AP FILE
The Philippines will be a founding member of the China-led Asian Infrastructure Investment Bank (AIIB), with government officials granted authority by President Aquino to sign the articles of agreement for its establishment before the Dec. 31deadline.
The Philippines will be the last among the 57 prospective members to sign the articles of agreement, which entered into force last Dec. 25.
In a statement on Wednesday, the Department of Finance (DOF) said the Philippine government “believes that AIIB will augment and complement existing multilateral institutions in accelerating economic growth.”
On Tuesday, President Aquino granted Finance Secretary Cesar V. Purisima, or in his absence, Philippine Ambassador to the People’s Republic of China Erlina F. Basilio, full powers to sign the articles of agreement on behalf of the Philippine government.
“Our shared pursuit of growth and development has only become more challenging as the global environment becomes increasingly complex. We thus welcome platforms where countries can work towards shared development goals in the spirit of partnership,” Purisima said.
“In a globalized world, connectivity is the name of the game. AIIB is a promising institution addressing investment needs, and will help close financing gaps in many countries. I also see this as a chance for greater collaboration with member countries, especially with Asean, on regional infrastructure goals,” he added.
The Philippines must shell out $196 million, payable in five years, as indicative paid-in capital. The Beijing-headquartered AIIB’s total capital stock is $100 billion.
“The Philippines has taken the matter of our membership in AIIB very seriously. We have participated in the discussions leading to its creation, believing that good governance is just as important in our international institutions just as they are at home. We are confident that the Bank’s organization design and oversight mechanisms are committed to transparency, independence, openness, and accountability. We are likewise optimistic that AIIB’s decision-making processes are geared towards making it a lean, clean, green institution run like a true multilateral,” Purisima said.
“The Philippines stands to gain from signing on as a Founding Member. We can look forward to deepening our country’s technical expertise in infrastructure as we expand bankable projects. Further, as the AIIB has no restriction on the procurement of goods and services from any country, we may foresee market expansion for infrastructure-related industries, widening job and business growth opportunities,” he added.