AIIB may accept and manage Special Funds as part of the Bank’s resources, which are subject to AIIB’s own governance. 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 through technical assistance or concessional support 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 buy-down grants.
Based on funding sources and governance arrangements, the Bank operates two types of Special Funds.
- Internal Special Funds. Internal Special Funds are established by AIIB, where AIIB receives contributions directly from donors and manages the funds according to AIIB’s governance structure. These consist of the Project Preparation Special Fund (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 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 of external partnership facilities, such as the Green Climate Fund (GCF), 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 facility.
