AIIB and ADB To Finance Infrastructure Projects in South Asia
Sept. 29, 2016 (EIRNS)—Bangladesh, Pakistan, and Myanmar—all three South Asian nations with huge infrastructural deficits—have been identified by the China-led Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) for transport and power projects. Railway Gazette reported today that the Asian Development Bank has approved its largest ever railway investment and its biggest investment in Bangladesh on Sept. 28, a $1.5 billion loan package to finance the construction of a 102-kilometer line which will link the tourist town of Cox’s Bazar with the existing network at Dohazari. Construction of the 1,676/1,000 mm dual-gauge line is expected to cost a total of $2.012 billion. Cox’s Bazar is located at the southeastern tip of Bangladesh on the Bay of Bengal and Dohazari is due north inland from Cox’s Bazar. The 1,676/1,000 mm dual gauge line will have 1,000 mm (also known as the meter gauge) line within the wider 1,676 mm railroad.
Reuters reported today that the AIIB has approved $300 million financial package for expansion of hydroelectric power plant in Pakistan and has approved $20 million for a power plant in Myanmar. Both these projects will be co-financed with other lenders. "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," said AIIB President Jin Liqun, Reuters reported.
AIIB had earlier co-financed projects such as a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan.