Beijing-based AIIB mulls $500 mn funding for healthcare system in India

The Asian Infrastructure Investment Bank (AIIB) is considering a proposal for financing $500-million project in India to strengthen country's national health care systems. The scope of funding will also include the purchase of equipment and detection capacity as country battles COVID-19 pandemic.

AIIB, Beijing based multilateral agency, in a statement said it is currently reviewing projects from several of its members, many in collaboration with other multilateral development banks. The assistance for healthcare project in India is one such example.

AIIB is doubling available funds under its COVID-19 Crisis Recovery Facility to provide upto $10 billion due to high client demand. This follows AIIB’s announcement to make $ five billion available to help public and private sector clients manage through the COVID-19 pandemic.

Requests for funding have substantially exceeded the $ five billion originally allocated for emergency relief.

AIIB, which began operations in January 2016 with now 102 members, said the feedback from clients indicates that immediate assistance is required in three key areas. First, to help alleviate health care pressures in the form of health infrastructure and pandemic preparedness.

Second, liquidity support through on-lending facilities and credit lines via financial institutions to address working capital and liquidity shortages.

And finally, immediate fiscal and budgetary support so governments can focus on ad-dressing the human and financial impacts of COVID-19.

“We are facing a formidable challenge, with the depth and severity of the crisis growing with each passing day,” said AIIB President and Chair of the Board Jin Liqun.

AIIB is working closely with other international financial institutions to create a network of support options, especially for the most vulnerable economies, it added.