidents responsible for policy and strategy, investment operations, administration and the corporate secretariat and the General Counsel, Chief Risk Officer, Chief Financial Officer and Chief Economist.

• International Advisory Panel: AIIB has an International Advisory Panel (IAP) that supports the president and senior management on the bank’s strategies, policies and general operational issues. The panel meets at least twice a year (physically or virtually), including one meeting held alongside the bank’s Annual Meeting of the Board of Governors. The president selects and appoints IAP members to an initial two-year term renewable upon completion. Panelists are not salaried but receive a small honorarium. AIIB pays the reasonable costs associated with panel meetings.

(The author is a trainer for Civil Services aspirants.)