Taiwan gears up for participation in AIIB initiative

2015/05/20

No effort will be spared in strengthening Taiwan’s bid to join the Asian Infrastructure Investment Bank while assisting local firms in tapping related business opportunities, according to the ROC Cabinet May 18.

A task force headed by Vice Premier Chang San-cheng and comprising representatives from a number of government agencies like the Ministry of Finance and Public Construction Commission is working to formulate strategies and coordinate funding.

These include backing Taiwan firms’ overseas endeavors for three years through an NT$20 billion (US$655.9 million) fund administered by the MOF-overseen ROC Export-Import Bank, as well as financing green energy and industrial equipment export loans to the tune of NT$4.6 billion via the National Development Fund.

MOF Minister Chang Sheng-ford sees the government’s commitment as crucial in paving the way for local firms to take part in the AIIB and bank-funded infrastructure developments in Central and Southeast Asia.

“Taiwan is well-qualified to participate given its abundant capital, talent and technical know-how in implementing such large-scale projects,” he said. “This involvement benefits the local banking, insurance and construction sectors, while enhancing the nation’s global profile and expanding participation in regional integration.”

Echoing Chang’s remarks, PCC Minister Jack Hsu said the commission’s two-prong plan is certain to help Taiwan secure a place at the AIIB table.

“Taiwan construction consultants and service providers landing overseas infrastructure projects valued at more than NT$5.93 million can reduce bid bonds for their local undertakings,” he said. “In addition, the government will provide subsidies for local firms to set up operations abroad and train personnel for this purpose, with the ultimate aim of promoting Taiwan’s interests in the bank.”

According to statistics by the Asian Development Bank, infrastructure investment in the region is estimated at US$8 trillion in the next 10 years, with AIIB members set to shoulder a considerable share of the funding load.

The AIIB was founded in 2014 by mainland China and 20 other Asian economies with an initial capital base of US$100 billion. It is viewed by many as a potential rival to the World Bank.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=230566&ctNode=413)