Asian Infrastructure Investment Bank

Established in 2016, the Asian Infrastructure Investment Bank (AIIB) seeks to foster sustainable economic development, create wealth, and improve connectivity in Asia by investing in infrastructure and other productive sectors. It also aims to promote regional cooperation and partnership in addressing development challenges by closely collaborating with other multilateral and bilateral development institutions.

In October 2023, ADB and AIIB signed the new cofinancing framework agreement (CFA) for 2023–2028, which is an update of the first CFA signed in 2019. This reflects the evolving relationship between ADB and AIIB and further sets out the framework for the cofinancing of future development projects and programs and the exchange of information.

Highlights

Sovereign Cofinancing. As of 31 December 2023, AIIB is the second-highest multilateral partner in terms of project-specific cofinancing. In 2023 alone, AIIB committed $4.8 billion in loan cofinancing, the highest project-specific cofinancing from a partner in the year.

Out of the $4.8 billion, 42% ($2 billion) was for the Philippines to help the government improve access to employment, livelihood, and training opportunities; implement key reforms toward inclusive finance; achieve its domestic resource mobilization plan; implement sustainable financing and strategic purchasing, integrated delivery of quality health services, and information management and performance accountability toward universal health care; and improve the efficiency of road travel throughout the eastern and southern provinces of the Luzon Island group.

Indonesia received $1.5 billion in commitments to create an enabling environment for investments, trade, and micro, small, and medium-sized enterprises; support economic growth through labor productivity and human capital development; and strengthen primary care services and public health laboratories.

Bangladesh also received $800 million in commitments for support in economic recovery from the COVID-19 pandemic and in implementing its climate priorities. India received $438.8 million for the expansion of the existing metro rail network in Chennai, the capital city of Tamil Nadu, a state on the southeast coast of India.

Knowledge. In October 2023, ADB’s Gender Equality Division conducted a knowledge exchange with AIIB on the practical application of ADB’s operational approach to gender equality in Beijing. The mission also included a knowledge session for ADB staff in the People’s Republic of China Resident Mission and gender clinics for implementing agencies and units of 11 ADB-financed projects.

In November, ADB’s Office of Safeguards met with AIIB, the New Development Bank, and the Multilateral Cooperation Center for Development Finance in Beijing as part of ongoing consultations on ADB’s draft environmental and social framework. During the mission, they discussed safeguard policy harmonization, policy implementation, and opportunities for enhanced cooperation and capacity building.

During the 2023 United Nations Climate Change Conference (COP28), multilateral development banks, including ADB and AIIB, made a joint statement affirming their commitment to strengthening collaboration with clients, development partners, civil society, the private sector, and others to reduce poverty and inequality and address the crises.