IPOH, Oct 2 (Bernama) — The implementation of development projects under the Asean Infrastructure Fund (AIF) will begin in mid-2012, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said today.
He said the AIF had identified infrastructure projects worth RM2.1 billion (US$700 million) as a start, and it would benefit local contractors who are capable and competitive.
“According to the collaborative agreement between the AIF and the Asian Development Bank (ADB), the AIF would finance 30 percent of the projects while the ADB the rest,” he told reporters here.
The AIF was set up to speed up regional economic integration ahead of the implementation of the Regional Economic Community by 2015.
Husni said AIF member countries that met in Washington on Sept 24 had agreed to contribute a total of RM1.5 billion (US$500 million) to the fund in three transactions, namely in June 2012, June 2013 and June 2014.
Malaysia is Asean’s largest contributor with US$150 million.
The fund will finance major in structure projects throughout the region.