The China-initiated Asian Infrastructure Investment Bank (AIIB) took a historic step forward with the signing of a framework by 50 of the 57 founding member states. The remaining 7 countries – Denmark, Kuwait, Malaysia, the Philippines, Holland, South Africa and Thailand – faced procedural difficulties to sign at this time but will do so at a later date prior to the formal establishment of the bank. “China will work with the other members to ensure the AIIB adheres to the highest standards in professionalism, efficiency and transparency,” Chinese President Xi Jinping told representatives of the founding countries gathered in Beijing to sign the agreement. The AIIB, which was proposed by Xi in October 2013, is the first major multilateral lender with developing countries holding the majority of the shares and votes. The bank will have authorized capital of USD100 billion. China has a 30.34% stake in it and 26.06% of the votes. India and Russia are the second-and third-largest shareholders. China’s Finance Minister Lou Jiwei said the 60-article agreement serves as the bank’s “mini-constitution” that underpins the fundamental principles for its establishment and operation. The signing wrapped up six months of intense negotiations and paved the way for establishing the bank before the end of this year. The opportunity to supply materials for projects financed by the AIIB will be open to all countries, not just members. Member countries are now preparing to submit a list of projects. China said the bank would be “lean, clean and green”, the China Daily reports.

Indonesian Finance Minister Bambang Brodjonegoro said the AIIB’s members would nominate and elect the bank’s first President in August. Major decisions would need to be approved by 75% of the votes, giving China effective veto power, although China’s number of votes will be diluted as more countries join the bank. Project approvals would be decided by a majority of votes cast. The Board of Directors will have nine members from Asia and three from outside the region. Jin Liqun, a former Chinese Vice Finance Minister is tipped to be elected the bank’s first President in August.