TIP reported that Japan unveiled a plan on Thursday to
provide USD 110 billion in aid for Asian infrastructure projects, as China
prepares to launch a new institutional lender that is seen as encroaching on
the regional financial clout of Tokyo and its ally Washington.
The amount of Japanese funds, to be invested
over 5 years, tops the expected USD 100 billion capitalization 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 Mr Shinzo Abe at a symposium of Asian officials and experts,
represents a 30% 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.
Mr Abe said that “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.”
Source: Steel
guru