Transparency and Information Disclosure in the Modern

Age

Laurel Ostfield
Head of Communications and Development, AIIB
May 6, 2017

The views expressed in these presentations are the views of the author(s) and do not necessarily reflect the views or
policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not
guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding,
interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.
 AboutAIIB
Forginga new path

Asian Infrastructure Investment Bank (AIIB) is a 21st century, multilateral development

Bank that is rooted in the idea that investing in low-carbon infrastructure is the way to
promote social and economic development in developing countries.

The Bank works in cooperation with its member countries, private financiers and other
multilateral development banks to address the growing need for transportation networks,
urban development, clean water supplies and low-carbon power within the region.

Guided by the principles of Lean, Clean and Green, the Bank was established in January
2016 and is headquartered in Beijing.

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Lean, Clean and Green
Our values guide our decision making

Lean
Define value from the standpoint of the Banks clients. Being laser focused on the Banks
mission and purpose by meeting client needs.

Clean
Staff hold themselves and others accountable for integrity and honesty. Staff are willing to
acknowledge mistakes and errors, regardless of consequences, and taking all actions
necessary to redress them promptly. Corruption is not tolerated, and staff are encouraged
to take prompt action to report and/or address real or potential corruption.

Green
It will provide environmentally and socially sustainable financing, support and solutions to
clients. Staff will inspire and empower each other to take purposeful steps to improve
environmental efforts at work and in their lives.

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 Overview of shareholding structure
Global mandate to meet Asias most pressing needs

MembershipinAIIBcontinuestobeopentomembersoftheIBRDortheADB.OnMarch23,2017,13prospectivenew
memberswereapprovedtojoinAIIB,bringingtheBankstotalmembershipto70.AIIBsroleinfacilitatinginfrastructure
developmentisanimportantpriorityforshareholderslong-termeconomicdevelopmentgoals Members
Founding regional
Founding non-regional
Prospective regional
Prospective non-regional

Russia
CentralAsia
Kazakhstan
Canada Kyrgyzstan
Tajikistan
Europe Uzbekistan
Austria
Belgium
Denmark Mongolia
Finland Georgia
TheBankwillhelptomobilize France
Germany
Armenia South Korea
Turkey
muchneededadditionalresources Hungary China
Iceland WesternAsia
frominsideandoutsideAsia Ireland Azerbaijan Egypt
South-EasternAsia
Italy Israel Hong Kong
.andwillcomplementthe Luxembourg Jordan Sudan Brunei
Cambodia
Philippines
Singapore
existingmultilateraldevelopment Venezuela Malta
Netherlands
Kuwait
Oman
Ethiopia Indonesia Thailand
Laos Timor-Leste
banks Norway Qatar SouthernAsia Malaysia Vietnam
Poland Saudi Arabia Afghanistan Myanmar
Portugal U.A.E.
Articles of Agreement Peru Brazil Spain
Bangladesh
India
Sweden Iran Fiji
Switzerland Maldives
United Kingdom Nepal Australia
South Africa New Zealand
Pakistan
Sri Lanka

Additional sources: Various public press releases; AIIB; 70 members include 52 founding members, 5 prospective founding members (who have signed, but not yet ratified the Articles) and 13
prospective new members

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 Global best practices in MDB governance
Checks & balances in line with principles of transparency, independence, and accountability
Oversight from both regional and non regional members

BoardofGovernors

BoardofDirectors Compliance,
Effectiveness, Integrity
Unit (CEIU)
President

VicePresidents(5)

Membercountries

For ShareVotes, each member has one vote for each share of capital stock held
Each Founding Member to be allocated six hundred FoundingMemberVotes
BasicVotesensure that smaller member countries have a minimum voting power, constituting 12 percent of
the total number of votes at any time.
Members'votingpoweris the sum of their Basic Votes, Share Votes and, where applicable, Founding
Member Votes

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 Approved project list
AIIB follows clear and well-defined approval processes before financing projects

BoardofDirectorsapprovedfinancialpoliciesrequirecreditdecisionstobebasedonsoundassessmentsoftheborrowers
capacitytoservicealoan.Environmentalandsocialassessmentsarecarriedouttoensurethatallprojectscomplywiththe
Bankspolicies
Strategic Project
Project Board
programming preparation
identification approval
Initialproject Projects meeting the Project due diligence to Project documents are
sourcingand preliminary screening Project team assesses affirm project viability. submitted to the AIIB
identification criteria will be feasibility of the project Draft agreement is Board for approval
discussed and drawn up and reviewed
approved by the by internal Investment
Executive Committee Committee

Loansapprovedsinceinceptionhavebegundisbursementsin2017
Totalproject
cost AIIBloanamount Approval
Country Projectname Sector Co-financier US$ US$ date
1 Pakistan National Motorway M-4 (Shorkot-Khanewal Section) Project Transport ADB $273,000,000 $100,000,000 24-Jun-16
2 Tajikistan Dushanbe - Uzbekistan Border Road Improvement Transport EBRD $105,900,000 $27,500,000 24-Jun-16
3 Bangladesh Distribution System Upgrade and Expansion Project Energy Stand alone $262,300,000 $165,000,000 24-Jun-16
4 Indonesia National Slum Upgrading Project Urban WB $1,743,000,000 $216,500,000 24-Jun-16
5 Pakistan Tarbela 5 Hydropower Extension Project Energy WB $823,500,000 $300,000,000 27-Sep-16
6* Myanmar Myingyan Power Plant Project Energy IFC $312,000,000 $20,000,000 27-Sep-16
Duqm Port Commercial Terminal and Operational Zone
7 Oman Transport Stand alone $353,330,000 $265,000,000 8-Dec-16
Development Project
8 Oman Sultanate of Oman Railway System Preparation Project Transport Stand alone $60,000,000 $36,000,000 8-Dec-16
9 Azerbaijan Trans Anatolian Natural Gas Pipeline Project (TANAP) Energy WB / EBRD $9,000,000,000 $600,000,000 21-Dec-16
10 Indonesia Dam Operational Improvement and Safety Project Energy WB $300,000,000 $125,000,000 22-Mar-17
11 Indonesia Regional Infrastructure Development Fund Project Mixed WB $406,000,000 $100,000,000 22-Mar-17
12 Bangladesh Natural Gas Infrastructure and Efficiency Improvement Project Energy ADB $453,000,000 $60,000,000 22-Mar-17

$14,092,030,000 $2,015,000,000

Note: *This is a non-sovereign project

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AIIB:Anewkindofbank
What we are and what we are not

Whatweare:
Investing in infrastructure, and other productive sectors, with the goal of
improving economic outcomes in developing countries
Maintaining high standards for environmental and social safeguards in the
projects we invest in
Lean team focused on infrastructure finance
Looking to take best practices from many sectors and industries

Whatwearenot:
No grants or concessionary funds
Do not have a direct mission to end poverty or other broad social issues

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OurTransparencyJourney
Early commitments and consultative process sets the tone

1) Embed commitment to transparency and disclosure in the Banks Articles of

Agreement the first major MDB to do so.
The Bank shall establish a policy on the disclosure of information in order to
promote transparency in its operations. (Article 34)
2) Public Information Interim Policy approved in January 2016 immediately
after the Bank officially began operations.
3) Environmental and Social Framework went thru open consultations and
includes provisions on information disclosure requirements for projects.
4) Energy Strategy in development and went through two rounds of
consultations.
5) CEIU kicked off an open consultation to develop the Banks Complaints
Handling Mechanism.