Planning minister meets with Asian Infrastructure Investment Bank delegation

AMMAN  — Minister of Planning and International Cooperation Imad Fakhoury on Wednesday met with a delegation from Asian Infrastructure Investment Bank (AIIB) headed by the bank’s Vice President for Policy and Strategy Affairs Joachim von Amsberg.

The delegation’s two-day visit aims to hold meetings with government officials, the private sector and other relevant bodies and to discuss areas of cooperation within the bank’s domain in infrastructure and priorities for possible future financing opportunities, according to a statement from the Planning Ministry.

During the meeting, Fakhoury stressed the importance of Jordan’s membership in AIIB as the Kingdom is a founding member and collaborates with it in infrastructure sectors and looks forward to benefiting from the bank’s investment portfolio, which will contribute to encouraging private sector investments and projects especially in the productive sectors and infrastructure, the statement said. 

He expressed Jordan’s keenness to benefit from the bank’s various sovereign and non-sovereign financing methods, stressing that these instruments will play a vital role in supporting the financing and implementation of public-private sector partnership projects (PPPs), green infrastructure sectors and productive sectors, such as water, transport, renewable energy and urban and municipal services.

The minister also noted the burdens generated by the situation in the region, which resulted in the influx of large numbers of Syrian refugees, placing a great pressure on Jordan to meet the requirements of hosting, that requires the provision of more infrastructure projects, according to the statement.

Fakhoury briefed the delegation on the Economic Growth Stimulation Plan 2018-2022, which highlighted the importance of PPP’s projects, reviewing Jordan’s experience in attracting investments and implementing of major projects. 

He said that Jordan has “positioned itself as a successful model for PPP’s” in the region, highlighting Jordan’s experience in the field of renewable energy as a leading model, and the existence of a significant number of priority projects in the field of infrastructure to be implemented in the form of PPP’s during the next five years in energy, renewable energy, transportation, water, solid waste, urban development and sectors of the economy.  

Some of these projects could be potential for funding from the Asian Investment Bank in infrastructure, according to the statement.

The minister also noted that Jordan’s unique political stability, sound regulatory and legislative environment and macroeconomic policies, as well as long-term efforts to improve the business and investment climate, have helped make Jordan an attractive destination for companies within the Middle East region, with a wide range of potentials, extensive trade links and a gateway to many regional and international markets, continued the statement.

Fakhoury stressed the importance of Jordan’s new preferential trade arrangement with the EU for 10 years, through simplified rules of origin, allowing a large number of manufacturers to increase exports to EU markets.

For his part, Amsberg emphasised Jordan’s active membership in the bank since its establishment and that the bank was born with the understanding of the founders of the growing demand for infrastructure in Asia to contribute to covering the financing gap for infrastructure projects, according to the statement.

Jordan signed the agreement establishing AIIB, based in Beijing, as a founding member on 29/6/2015, with a capital of $100 billion, read the statement.

The bank has recently received the highest AAA credit rating, enabling it to provide concessional financing to participating countries, added the statement.

Jordan’s participation in the bank aims to increase the Kingdom’s ability to achieve sustainable development, develop its infrastructure and integrate it into its Asian environment, according to the statement.

The priorities of the bank are the development of sustainable infrastructure, interconnection of countries and the stimulation of private capital, focusing on the sectors of energy, electricity, communications, sustainable cities, rural infrastructure, agricultural development, water and urban development, concluded the statement.