Project Process

Guided by AIIB's strategic goals and thematic priorities: sustainable infrastructure, cross country connectivity and catalyzing private finance. AIIB will screen project ideas and proposals from clients, partners and other stakeholders. The Bank will seek to achieve appropriate balance among borrowers, sectors, sovereign and non-sovereign projects. Projects that meet the preliminary screening criteria will be included in the rolling investment program.

Strategic Programming

Guided by AIIB's strategic goals and thematic priority which are sustainable infrastructure, cross country connectivity and catalyzing private finance, AIIB will screen project ideas or proposals from clients, partners and other stakeholders. This initial screening is to determine whether there is a role for AIIB, shape its investment program and better balanced on regional and non-regional borrowers, countries, sectors, sovereign and non-sovereign projects. Projects passed the screening will be included in the rolling investment program, which will be discussed and approved by the Executive Committee on a periodic basis.

Project Identification

AIIB collects from the Borrower the available documents related to the proposed project, which may include a brief project summary and preliminary or a final feasibility report. Following a quick review, and depending on the adequacy of the available information, AIIB fields a reconnaissance mission with the related staff of the Borrower and collects all the additional information needed for assessment of the bankable project. During the reconnaissance mission, AIIB team may conduct the proposed project site visit as part of the project needs assessment and also evaluate the potential impacts of the projects. In this process the team also identifies the need and scope for the additional due diligence work in technical, economic, financial, social, environmental, and governance. Based on the above and in close collaboration with the Borrower’s team, AIIB project team prepares a project concept document for internal deliberations and next actions.

Project Preparation

AIIB ensures undertaking a comprehensive project due diligence to affirm the project viability. In this phase, both AIIB’s project team and Borrower’s designated agency/agencies work closely together on the project design. In addition, AIIB team makes respective assessment on the Borrower’s initially provided due diligence documents and work with the Borrower’s designated agency/agencies to address the gaps identified in the assessments. Following the project appraisal, AIIB team prepares Project Document that include the project objective/impact, rationale, components, estimated cost, financing plan, implementation arrangement and schedule, project risks and mitigation measures, and project covenants agreed with the Borrower. Subsequently, the Project Document is finalized through AIIB’s internal review and draft loan agreement and project agreement are submitted to Borrower for loan negotiations with AIIB on a mutually agreed date. In this process from due diligence to loan negotiations, AIIB’s focus remains on the efficiency and quality of each task for fast delivery of the project.

Board Approval

After negotiations with Borrower, the Project Document is submitted to AIIB Board. Following the Board approval, all the Project Document is disseminated on AIIB website with the Borrower’s consent. After Board approval, Borrower’s representative and AIIB Vice President and Chief Investment Officer sign the loan and project agreements at a mutually agreed date. Loan becomes effective only after fulfilling the respective loan effectiveness conditions, if any, and the legal requirements (legal opinion etc.).

Project Implementation

AIIB focuses on project readiness during project preparation stage to avoid project start-up implementation delays. This include:

(1) Procurement readiness (advance procurement actions for recruiting consultants and selecting contractors/suppliers);

(2) Implementation readiness (setting-up fully functional project implementation offices with qualified key staff). The designated project executing/implementation agency or agencies are responsible to implement the project by executing each project activity as agreed in the detailed project description document which provides overall project implementation guidance. Main purpose of achieving project readiness before the start of project implementation is to shorten the project implementation period and achieve the project impacts at the earliest.

Borrower’s Project Implementation Office is responsible to timely implement the project. If needed, Borrower may recruit consultants who provide specialized professional services in the areas such as detailed design, preparation of bidding documents and procurement of contractors for works, suppliers for the required goods, and capacity development through trainings in all the multidiscipline areas as needed. AIIB’s project team remains fully engaged during the project implementation from the stage of inception to completion. Being a lean organization, AIIB’s monitoring of project implementation and guidance to Borrower’s team are not limited to only periodic fielding of review missions that usually are twice a year. AIIB team also offers its advisory services through video- and tele conferences as and when required to review project implementation progress and timely resolve any issues. In addition, project Implementation Office of the Borrower prepares monthly progress reports, including environmental and social management report, and share it with the AIIB. Such reports highlight the updated progress of each project component and loan covenant, contractual or project management issues (if any) and respective actions. AIIB also holds project launch workshops on procurement, disbursement and environmental and resettlement related implementation plan to support designated project implementation agency/agencies for smooth project implementation.

Project Completion And Evaluation

AIIB furnishes a project completion report within 6-12 months after the project completion. AIIB team prepares a Project Completion Report (PCR) on the Project’s results, the performance by the Project Participants and AIIB, and the degree to which the Project’s development objectives have been achieved. The PCR provides the comparison of project impacts, outcomes, components, and implementation arrangements as originally designed and as achieved at completion, as well as the main lessons learned for incorporation in future project designs. The PCR incorporates an evaluation by the Project Participants of the Project, their performance and that of AIIB, if available. Upon its approval by the Vice President and Chief Investment Officer of AIIB, the Project Completion Report will be submitted to the Board of Directors for information.

Project Related Inquiries

If you have any question or inquires relates to project, please send an email.

Projects@aiib.org