Project Process

AIIB's project process is guided by its strategic goals and thematic priorities: sustainable infrastructure, cross country connectivity and private capital mobilization. AIIB screens project ideas and proposals from clients, partners and other stakeholders and seeks to achieve an appropriate balance among borrowers, sectors, sovereign and non-sovereign projects. Projects that meet the preliminary screening criteria are included in the rolling investment program.

Strategic Programming

AIIB's project process is guided by its strategic goals and thematic priorities: sustainable infrastructure, cross country connectivity and private capital mobilization. AIIB screens project ideas and proposals from clients, partners and other stakeholders and seeks to achieve an appropriate balance among borrowers, sectors, sovereign and non-sovereign projects. Projects that meet the preliminary screening criteria are 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 review, and depending on the adequacy of the available information, AIIB conducts research with the related staff of the Borrower and collects all the additional information needed for assessment of the bankable project. During the research phase, AIIB's team may conduct the proposed project site visit as part of the project needs assessment and also evaluate the potential impacts. During 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 the Borrower’s designated agency/agencies work closely together on the project design. In addition, AIIB's team makes respective assessment on the Borrower’s initially provided due diligence documents and works with the Borrower’s designated agency/agencies to address the gaps identified in the assessments. Following the project appraisal, the AIIB team prepares a Project Document that includes 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 the Borrower for loan negotiations with AIIB on a mutually agreed date. 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 the Borrower, the Project Document is submitted to the AIIB Board. Following the Board approval, the Project Document is posted on AIIB’s website with the Borrower’s consent. After Board approval, the Borrower’s representative and AIIB's Vice President and Chief Investment Officer sign the loan and project agreements at a mutually agreed date. The 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 the project preparation stage to avoid project start-up implementation delays. This preparation stage includes:

(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 for implementing the project by executing each project activity as agreed in the detailed project description document, which provides overall project implementation guidance. The 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.

The Borrower’s Project Implementation Office is responsible to implement the project in a timely manner. If needed, the Borrower may recruit consultants to provide specialized professional services in 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 project implementation from the stage of inception to completion. Being a lean organization, AIIB’s monitoring of project implementation and guidance for the Borrower’s team are not limited to only periodic fielding of review missions that usually are twice a year. The AIIB team also offers its advisory services through video and teleconferences as and when required to review project implementation progress and resolve any issues in a timely manner. In addition, the Project Implementation Office of the Borrower prepares monthly progress reports, including an environmental and social management report, and shares them with 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 project completion. The AIIB team prepares a Project Completion Report (PCR) on the Project’s results, the performance by the Project Participants and AIIB, and the degree of achievement of the Project’s development objectives. 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, their performance and that of AIIB, if available. Upon approval by the Vice President and Chief Investment Officer of AIIB, the Project Completion Report is submitted to the Board of Directors for information.

Project Related Inquiries

If you have any questions or inquiries related to projects, please send an email.

Projects@aiib.org