The Asian Infrastructure Investment Bank (AIIB), one of the youngest multilateral development banks (MDBs), is making significant strides in promoting sustainable infrastructure development across its member countries. Recently, AIIB announced that its ninth annual meeting will be hosted in Samarkand, Uzbekistan, in September 2024, signaling the bank's growing interest and involvement in Central Asia.
AIIB's Vice President, Sir Danny Alexander, discussed the bank's mission, priorities, and its focus on Central Asia in an interview with Kursiv. AIIB, established in 2016, boasts 109 members, including Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The bank's core mission is to support sustainable development by financing green and technology-enabled infrastructure, with a particular emphasis on private capital mobilization.
Sir Danny highlighted that AIIB, while being part of the global multilateral development family, views other MDBs not as competitors but as partners. He stated,
"MDBs do not consider each other as competitors but rather partners. The need for investment in infrastructure is so great that we need to work together, co-finance, align on policies, debarments, ESG standards, ethics, professional standards."
This collaborative approach is vital to addressing the significant infrastructure investment needs worldwide.
AIIB's primary focus is on "infrastructure for tomorrow," encompassing green infrastructure, cross-border connectivity, technology-enabled infrastructure, and private capital mobilization. Sir Danny emphasized,
"We aim to have at least 50% of the mobilized investments for our project to be from private sector capital by 2030."
This demonstrates the bank's commitment to supporting business initiatives in its member countries.
High-quality infrastructure, according to Sir Danny, is a catalyst for economic development and improved living standards. He stated,
"Infrastructure is key, and you can see this by looking at some of the success stories in Asia."
Infrastructure investment has played a crucial role in the rapid economic development of countries like South Korea and China.
AIIB is open to a variety of project partnerships, including government-backed projects, public-private partnerships (PPPs), and private sector-backed initiatives. Sir Danny encouraged businesses in AIIB member countries to engage and discuss potential projects. He stated,
"If you have a project, come and discuss. We are very easy to contact. We are open to discussion."
Central Asia holds strategic importance for AIIB due to its location at the crossroads of Asia, Europe, and the Middle East. The region's potential for clean energy production and sustainable growth, combined with its role as a transportation and logistics nexus, makes it a vital focus area for the bank. Four Central Asian countries, including Uzbekistan, are AIIB members, and the bank has ambitious plans for expanding its presence in the region.
Sir Danny highlighted AIIB's partnership with Uzbekistan, saying,
"In Uzbekistan, we were very fortunate, as it was upon President Mirziyoyev’s initiatives that a joint declaration for a three-year rolling pipeline of government-backed infrastructure projects was developed."
This unique partnership aligns projects with the country's needs and AIIB's priorities.
In Kazakhstan, AIIB is exploring opportunities in the wind and solar energy sectors, aiming to increase its project footprint in the country.
Looking ahead, AIIB plans to expand its influence further in Central Asia, driven by the region's sustainable development goals and strong partnerships. The bank anticipates growing energy demand, particularly in renewable energy, and emphasizes the need for upgrading grids and transmission lines to meet this demand. AIIB also recognizes the importance of addressing other pressing needs like irrigation, sanitation, transportation, housing, and trade integration.
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