(Yicai Global) Jan. 16 -- The Asian Infrastructure Investment Bank is supplementary to the World Bank and other international financial institutions, or IFIs, and this is why China decided to create the regional bank, as most international organizations need to collaborate with each other.
Infrastructure construction projects are capital-intensive undertakings by nature and cannot be financed by any single individual institution. Collaborative financing can diversify risks and reduce costs, said Jin Liqun, president of AIIB, adding the AIIB, the Asian Development Bank and the World Bank have established close business ties between them.
The AIIB is also willing to continuously improve infrastructure construction through cooperation with private companies, Jin told the Asian Financial Forum. "We will consider projects under the 'One Belt, One Road Initiative,' and help them in funding operations," he said. The first criterion for project selection is whether a project can generate satisfactory and sustainable profits. The project must also be environmentally friendly. Finally, a project selected by the bank must have a high level of acceptance among local residents, because it is supposed to benefit the locals, rather than bring them troubles or problems. "To a certain extent, what we do can facilitate the implementation of the Belt and Road Initiative, but we have our own selection criteria," he added.
Founded in December 2015, the Asian Infrastructure Investment Bank currently has 84 member states. The bank has recruited professionals from banking institutions all around the world, as well as other organizations. Recruitment decisions were made based on professional expertise and ethical standards instead of candidates' passports or nationalities, he pointed out. The bank has invested in energy, transportation and urban infrastructure projects, most of which are in Asia and developing countries, shows information on AIIB's website.