Opening Statement of Senator Loren Legarda
Committee on Foreign Relations
Subcommittee on the Agreement of the
Asian Infrastructure Investment Bank (AIIB)
10 November 2016, Recto Room
Good morning and welcome to today’s hearing of the Senate Committee on Foreign Relations on the Articles of Agreement of the Asian Infrastructure Investment Bank (AIIB).
Similar to the Asian Development Bank and the World Bank, the AIIB is a multilateral lending institution first proposed by Chinese President Xi Jinping and Premier Li Keqiang during their visits to Southeast Asian countries in October 2013 with the primary objective of fostering economic development through investments in infrastructure development and promoting regional cooperation through closer collaboration with other multilateral and bilateral development institutions.
Citing a study by the Asian Development Bank, the Department of Finance estimates that the Philippines needs US$127.12 billion from 2010 to 2020 for its infrastructure needs. As the Duterte administration aims to increase infrastructure spending of up to 7% of gross domestic product, membership in the AIIB will give the country additional source of financing for major capital investment projects of the government and the private sector.
Other benefits touted for the Philippines include additional employment for Filipinos through projects funded by the AIIB in the country, reduced trade costs, and increased competitiveness and productivity.
On this note, we thank all our resource persons for being present today and we hope for a enlightening discussion on this important treaty. ***