SINGAPORE: In a significant development, India has now become the top destination for project funding from the Asian Infrastructure Investment Bank (AIIB), according to a statement by a senior bank official on Wednesday.
AIIB South Asia Director General, Rajat Misra, made the announcement during the Singapore International Energy Week, attributing India’s ascension to the sheer magnitude of ongoing infrastructure development projects across the country. He noted that discussions for financing a multitude of new projects in India are already underway for the upcoming year.
“India has secured its position as the most prominent market for project funding, and this momentum is poised to continue,” said Misra, emphasizing the bank’s expectation that India’s infrastructure needs will be met as the AIIB’s balance sheet expands.
The Asian Infrastructure Investment Bank (AIIB), established in December 2015, has thus far invested a substantial USD 10 billion in sovereign Indian infrastructure projects. This substantial amount constitutes over 20 percent of the AIIB’s total infrastructure project funding.
For the current year, the AIIB has already lent over USD 1.3 billion to various Indian projects. Notable contributions include USD 438 million for the Chennai Metro Rail Phase 2 Project (Balance Corridor 5) and USD 250 million for the Second Dam Rehabilitation and Improvement Project.
Misra also underscored the rigorous evaluation processes undertaken by the AIIB, highlighting, “AIIB has a very thorough due diligence, and each project is evaluated on its viability.” Following India, China, Turkey, Indonesia, and Bangladesh are ranked as the top borrowers from the AIIB, marking a steady global footprint for the bank as it supports vital infrastructure projects worldwide.
