Myanmar, Southeast Asia’s last country to emerge from state monopoly rule, has earned itself a seat at the table of the Asian Development Bank (ADB)-led Association of the South East Nations Infrastructure Fund (AIF), the ADB has announced.
The inclusion of the country in the financing structure which started in May this year was completed today with an AIF board meeting at which project pipelines for 2015 to 2016 in water, transport and energy – as well as an indicative one for 2016 to 2017 – were agreed. Loan negotiations have already started, the ADB announced.
“Myanmar is pleased to become a full member of the AIF as this is an important step toward further integration into ASEAN and the global economy, as well as helping the country to access funding to invest in infrastructure to support its long-term development,” said U Maung Maung Win, AIF director for Myanmar.
Since inception of the fund in 2009, the ADB has approved loans for three infrastructure projects for a total of $165 million, including $25 million for the Java-Bali 500kV power transmission project, a $40 million loan for a sanitation project, both in Indonesia, and a $100 million loan for a power grid development project in Vietnam.
Via the financing mechanism, Myanmar is likely to receive funds for infrastructure projects on a co-financing basis and receive advisory support, as well as technical support for implementation.