The Asian Infrastructure Investment Bank
Established in January 2016 and based in Beijing, the Asian Infrastructure Investment Bank (AIIB) is a Multilateral Development Bank (MDB) focused on economic development through infrastructure financing in Asia. With total capital of US$100 billion and a priority focus on sustainable infrastructure, cross-country connectivity and the mobilization of private capital, the AIIB complements other development efforts in the region.
Operations of the AIIB
The AIIB has 87 member and prospective member countries as of November 2018, including 57 founding members such as Australia, China, France, Germany, India, Italy, South Korea and the UK. As of November 2018, it has approved financing of US$6.4 billion for 32 projects, and maintains a list of proposed projects. The AIIB received a AAA credit rating from S&P, Moody's and Fitch.
The AIIB positions itself as a 'lean, clean, green' institution. It upholds this vision through the projects it finances and its organizational structure, including a lean staffing commitment and a non-resident Board of Directors.
The AIIB has adopted the operating framework, governance structures and best practices of existing international financial institutions. For example, in March 2017 it adopted the MDB-wide list of sanctioned firms and individuals. The AIIB has also established a suite of policies and guidelines, including a robust Risk Management Framework and an Environmental and Social Framework to support environmentally and socially sustainable development outcomes.
Canada and the AIIB
Canada joined the AIIB on March19, 2018, with the Minister of Finance serving as Canada's Governor at the AIIB. Canada is also serving a two-year term as one of twelve Directors at the AIIB Board of Directors, beginning July 2018.
Canada's participation in the AIIB helps to promote inclusive global economic growth. Investing in quality infrastructure aids economic growth by enabling the movement of people, goods and services, which can have significant positive benefits. Joining the AIIB also helps to strengthen Canada's relations with the Asia-Pacific region and multilateral institutions. As well, it advances Canadian priorities on mobilizing private capital, gender equality and innovative financing.
To date, the AIIB has financed projects in sectors including transport, energy, and water and sanitation, among others. AIIB projects offer commercial opportunities for Canadian firms as well as employment for some Canadians. A list of job opportunities is maintained by the AIIB, including opportunities for young professionals and consultants.