The latest proposed projects from AIIB. https://www.aiib.org/projects-proposed en https://www.aiib.org/_common/base/favicon/android-chrome-192x192.png https://www.aiib.org/projects-proposed https://www.aiib.org/en/projects/details/2026/proposed/cambodia-urban-infrastructure-development-project.html January 01, 1970 Cambodia's urban population is projected to reach one-third of the total by 2030. While the capital city of Phnom Penh remains the country's primary urban center, secondary cities face growing demand for basic urban services such as water supply, sanitation, and drainage. Municipal investment has not kept pace with this shift, leaving these cities with limited access to climate and disaster-resilient urban infrastructure. This is particularly critical given Cambodia's exposure to intense seasonal flooding compounded by inadequate drainage capacity. The Government of Cambodia has set a goal of achieving universal and equitable access to safe and affordable drinking water by 2030 and is prioritizing investment in public water utilities to expand treatment capacity and pipe networks. However, less than 60% of the urban population currently has access to piped water, and less than 40% has access to improved sanitation. The project will address these challenges by investing in climate-resilient sanitation and drainage systems across four secondary cities: Kampong Chhang, Kampong Cham, Don Kaev and Prey Veng, located in the vicinity of Phnom Penh. The Project has the following components: Component 1: Drainage and Wastewater Management in 3 secondary cities. This component will support construction of climate-resilient sewerage, wastewater treatment plant (WWTP), priority stormwater drainage, and paved flood control dyke roads in three secondary cities: Kampong Chhnang, Don Kaev, and Prey Veng. Component 2: Drainage and Wastewater Management in Kampong Cham. This component will support construction of sewerage network, wastewater treatment facilities, priority stormwater drainage, and paved flood control dyke roads in Kampong Cham. It is proposed to be co-financed by the Abu Dhabi Fund for Development (ADFD). Component 3: Project Management. This component will support the project management during the implementation, including training and capacity-building activities for national, provincial, and local government entities to strengthen their capacity to support project implementation. https://www.aiib.org/en/projects/details/2026/proposed/rwanda-climate-resilience-for-sustainable-growth-program.html January 01, 1970 Project Scope Rwanda's growth trajectory is increasingly threatened by climate change. Rwanda is among the most climate-vulnerable economies globally in 2025, and its hilly topography and rain-fed economy expose infrastructure, agriculture and human settlements to droughts, floods and landslides. Closing the gap between Rwanda's development ambitions and its climate vulnerability requires both additional finance and enabling policy and institutional frameworks capable of mobilizing investment at scale, particularly from the private sector. Under its Nationally Determined Contributions (NDC) 3.0 (2025-2035), Rwanda has set an economy-wide target to cut net GHG emissions by 53% by 2035 relative to business-as-usual, in line with the Paris Agreement. Rwanda's NDC 3.0 estimates the cost of implementing its identified measures through 2035 at approximately USD 12.03 billion (USD 4.96 billion for mitigation, USD 7.07 billion for adaptation), front-loaded with USD 6.99 billion needed by 2030. With USD 2.14 billion (18%) expected from domestic sources, the remaining 82% is conditional on international support. Government of Rwanda requested AIIB financing of USD 100 million to support the Climate Resilience for Sustainable Growth Program (the Program). The Program supports a focused set of policy and institutional reforms organized under three Reform Areas: Reform Area 1: Enhancing coordination and governance mechanisms to align financial flows with the objectives of the NDC, through the Country Platform and monitoring, results and verification system and the harmonization of Rwanda Green Fund eligibility criteria, helping direct climate finance toward NDC 3.0's USD 12 billion investment requirement; Reform Area 2: Enabling the water and agriculture sectors to adapt to climate impacts, through the revision of the Crop Law and the institutional and financing arrangements for integrated water resource management, targeting the sector that generates around 63% of Rwanda's GHG emissions (i.e., agriculture) and faces water demand projected to grow by up to 1,140% by 2050 under full implementation of Vision 2050; and Reform Area 3: Catalyzing private investment in low-emission transport, energy and urban infrastructure, through regulations on electric vehicle charging infrastructure and distributed energy resources and a revised Green Buildings Code, creating an enabling environment to unlock private investment behind an EV fleet that has grown twenty-fold since 2020, a distributed solar market with no current mechanism to compensate grid-exported power, and a green building standard that today reaches only a fraction of new construction. Institutional Arrangements The Ministry of Finance and Economic Planning (MINECOFIN) is the executing agency, leading overall coordination and monitoring the operation. Implementation is coordinated through the Country Platform. Line institutions, comprising the implementing agencies, responsible for individual Prior Actions include Rwanda Environment Management Authority, Rwanda Green Fund and Development Bank of Rwanda (Reform Area 1), Ministry of Agriculture and the Rwanda Water Resources Board (Reform Area 2), and Rwanda Utilities Regulatory Agency and the Rwanda Housing Authority (Reform Area 3). Financing Modalities The proposed climate policy-based financing (CPBF) will be structured as a single-tranche operation for AIIB. Given that the supported prior actions are well defined, the single-tranche modality is considered appropriate for ensuring timely disbursement.  