While US President Donald Trump’s first major Asian trip is unlikely to include any discussion of the Asian Infrastructure Investment Bank, there is no denying that the AIIB has been busy since it began operations in January, 2016. Here’s a look at some of the projects the development bank has been involved in the past year.
Oman: Special Economic Zone
Oman has secured over $300m in AIIB loans for two projects. The Duqm port terminal will create a Special Economic Zone (SEZ) with $265 million in AIIB funding. The Special Economic Zone will allow provide favorable duties, tariffs, and trade regulations for firms investing within the SEZ. Oman’s second project is a $36 million loan to help with preparations for the creation of a national railway.
Pakistan: Expansion of Hydropower Generation
Pakistan has secured $400m in AIIB loans for two projects as well – an expansion to the Tarbela Hydropower plant and co-funded by the World Bank, with a total cost of $823.5 million ($300m coming from the AIIB). In addition, Pakistan secured $100m from the AIIB for an upgrade to a segment of the M-4 Motorway.
Myanmar & Bangladesh: Improve Electricity Capacity
Two additional power plant projects – in Myanmar and Bangladesh, respectively- will receive $185m funding from the AIIB. The Myanmar project gets $20m to build a gas power plant in the country’s interior; a project the country desperately needs as to modernize and attract outside investment to its economy. Bangladesh, in turn, will receive $165m to upgrade and increase its capacity to provide power to rural consumers.
Tajikistan: Road improvements
Road improvements in Tajikistan also made the roster of AIIB project loans in 2016. The Dushanbe-Uzbekistan Border Road Improvement Project, co funded by the AIIB and the European Bank for Reconstruction and Development, will receive a total of $27.5m to upgrade a 39 mile/ 62 kilometer segment of road linking Tajikistan’s capital, Dushanbe, to the Uzbekistan border.
Indonesia: Improving Living Conditions
Indonesia’s national slum upgrade project, co-financed by the World Bank, will receive $216m in funds from the AIIB. The project is expected to improve living conditions for nearly 9.7m Indonesians living in poverty.
Azerbaijan: Natural Gas Pipeline Project
Finally, Azerbaijan’s Trans Anatolian ANAP Natural Gas Pipeline is slated to receive $600m in AIIB loans, along with an additional $800m from the World Bank. The pipeline will travel from Azerbaijan through Turkey, where it is projected to connect to the Trans-Adriatic pipeline, another pipeline project that would eventually bring Azerbaijani natural gas to European markets.