The Asian Infrastructure Investment Bank’s Board of Directors, meeting on September 27-28 in Beijing, approved loans totaling $320 million to finance two investment projects in the energy sector. The approved loans are:
● a US$300 million loan for Tarbela 5 Hydropower Extension Project in the Islamic Republic of Pakistan, co-financed with the World Bank; and
● a US$20 million loan to finance a 225 MW Combined Cycle Gas Turbine Power Plant Project in Myanmar, co-financed with other Multilateral Development Banks and commercial banks.
AIIB President Jin Liqun noted, "I am delighted to announce that AIIB’s Board of Directors has approved its second batch of loans for two investment projects. The two projects, both in the energy sector, will help to ease the severe power deficit in both countries and contribute to the core mandate of AIIB to support green and cost effective infrastructure. We are very pleased that these two projects are joint co-financing operations with our development partners. With the approval of two new projects, we are well on our way to meeting our target to extend financing of $1.2 billion in 2016."
The Bank’s Vice President and Chief Investment Officer, DJ Pandian, welcomed the new investments noting, "The Bank will continue to meet the needs of its clients and promote the economic growth of the region through financing crucial infrastructure projects."
Brief details on the two projects are provided below. Additional details on these, and upcoming projects may be found at www.aiib.org.
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Pakistan - Tarbela 5 Hydropower Extension Project
A US$ 300 million loan to the Islamic Republic of Pakistan for the installation and commissioning of an additional power house utilizing the existing Tunnel 5 at the Tarbela Hydropower Dam that was constructed in the 1970s. The financing supports the further sustainable expansion of Pakistan’s hydropower generation capacity which is in serious deficit. The power house once completed will provide an additional low cost and environment friendly generation capacity of 1,410 MW. The additional power will help alleviate periods of severe power outages during the high demand summer season and the low generation cost will help reduce Pakistan’s overall power generation costs. This project contributes to the core mandate of AIIB to support green and cost effective infrastructure. The project is to be co-financed with World Bank.
Myanmar – Myingyan Combined Cycle Gas Turbine Power Plant
The approved loan is a US$20 million loan for a 225 MW Combined Cycle Gas Turbine (CCGT) Power Plant Project in Myanmar. The 225 MW power plant will be the largest Gas-Fired Independent Power Producer (IPP) in Myanmar increasing much needed reliable and clean energy to the country’s demand (currently installed power capacity in Myanmar is around 4,700 MW). When completed, the new facility will help to ease the country’s severe power deficit. It is co-financed with other Multilateral Development Banks and commercial banks.
