The Asian Infrastructure Investment Bank is stepping up to play a greater role in the global financial landscape, with the first projects approved and more members expected to join, according to its president.

In a speech at a meeting of the bank's leaders on June 25, Jin Liqun said that with a strong start, the China-initiated bank is poised to play an expanded role worldwide.

What has been achieved in the six months since the bank was established has been "fast-paced and productive", he says.

The bank, which aims to support infrastructure projects with significant cross-border benefits, launched in January and has 57 founding members.

A further 24 economies have shown an interest in joining the institution, with Hong Kong expected to sign up this year, Jin says.

With priority given to sustainable infrastructure investments, Jin says the bank will strive to bring good value in its lending and is poised to meet or exceed its target of $1.2 billion this year.

Board members have approved the bank's first four loans, totaling $509 million, for electrical power, transportation and urban development in Bangladesh, Indonesia, Pakistan and Tajikistan. Three of the four projects are co-financed by the Asian Development Bank, the European Bank for Reconstruction and Development, and the World Bank.

"The AIIB is fulfilling its commitment by helping members, especially low- and middle-income member countries, to strengthen their capacity, including environmental, social, legal, procurement and technical assessments and analyses, and advisory services," Shi Yaobin, China's vice-minister of finance, says in reference to the initial $50 million startup contribution.

Zhang Yansheng, director of the National Development and Reform Commission's Institute for International Economics Research, says the AIIB should play a role in smoothing out volatility and uncertainty in the global economy.

"Infrastructure projects, including cross-border projects and those in other countries, are a significant method to motivate growth at a time when the global economy is reviving slowly," Zhang says.

Axel van Trotsenburg, vice-president of development finance at the World Bank, says, "with a clear and specific mission, the AIIB has its role to play to fill the funding gap for infrastructure that all multilateral banks can hardly fill in the short run."

The bank is able to expand financing channels to invite more private sector players to co-finance projects, he adds.

Minister of Finance Lou Jiwei says pension funds and other forms of private investment can also join the investment portfolio of the AIIB.

"Investment in the private sector can join through a public-private partnership funding model," he adds.

wangyanfei@chinadaily.com.cn

(China Daily Africa Weekly 07/02/2016 page14)