The Chancellor of the Exchequer (Mr Philip Hammond)
In 2015, the UK became a founding member of the Asian Infrastructure Investment Bank. The AIIB supports economic growth in Asia and drives up living standards. The UK’s membership deepens economic ties with Asia and creates opportunities for British businesses.
At the ninth UK-China economic and financial dialogue in Beijing on 16 December 2017, the Chancellor of the Exchequer signed a contribution agreement with the AIIB, formalising the UK’s commitment, made at the previous EFD in 2016, to provide $50 million USD to the AIIB’s special fund for project preparation. This fund provides grant support to low income developing country members of the AIIB to prepare infrastructure projects for the bank to finance. China and the Republic of Korea have committed $50 million USD and $8 million USD, respectively, and the fund is open for more contributions.
The contribution agreement states that the UK will make four equal payments of $12.5 million USD by the end of March in 2018, 2019, 2020 and 2021 respectively. The UK’s contribution to the special fund will score as 100% official development assistance (ODA) as projects using UK money will only take place in low-income countries.
HM Treasury will make these payments, and any future payments to the AIIB, under the powers of the International Development Act 2002. The first payment will be made before the end of March.
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