In a significant development, the Asian Infrastructure Investment Bank (AIIB), led by China, has pledged a substantial fund of $4.5 billion to Bangladesh over the course of the next five years. Bangladesh finance ministry has officially announced the commitment through a press release today.
According to the ministry’s statement, the allocated funds are earmarked for climate-related projects and various other critical sectors within Bangladesh. The aim is to bolster the country’s infrastructure and promote sustainable development.
The news comes in the wake of a delegation from Bangladesh participating in the AIIB’s annual general meeting in Egypt. The meeting successfully concluded on September 26, 2023. During this event, the Bangladeshi representatives shared vital information regarding the AIIB’s substantial financial commitment to their nation.
In a related development, Bangladesh has made a formal request to the AIIB to consider relaxing the terms and conditions of the loans provided. This appeal underscores the importance of ensuring the economic viability and feasibility of projects receiving AIIB funding.
It’s worth noting that the AIIB has been a significant partner in Bangladesh’s development journey. It has already extended a total of $3.27 billion in loans for 18 different projects. This partnership dates back to 2016 when Bangladesh first received a loan of $165 million from the AIIB to support a power distribution system upgrade and expansion project.
The Asian Infrastructure Investment Bank (AIIB) gave Bangladesh $100 million to help fight COVID-19 in August 2020. The money helped Bangladesh do more testing, tracing, and treatment, and also get ready for future pandemics.
This latest commitment from the AIIB demonstrates their continued support for Bangladesh’s growth and development aspirations.
Expansion of AIIB
The AIIB has expanded its membership to 109 countries, as its Board of Governors approved the applications of three new economies. El Salvador, Solomon Islands, and Tanzania officially joined during the AIIB’s eighth Annual Meeting in Sharm El Sheikh, Egypt. AIIB now includes countries representing 81 percent of the world’s population and 65 percent of global gross domestic product (GDP).
