AIIB may accept and manage Special Funds as part of the Bank’s resources. These Special Funds may be used to provide additional concessional financing support to AIIB Members, especially the less developed economies. They support the implementation of AIIB’s Corporate Strategy and achievement of its corporate goals by mobilizing additional resources for projects and activities that align with AIIB’s thematic priorities.

Special Funds can serve different purposes, including supporting project identification, preparation and implementation; capacity building and information sharing; and making AIIB loans more affordable through interest buydown grants.

Based on funding sources and governance arrangements, the Bank operates two types of Special Funds.

• Internal Special Funds. Internal Special Funds comprise the Project Preparation Special Funds (PPSF), the Special Fund Window for Less Developed Members (SFW) and the Project Specific Window (PSW). Grant contributions to the PPSF and the SFW are pooled resources (i.e., without any agreed-upon allocation to a particular AIIB project), whereas contributions to the PSW are allocated to specific AIIB projects.
• External Special Funds. External Special Funds are resources that AIIB receives as an Implementing Entity from external partnership facilities, such as the Multilateral Cooperation Center for Development Finance (MCDF), the Global Infrastructure Facility (GIF), and the Pandemic Fund. Contributions to and allocation from these funds are governed and managed externally by the applicable governance processes and policies of the respective partnership facilities.

Established in June 2016, the Project Preparation Special Fund (PPSF) is a multidonor facility created to provide technical assistance grants to support the preparation and early implementation of high-quality bankable projects for AIIB Members, especially less developed Members. Project preparation and early implementation activities supported by the PPSF grants will help improve project quality, implementation readiness, and economic, environmental and social sustainability. The PPSF is governed by the Rules and Regulations of the AIIB Project Preparation Special Fund.

The Special Fund Window for Less Developed Members (SFW) provides interest rate buy-down for eligible sovereign-backed financing projects to make AIIB financing more affordable for its less developed Members. Established in March 2022, the SFW is governed by the Rules and Regulations of the AIIB Special Fund Window for Less Developed Members.

The Project Specific Window (PSW) allows AIIB to accept, manage, and disburse grant co-financings on behalf of contributors into eligible AIIB projects. Established in March 2024, the PSW responds to the growing demand from clients for concessional financing and partners that wish to provide grant support to specific projects in AIIB’s Rolling Investment Pipeline. PSW is governed by the Rules and Regulations of the AIIB Project Specific Window.

The Multilateral Cooperation Center for Development Finance Special Fund was established to administer grants received by AIIB as an Implementing Partner* of the Finance Facility of the Multilateral Cooperation Center for Development Finance (MCDF). The MCDF is a multilateral financial mechanism designed to promote high-quality infrastructure and connectivity investments in developing countries in compliance with international financial institution standards, including by encouraging other investors and financial institutions to adopt such standards. The MCDF can support project preparation, capacity building, and information sharing activities that align with both AIIB’s strategic priorities and the MCDF’s objectives.
*Independent of its role as MCDF Implementing Partner, AIIB also serves as the Administrator of the MCDF and hosts the MCDF Secretariat.

The Global Infrastructure Facility Special Fund was established to administer grants received by AIIB as a Technical Partner of the Global Infrastructure Facility (GIF). The GIF is a global collaboration platform that supports the preparation, structuring, and de-risking of high-quality, bankable, sustainable infrastructure programs and projects in emerging markets that are attractive to private capital. The GIF can support project readiness, project definition and project preparation activities to promote private capital mobilization.

The Pandemic Fund Special Fund was established by AIIB to manage grants it receives as an Implementing Entity of the Pandemic Prevention, Preparedness and Response Financial Intermediary Fund (the Pandemic Fund). The Pandemic Fund is a multi-stakeholder global partnership that provides a dedicated stream of additional, long-term financing to strengthen critical pandemic prevention, preparedness, and response (PPR) capabilities in low- and middle-income countries. The World Bank hosts the Pandemic Fund Secretariat.