AFTER months of holding out, the Philippines said yesterday it would join the China-led Asian Infrastructure Investment Bank (AIIB) before a year-end deadline for founding members.

    The AIIB, which has become one of China’s biggest foreign policy successes, has been formally established and is expected to be operational early next year. Despite the opposition of Washington, other major U.S. allies such as Australia, Britain, Germany, Italy and South Korea have also joined the bank.

    The Philippines, Southeast Asia’s fifth-largest economy, will sign the AIIB’s articles of agreement before today, the government said in a statement.

    Describing the AIIB as a “promising institution” that could help accelerate the country’s economic growth, the Philippines said its indicative paid-in capital would be US$196 million, payable over five years. Founding members will initially pay 20 percent of AIIB’S US$100 billion authorized capital.

    As recently as a few weeks ago, policymakers in the Philippines were undecided about joining the development bank initiated by China, the Manila Bulletin said, citing comments by Finance Secretary Cesar Purisima.

    But for the Philippines, the AIIB “will augment and complement existing multilateral institutions in accelerating economic growth,” Purisima said in a statement.

    “The AIIB is a promising institution addressing investment needs and will help close financing gaps in many countries,” Purisima said, adding the Philippines is confident the bank is committed to “transparency, independence, openness and accountability.”

    The Philippines requires US$127 billion from 2010 to 2020 to finance its infrastructure needs, the Asian Development Bank has projected.

    The Philippines’ decision to join the development bank may also help expand the market for infrastructure-related industries, boosting job and business growth, Purisima said.

    But Purisima said in the Manila Bulletin article that President Benigno Aquino, who will leave office after an election next year, had the final say on joining.

    The AIIB will hold its opening ceremony in Beijing on Jan. 16-18. Members have until December 2016 to complete domestic approval processes and pay the initial tranche of their paid-in capital, according to the Philippines.

    The Philippines is among several countries involved in territorial disputes with China in the South China Sea, just as the region grows increasingly reliant on Asia’s biggest economy for trade.

    Chinese Foreign Ministry spokesman Lu Kang said yesterday he needed to verify whether the Philippines was indeed joining, but if it was true, it was a good thing.

    Asked whether the South China Sea dispute could affect the Philippines’ membership or ability to get funding from the AIIB, Lu said. “The AIIB’s operations will follow the charter agreed on by all AIIB members by consultation.” (SD-Agencies)