Bills Digest no. 16 2015–16
PDF version [612KB]
WARNING: This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments. This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
Robert Dolamore, Economics Section
Geoffrey Wade, Foreign Affairs, Defence and Security Section
3 September 2015
Contents
The
Bills Digest at a glance
Purpose of the Bill
Background
Committee consideration
Policy position of non-government parties/independents
Position of major interest groups
Financial implications
Statement of Compatibility with Human Rights
Key issues and provisions
Date introduced: 13
August 2015
House: House of
Representatives
Portfolio: Treasury
Commencement: The
formal provisions of the Bill commence on the day of Royal Assent. The
operative provisions of the Bill commence on the later of the Bill receiving
Royal Assent and the day Australia becomes a member of the Asian Infrastructure
Investment Bank.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can be found on the
Bill’s home page, or through the Australian
Parliament website.
When Bills have been passed and have received Royal Assent, they
become Acts, which can be found at the ComLaw
website.
Purpose of the Bill
- The
Bill facilitates Australia becoming a founding and substantial financial member
of the Asian Infrastructure Investment Bank (AIIB).
Background
- The
AIIB is a new multilateral development bank which is being established to help
finance infrastructure development in Asia. China announced its intention to
establish the Bank in October 2013.
- Two
factors appear to have driven the decision to establish the AIIB. First,
emerging market economies want a stronger voice and more influence in multilateral
economic institutions, reflecting their growing economic power. Second, there
is a significant infrastructure funding gap in the Asia region estimated to be
around US$8 trillion in the ten years to 2020.
- Currently
50 countries have signed the AIIB’s Articles of Agreement as founding members.
- Relatively
early on China indicated it was keen for Australia to join the AIIB.
- The
Treasurer and the Minister for Foreign Affairs announced the Government’s
decision to join the AIIB on 24 June 2015.
- The
Treasurer signed the AIIB’s Articles of Agreement in Beijing on 29 June 2015.
- Australia
will be the AIIB’s sixth largest shareholder.
- Internationally,
the establishment of the AIIB has been controversial. Both the United States
and Japan have declined to join. This appears to reflect two key concerns.
First, there is concern the AIIB will undermine or replace the existing
multilateral development institutions. Second, there are concerns about the
extent to which China will use the AIIB to pursue its broader economic and
geopolitical agendas. However, such concerns are keenly contested.
Proposed measures
- The
Bill provides an appropriation for the payment of Australia’s contribution to
the AIIB; authorises the Treasurer, as the responsible Minister, to issue
promissory notes to the AIIB to meet Australia’s financial obligations; and
enables regulations to be made to confer privileges and immunities on the AIIB,
officers and employees of the Bank and experts and consultants performing
services for the Bank.
View of interest groups non-government parties/independents
- Business
groups have welcomed Australia joining the AIIB.
- Australia’s
membership of the AIIB appears to have broad support in the Parliament.
The purpose of the Asian Infrastructure Investment Bank
Bill 2015 (the Bill) is to facilitate Australia’s membership of the Asian
Infrastructure Investment Bank (AIIB) by:
- providing
an appropriation for the payment of Australia’s contribution to the AIIB
- authorising
the Treasurer, as the responsible Minister, to issue promissory notes to the
AIIB to meet Australia’s financial obligations and
- enabling
regulations to be made to confer privileges and immunities on the AIIB,
officers and employees of the Bank and experts and consultants performing
services for the Bank.
The AIIB is a new multilateral development bank which is
being established to help finance infrastructure development in Asia. Chinese
President Xi Jinping and Premier Li Keqiang proposed the establishment of the
AIIB during their respective visits to Southeast Asian countries in October
2013.[1]
The focus of the AIIB will be fostering the economic
development of the Asia region. This is reflected in the AIIB’s mandate which
is set out in its Articles of Agreement:
The purpose of the Bank shall be to (i) foster sustainable
economic development, create wealth and improve infrastructure connectivity in
Asia by investing in infrastructure and other productive sectors; and (ii)
promote regional cooperation and partnership in addressing development
challenges by working in close collaboration with other multilateral and
bilateral development institutions.[2]
The AIIB will be headquartered in Beijing, China.
