The fund will invest in six projects, including $500 million in the Mumbai Metro and $455 million in rural roads in Andhra Pradesh. This also includes $200 million to the National Investment and Infrastructure Fund.
“We have invested $1.2 billion across six projects and the board has given approval for another six for $1.9 billion,” said Haider. “We are looking to invest in areas like power, energy, transportation, renewal energy and waste management. There are many more discussions happening and this number will go up. We do not have a country target. Next year may be higher.”
AIIB has been set up with the purpose of financing infrastructure. So far, $100 billion is committed to the bank. The bank funds both private and public-sector projects. “In India, we have invested in two private projects and four in the public sector,” said Haider. “One of our thematic priorities is to invest in sustainable infrastructure, which is socially, economically and environmentally sustainable.” We prefer connectivity. We want to mobilise private capital and that can be done only when we fund private projects.”
On public-sector investment, where the loan is guaranteed by the sovereign, tenor of the loan can be up to 35 years.