Pictured: Gazprom's first liquified natural gas (LNG) supply line along the Northern Sea Route.
​
Russia Makes Bid for AIIB Projects up North

Russia proposes 16 projects to the AIIB, approximately $8 billion in total estimated costs. The projects are intended to target infrastructure development along the Northern Sea Route. A Russian spokesman stated that the projects will be officially announced perhaps at the Eastern Economic Forum as a result of the AIIB still finalizing logistics of the bank's team.

Hong Kong Looking to Aid in Facilitating Investment Funding of AIIB Member

Hong Kong-based project finance expert, John Yeap, talks about the way in which Hong Kong will be able to help with the financial management of funds from countries participating in One Belt, One Road projects via the island's new Infrastructure Financing Facilitation Office (IFFO). The IFFO is set to open later in July.

Under Pressure. David Cameron at the G7 Summit

This article underscores the stance that several key members of the G7, the United States and Japan, have towards Great Britain's growing friendship and economic ties with China. This will be particularly manifested during the upcoming G7 Summit meeting, where British PM, David Cameron, is expected to take a bit of heat with from the U.S. and Japan with his support for Chinese-led initiatives such as the AIIB. Japan's minister, Shinzo Abe, is expected to drive "defending the rule of law at sea" in regards to China's role in the South China Sea as a primary topic on the agenda.

MOU in the Works Between World Bank and AIIB

The Africa News Agency reports on a statement given by World Bank Country Economics Unit Senior Economist, Gilles Alfandari, in an interview with Sputnik News. According to Alfandari, the World Bank and the AIIB are expected to finalize a Memorandum of Understanding within the coming months. No set date of timeline has been given at this time.

Does the World Bank's Announcement of Funding for Cambodia come at a Bad Time?

The recent announcement by the World Bank to issue $130 million in loans to Cambodia has come under fire from development experts around the world. This action by the World Bank highlights the fact it is trying to maintain its significance in the South East Asian region despite the rapid growth of the AIIB taking place simultaneously. ​

​Check back with our blog next week for another weekly update.

Interested in other IPD updates? Check out our all-team IPD BLOG!

​AIIB in Myanmar

AIIB officials to visit Myanmar in preparation of infrastructure development projects the development bank intends to get off the ground before the end of the year. However, AIIB officials have not yet met with the new government of Myanmar to discuss development plans.


ADB, AIIB Collaboration Continues

The Asian Development Bank (ADB) is co-financing the AIIB's first project, which will involve the construction of roads and water projects. Officials in the ADB have been assisting the AIIB throughout its infancy and into its establishment. This collaborative relationship is a positive note to start out their relationship. There has been concern that there would be competition involved in this relationship,  as Chinese exclusion from ADB leadership is rumored to be an incentive for the AIIB's creation. 


Thailand Refuses AIIB Funding Due to Strings Attached

Silk Road initiative intended to build economic ties across Asia.
Thailand, which lies in the middle of the Silk Road, has refused AIIB funding for a transportation project, shaking up President Xi's vision of regional cooperation. The AIIB was turned down due to the strings attached to their funding - the Chinese requested land rights in Thailand near the project, a railroad. 

​
New Philippine Leadership may link up with China 

Previous Phillipine leadership has aligned with the US in balancing against China, but that may change if aspiring leader Duterte becomes president. Duterte is expected to favor a policies more similar to the Chinese than US policies and he seems to be in favor of AIIB involvement in the Philippines. 


AIIB Investments to Benefit the ASEAN Economic Community 

Doubts cast on the financial benefits of the ASEAN Economic Community (AEC), which seeks to establish a common market among member countries, have lessened recently.  AIIB investments in ASEAN countries may boost ASEAN as an asset class and increase the returns for members of the group. 


India Request AIIB Support for New Ports

New Delhi has requested AIIB assistance for two new ports: a large port at Colachel and a satellite port of JNPT (Maharashtra). India is not prepared by itself to fund these two major projects. 

  Photo:   Rural Road in Pailin Province, Cambodia

​
"China’s Rise is Good News for Cambodia"  [Khmer Times]

The formation of the China-led AIIB offers the opportunity for emerging economies to have a greater say in the global financial landscape. This paves the way for the development of greater connectivity in the Asian regional economy and more inclusion of developing economies in Asia.


"Hong Kong is too closely tied to mainland China for serious talk on independence"
                                                                                                                                          [South China Morning Post]
​
Hong Kong’s soon to be sub-sovereign status with the AIIB is revealing of how intertwined it is with mainland China. This is one of the many argued benefits for maintaining the status quo and pursuing independence.


One Belt One Road Expected to Boost Low Income Asian Economies

The One Belt One Road initiative, including the AIIB, will boost low income economies in Asia and create low cost production centers in these countries. These "Asian frontier economies" may take some of the market share from China as a result. 


The Politics of AIIB Membership 

Switzerland's new membership with the AIIB is expected to boost the development bank's capacity and legitimacy. Many more countries have prepared applications and are hoping to become AIIB members. However, although Taiwan had previously applied, their new government has refused to play by China's rules for membership in the bank. The Chinese Government has requested Taiwan follow the "Hong Kong" model in order to become an AIIB member, which would undermine the sovereignty of Taiwan.  


US Treasury Approves of AIIB, Without Committing Involvement

The AIIB has been called a "constructive addition" by a top official at the U.S. Treasury. However, according to the Treasury undersecretary for international affairs, U.S. investment in the AIIB is still not on the table.