The AIIB will have an initial capital base of US$100 billion,
divided into one million shares having a par value of US$100,000 each.[3]
Of this capital stock 20 per cent will be in the form of paid-in
shares and the remaining 80 per cent will be callable shares. In
addition, the AIIB will be able to raise funds by issuing bonds in financial
markets as well as through inter-bank market transactions and other financial
instruments.[4]
It appears that relatively early on China was keen for
Australia to join the AIIB.[5]
Initially, there was some uncertainty about what position Australia might take.
On 29 March 2015 Prime Minister Abbott announced Australia
would ‘sign a memorandum of understanding that would allow Australia to be
involved in negotiations to set up the [US]$100 billion bank’.[6]
At the time, the key issues requiring resolution before Australia would
consider joining the AIIB included ‘the bank's board of directors having
authority over key investment decisions, and that no one country control the
bank.’[7]
After discussions with key regional and non-regional
partners, the Treasurer and the Minister for Foreign Affairs jointly announced on
24 June 2015 that Australia would become a founding member of the AIIB.[8]
The Treasurer signed the AIIB’s Articles of Agreement in Beijing
to give effect to the Government’s commitment to join the Bank on 29 June 2015.[9]
Australia will have the sixth largest shareholding in the Bank.[10]
During the second reading debate the Parliamentary
Secretary to the Minister for Communications outlined some of the ways
Australian firms are expected to benefit from the AIIB financing improved
infrastructure:
New ports and railways in countries like India, Indonesia and
Korea will mean that Australia's exports have new opportunities to reach new
markets or expand existing markets. Australian firms will be well placed to
benefit from infrastructure projects which are funded in whole or in part by
the Asian Infrastructure Investment Bank. These projects could lead to work for
Australian engineering businesses and construction management businesses and
could lead to opportunities for Australian providers of finance, consultancy
services and so on. The benefits of the Asian Infrastructure Investment Bank
for Australian business look promising. The Asian Infrastructure Investment
Bank also looks to be a promising vehicle to stimulate much-needed
infrastructure across Asia, in turn stimulating economic growth and
productivity in the nations of Asia. As a nation which is part of the Asian
region, we clearly have an interest in greater prosperity throughout Asia and
we therefore clearly have an interest in participating in the Asian Infrastructure
Investment Bank as a policy tool designed to stimulate the achievement of that
greater prosperity.[11]
Currently some 50 countries have signed the AIIB’s
Articles of Agreement as founding members.[12]
A further seven countries are expected to join the Bank as founding members. The
window of opportunity for countries to join as founding members closes on 31
December 2015. After this date other countries may be accepted as members of
the AIIB, with the process for admission expected to be finalised once the
Bank’s Board of Governors is in place.
Governance arrangements
From the available information it appears the governance
arrangements for the AIIB will be very similar to those of other large
multilateral economic institutions such as the International Monetary Fund
(IMF) and World Bank. The key elements of the AIIB’s governance structure are:
- The Board of Governors: All the powers of the AIIB will be vested in the
Board of Governors.[13]
Each member of the AIIB be represented on the Board of Governors and will appoint
one Governor and one Alternate Governor.[14]
The Board of Governors will meet annually and the powers necessary for the
day-to-day running of the Bank are likely to be delegated to the Board of
Directors.[15]
However, the Board of Governors will retain certain ‘reserve’ powers, for
example covering the admittance of new members.[16]
- The Board of Directors: The AIIB is to have 12 Directors on its Board of Directors;
nine are to be elected by ‘regional’ members (countries classified as part of
Asia and Oceania by the United Nations except as otherwise decided by the Board
of Governors) and three by non-regional members. [17]
It is expected that the Board of Directors will be responsible for the Bank’s
general operations. The Board of Directors will establish oversight mechanisms
addressing areas such as audit, evaluation, fraud and corruption, project
complaints and staff grievances. The AIIB’s website says that these oversight
mechanisms will be consistent with the principles of ‘transparency, openness,
independence and accountability’.[18]
- The President: The President of the AIIB is to come from a regional member
country and will be elected by the Board of Governors.[19]
