Beijing (Rifyu.com/PRNewswire)- The Asian Infrastructure Investment Bank (AIIB) clarified that its investment in the Indonesia Mandalika Urban and Tourism Infrastructure Project (Mandalika Project) is in line with environmental and social standards.
Urjit Patel, Vice President, Investment Operations, South and Southeast Asia, AIIB, said, “Since this issue first surfaced in 2019, after due diligence, the majority of these complaints are not related to the Mandalika Project, but the MotoGP Circuit. located around the project. The MotoGP Circuit is a separate project and does not receive AIIB financing facilities.”
Patel underlined, the Mandalika Project is designed as a sustainable core infrastructure. This project aims to develop the southern region of Lombok as a tourism destination, as well as stimulate local businesses and create jobs for the community. Tourism contributes greatly to Indonesia’s GDP, but this sector requires supporting infrastructure, such as roads, clean water and sanitation services, good waste management, electricity distribution, disaster risk management, landscape creation, and public facilities—an investment that benefits society.
Since the Mandalika Project received the relevant permits, AIIB has closely monitored the implementation of this project by its client, the Indonesia Tourism Development Corporation (ITDC) under the AIIB’s Environmental and Social Framework.
With the support of AIIB, ITDC is working with affected communities while preparing this Project to be able to prevent, reduce and/or mitigate any negative impacts that may arise. The plan to relocate local communities affected by the Project also includes the provision of larger houses for the displaced residents. Residents affected by this project are also given the opportunity to own their homes and land. Skills development and training, as well as employment opportunities are also provided for affected residents. Markets for local entrepreneurs, micro, small and medium enterprises, as well as public facilities in the Mandalika Special Economic Zone are also being developed as part of the plan.
AIIB assesses that the Mandalika Project, like other infrastructure developments, is complex in nature, but AIIB remains committed to working with partners and stakeholders. Thus, everyone can be involved and benefit from this Project.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is to channel Future Infrastructure financing—infrastructure that adheres to the principle of sustainability. AIIB began operations in Beijing in January 2016, and since then, its member count has grown to 106 worldwide. AIIB has a capitalization of US$ 100 billion, and has received a “Triple A” rating from international credit rating agencies. Working with various partners, AIIB meets client needs by channeling new capital, and investing in green, technology-enabled infrastructure and enhancing regional connectivity.
Reporter: PR Wire
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