Asia Infrastructure Investment Bank (AIIB) is set to provide $5 billion in financing for public projects in Turkey over the course of three years.

A memorandum of understanding signed between the Ministry of Treasury and Finance and AIIB will ensure approximately $5 billion in financing for public projects over the next three years. Minister Şimşek and AIIB President Jin Liqun signed the memorandum of understanding at a meeting in the city of El Ula in Saudi Arabia. An official statement from the ministry read: “This memorandum of understanding establishes a multi-year framework with AIIB for the first time, further strengthening our cooperation.”

The signed memorandum of understanding will reinforce the strong partnership between Turkey and AIIB, while providing significant contributions to sustainable and green development projects.

Development-focused projects in various areas such as energy, transportation, real sector, export financing, health, and water management will be supported. Additionally, an extra $5 billion in financing is earmarked for private sector projects in the future. This will increase resource diversity for the real sector and exporters, enabling conditional financing for infrastructure projects in different sectors and regions.

Moreover, AIIB is an international financial institution based in Beijing with 110 members. Seventy-five percent of the bank’s total capital is distributed among regional members, while the remaining twenty-five percent is allocated to non-regional members. Turkey holds a 2.5% voting power with its $2.6 billion capital, making it the 10th largest shareholder in the bank. Turkey also ranks 7th among regional countries.

Since 2018, AIIB has provided $5.5 billion in financing to Turkey, making it the second largest beneficiary of bank funding after India.