The AIIB’s Articles of Agreement provide that the process for selecting the
President will be ‘open, transparent and merit-based’.[20]
The President will be able to serve up to two five year terms.[21]
China’s Jin Liqun was selected by consensus as President–designate of the
AIIB at the 6th Meeting of Chief Negotiators representing the Bank’s 57
Prospective Founding Members in Tbilisi, Georgia on August 24, 2015.[22]
- The Vice Presidents: These office holders will be appointed by the Board of
Directors on the recommendation of the President, with the process required to
be ‘open, transparent and merit-based’.[23]
The AIIB will have a weighted voting system whereby the
number of votes a country has will largely be determined by the size of its
shareholding. A member’s votes will be the sum of its Basic Votes, Share Votes
and, where applicable, Founding Member Votes.[24]
All members will receive an equal number of Basic Votes, with the size of this
pool of votes equal to 12 per cent of the total number of votes.[25]
A member will also receive one Share Vote for each share of capital stock it
holds.[26]
If a member is a founding member it will also be allocated 600 Founding Member
Votes.[27]
To illustrate the disparity in voting power, China, the
largest AIIB shareholder will have 297,804 Share Votes while the Maldives will
have just 72 Share Votes.[28]
A weighted voting system ensures decision-making reflects
the relative size of a country’s capital contribution. However, it potentially
creates a longer-term challenge because of the need to ensure the distribution
of power within the organisation keeps pace with shifts in relative economic
power. In multilateral organisations, representation and voice can be strongly
linked to perceptions of legitimacy and effectiveness.
As China will have over a quarter of the votes, under the
AIIB’s Articles of Agreement it will have an effective veto over issues
requiring a ‘super majority’, defined as 75 per cent of votes and two-thirds of
all member countries.[29]
The types of issues requiring a super majority include selecting the President,
increasing the capital stock of the AIIB and changing the size and composition
of the Board of Directors.[30]
However, this is not without precedent. The United States is the only country
to have a veto over major governance decisions at the IMF and World Bank.[31]
Naturally, at this early stage, how the AIIB will operate
on a day-to-day basis has yet to be finalised. As a founding member, Australia
will be able to seek to influence the development of the AIIB’s policies and
procedures. This includes in critical areas such as how projects are selected,
social and environmental safeguards and oversight arrangements.
The pressure to establish a new
multilateral development bank
The AIIB will be entering an increasingly complex multilateral
institutional space. Since the end of the Second World War, the IMF and World
Bank have been the key multilateral economic institutions. The IMF has been the
cornerstone of the global financial safety net, while the World Bank has been
the world’s foremost organisation for providing direct development assistance
and a focal point for global development efforts.[32]
However, over the years a number of regional and sub-regional organisations
have been created, which aim to achieve similar objectives to these
institutions.
As a result, the multilateral development space, in which
the AIIB will be operating, has changed significantly. Robert Wihtol argues:
Johannes Linn, former World Bank vice president, observes
that ‘the multilateral assistance architecture, previously dominated by the
MDBs [Multilateral Development Banks], is now a maze of multilateral
development agencies, with a slew of subregional development banks, some
exceeding the traditional MDBs in size’. The large number of financial
institutions has expanded the financial coverage of countries, sectors, and
issues. A complex network of partnership and joint financing arrangements has
emerged among the banks and funds.[33]
Against this backdrop, two factors appear to have driven
the decision to establish the AIIB. First, emerging market economies want a
stronger voice and more influence in multilateral economic institutions, reflecting
their growing economic power. As the then Secretary to the Australian Treasury,
Martin Parkinson, observed in a speech last year: ‘As they grow, they’re
naturally tending towards forums and institutions that reflect their needs and
respond to their voices’.[34]
Arguably, from a global perspective it would be more
efficient if the existing multilateral institutions were reformed to truly reflect
the growing economic importance of emerging market economies rather than
creating new institutions. Unfortunately, the governance and decision-making
structures of the IMF and World Bank have not kept pace with this reality. It
is therefore not surprising that emerging market economies are establishing
alternative multilateral institutions.
