AIIB approves $250m loan to Indonesia

The China-initiated Asian Infrastructure Investment Bank approved a $250 million loan to improve irrigation services and management accountability in Indonesia, the bank said on Tuesday.

The project, cofinanced with the World Bank, aims to rehabilitate, revitalize and modernize water resources and irrigation systems in Indonesia, and is expected to benefit more than 887,000 local households, according to the bank.

The project also seeks to strengthen irrigation institutions and management and improve the operation and maintenance of these systems, the bank said.

"Improving irrigation infrastructure in Indonesia will support and complement the government's food security and sustainable agriculture development efforts," said AIIB vice-president and chief investment officer D.J. Pandian.

"This project shows AIIB's commitment to support economic growth and socioeconomic development in Indonesia, the largest economy in Southeast Asia," he said.

Launched in 2016, AIIB has an authorized capital base valued at $100 billion to improve economic and social development by investing in high quality, financially viable and environmentally friendly infrastructure projects.