The Vivid Practice of Building a Communitywith a Shared Future for Mankind--In commemoration of the AIIB second anniversary

By He Yong, Han Xiaoming, People's Daily

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The Vivid Practice of Building a Communitywith a Shared Future for Mankind--In commemoration of the AIIB second anniversary

By He Yong, Han Xiaoming, People's Daily

Two years ago on January 16th, the Asian Infrastructure Investment Bank (AIIB) was officially opened, Chinese President Xi Jinping unveiled for the AIIB a marker "turning stone into gold by performing wonders", meaning the AIIB would constantly create miracles, and promote sustainable economic development in Asia and the world at large. After two years of hard trip, this China- initiated multilateral financial institution handed in a satisfactory answer. Up to now, the number of member countries has increased from 57 to 84, and the number of infrastructure projects has reached 24, involving 12 countries, and the total amount of loan is more than US$4.2 billion. Coal replaced by gas project in Beijing, Duqm Special Economic Zone in Oman, M4 highway in Pakistan, Gujarat country road project in India ... Those financed projects of the AIIB have illuminated the road for the development and prosperity of all sides, which is a vivid practice of building a community with a shared future for mankind.

Assisting Beijing in the use of clean energy

In December 2017, the AIIB approved its first credit financing of US$250 million with 15-year low cost for China, Assisting Beijing in popularizing the use of gas and clean energy. This is also the first project invested in China by the AIIB in the past two years. As Jin Liqun, AIIB President, said that the AIIB first project in China will reduce greenhouse gas emissions through sustainable infrastructure, so as to help Beijing, one of the most important economic centers in Asia, gain more vitality. This investment is more than suitable.

"Reducing coal usage and replacing coal for clean air" action (coal replaced by gas) is the people's livelihood project Beijing Municipal Committee, the CPC and Municipal Government focus on prevention and control of atmospheric pollution and improving the residents life quality of the Capital. This project shows prominent ecological and social benefits, but the project capital requirement is huge with a long payback period. In accordance with the "work plan to accelerate clean energy replacing the civilian bulk coal during 2016 to 2020 in Beijing city", Beijing municipal government should complete the coal replaced by gas project in the 13th Five-Year period in 510 villages with 217,000 households, the planned investment totaling about 6 billion yuan, which is expected to reduce the use of 650,000 tons of standard coal, reduce 595,700 tons of carbon dioxide emissions, 3700 tons of particulate matter, 1488 tons of sulfur dioxide, and 4442 tons of nitrogen oxides.

Through the preparatory investigation and full feasibility study of the project, the AIIB believes that Beijing's "coal replaced by gas" project is highly consistent with the purpose of serving the infrastructure construction and protecting the environment, and agrees to finance it. The "AIIB loans for construction of the project is similar to a timely rain, and send charcoal in snowy weather", the head of the Beijing Gas Group said that the overall project is expected to be completed by 2021.

As the first bank loan and China's first investment project since the establishment of AIIB, the financing support is of great significance to promote the environmental protection and economic development in Beijing and China as a whole. It not only helps China build a clean, low carbon, safe and efficient energy system, and promotes the transformation and upgrading of the economic structure, but also lays a foundation for establishing long-term cooperation between Beijing and even China and AIIB. With the help of the Belt and Road good policy and AIIB sound cooperation platform in the future, the two sides can deepen integration of their respective advantages, further expand areas of cooperation.

Building the largest special economic zone in the Middle East

Oman is among the first group of the AIIB founding members. On January 16, 2017, the AIIB signed a loan agreement with Duqm Economic Special Zone Administrative Committee. The AIIB will provide a US$265 million loan to Oman for the terminal construction project of the commercial dock in Duqm port for a period of 20 years. This is the AIIB first loan to be provided for the port project and also the first loan provided to the Arabian Peninsula.

The special economic zone of Duqm is the only special economic zone of Oman. According to the plan, the Duqm Special Economic Zone covers an area of 1777 square kilometers and the length of the coastline is about 80 kilometers, and is the largest special economic zone in the Middle East and Northern Africa. The prospect of Duqm special economic zone is to be built into a Arabia's maritime logistics center, modern commercial port, safe investment destination and famous tourist attraction, so as to comprehensively promote the diversified development of the national economy.

