AIIB confirms plan for Hong Kong office, with opening expected next year – South China Morning Post

AIIB Hong Kong Hub to Advance Sustainable Development Goals

Establishment and Strategic Purpose

The Asian Infrastructure Investment Bank (AIIB) has confirmed the establishment of a new hub office in Hong Kong. This development, the bank’s second operational base outside mainland China, is scheduled to become functional in the upcoming year. The primary objective of this hub is to enhance the AIIB’s capacity to finance infrastructure projects that are fundamentally aligned with the United Nations Sustainable Development Goals (SDGs).

Core Functions and Alignment with SDGs

According to AIIB President Jin Liqun, the Hong Kong hub will serve a dual function, focusing on private sector mobilization and capital market fundraising. These functions are integral to achieving global sustainability targets.

1. Private Sector Mobilization: The hub will act as an interface for AIIB’s investment operations, collaborating with local partners, including banks and funds, to originate and deliver infrastructure projects. This directly supports SDG 17 (Partnerships for the Goals) by fostering multi-stakeholder collaborations.
2. Capital Market Fundraising: The office will leverage the depth and liquidity of Hong Kong’s capital markets to support the AIIB’s funding and financing activities, channeling significant capital towards sustainable development.

The hub’s operations will contribute directly to several key SDGs:

• SDG 9 (Industry, Innovation, and Infrastructure): The core mission is to finance resilient, sustainable, and inclusive infrastructure across the AIIB’s 110 members.
• SDG 11 (Sustainable Cities and Communities): Investments will target projects that enhance urban infrastructure, making cities more inclusive, safe, and resilient.
• SDG 7 (Affordable and Clean Energy) & SDG 13 (Climate Action): A significant portion of the mobilized funds will be directed towards green energy projects and climate-resilient infrastructure.
• SDG 8 (Decent Work and Economic Growth): By financing major infrastructure projects, the hub will stimulate economic growth and job creation in member countries.

Leveraging Hong Kong’s Financial Ecosystem for Global Goals

The strategic placement of the hub in Hong Kong is designed to utilize the city’s status as a premier international financial centre. This access to robust capital markets is critical for scaling up investments needed to close the significant SDG financing gap. The new office will enhance the AIIB’s offshore financing capabilities, reinforcing Hong Kong’s role in global sustainable finance and accelerating progress towards the 2030 Agenda for Sustainable Development.

1. SDGs Addressed in the Article

• SDG 9: Industry, Innovation and Infrastructure

  The article’s central theme is the Asian Infrastructure Investment Bank (AIIB) and its mission to “deliver infrastructure projects.” This directly aligns with SDG 9, which focuses on building resilient infrastructure to support economic development.

• SDG 17: Partnerships for the Goals

  The establishment of the AIIB hub in Hong Kong is a strategic partnership. The article highlights its role in “private sector mobilisation,” “fundraising from the capital market,” and “collaborating with local partners such as banks and funds,” all of which are core components of strengthening the means of implementation for sustainable development as outlined in SDG 17.

• SDG 8: Decent Work and Economic Growth

  While not explicitly mentioned, infrastructure development is a fundamental driver of economic growth. By financing and delivering infrastructure projects, the AIIB contributes to the economic development of its 110 member countries, which is the primary objective of SDG 8.

2. Specific SDG Targets Identified

1. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure

   The article states that the AIIB hub’s purpose is to “originate and deliver infrastructure projects that benefit its 110 members.” This directly supports the development of infrastructure to foster economic development and well-being.

2. Target 9.a: Facilitate sustainable and resilient infrastructure development in developing countries

   The AIIB, as a multilateral development bank, provides financial support for infrastructure. The new hub is designed to enhance its “offshore financing capabilities” and “funding and financing activities,” which facilitates infrastructure development in its member countries, many of which are developing nations.

3. Target 17.3: Mobilize additional financial resources for developing countries from multiple sources

   The article explicitly mentions that a key function of the Hong Kong hub is “private sector mobilisation and fundraising from the capital market.” This action directly addresses the goal of mobilizing financial resources beyond official development assistance to fund development projects.

4. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships

   The initiative described is a partnership between the AIIB (a multilateral public institution) and the Hong Kong authority. Furthermore, the hub will be “collaborating with local partners such as banks and funds,” which exemplifies the public-private partnership model promoted by this target.

3. Implied Indicators for Measuring Progress

1. Indicator for Target 9.1 & 9.a: Total investment in infrastructure projects

   The article implies that the success of the hub can be measured by the scale of its operations. An indicator would be the total value of financing mobilized and the number of “infrastructure projects” that are originated and delivered through the new office.

2. Indicator for Target 17.3: Amount of private capital mobilized

   Progress towards this target can be measured by tracking the amount of funding raised through the Hong Kong hub. The article points to this with phrases like “private sector mobilisation” and leveraging the “depth and liquidity of Hong Kong’s capital markets to support its funding and financing activities.” A direct indicator would be the dollar value of capital raised from these private sources.

3. Indicator for Target 17.17: Number of partnerships established

   The article states the hub will be “collaborating with local partners such as banks and funds.” A tangible indicator of progress would be the number of formal partnership agreements established with these private sector entities to co-finance or support infrastructure projects.

4. Summary Table of SDGs, Targets, and Indicators

Source: scmp.com