Second, there is a significant infrastructure funding gap
in the Asia region. The Asian Development Bank (ADB) has estimated that if Asia
is to fully realise its potential for inclusive growth, infrastructure investment
of US$8 trillion will be required between 2010 and 2020.[35]
Around 32 per cent of this funding requirement is needed just to
maintain or replace existing structures.[36]
The ADB has drawn attention to the extent of this challenge:
Infrastructure in Asia still shows some deficiencies and a
wide diversity both in terms of quantity and quality. In developing Asia,
millions of families lack electricity, basic sanitation services, and safe
water; and businesses are constrained by the lack of reliable electricity and
transport services. These networks are generally overloaded, unreliable, or
expensive, so the economies function below their capacity. There is still huge
underinvestment in infrastructure, so the total requirement for infrastructure
investment is very large.[37]
Given the magnitude of this funding requirement there is
much that could potentially be achieved if the AIIB is successful in mobilising
additional funding and allocating this money to infrastructure projects that
offer highest net benefit in terms of improving the wellbeing of people living in
the region.
Controversial aspects
Internationally, the establishment of the AIIB has been
controversial. Both the United States and Japan signalled quite early they
would not be joining the Bank. This appears to reflect two key concerns.[38]
First, there is concern that the AIIB will undermine or replace the existing
multilateral development institutions. Second, there are concerns about the
extent to which China will use the AIIB to pursue its broader economic and
geopolitical agendas and interests:
From energy and natural resources to infrastructure and now
technology-intensive sectors, Chinese companies are making great strides in
establishing a global footprint and building Brand China. This “Go Out/Go
Global” policy is supported by the PRC government, with state-owned enterprises
(SOEs) were among the most active players. Of particular interest are Chinese
firms involved in transportation infrastructure and construction, as they stand
to receive a tremendous boost from recent China-backed initiatives, notably One
Belt, One Road[39]
and the Asian Infrastructure Investment Bank. Since these initiatives promote,
among other things, regional transportation connectivity, they could help China
export its surplus capital as well as the capacity for infrastructure that it
has developed over the years.[40]
The United States is reported to have lobbied Australia,
South Korea, the United Kingdom and other European countries not to join the
AIIB.[41]
A key turning point was when the United Kingdom broke ranks in March this year,
citing mostly commercial reasons, and agreed to join the Bank as a founding
member.[42]
Within days France, Germany and Italy had followed the United Kingdom’s lead
and by the end of March a number of other countries including Australia had
signalled their intention to join.[43]
The concerns of the United States and Japan about China’s
decision to create the AIIB are contested. For example, Joseph Stiglitz argues:
In fact, America’s opposition to the AIIB is inconsistent
with its stated economic priorities in Asia. Sadly, it seems to be another case
of America’s insecurity about its global influence trumping its idealistic
rhetoric – this time possibly undermining an important opportunity to
strengthen Asia’s developing economies.[44]
Senate Selection of Bills Committee
The Bill has been referred to the Economics Legislation
Committee for inquiry and report by 15 September 2015.[45]
Details of the inquiry are available here.[46]
At the time of writing the Economics Legislation Committee had not yet
reported.
Senate Standing Committee for the
Scrutiny of Bills
The Committee has sought advice from the Treasurer as to the
scope of possible immunities and privileges that might be provided by
regulation under clause 8 of the Bill and an explanation as to why these
privileges and immunities are to be set out in regulation rather than in the
Bill itself.[47]
At the time of writing the Committee had not published the Treasurer’s
response.
Joint Standing Committee on
Treaties
The Committee is conducting an inquiry into the Bill with
submissions closing on 11 September 2015.[48]
Details of the inquiry are available here.[49]
At the time of writing the Committee had not yet reported.
