Beijing, China, January 29, 2019

Infrastructure Investment Needs to Scale Up to Ensure Long-Term Growth in Asia: AIIB Report

Infrastructure projects focused on cross-border connectivity present significant investment opportunities and are vital for long-term growth in Asia.

This is the main conclusion of the inaugural Asian Infrastructure Finance report developed by the Asian Infrastructure Investment Bank (AIIB).  The report emphasizes that cross-border infrastructure including links that promote trade, market integration and the distribution of green energy are necessary during times of market instability and declining economic growth.  It also highlights that projects in markets including India and China have the potential to greatly improve much needed connectivity in Central and South Asia.

“We are working to help emerging markets understand that investments in connectivity projects are needed for long-term growth,” said AIIB President Jin Liqun.  “AIIB is stepping up with additional capital, practical solutions and data and insights to help drive the necessary level of infrastructure investment needed during challenging economic times.”

Using snapshot analyses of financing cost, financing value and construction costs across eight key markets, the report explores how tensions, rising nationalism and macroeconomic developments are impacting cost drivers and investment potential on a country-by-country basis.  The report also identifies where infrastructure opportunities are still largely untapped by investors and are at risk of remaining so with increasing uncertainties.

As governments grapple with the need for macroeconomic stabilization and sustaining a high level of infrastructure investment to meet growing demands, AIIB is developing strategies and projects to help members facilitate long-term investments in and attract private sector investors to cross-border projects:

  • Transport Strategy: Directs focus on financing economically viable strategic infrastructure projects with significant economic return that will play a key role in promoting trade and economic growth.
  • Information and Communications Technology (ICT) Strategy: This year, AIIB will develop an ICT strategy that will focus on helping members reap economic benefits from investment in broadband and other connectivity-focused projects.
  • ESG Enhanced Credit Managed Portfolio: USD500 million approved for a managed credit portfolio that aims to develop infrastructure as an asset class, develop debt capital markets for infrastructure and promote the integration of Environmental, Social and Governance (ESG) principles in fixed income investments in Emerging Asia.

 

The Asian Infrastructure Finance report recognizes that there has been no significant breakthrough in the region in mobilizing private capital for infrastructure.  AIIB believes there is urgent need to redouble efforts to mobilize private capital, and that multilateral development banks (MDBs) need to further contribute towards improving project preparation, improving country policy frameworks and sustaining the supporting conditions such as providing better information for market players.

“Good data can help policymakers and investors track the development of infrastructure markets, allowing them to better respond to both near- and long-term issues,” said AIIB Principal Economist Dr. Jang Ping Thia. “The Asian Infrastructure Finance report is the first of what we expect to be a series of reports that will elevate the level of data quality on infrastructure financing in Asia to facilitate high-quality discussion among key players and further mobilize private sector investment.”

The Asian Infrastructure Investment report 2019 can be found here.

 

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 93 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.

About Asian Infrastructure Finance

Asian Infrastructure Finance features contributions from more than 40 industry experts across banking, financial services, project and infrastructure finance, multilateral development banks, energy and transport. This inaugural report features benchmarks in three areas—infrastructure financing volume, infrastructure financing cost and road construction costs—to provide a snapshot of the health and direction of project financing in eight markets: Bangladesh, China, India, Indonesia, Pakistan, Philippines, Russia and Türkiye.

 

Logos for Download

Our logo is available in JPEG and PDF format.

DOWNLOAD


Media Contact

Lingxiao He

Press Officer

+86 10 8358 0683

SEND AN EMAIL

More News Articles

Beijing, February 01, 2023

AIIB Launches Inaugural Euro Commercial Paper Program

The Asian Infrastructure Investment Bank (AIIB) is launching its inaugural USD5-billion multicurrency Euro Commercial Paper (AIIB ECP) program in February 2023. The program expands AIIB’s short-term funding options and demonstrates the Bank’s agility in meeting investors’ demand for sustainable investment through high-quality debt capital market issuance programs.

READ MORE

Beijing, January 09, 2023

AIIB Welcomes Mauritania as New Prospective Member

The Asian Infrastructure Investment Bank’s (AIIB) Board of Governors has approved Mauritania’s application, raising the Bank’s approved membership to 106. Mauritania is now AIIB’s 55th nonregional member, 21 of which are from Africa.

READ MORE

Beijing, December 30, 2022

AIIB Extends EUR250M to Support Egypt’s Green Public Transportation

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a EUR250-million loan to Egypt for the Alexandria-Abou Qir Metro Line Project. Aiming to increase access to efficient, safe and low-carbon public transportation in the city of Alexandria, the project will upgrade and electrify the existing Alexandria-Abou Qir line. Twenty metro stations along the 22-kilometer corridor will be modernized, 13 stations and 16 kilometers of which will be elevated.

READ MORE

Beijing, December 12, 2022

AIIB Reinforces Commitment to Support Members’ Clean Energy Solutions

The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved an update to the Bank’s Energy Sector Strategy on Nov. 22, 2022. Under the updated Energy Sector Strategy, AIIB will focus its energy investments on supporting its Members to achieve their long-term climate goals and net-zero/carbon neutrality commitments and to accelerate the just transition towards secure, affordable, and sustainable energy access for all.

READ MORE

Home News and Insights Media Center News Infrastructure Investment Needs to Scale Up to Ensure Long-Term Growth in Asia: AIIB Report