Analytical Work The policy actions under the proposed CPBF are informed by Government of Rwanda’s Vision 2050, National Climate and Nature Finance Strategy, Green Growth and Climate Resilience Strategy, Country Climate and Development Report, the experience with the implementation of National Strategy for Transformation 1.0 and NDC 2.0, and sector plans such as Sustainable Land Management Investment Plan and the Energy Sector Strategic Plan. The design of these policy actions is further reinforced by coordinated technical and financial support from multilateral and bilateral development partners. https://www.aiib.org/en/projects/details/2026/proposed/cambodia-urban-sustainable-water-supply-development-project.html January 01, 1970 Cambodia is urbanizing rapidly, driven by economic growth, industrialization, and increasing rural-to-urban migration, with one-third of the population projected to live in urban areas by 2030. While major municipal investment has historically been concentrated in Phnom Penh, secondary cities and provincial hubs, including those in Kampot province, face severe infrastructure deficits. Nationally, only 21% of the population has access to safely managed drinking water supply services. In secondary cities, aging or nonexistent bulk water treatment and distribution networks leave communities increasingly unable to cope with climate-induced droughts and floods. The Project will address these challenges through a combination of climate-resilient infrastructure and institutional strengthening. The Project has the following components: Component 1: Water Treatment Plant and Intake facility This component will support construction of a new surface water intake facility on the Teuk Chhou River and a new water treatment plant (WTP) with a design capacity of 117,000 cubic meters per day. The WTP will include a Supervisory Control and Data Acquisition (SCADA) system for automated monitoring and control. Component 2: Water transmission and distribution networkThis component will support construction of 282 kilometers of large-diameter transmission pipeline and about 20 kilometers of distribution network in greenfield and underserved areas. Component 3: Capacity Building & Project Management This component will support project management during implementation, including training and capacity-building activities for national and provincial government entities, the Kampot Provincial Water Utility (KPWU), and Private Water Operators (PWO) to strengthen their capacity to support project implementation. https://www.aiib.org/en/projects/details/2026/proposed/india-climate-mitigation-on-lending-program-union-bank-of-india.html January 01, 1970 The Project contemplates up to USD200 million in senior debt financing to Union Bank of India (UBI) for on-lending to eligible sub-borrowers in India to support climate change mitigation. UBI is the fifth largest public sector bank in India with the Government of India holding a 74.8% stake. Following the merger with Andhra Bank and Corporation Bank in 2020, UBI has built a strong domestic franchise comprising more than 8,700 branches serving a broad retail, MSME, corporate and government customer base. It has been publicly listed on the National Stock Exchange of India (XNSE: UNIONBANK) and the Bombay Stock Exchange (XBOM: 532477) since 2002 with a market capitalization of INR1.3 trillion (USD 13.6 billion) as of July 31, 2026. https://www.aiib.org/en/projects/details/2026/proposed/india-climate-mitigation-on-lending-program-india-infrastructure-finance-company-limited.html January 01, 1970 The Project contemplates up to USD200 million in senior debt financing to India Infrastructure Finance Company Limited (IIFCL) for on-lending to eligible sub-borrowers in India to support climate change mitigation.  IIFCL is a government-owned development finance institution established in 2006 under the Ministry of Finance, Government of India, to provide long-term financing for infrastructure projects across transport, energy, urban infrastructure and social infrastructure. https://www.aiib.org/en/projects/details/2026/proposed/india-climate-mitigation-on-lending-program---national-bank-for-agriculture-and-rural-development.html January 01, 1970 The Project contemplates up to USD200 million in senior debt financing to the National Bank for Agriculture and Rural Development (NABARD) for on-lending to eligible sub-borrowers in India to support climate change mitigation.  NABARD is a statutory development finance institution established in 1982 and wholly owned by the Government of India, with a mandate to promote sustainable and equitable agriculture and rural development. https://www.aiib.org/en/projects/details/2026/proposed/philippines-energy-transition-and-climate-resilience.html January 01, 1970 The proposed Climate Policy-Based Financing (CPBF) will co-finance the second operation of the programmatic Energy Transition and Climate Resilience Development Policy Loan (DPL) series led by the World Bank (WB). The Program supports the Government of the Philippines (GoP) in advancing the clean energy transition and strengthening water security and climate resilience. The first operation was approved by the WB on March 31, 2025 and became effective on June 8, 2025, while the second operation was approved by the WB on June 25, 2026. Building on the policy and institutional reforms initiated under the first operation, the proposed CPBF supports the next phase of reforms aimed at accelerating renewable energy deployment, improving electricity market efficiency, flexibility and competition, and strengthening integrated water resources management and water service delivery. The Program provides continuity in reform implementation, reinforces institutional capacity, and sustains policy dialogue on climate, infrastructure, and private sector participation. These reforms contribute to climate mitigation by reducing emissions from the energy sector and to climate adaptation by enhancing the resilience of energy and water systems to climate-related risks.  