Ladies and Gentlemen,

Thank you for joining us today for the launch of AIIB’s flagship research report, Asian Infrastructure Finance 2026: Where the Water Flows.

Water is emerging as a defining constraint on growth, resilience and development.

It is a pleasure to present this report here in Washington during the Spring Meetings, at a time when water is receiving renewed attention across the development community. Increasingly, it is seen not only as an environmental concern, but as a fundamental driver of economic stability, food security and long-term growth.

Let me highlight three points from the report.

First, water must be understood as a system that underpins economic activity – across countries, sectors and regions. The global water cycle links economies beyond national borders and shapes the functioning of agriculture, energy systems and cities. What happens in one place increasingly has consequences elsewhere. Water risks are therefore no longer local or sectoral – they are systemic.

Second, addressing these risks requires a more integrated approach to infrastructure. We need to invest both in engineered systems – such as water supply, irrigation and flood protection – and in the natural systems that sustain the water cycle, including forests, wetlands and river basins. These are not competing priorities. They are complementary, and both are essential for building resilience in a changing climate.

Third, we face a significant gap between the scale of the challenge and the level of investment. Public finance is critical, but it is not sufficient on its own. Stronger policy frameworks, better pricing mechanisms and improved governance are needed to attract private capital and support sustainable water management. Technology also has an important role to play, from improved data and monitoring to more efficient water use in agriculture and industry.

For AIIB, this is closely aligned with our core mandate. We work with our members to support infrastructure that is sustainable, climate-resilient and fit for the future. In practice, this means helping countries translate water challenges into investable projects – whether in urban systems, agriculture or climate resilience – and supporting solutions that integrate both natural and engineered approaches.

The purpose of this report is to help reframe how we think about water in the context of infrastructure and investment, and to support more informed and coordinated action.

No single country or institution can address these challenges alone. But by working together - across sectors, across regions and across institutions - we can make meaningful progress.

We look forward to working with our members and partners to turn this agenda into concrete investments.

Thank you.