Written Statement on behalf of the Netherlands for the Annual Meeting 2021

The Netherlands would like to thank the authorities of the United Arab Emirates and the AIIB for
accommodating the process of hosting the sixth Annual Meeting of the AIIB. This Annual Meeting
provides an excellent opportunity to reflect on the activities of the past year and exchange views on
the AIIB and its operational environment in the years to come.
The AIIB maintained a sound financial profile, confirmed by the Bank’s AAA ratings and the creation
of a yield curve through regular successful emissions in USD and other currencies. The Bank has
successfully demonstrated the effectiveness of its institutional set‐up, including its lean approach, and
its non‐resident board. We compliment the AIIB on the continued development of the governance‐
framework of the Bank. Furthermore, we commend the Bank for the continued support to its clients,
despite the difficult circumstances due to the Covid‐19 crisis, which required adjustments in
governance processes to ensure full functionality of the Bank. In this regard we also compliment the
Bank with its fast, coordinated and strong contribution to the international response to this crisis, in
partnership with peer MDBs, and in close coordination with the IMF regarding debt sustainability
assessments. We now call upon the AIIB and the other MDBs to seize the lessons learnt during the
pandemic in their plans to contribute to the global economic recovery. A regular dialogue and good
coordination among MDBs, as well as stronger coordination with national and regional initiatives in
the Asia‐Pacific region, will be crucial for achieving the desired result of the development of
infrastructure in this region.
When the Bank’s founding parties met in 2014, they acknowledged the significance of infrastructure
development for the social and economic well‐being of the people in Asia. As the AIIB is particularly
well placed to cater to the needs of the region as a whole, and its regional members in particular, we
invite AIIB to capitalize on this comparative advantage. Maintaining this focus in terms of geography
and sectors will allow AIIB to continue deepening its expertise and building economies of scale that
can translate into competitive advantages including lower operative costs than those of competitors.
Investment in both new infrastructure and replacement of outdated structures plays a crucial role in
overcoming the challenges ahead of us in the post‐pandemic phase.
Through the Covid‐19 Response Facility (CFR) the AIIB has been able to quickly and effectively respond
to the needs of its members. However, we reiterate that the CRF’s purpose is to respond to a crisis
which is temporary and exceptional in nature. The CRF is not meant to develop new financial
instruments or activities for the AIIB, where it would not have sufficient value added. We should aim
to strengthen the current model of the AIIB rather than seek to diversify it, as the success of the Bank
will ultimately depend on its financial strength and credibility.
We commend the AIIB on its actions to become a green Bank. In this light, we strongly support the
Bank’s ambition to introduce a 50% climate finance target and the integration of this ambition in the
Corporate Strategy. Developing and financing high‐quality green projects will be instrumental for the
further development of the AIIB and will enable the Bank to assist the region to face environmental
challenges head‐on. We furthermore commend the Bank for committing to Paris Alignment in the
Corporate Strategy and aligning all new financing activities by 1 July 2023, which should be backed by
an internationally agreed methodology. We call on the AIIB to continue the close cooperation with
other MDBs, to ensure a coordinated and aligned approach to the implementation. Striving for a green
Bank will be an ongoing process. With the above in mind, we also encourage the Bank to work on an
ambitious review of the Energy Policy.
The mandate and mission of the AIIB have been built on the specific financial model of an investment
Bank with a development purpose. This approach is based on sound banking principles that entail the
support of profitable, yet not necessarily profit‐maximizing, projects to ensure and safeguard AIIB’s
long‐term financial sustainability. This is in the interest of all of AIIB’s members as it allows the Bank

Written Statement on behalf of the Netherlands for the Annual Meeting 2021

to leverage their capital contributions at lowest costs in financial markets, generate profits for the
build‐up of own capital, and mobilize further private capital as AAA‐rated institution. We encourage
the Bank to maintain and strengthen this model and applaud its commitment not to put the financial
viability of the Bank at risk through cross‐subsidizing projects. We take note of and appreciate the
renewed commitment by Management that AIIB will continue to be financially self‐sustainable and
that no general capital increase will be needed from shareholders in the future.
We commend the AIIB for the development of its framework of safeguards and expect that future
projects will continue to benefit from strong internal checks‐and‐balances and high project
standards. Maintaining a sound framework of accountability and compliance with the highest
standards will further strengthen the position of the AIIB as a key partner in the region.