The Asian Infrastructure Investment Bank (AIIB) wants to finance projects in India spanning sectors across energy, transportation and sustainable cities. However, it is open to funding affordable housing projects only if they are backed by the government.
“We have thematic priorities that are sustainable infrastructure is one priority that is key in selecting our project. The projects have to be economically, environmentally and socially sustainable... they are one of the key criteria we look at. We also have sector priorities. Energy, transport and sustainable cities are those three sector priorities we have. These will grow over time, but there are the three we have," said Najeeb Haider, principal strategy officer, AIIB during the bank’s annual meeting.
"So, it’s a combination of projects being in one or two of the categories we are focussed on and also what the country needs,” said Haider.
When asked if the multilateral bank is open to funding other sectors as well apart from energy, transport and sustainable cities that are part of larger infrastructure ambit, he replied the bank is open for consideration for any project that can be categorised as infrastructure and is well structured.
“We don’t do education, health and agriculture per se, but its infrastructure around those sectors we will consider them… We will probably be open to affordable housing, the issue is we are lenders so we want our money back. So affordable housing probably needs to be supported by the government. It has to be well structured as a public-private partnership to put it across,” added Haider.
Since the formation of the bank a few years ago, AIIB has the largest exposure in India with $121,40,00,000 investment and the amount is only to increase further with at least nine more projects lined up with the bank for funding.
In India, the China-based bank has already approved six projects and the seventh was approved on Sunday with an equity investment of $100 million into the newly created National Investment and Infrastructure Fund.
EYEING OPTIONS
- The multilateral bank wants to finance projects spanning sectors across energy, transportation and sustainable cities
- It is also open to funding affordable housing projects
