AIIB approves loans for projects in Pakistan, Bangladesh, Indonesia, Tajikistan

The four projects are the first batch funded by the China-led multilateral development bank with 57 founding members.

Mr Jaitley made the remarks ahead of the crucial AIIB Board of Governors meeting which he attended. In the same month, China became an EBRD shareholder country. India has the second-largest voting stake at 7.5 percent and Russian Federation is third with 5.9 percent.

The bank’s board approved a total of $509 million in loans Friday for a power project in Bangladesh, slum-upgrading in Indonesia and road-building in Pakistan and Tajikistan, according to Jin, a former chairman of China’s sovereign wealth fund. A power grid upgrade project in Bangladesh will be exclusively financed by AIIB.

Jin said the bank aimed to “play the role of a catalyst” to mobilise private financing to ease spending pressure of the sovereign governments in infrastructure development.

“It covers railways, airport, sea ports, water supply, sewage, smart city creation, more urbanisation”, Mr Jaitley, who is on a five-day visit to China, said.

The bank reflects China’s rapidly growing financial might and desire for a bigger voice in global finance, which is dominated by the United States and Europe.

“These are parallel institutions which are developing, because of the need for development finance”, he said.

“These projects, which span the energy, urban development and transport sectors, will help to bridge the region’s critical infrastructure-financing gap and strengthen regional connectivity”.

It is crucial for the AIIB to comply with multilateral agency procedures and rules, Zhang added.

During his meeting with Mr Jin Liqun, he said that Hong Kong would continue to support the work of AIIB, particularly in areas such as project financing, investment, financial management and foreign exchange management.

He presented a detailed report on the implementation of the 2016 Business Plan and Budget. “India has a huge unmet demand for investment in infrastructure and is preparing basket of projects worth Dollars 2-3 billion for AIIB funding in the areas of urban development (including smart cities), energy, urban transport, railways, inland waterways and water supply”, said an Indian Embassy statement providing details of Jaitley’s address.