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AIIB is very good combination of public and private sector

Staff writer |
Jin Liqun, president-designate of the Asian Infrastructure Investment Bank (AIIB), said the AIIB is a very good combination of strong features of public sector companies and private sector companies, and it would do more to engage private sector in infrastructure investment.

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The AIIB will have authorized capital of $100 billion.
Jin made the remarks at a press conference after the conclusion of the Singapore Summit, which was held on Friday and Saturday. Talking about how to engage private sector in infrastructure investment in Asia, Jin said the AIIB would act as a platform for the private sector companies to invest in infrastructure facilities.

"Normally, infrastructure investment would have long gestation period, and there're also huge risks. So when we step in, it would provide a lot of comfort to the private sectors when they work with local governments in this region. We can also help with creating bankable projects for private sector to participate in."

While emphasizing that the AIIB would not limit to private sector within this region but across the world, Jin said the joining of private sector companies can also contribute as "they' re normally cost-effective, they look at the profitability, and have much less bureaucracy".

The AIIB, which has 57 prospective founding countries, will have authorized capital of $100 billion. Asian countries will contribute up to 75 percent of the total capital and be allocated a share of the quota based on their economic size.

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