Asian Development Bank, China-Based Lender Processing $2 Billion Loan For India

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Asian Infrastructure Investment Bank and Asian Development Bank process loan for India

The China-based Asian Infrastructure Investment Bank (AIIB) and Asian Development (ADB) are currently processing a $ 2 billion loan for India to purchase COVID-19 vaccines.

Of the $ 2 billion loan, the Manila-based ADB is expected to fund $ 1.5 billion and the AIIB plans to provide $ 500 million, AIIB Vice President DJ Pandian said on Tuesday.

“The AfDB has agreed to finance $ 1.5 billion and the AIIB will supplement with an additional $ 500 million,” Pandian said.

The loan is under review by the AIIB board, he said, adding that India applied for it three months ago. About 667 million doses of COVID-19 vaccines are expected to be purchased with the loan, according to the Bank.

He said the vaccines will be procured by the Indian government through a competitive process and that the AfDB will administer the procurement system and implement it through the APVAX mechanism, or Asia-Pacific Vaccine Access Facility, of the AfDB.

India, which produces Covishield and Covaxin, recently took an inoculation milestone by administering 100 crore doses of the Covid-19 vaccine to its citizens against the deadly virus. India is also planning to resume vaccine exports and supply the vaccines to a number of countries.

In addition to funding various infrastructure projects in India, AIIB has also provided India $ 1.75 billion for COVID-19 relief budget support.

Mr. Pandian said the Beijing-based AIIB, of which India is the second largest shareholder after China, has so far approved 147 projects worth $ 28.9 billion.

Besides being the second largest shareholder, India became its biggest beneficiary by getting $ 6.7 billion for 28 projects, he told media here as the bank held its 2021 annual general meeting by video link.

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