SHANGHAI: China-backed Asian Infrastructure Investment Bank (AIIB) will finance a huge new highway jointly in the country of Pakistan in its 1st co-financed project with the Asia Development Bank (ADB), the 2 policy banks stated.
The declaration on the project, a 64-km-long stretch of the M4 highway that will link the Shorkot to Khanewal in the Pakistan’s Punjab province, was made as the 2 banks signed an agreement to jointly finance projects at an ADB meeting in the country of Germany on the day of Monday.
This would make it one of the 1st projects to achieve backing from the newly-developed AIIB, which started in the month of January with the support of US allies involving the countries of and Britain – despite opposition from the state of Washington.
It is hoped to lend $10-15 billion a year for the first 5 or 6 years.
“I’m delighted and glad to take a further step forward in our partnership with the ADB,” AIIB’s President Jin Liqun stated in a statement posted on the website of bank.
“AIIB looks forward to deepening our already powerful relationship and extending our cooperation as we find to deal the important infrastructure financing requirements in the Asia Region.”
The M4 will link with other highways to connect Faisalabad and Multan.
The AIIB mentioned the M4 project as its 1st “business opportunity” on its website on the day of April 11 with a predicted project price of $273 million.
It claimed that ADB will be the lead co-financer and will manage the project on behalf of the other financing partners.
The banks have sought to play down uncertainties the AIIB will compete with existing Western-dominated multilateral investment banks.
The AIIB and World Bank have signed a framework agreement to co-finance the proposed project previous month.
The countries of China and Pakistan have made closer ties over the past year with a plan to construct an economic corridor of energy and infrastructure agreements between the 2 countries that is worth an estimated cost of $46 billion.