The Asian Infrastructure Investment Bank (AIIB), conceived and hosted by China, is essentially a multilateral development bank that is driven solely by the “quality of projects and not politics”, according to its Vice-President, Danny Alexander.
- CPEC is the so-called ‘flagship’ project of China’s One-Belt-One-Road (OBOR) initiative, aimed at developing infrastructure in more than 60 countries. OBOR is among those that will get AIIB funding.
- It was founded in October, 2014, and will have its headquarters in Beijing.
- Its goals are also to boost economic development in the region, create wealth, prove infrastructure, and promote regional cooperation and partnership.
- The value of AIIB’s authorized capital amounts to $100 billion, with almost $30 billion invested by China.
- The bank expects to lend $10 billion to $15 billion a year for the first five years of its operations, beginning in the second quarter of 2016.
- India is an influential member of the AIIB as it has the second-largest voting share and percentage of shares (next only to China) in the multilateral institution that has 57 member countries.