Finance Minister Lou Jiwei said on the 10th at the sub-forum "APEC: Responding to Asia's New Future" during the "Boao Forum for Asia Annual Conference 2014" that the Asian Infrastructure Investment Bank is actively being prepared, and that the preparatory group and related mechanisms have already been established. Under this mechanism, a trust fund will also be promoted in the future, and by advancing a number of PPP projects, private-sector participation will be realized, allowing social capital to enter the construction and operation of public-service infrastructure through reform.

 

　　Lou Jiwei said that with the exit from quantitative easing now underway, fiscal expansion in various countries has begun to gradually tighten, and the recovery is very fragile. The next step for economic growth must rely on mobilizing investment on the one hand and mobilizing innovation on the other. In terms of investment, infrastructure investment is of particularly important significance. At present, funds are available for infrastructure investment; what is lacking is the ability to mobilize them. The Asian Infrastructure Investment Bank, proposed for establishment last year, is actively being prepared, and the preparatory group and related mechanisms have already been established. Lou Jiwei said that after the founding member countries are determined in the future, the preparatory group will be transformed into an international preparatory group. An intergovernmental memorandum is now being drafted and efforts are being made to complete it by this autumn, after which the first draft of the charter will be further revised so that the Asian Infrastructure Investment Bank can be established as quickly as possible. The investment bank will be a regional multilateral infrastructure development bank, jointly funded by various countries, with initial capital set at US$50 billion, which can be expanded as the bank develops.

 

　　Lou Jiwei disclosed that under this mechanism, a trust fund will also be promoted in the future, and by advancing a number of PPP projects, private-sector participation will be realized. The PPP approach should also be promoted domestically, allowing social capital to enter the construction and operation of public-service infrastructure through reform. At the same time, it is necessary to learn from and exchange views with other APEC members. The PPP mechanism will work together with the Asian Infrastructure Investment Bank to promote connectivity among Asian countries and regions.