BEIJING - The British government has signed an agreement with the Asian Infrastructure Investment Bank to contribute $50 million to the bank's project preparation special fund.

The agreement was signed by AIIB President Jin Liqun and British Chancellor of the Exchequer Philip Hammond.

Established in June 2016, the AIIB's fund provides grant support primarily to low income developing member countries to prepare high quality projects.

"These additional resources will help our low-income member countries to prepare projects that will meet the AIIB's standards. This will result in more projects that are financially viable, environmentally sustainable and welcomed by local communities," Jin said.

China and the Republic of Korea have committed $50 million and $8 million respectively to the fund, which the AIIB says is open for more contributions.

Starting operation nearly two years ago, the Beijing-based AIIB is a multilateral lender founded to help improve Asia's infrastructure, which lags behind many parts of the world.

Hammond said Britain strongly supports the AIIB's mission to address the infrastructure gap.

The bank has approved $1 million for Nepal to prepare an urban infrastructure project, and $700,000 for a solid waste management project in Sri Lanka.