Asian Development Bank, China-Based Lender Processing $2 Billion Loan For India

China-based Asian Infrastructure Investment Bank (AIIB) along with the Asian Development (ADB) are currently processing a $2 billion loan for India to purchase COVID-19 vaccines.

Of the $2 billion loan, the Manila-based ADB is expected to finance $1.5 billion and AIIB is considering providing $500 million, AIIB's Vice President D.J. Pandian said here on Tuesday.

"The ADB has agreed to finance $1.5 billion and AIIB will supplement with another $500 million," Mr Pandian said.

The loan is under consideration from the AIIB board, he said, adding that India has applied for it three months ago. About 667 million doses of COVID-19 vaccines were expected to be procured through the loan, according to the Bank.

He said the vaccines will be purchased by the Government of India through a competitive process and the ADB will be administering the purchasing system and implement it under ADB's APVAX, or Asia-Pacific Vaccine Access Facility, mechanism.

India, which produces Covishield and Covaxin, has recently crossed an inoculation milestone of administering 100 crore Covid-19 vaccine doses to its citizens against the deadly virus. India also plans to resume vaccine exports and provide the jabs to a number of countries.

Besides funding various infra projects in India, the AIIB has also granted $1.75 billion to India for the COVID-19 relief budget support.

Mr Pandian said the Beijing-based AIIB, in which India is the second-largest shareholder after China, has so far approved 147 projects amounting to $28.9 billion.

Besides being the second-largest shareholder, India has emerged as its biggest beneficiary by obtaining $6.7 billion for 28 projects, he told the media here as the bank held its 2021 annual general body meeting through video link.