Myanmar Set to Join ASEAN Infrastructure Fund in 2014

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Myanmar Set to Join ASEAN Infrastructure Fund in 2014

Myanmar is slated to join the shareholders of the ASEAN Infrastructure Fund (AIF), bringing all 10 ASEAN members into the AIF. With Myanmar expected to join within 2014, the existing AIF shareholders include Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand, Viet Nam, and the Asian Development Bank (ADB).

Bambang Brodjonegoro, Vice-Minister of Finance of Indonesia and Chair of the AIF, said:

"Welcoming Myanmar as a shareholder this year will mark an important chapter in the AIF's development. This will open up new opportunities and make the AIF truly an ASEAN endeavor."

Khin Khin Lwin, ADB Alternate Executive Director from Myanmar, said:

"Infrastructure development is crucial for the continued growth and advancement of Myanmar and other ASEAN nations. Myanmar is honored to join the AIF, which will contribute to our shared vision of a more interconnected ASEAN Economic Community."

The AIF has so far financed two infrastructure projects in the amount of $65 million, consisting of a $25 million financing for the Java-Bali 500kV power transmission project signed in December 2013, and a $40 million loan to a sanitation project signed in May 2014, both in Indonesia.

Last year was an important milestone for AIF lending operations with the first transaction approved. The focus of 2014 is on strengthening its operations. Continued support from all members will make the AIF become one of the important sources to finance infrastructure development in the region. ASEAN's required infrastructure financing is estimated to amount to $60 billion a year in the 10 years leading to 2020. This is in addition to national projects with significant cross-border impacts such as airports, seaports, and roads to borders.

James Nugent, Director General of the Southeast Asia Department at ADB, which acts as the administrator for the AIF., said:

"With the world's lending landscape changing due to the global economic slowdown, the AIF offers a regionally-focused source of funds that's truly homegrown."

The AIF Board approved the pipeline of projects for 2014, and discussed the indicative pipeline for 2015 - 2016, covering priority sectors of water, transport and energy in ASEAN countries. All projects are at an advanced stage of preparation. Details of individual projects will be announced as loan negotiations draw to a close.

ADB is supporting the AIF in a number of areas, including project processing, country consultations to develop project pipelines, and establishing various frameworks for AIF operations.

In addition to its equity investment of $150 million, ADB is the AIF administrator, cofinances investment projects and provides technical support.

List of country news

Country news

  • September 25, 2014

    Myanmar shortlists candidates for a rail station BOT

    The Myanmar ministry of railways (MOR) has shortlisted 24 consortia for the development of the Yangon Central Railways station through a PPP project. Read more
  • September 29, 2014

    InfraCo Asia seeks infrastructure developer for projects in Myanmar

    InfraCo Asia, a commercially managed infrastructure development company which aims to promote private investment in infrastructure and is funded by the multi-donor Private Infrastructure Development Group (PIDG), has launched a procurement process to select an infrastructure development firm for projects in Myanmar. Read more
  • October 27, 2014

    MOU signed for creation of Asian Infrastructure Investment Bank

    Last Friday, twenty-one Asian countries signed a Memorandum of Understanding (MOU) to establish the Asian Infrastructure Investment Bank (AIIB) as founding members in Beijing. Read more
  • November 04, 2014

    Singapore-led consortium wins Hanthawaddy International Airport PPP

    A consortium led by Singapore's Yongnam Holdings Ltd. (YNH) has got the award the Hanthawaddy International Airport concession in Myanmar. Read more
  • November 24, 2014

    Mitsubishi Corp. signs airport concession in Myanmar

    JALUX Inc., Mitsubishi Corporation (MC), and Myanmar's SPA affiliated group-company Yoma Development Group Limited, a wholly-owned subsidiary of Yoma Strategic Holdings Ltd., have signed a concession agreement with Myanmar's Department of Civil Aviation (DCA) to operate and rehabilitate Mandalay International Airport for 30 years. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.