The Program is organized around three reform areas: Reform Area 1: Scaling Up Adoption of Clean Energy Technologies. This reform area supports measures to accelerate private investment in renewable energy, including offshore wind, hydropower, geothermal, and solar energy, while promoting energy efficiency and transport electrification. The reforms aim to strengthen regulatory certainty and market incentives for clean energy investment and support the Philippines' decarbonization objectives. Reform Area 2: Increasing the Security, Flexibility, and Competition of Electricity Markets. This reform area supports policy and regulatory measures to improve market design, enhance system flexibility, strengthen ancillary and reserve market arrangements, facilitate greater integration of renewable energy, and increase competition among electricity suppliers. These reforms seek to improve energy security, reduce system costs, and enable a more reliable transition toward a low-carbon power system. Reform Area 3: Improving Water Management Across Water Uses. This reform area supports reforms to strengthen water governance, improve coordination across competing water uses, and enhance water supply and sanitation service delivery, particularly in underserved and climate-vulnerable areas. The reforms are intended to improve water security, resilience to floods and droughts, and the performance of water service providers while laying the foundation for more integrated sector management. Progress Update on Reform Implementation The proposed CPBF marks AIIB’s first CPBF operation in the Philippines and aligns with the second phase of the two-phase DPL led by the WB. The renewable energy market is now operational, preparations for offshore wind auctions are initiated with registration opened for pre-qualification of bidders. Similarly, the reforms rolled out contributed to increasing the share of RE from 30% to 32% (against a 42% target by 2027). Electricity market reforms, including the reserve market and expanded retail competition, are structurally established, while early steps have also been taken to promote electric vehicle adoption. In contrast, water sector reforms are at a more incremental and operational stage. The Philippines already has an established reform framework, including the PWSSMP, but significant gaps remain in inter-agency coordination, local utility performance, tariff-setting, financing allocation, and bulk water regulation. Early progress is nonetheless emerging through utility-level reforms, with the number of LGU-run water service providers that are financially sustainable to increase from fewer than 10 to 100. This growth reflects a reform agenda focused on strengthening LGU-run service providers, improving targeting of public support, and laying the foundation for more coherent sector governance. Their full effects are expected to materialize progressively through downstream investment programs and subsequent operations, including those supported by the World Bank and AIIB. If enacted, the proposed law creating the Department of Water Resources would further consolidate these efforts and support a step change in sector coordination and implementation. Overall, while energy sector reforms are delivering early results and electricity market reforms are in place pending impact, water management reforms are laying the institutional groundwork for future investments and outcomes through 2027. Institutional Arrangements The Department of Finance (DOF), through its International Finance Group, will serve as the Program Executing Agency and will coordinate overall implementation, monitoring, and reporting. DOF has relevant experience in managing policy-based financing operations, including coordination across government agencies and oversight of policy actions. Sector-specific reforms will be carried out by the responsible agencies in accordance with their respective mandates, including the Department of Energy (DOE), Energy Regulatory Commission (ERC), Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), Department of Economy, Planning, and Development (DEPDev), and National Water Resources Board (NWRB). AIIB will maintain regular engagement with DOF and relevant agencies to monitor progress, support implementation as appropriate, and facilitate timely reporting. Regular consultations and joint reviews will help identify implementation issues and sustain reform progress. Financing Modalities The proposed CPBF is co-financed with the WB. Analytical Work The policy actions under the Program build on and consolidate the policy foundations established under the first operation led by the World Bank, advancing them into the next phase of implementation. The design of these policy actions is further reinforced by coordinated technical and financial support from development partners like IFC, UNICEF, AusAID and ADB. https://www.aiib.org/en/projects/details/2026/proposed/azerbaijan-baku-metro-expansion-project-phase-ii-green-line.html January 01, 1970 The Baku Metro Expansion Project - Phase II (Green Line) (the “Project”) includes the construction of approximately 8 kilometers (km) of twin bore, dual direction tunnels using Tunnel Boring Machines (TBMs), together with the completion of four underground stations. The Project includes three main components: Component 1 - Civil Infrastructure and Systems: Civil works for the construction of tunnels and underground stations, including systems (Mechanical, Electrical and Plumbing [MEP]). Component 2 – Signaling and Communication: Installation and integration of modern signaling/communications-based train control (CBTC) interfaces, Supervisory Control and Data Acquisition (SCADA) control and communication systems, designed to be compatible with the wider Baku Metro network. Component 3 - Technical Assistance: Advisory services for implementation support, environmental and social (ES) management, and institutional capacity building. The Project builds on the institutional capacity, governance organization and physical investments under Baku Metro Expansion Project – Phase I, which was prepared in 2025 and approved in February 2026. It constitutes a key phase of the Government of Azerbaijan’s broader USD2.455 billion Baku Metro Expansion Project (the “Program”), a high-priority multi-phase initiative of the Republic of Azerbaijan aimed at enhancing sustainable urban mobility in Baku. The full scope of the government’s Program includes the completion of the Darnagul and Khojasan Depots (Baku Metro Expansion Project - Phase I), Green Line extension (the Project), the digitalization component (Baku Metro Signaling Modernization and Operations Digitalization Project) financed by the Asian Development Bank (ADB), the parallel ADB-financed expansion of the Purple Line and the rolling stock renewal (Phase III). https://www.aiib.org/en/projects/details/2026/proposed/bangladesh-water-resilience-and-climate-smart-urban-service-delivery-program-subprogram-1.html January 01, 1970 Program Scope The program supports the Government of Bangladesh (GoB) in undertaking key policy and institutional reforms to integrate climate adaptation, mitigation, and disaster resilience into climate-critical urban and water sectors and unlock climate investments in these sectors. The program is expected to include the following Reform Areas (RAs): (i)    RA1: Project Planning, Preparation and Appraisal for Climate Investments; (ii)   RA2: Climate-Smart Urban Service Delivery and Development; and (iii)  RA3: Water Security and Resilience to Climate-related Disasters. The program is structured as a programmatic series of two subprograms. Subprogram 1 (SP1) prioritizes immediate policy and institutional reforms under each RA, aligned with the short-term priorities of the member-led national climate plans, including the National Adaptation Plan 2023–2050 (NAP) and the Nationally Determined Contributions 2025 Update (NDC), with a particular focus on the urban and water sectors. Subprogram 2 (SP2) is expected to build on and deepen the reforms initiated under SP1. The GoB has requested AIIB financing of USD400 million for SP1. The Program will be processed as a standalone CPBF operation, with the loan proceeds disbursed in a single tranche upon the effectiveness of the Loan Agreement.  Institutional Arrangements Overall coordination of the Program will be led by the Ministry of Finance, through its Finance Division reflecting a whole-of-government approach to climate policy. The Program will be implemented by the Finance Division, Planning Commission, the Ministry of Local Government, Rural Development and Cooperatives, the Ministry of Road Transport and Bridges, the Ministry of Water Resources, and the Ministry of Housing and Public Works. The Program will also leverage the Bangladesh Climate Development Partnership (BCDP), a multi-stakeholder platform anchored in the Ministry of Environment, Forest and Climate Change and supported by international development partners, including AIIB. Analytical Work The Program leverages extensive analytical work and support from development partners to inform its reform agenda, including on city climate action planning, urban resilience, and water resources management. Complementary analysis undertaken by the Bank, drawing on AIIB-supported technical assistance and upstream studies for investment projects, has further informed the Program design, including its policy, institutional, and sectoral reforms. https://www.aiib.org/en/projects/details/2022/proposed/indonesia-toll-road-development-in-sumatera-islands-jambi-rengat-section-phase-1-sp-ness-merlung.html January 01, 1970 The project involves the construction of a 67.45 km toll road segment connecting Jambi (Sp. Ness) to Merlung as part of the Trans-Sumatra Toll Road (TSTR)’s Jambi–Rengat section. The TSTR is a centerpiece of the Government of Indonesia’s infrastructure agenda, prioritized under the National Medium Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional {RPJMN}) 2025–2029 and mandated as a Strategic National Project through Presidential Regulations (PR) No. 18/2020 and No. 42/2024, and the Coordinating Minister for Economic Affairs Regulation No. 16/2025. By closing critical network gaps, the project serves as a vital enabler for industrial downstreaming and logistics efficiency, providing the high-capacity, access-controlled infrastructure necessary to overcome regional economic disparities and the geographical constraints of Sumatra’s current road network. The project has 2 components: A) Civil Works and Intelligent Transport Systems (ITS) Design and Installation. This component finances the construction and ITS installation of a 67.45km toll road segment of TSTR between Sp. Ness and Merlung in Sumatra’s Jambi province, including subgrade, pavement, toll facilities, rest areas, and advanced monitoring sensors. B) Consulting Services and Capacity Building to Support Project Implementation. This component supports consulting services for project management, construction supervision, and implementation monitoring, alongside capacity building for Ministry of Public Works (MPW) staff and technical studies.