|
 The amount of Japanese funds, to be invested over 5 years, tops the
expected $100 billion capitalisation of the Asian Infrastructure
Investment Bank (AIIB), the Beijing-sponsored lender scheduled to
begin operations next year.
Japanese officials said the plan, announced by Prime Minister Shinzo
Abe at a symposium of Asian officials and experts, represents a 30
percent increase over Tokyo's past infrastructure funding.
Japan said it wants to focus on "high quality" aid, for example, by
helping recipients tap its expertise in reducing pollution while
building roads and railways. That's an implicit contrast with the
AIIB, whose projects Washington has said may not adequately
safeguard the environment.
"We intend to actively make use of such funds in order to spread
high-quality and innovative infrastructure throughout Asia, taking a
long-term view," Abe said in a speech announcing the plan.
About half the funds will be extended by state affiliated agencies
in charge of aid and loans and the rest in collaboration with the
Asian Development Bank (ADB).
Japan hopes the aid will help draw private funds to help meet the
vast demand for infrastructure in Asia.
The United States and Japan were caught off guard when a total of 57
countries, including Group of Seven members Britain, Germany and
France jumped on board the AIIB bandwagon by March.
The two allies have stayed out of the China-led institution, seen as
a rival to the U.S.-dominated World Bank and Japan-led Asian
Development Bank, citing concerns about transparency and governance
- although Tokyo for one is keeping its options open.
Finance officials said Japan's aid plan had long been in the works
as part of a Group of 20 pledge to meet global needs.
But worried that Japan may look less pro-active than Beijing, Tokyo
also wants to showcase its support for the region.
"We had thought it was better not to speak up much, but that doesn't
get through," Koichi Hagiuda, a special aide to Abe in his Liberal
Democratic Party, told Reuters.
"So some demonstration seems to be needed."
Japanese and Chinese finance officials will meet in Beijing on June
6 and may discuss the AIIB, but Tokyo looks unlikely to make a
decision on joining any time soon.
[to top of second column] |
LDP lawmakers looking into the matter will put together a report
later this month or in early June, but will only state the pros and
cons of joining or staying out, said Masahiko Shimayama, a member of
the party panel.
"I think it's unlikely that the government would make a decision on
when to join based on our report," he told Reuters.
Tokyo, which given the size of its economy could become the No. 2
donor if it decides to join the AIIB, may well keep its powder dry
for some time to come.
"If it (AIIB) becomes a proper financial institution for the sake of
Asia, there is no reason to be embarrassed about joining later,"
Hagiuda said.
The United States and Japan agreed last month that the World Bank
and ADB should team up with the AIIB in syndicated loans as a way to
help the new lender establish strong standards.
The AIIB is holding a meeting of founder members in Singapore this
week to decide on the articles of association and operational
details. A delegate to the conference, speaking on condition of
anonymity, said it was unlikely the new bank could start lending at
the start of 2016 as predicted, given the need for member countries
to get approvals from their legislatures.
"China hopes that members get such approvals by year-end and the
operations start from the next year, said the Asian delegate. "But I
wonder if it is possible, given domestic political situations in
each country."
(Additional reporting by Jongwoo Cheon in Singapore; Editing by Raju
Gopalakrishnan)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