Australian Labor Party
The Australian Labor Party has indicated it supports the
Bill. During the second reading debate the Shadow Treasurer, Chris Bowen, emphasised
the role the AIIB will play in financing much-needed infrastructure in the
Asian region:
The Asian Infrastructure Investment Bank will fulfil a very
important role. There is a significant gap in infrastructure around the Asian
region—around [US]$8 trillion over the next decade is the widely agreed figure,
which is a figure I certainly agree with. The bank represents an opportunity
for countries of the world to come together and pool funds, and to provide
authorised capital so that the bank can facilitate infrastructure investment.
We will have a very substantial shareholding of about US$3.7 billion. I note
that the second biggest shareholder in the bank is India at about US$8.3
billion and a share of 7½ per cent. Our shareholding is substantial, as is
appropriate. This is not a matter that will be reflected in budget figures, but
it is an appropriate shareholding for us to have as a very significant economy
in the Asia-Pacific region. We certainly support Australia's involvement and we
will facilitate, in every sense possible, Australia being as involved as is
possible because we should be. But we should have shown much greater leadership
than we did. We should have shown the leadership of a nation that understands
the opportunities of Asia.[50]
The Shadow Minister for Foreign Affairs, Tanya Plibersek, noted
that membership of multilateral institutions such as the AIIB gives Australia
the opportunity to shape these institutions in a positive way:
As a party, we certainly believe in the importance of multilateral
institutions and regional and international cooperation. We say that our
involvement as a nation of 20-odd million people gives us the ability to shape
those institutions in a positive way.[51]
Australian Greens
During the second reading debate the Australian Greens Treasury
spokesperson, Adam Bandt, did not indicate whether the Australian Greens would
support the Bill but called for Australia to use its position as a founding
member of the AIIB to ensure projects financed by the Bank meet the highest
environmental and labour standards:
I hope that the government, as a potential founding member of
this bank, takes the opportunity to live up to the rhetoric about transparency
and insists that, when the bank is formed, there are minimum requirements to protect
the environment and minimum conditions to protect the people who are working on
the projects that this bank will finance. Otherwise, the government is
potentially giving a blank cheque to environmental exploitation and the
exploitation of people.[52]
Palmer United Party
Earlier this year the Leader of the Palmer United Party,
Clive Palmer, issued a media release calling on Australia to join the AIIB.
Federal leader of the Palmer
United Party and Member for Fairfax, Clive Palmer, today called on the Abbott
Government to establish Australia as a foundation member of the Asian
Infrastructure Investment Bank (AIIB).
Mr Palmer said Australia’s future was tied to Asia and
participating in the international financial institution would be crucial to
the nation’s economic development.[53]
Other parties/independents
At the time of writing the policy positions of other
non-government parties and independents were not yet known.
A number of organisations representing the views of the business
community have indicated they support Australia joining the AIIB, including:
- The
Australia China Business Council (ACBC) supports Australia’s membership of the
AIIB as a way of cementing Australia’s role in the region and creating new
opportunities for Australian business.[54]
Further, the ACBC argues that as a founding member of the AIIB, Australia will
be able to ‘play a key role in discussions on the bank’s structure, governance
and oversight provisions within the bank’.[55]
- The
Australian Industry Group (AiG) has welcomed Australia’s participation in the
AIIB arguing that financing infrastructure development in the Asia-Pacific
region will ‘foster greater trade and economic development in the region of
Australia’s closest and most important economic partners’.[56]
- The
Business Council of Australia (BCA) supports Australia joining the AIIB and has
welcomed the government’s announcement that the AIIB’s governance arrangements
will represent best practice.[57]
The BCA has encouraged the government to ensure the AIIB works with other
institutions like the G20 Global Infrastructure Hub in improving the provision
of infrastructure in the region. The BCA notes Australian companies will
benefit from ‘opportunities to participate in developing and building new AIIB
financed infrastructure, as well as having access to improved infrastructure
which facilitates trade in the region’.[58]
- Industry
Super Australia (ISA) supports Australia’s participation in the AIIB arguing
the move ‘will be a huge fillip for Australian expertise in funds management,
engineering, construction, architecture and legal services which could be
widely applied to projects financed by the AIIB’.[59]
As a member of the AIIB, Australia is required to make a
capital contribution to the Bank as payment for its shareholding. In his second
reading speech the Treasurer, Joe Hockey, outlined the size of Australia’s
financial commitment to the AIIB:
Australia’s initial shareholding will be US$3.7 billion,
including US$738 million in paid-in capital. The remaining US$2.9 billion is
callable capital and will be a contingent liability on the Commonwealth balance
sheet.[60]
The paid-in capital is to be paid in five equal annual
instalments starting from when Australia ratifies the AIIB Articles of Agreement.[61]
The Explanatory Memorandum states that Australia’s
membership of the AIIB will have no direct impact on the underlying cash
balance, fiscal balance and net debt.[62]
This is because Australia will be using cash to purchase shares in the AIIB.
