Cambodian parliament ratifies AIIB agreement

Cambodia's National Assembly on Wednesday ratified the agreement on the establishment of the Asian Infrastructure Investment Bank (AIIB), which enables the country to become a founding member of the China-initiated bank.

Ninety-three lawmakers in attendance, including Prime Minister Hun Sen, unanimously ratified the agreement.

Cheam Yeap, chairman of the National Assembly's Commission on Economy, Banking, Finance and Audit, said becoming a founding member of the AIIB is an excellent and right choice for the Cambodian government in mobilizing an additional source of capital for infrastructure development.

"This is the second historical milestone for Cambodia that has joined to form international financial institutions after the country joined as a founding member of the Asian Development Bank in 1966," he said.

With an authorized capital of 100 billion U.S. dollars, the Beijing-based AIIB, formally established last month, has been considered as a milestone in the reform of the global economic governance system as well as in the infrastructure development in the Asia-Pacific region.

According to Cheam Yeap, Cambodia will invest 62.3 million U.S. dollars to purchase 623 shares in equivalent to 0.0635 percent of the AIIB's total capital.

Under the agreement, Cambodia will contribute 20 percent or 12.46 million U.S. dollars of its total investment amount to the bank at the initial stage and the remaining amount will be required to pay in phases within 10 years.

Economy and Finance Secretary of State Vongsey Visoth said the AIIB would provide a new source of capital for infrastructure development in developing countries in Asia.

"There is a massive shortage of capital for infrastructure development in developing countries in Asia, so the AIIB will play a complementary role to the Asian Development Bank and the World Bank in supporting infrastructure projects in developing countries," he said during the assembly floor. Endit