Govt mulls Asian Infrastructure Investment Bank membership

KATHMANDU:

The government is preparing to take membership of China’s proposed Asian Infrastructure Investment Bank (AIIB). Finance Minister Ram Sharan Mahat, on Wednesday, said that the government will soon decide on taking the membership.

AIIB, a multilateral bank to fund infrastructure projects in Asia, will have a fund of $50 billion to $100 billion for investing in infrastructure for regional development and member countries get top priority for funding. On Wednesday, the visiting Chinese Vice Minister for Finance Shi Yaobin met Mahat and discussed about Nepal’s membership in AIIB.

Yaobin has urged Nepal to take founding membership soon and said that it will play an important role in helping Nepal increase infrastructure development. During the meeting, Mahat said that Nepal is expecting huge Chinese investment in hydropower, tourism, agriculture and other infrastructure developments.

Appreciating great support from China so far, he also urged Yaobin to increase assistance to meet the infrastructure deficits of Nepal. China has supported Nepal in school infrastructure, Tatopani Dry Port construction and Ring Road improvement. Likewise, it has been extending support in Upper Trishuli 3 A hydropower project and other sectors like health and tourism.

According to the Ministry of Finance (MoF), projects like solar energy production inside Singha Durbar, Larchha-Barhabise Road Improvement, Rasuwagadhi Dry Port, and Pokhara Regional International Airport are also in the pipeline, which will be carried out with Chinese assistance.

Yaobin has assured of support in infrastructure projects to help Nepal in infrastructure development, according to MoF. He also assured of conveying the request of Nepal to increase support in infrastructure sector to the government of China. Yaobin, who arrived in Nepal on Tuesday for a short visit, is also scheduled to meet Prime Minister Sushil Koirala.

Reports say that China is planning to invest $25 billion and Nepal will have to invest $55.5 million in five years to become a founding member of AIIB. Countries including Pakistan, Sri Lanka, Vietnam and Mongolia are positive on becoming members of AIIB.

Source: THT