Thus, while there will be a change in the composition of the Australian
government’s assets there will be no change in the bottom line.
Special appropriations
A special appropriation is a provision within an Act that
provides authority to spend money for particular purposes. Clause 7 of
the Bill establishes an appropriation for the purposes of making payments to
the AIIB for Australia’s share subscription; making any other payments required
by the AIIB’s Articles of Agreement; and issuing promissory notes to the AIIB.
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible.[63]
The Parliamentary Joint Committee on Human Rights considered
the Bill did not require additional comment.[64]
Parliament is being asked to approve measures needed to
implement Australia’s obligations under the AIIB’s Articles of Agreement.
The key provisions of the Bill are:
- Clause 4
defines Bank to mean the Asian Infrastructure Investment Bank; Bank
Agreement to mean the AIIB’s Articles of Agreement; and payment
to include payments in a foreign currency.
- Clause 5
authorises payments to the AIIB for the purposes of Australia’s share
subscription, whether in full or in part, and any other payments
which may be required under the AIIB’s Articles of Agreement.
- Clause 6
authorises the Treasurer to make promissory notes and issue them to
the AIIB, with these notes to be non-negotiable, non-interest bearing and
payable to the Bank at par value on demand.
- Clause 7
establishes a special appropriation for the purposes of making
payments to the AIIB under clause 5; and payments under promissory notes
under clause 6 subject to these payments being required by the Bank’s
Articles of Agreement.
- Clause 8
states that regulations may confer privileges and immunities[65]
on the AIIB, officers and employees of the Bank; and consultants performing
services for the Bank. Subclause 8(1) specifies that privileges and
immunities necessary or desirable to give effect to Chapter 9 of the
Bank’s Articles of Agreement may be conferred on the AIIB by the regulations. Chapter
9 (Articles 44 to 52) of the AIIB’s Articles of Agreement sets out the status,
immunities, privileges and exemptions[66]
that must be given to the Bank by each AIIB member state.[67]
This means for example, that the Bank is recognised as having international
legal personality, which means this organisation possesses international rights
and duties (Article 45). It also means that the Bank will enjoy immunity from
every form of legal process, except in cases arising out of or in connection
with the exercise of its powers to raise funds, through borrowings or other
means, to guarantee obligations, or to buy and sell or underwrite the sale of
securities (Article 46(1)).
Subclause 8(2)
specifies that the privileges and immunities conferred on the officers and
employees of the AIIB and experts and consultants performing services for the
Bank are to give effect to Article 50 of the Bank’s Articles of Agreement.
This means for example, that experts and consultants performing services for
the bank, who are not local citizens or nationals, shall be given the same
immunities from immigration restrictions, alien registration and so forth that
would ordinarily be given to members of other international organisations. Subclause 8(3)
specifies that the privileges and immunities conferred on the officers and
employees of the AIIB and experts and consultants performing services for the
Bank are to give effect to Article 51(2) of the Bank’s Articles of
Agreement (which requires members to exempt Bank officers’ salaries from
taxation). Subclause 8(4) specifies that the privileges and
immunities conferred under clause 8 are in relation to the laws of the
Commonwealth and the states and territories. Subclause 8(5) makes
clear that clause 8 does not limit the operation of the International
Organisations (Privileges and Immunities) Act 1963.[68]
In Australia, this Act sets out which international organisations are able to
be granted privileges and immunities, as well as specifying what privileges and
immunities can be granted. The actual conferral of privileges and immunities on
an organisation occurs by way of regulations made by the Governor-General.
