AIIB Special Fund for Project Preparation

Purpose and Contributors

• To support and facilitate preparatory activities during the preparation and early implementation of projects to be financed by the BankPurpose

• Grants for preparatory activities required during preparation and early implementation of projects to be financed by AIIB (consultancy services, equipment, training, etc.).

Type of Tech. Assistance

• People’s Republic of China: USD50 Million• Republic of Korea: USD18 Million• United Kingdom of Great Britain and Northern Ireland: USD50 Million• Hong Kong: USD10 Million

Contributors

Use of Grant Resources

Consultancy services and reports

• Reviewing and improving (pre)feasibility studies;• Conducting environmental, financial, legal, social and technical assessments and analyses;• Providing advisory services in relation to procurement, transaction and contract

management; and• Developing project implementation plans and schedules.

Equipment necessary for the preparation or delivery of such services or reports

For the implementation of the recommendations made in such reports, and related training

* Ceiling for funds approved under this condition is 30% of the aggregate amount of all contributions made to the Fund

Eligibility Criteria

• Members of AIIB who are recipients of IDA financing.

• Other members with substantial development needs and capacity constraints.*

• Project is being considered for AIIB financing.

Key Principles

• Giving preference to members classified as eligible to receive financing from the International Development Association;

• Diversifying the Bank’s portfolio;

• Prioritizing projects that are aligned with Bank’s thematic priorities;

• Avoiding creating unfair competitive advantages to recipients of grants under the Fund.

5

Policies, Procedures, Procurement

• The Bank shall apply the same internal policies and procedures as are applied when administering technical assistance or other grants from its ordinary resources.

Policies and Procedures

• There are no restriction upon the procurement of goods and services from any country to be financed from resources of the Fund.

• The Bank’s Procurement Policies and related directives and other rules apply to the procurement of all goods, works and services financed from the resources of the Fund.

Procurement

Key Documents

Rules and Regulations

(link)

Application Form(link)

Directive(link)

Approval ProcessBank’s Internal Approval Process Client Process

Project Identification

Included in the

Investment Program

Project Preparation/Appraisal

Board Approval

Project Implementation

Identify Preparation Gaps

Submit Application for SF Support

Implementation of SF

Quarterly Reporting of Implementation Status

SFCom Approval

President/Board Approval

Grant Signing

Urban Infrastructure Investment Project, Nepal

USD1.0 Million

Lahore Water and Wastewater Project, Pakistan

USD505,000

Power Distribution System Upgrade and Expansion Project,

Nepal

USD1.0 Million

Examples of Approved Projects(link)

Thank You!