Center for Regional Strategic Study of Egypt chief researcher Hey Tani said in an interview with this reporter that establishment of the AIIB provides a financial cooperation platform for the Middle East countries to participate in the Belt and Road construction. Of the 57 founding members of the AIIB, there are about 10 Middle East countries. The Middle East market is one of the world recognized biggest markets with potential growth, the per capita GDP, highway and railway mileage are far lower than developed countries, many countries are at the starting or accelerating stage of industrialization and urbanization, in needs of a large amount of energy, communications, transportation and other infrastructure. Particularly, the Middle East countries through industrial transformation and upgrading need to accelerate their development, improve the national economic structures, and seek to diversify the economy and industry. He believes that the key to solve the growth dilemma is to actively attract transnational investment and promote high-quality projects docking on the occasion of transferring of world economic growth momentum. The AIIB is a timely emergence and a beneficial platform, and creates the conditions for the future investment of all parties.

Moterway for the benefit of Pakistan

On August 13, 2016, the M4 Highway -- a motorway connecting Shorkot to Khanewal of Pakistan -- was officially launched, which is one of the first AIIB investment projects, and a 64 km long highway built of asphalt concrete with two-way four lanes.

According to briefing, the M4 Highway is divided into three sections of bidding and construction, the Shorkot to Khanewal section currently under construction is the last section of the highway, both Asian Development Bank and AIIB provide financing support. The project, after full completion, will become a part of North-South transportation corridor of Pakistan, and can effectively shorten the travel time between Islamabad, Faisalabad and Multan, as well as helps strengthen the interconnection between the Southern area of Punjab province with other areas of Pakistan, improving Pakistan North-South highway network.

Mao Yiling, Project Manager China Gezhouba Dam Group Ltd participating in the project, told reporters, in the process of project construction, AIIB adhering to the green, open and cooperation concept together with ADB to jointly carry out pragmatic cooperation and provide beneficial support for the Chinese and Pakistani participating construction enterprises, has played an important role in promoting the smooth implementation of the project. So far, the project has provided about 700 jobs for the local people, favorable to improve people's livelihood, and will create extensive social and economic benefits for the local community.

Hamad, a Pakistani engineer working in the M4 Project Department of Gezhouba Dam Group, said that after completion of the project, the project will improve our travel efficiency and revitalize the regional economic development. Especially in the future, our younger generation can enjoy a more convenient and efficient transportation infrastructure and get more and better opportunities for development. Pakistan Islamabad Policy Research Institute director K. Rachman said in an interview with this reporter, the establishment of AIIB has milepost significance in international multilateral cooperation in the financial sector, and can help promote the sharing of development achievements of China with the region and the world at large, to achieve common prosperity.

India becomes the biggest borrower

Last year, the AIIB signed a loan agreement with India to provide US$329 million for the rural motorway project in the Gujarat State of India. The media reports said that the project aims to improve the interoperability and convenience of rural roads in 33 districts in 1060 villages of Gujarat state, with a benefited population of about 8 million.The project includes two parts, the construction of new roads and the upgrading of the old ones. Under this project, the construction of a total length of 5000 kilometers new roads is mainly the missing part of the rural road network, and the roads leading to schools and remote tribal areas are built. Upgrading the planned roads is to rebuild the existing mud road into the top asphalt road, and upgrade the bridge flood resistance capability, especially those weak bridges in the rainy season.

Indian Economic Times reported on January 11th that India has become the largest lending country of AIIB, and the loan amount reached US$1.5 billion in 2017, and another US$3 billion is in discussion. The prepared projects include the Mumbai metro subway, the new capital of Andhra Pradesh state and West Bengal farmland irrigation. The report said that last year the AIIB approved a US$1.50 billion loan to the Indian Infrastructure Fund, a cooperative move that would benefit local infrastructure construction. Professor Lal of Delhi University told reporters that India's financing from AIIB has increased significantly, with projects concentrated in the fields closely related to the life of ordinary people such as infrastructure, green energy and so on. Although the project has not yet completely landed, the loan financing has effectively benefited the people of India and promoted the Indian environmental protection. In addition, he also believes that cooperation between the AIIB and other institutions such as the Asian Bank provides financing for India, reflecting the win-win cooperation concept of the AIIB.

Sachiv, Secretary General of India-China Economic and Cultural Promotion Association, told our reporter that the financing projects of AIIB show the green, open and cooperative concept, have strongly promoted the economic development of India, and are highly appreciated by all circles in India.

At the AIIB opening ceremony two years ago, President Xi Jinping said in his speech that the AIIB should "become a new platform for building a community with a shared future for mankind". Over the past two years, AIIB has taken steady steps, achieved results more than expected. With the Belt and Road construction forging ahead and broad prospects for cooperation in infrastructure, the AIIB will inject more vitality to build a community with a shared future for mankind.

(Excerpts of the article in People's Daily 18 January 2018)