SEOUL, Nov. 15 (Korea Bizwire) – South Korea’s membership in the China-led Asian Infrastructure Investment Bank (AIIB) is paying dividends, with a number of companies winning deals with Bangladesh in recent days.
According to the Ministry of Strategy and Finance, LS Cable & System and Hyosung Corp both obtained contracts for work on Bangladesh’s electrical power grid. This marks the first time that domestic firms have won contracts tied to a national project funded by the AIIB.
Going forward, it is expected that the Korea Water Resources Corporation’s hydro power plant in Nenskra, Georgia will receive financing from the AIIB. A $1.2 billion project agreed to between the organization and the Georgian government in 2015, the Ministry of Land, Infrastructure and Transport stated in April that the AIIB would provide $87 million in funding. The matter is expected to be discussed during the December board of governors meeting.
Despite geopolitical tensions that strained the South Korea-China relationship, the Korea Development Bank and the AIIB have agreed to the creation of a $1-billion-dollar fund for targeted investment into developing Asian nations.
After China, South Korea has the highest number of AIIB employees, underscoring the bank’s importance to national interests.
Lina Jang (email@example.com)