Question Period Note: Asian Infrastructure Investment Bank

• The AIIB is a multilateral development bank (MDB) focused on infrastructure financing.
• As we have experienced in Canada, investing in quality infrastructure helps economic growth and encourages sustainable development.
• As a shareholder in the AIIB, Canada can work with other nations, including many key trading partners, to advance important priorities all across Asia, such as inclusive economic growth and equality.
• The Government of Canada is also actively working to identify more opportunities for Canadian businesses in AIIB projects and operations.

• Established in January 2016 and based in Beijing, the AIIB is a multilateral development bank (MDB) focused on infrastructure financing in Asia. As of November 2019, the AIIB had 75 member countries, and 25 prospective ones. Members include Australia, China, France, Germany, India, Italy, South Korea and the UK. The United States and Japan have not joined the Bank.
• Canada joined the AIIB in March 2018, with the Minister of Finance serving as Canada's Governor. Canada is currently serving a two-year term, slated to end next July, as one of twelve Directors on the AIIB Board of Directors. Canada holds approximately 1 per cent shareholding and voting power at the AIIB.
• To date, the AIIB has financed projects in various sectors including transport, energy, and water and sanitation. As of November 2019, the AIIB had provided USD 10 billion across over 50 projects, largely in South Asia. The OECD defines 85 per cent of AIIB’s financing as Official Development Assistance.
• AIIB projects offer commercial opportunities for Canadian firms. For example, Canadian firm Hatch is providing consulting services on an AIIB-financed project. In addition, Canadian firms and staff are engaged with core functions of the Bank. For example, TD Securities helped manage the AIIB’s first bond issuance in May 2019.
• Being a member of the AIIB helps to strengthen Canada's relations with the Asia-Pacific region and multilateral institutions. Through the AIIB, Canada is also able to advance important government priorities, including mobilizing private capital for development, gender equality and innovative financing.
• Canada’s participation in the AIIB has not garnered significant domestic public interest, although the issue appears at regular intervals in the national media. There was one large letter writing campaign asking the Government to withdraw from the AIIB in the fall of 2018 (1000+ emails/letters). The Conservative Party of Canada has opposed Canadian participation in the AIIB, and included a commitment to withdraw from the institution in its latest electoral platform.

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