Commencement of the Asian Infrastructure Investment Bank
17 January 2016
The Hon Michael McCormack, Assistant Minister to the Deputy Prime Minister, on behalf of the Treasurer represented Australia at the inaugural meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Beijing China on 16–17 January 2016 marking the opening of this important new institution.
Australia's membership of the AIIB reflects the Government's commitment to infrastructure investment. With total authorised capital of US$100 billion, the AIIB will boost regional economic growth, create jobs and promote trade in our region. The AIIB will finance much needed infrastructure investment, while promoting stronger linkages between Australia and our neighbours, and generating benefits for Australian trade and businesses.
The Australian Government congratulates all founding members, the AIIB's Multilateral Interim Secretariat and President-designate Jin Liqun in achieving this significant milestone. Australia will be the sixth largest shareholder of the AIIB and will be among the founding members of the Bank.
In their meeting, Governors adopted a number of resolutions on the commencement of the AIIB's operations, elected President-designate Jin Liqun as President for a term of five years and elected a Board of Directors.
The Australian Government has formed a constituency with New Zealand, Singapore and Vietnam. This constituency will further build on Australia's existing strong relationships with these countries and within Asia.
Australia will hold the constituency's seat on the 12-person Board of Directors for the first two full terms. The Government has appointed Mr Christopher Legg as Australia's Director. Mr Legg is an experienced Treasury official who has previously represented Australia on the Boards of the World Bank and the IMF.
The AIIB Board of Directors will be meeting over the next two days to finalise key operational policies, which will allow the Bank to begin lending to key infrastructure projects in the region.
Australia will continue to work with other member countries to ensure the AIIB is effective, accountable and transparent, and complements the work of other institutions.