- Clause 9
authorises the making of regulations that are required, permitted,
necessary or convenient to give effect to the Bill (including the regulations to
confer privileges and immunities on the AIIB, officers and employees of the
AIIB and experts and consultants performing services for the AIIB referred to
in clause 8).
Members, Senators and Parliamentary staff
can obtain further information from the Parliamentary Library on (02) 6277 2500.
[1]. Asian
Infrastructure Investment Bank (AIIB), What is the Asian
Infrastructure Investment Bank?, AIIB website, accessed 24 August 2015.
[2]. AIIB,
Articles
of Agreement, n.p., 2015, Article 1(1), accessed 24 August 2015.
[3]. Ibid.
Article 4(1).
[4]. AIIB,
Purpose,
functions and membership, AIIB website, accessed 24 August 2015.
[5]. Y
Zheng, ‘Multination
Asian bank plans capital of $100 billion’, China Daily (online edition), 30
June 2014, accessed 26 August 2015.
[6]. S
Peatling and P Wen, ‘Prime
Minister Tony Abbott gives green light to $100 billion Asian Infrastructure
Investment Bank’, Sydney Morning Herald (online edition), 29 March
2015, accessed 30 August 2015.
[7]. Ibid.
[8]. J
Hockey (Treasurer), and J Bishop (Minister for Foreign Affairs), Australia
to join the Asian Infrastructure Investment Bank, media release,
24 June 2015.
[9]. J
Hockey (Treasurer), ‘Second
reading speech: Asian Infrastructure Investment Bank Bill 2015’, House of
Representatives, Debates (proof), 13 August 2015, p. 1.
[10]. J
Hockey (Treasurer), and J Bishop (Minister for Foreign Affairs), Australia
to join the Asian Infrastructure Investment Bank, op. cit.
[11]. P
Fletcher, (Parliamentary Secretary to the Minister for Communications), ‘Second
reading speech: Asian Infrastructure Investment Bank Bill 2015’, House of
Representatives, Debates (proof), 19 August 2015, p. 100, accessed
31 August 2015.
[12]. Currently,
the following countries have signed the AIIB’s Articles of Agreement: Australia,
Austria, Azerbaijan, Bangladesh, Brazil, Brunei Darussalam, Cambodia, China,
Egypt, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Iran,
Israel, Italy, Jordan, Kazakhstan, Republic of Korea, Kyrgyz Republic, Lao PDR,
Luxembourg, Maldives, Malta, Mongolia, Myanmar, Nepal, Netherlands, New
Zealand, Norway, Oman, Pakistan, Portugal, Qatar, Russia, Saudi Arabia,
Singapore, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Turkey, the
United Arab Emirates, the United Kingdom, Uzbekistan, and Vietnam. AIIB, What
is the Asian Infrastructure Investment Bank?, op. cit.
[13]. AIIB,
Purpose, functions and membership, op. cit. AIIB, Articles
of Agreement, op. cit., Article 23(1).
[14]. AIIB,
Articles
of Agreement, op. cit., Article 22.
[15]. Ibid.,
Articles 23(2) and 24(1).
[16]. Ibid.,
Article 23(2).
[17]. Ibid.,
Article 25(1)
[18]. AIIB,
Purpose, functions and membership, op. cit. AIIB, Articles
of Agreement, op. cit., Article 26(iv).
[19]. AIIB,
Articles
of Agreement, op. cit., Article 29(1).
[20]. Ibid.
See also AIIB, Purpose, functions and membership, op. cit.
[21]. AIIB,
Articles
of Agreement, op. cit., Article 29(2).
[22]. AIIB,
Selection of
the President-designate, AIIB website, accessed 26 August 2015.
[23]. AIIB,
Articles
of Agreement, op. cit., Article 30(1). See also AIIB, Purpose, functions
and membership, op. cit.
[24]. AIIB,
Articles of Agreement, op. cit., Article 28(1).
[25]. Ibid.,
Article 28(1)(i).
[26]. Ibid.,
Article 28(1)(ii).
[27]. Ibid.,
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