2022

AIIB
ANNUAL
REPORT

© Asian Infrastructure Investment Bank 2023
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2022

AIIB
ANNUAL
REPORT

2022

AIIB ANNUAL
REPORT

CONTENTS

OUR GROWTH

HOME
Who We Are and What We Do

7

Membership

35

Our Mandate

7

Our Governance

35

Our Corporate Financing

44

Our Risk Management

46

Our Integrity Practices

49

Our Partnerships

52

Our Engagement with Civil Society

54

Our Culture and Our People

55

Our Organization

59

Our Knowledge Products

63

From Our President and Chair
of the Board of Directors

8

From Our Board of Directors

12

2022 Financial Snapshot

14

2022 Timeline

30

OUR RESPONSE TO
EMERGING NEEDS
COVID-19 Crisis Recovery Facility

95

Special Funds

97

OUR CLIENTS
Green Infrastructure

104

Connectivity and Regional Cooperation 111

IMPLEMENTING OUR
CORPORATE STRATEGY

Technology-Enabled Infrastructure

122

Private Capital Mobilization

133

Our Investment for Strategic Vision

67

Climate Financing

141

What Is Infrastructure for Tomorrow

69

COVID-19 Crisis Recovery Facility

146

 ow We Implemented Our Corporate
H
Strategy in 2022

71

OUR TOMORROW

Sustainable Capital Markets Initiative

75

Sustainable Development Bonds

76

Support Our Members’
Sustainable Recovery

158

Climate Financing

76

Build Strong Client Relationships

159

COP27

77

159

Energy Sector Strategy Update

79

Continue to Strengthen the Quality
of Our Investment Operations

 ur Contribution to the Sustainable
O
Development Goals

80

Continue to Bolster Our
Financial Sustainability

160

Social Infrastructure

81

Strengthen the Institution
and the AIIB Way

160

Environmental and Social Framework

82

Gender

82

ANNEX 1: Board of Governors Voting
Power (as of Dec. 31, 2022)
161

Portfolio Management

82

ANNEX 2: AIIB Organizational Structure 164

Case Studies

84

ABBREVIATIONS

165

HOME

01

WHO WE ARE AND WHAT WE DO
We are a multilateral development bank (MDB) based
in Asia, with an international membership. We began
operations on Jan. 16, 2016, with 57 founding Members
(37 regional and 20 nonregional). As of Dec. 31, 2022,
we have 106 approved Members (92 ratified and 14
prospective; 51 regional and 55 nonregional) representing
approximately 81% of the global population and 65%
of global gross domestic product. We are self-governing,
rules- and treaty-based, and rated AAA with preferred
creditor status.

OUR MANDATE
Our VISION is a prosperous Asia based on sustainable
economic development and regional cooperation.
Our MISSION is Financing Infrastructure for Tomorrow.
By investing in sustainable infrastructure, we unlock new
capital, new technologies and new ways in which to address
climate change and connect Asia and the world. We will
achieve this by working in partnership. By being agile and
adaptable, the Asian Infrastructure Investment Bank (AIIB)
will meet client needs and operate to the highest standards.

FROM OUR PRESIDENT
AND CHAIR OF THE BOARD
OF DIRECTORS
The year 2022 was fraught with challenges:
rising interest rates in major economies, the
continued disruption of global production
chains, as well as the lingering effects of the
coronavirus (COVID-19) pandemic, geopolitical
complications, and the ever-increasing havoc
wrought by climate change, to name just a few.
All these challenges have posed formidable
challenges for our Members, clients,
beneficiaries, communities and the Asian
Infrastructure Investment Bank’s (AIIB or the
Bank) own operations.
These myriad challenges have tested and
reaffirmed the integrity of AIIB’s clear strategic
vision. Our Corporate Strategy, adopted in 2020
upon the approval by the Board of Directors,
provides a framework for guiding and carrying
out the delivery of our mission to finance
infrastructure for tomorrow. Two years into the
implementation of this strategy, the management
and the staff have consistently demonstrated
their deep understanding of AIIB’s thematic
priorities1 and effective delivery on the ground in
an effort to translate the strategy into tangible
development results for our client Members.
Guided by our Board of Directors, we at AIIB
have continued to work with our client Members
to tackle development challenges through the
five strategic pillars that guide our actions.

8

  2022 AIIB ANNUAL REPORT

In 2022, we ramped up our efforts to realise our
Corporate Strategy targets of 50% of overall
approved financing for climate mitigation and
adaptation by 2025, 50% share of private sector
financing by 2030, and 25% to 30% crossborder connectivity financing by 2030. In 2022,
we made great strides toward achieving full Paris
Alignment of our new financing operations and, in
fact, realized this commitment on July 1, 2023.
AIIB’s climate financing in 2022 amounted
to USD2.39 billion, or 56% of total approved
regular financing,2 up from 48% in the previous
year and surpassing our 2025 target. Of the
total climate financing, climate mitigation
projects account for 81%, with the remaining
19% being adaptation finance.3 Despite
adaptation ranging between 15-20% annually,
we have increased total adaptation from
USD557.6 million in 2017 to a cumulative
USD3.3 billion in 2022. As an infrastructure
bank, the imperative to provide finance that
strengthens the resilience and adaption of
infrastructure presents opportunities to develop
new dedicated financial structures, which will
bolster AIIB’s climate adaptation agenda.
We have taken the necessary and significant
efforts needed for the full operationalization
of our commitment to realize Paris Alignment.
This is a valuable opportunity to focus our
Bank’s limited resources on areas that add value
to our Members’ domestic and international
climate pledges. We are working closely with
our peer multilateral development banks
(MDBs) to develop the joint MDB approach for
Paris Alignment assessment and finalize the
joint approach for indirect lending operations
(including those through financial intermediaries).
Due to a volatile external operating environment
in 2022 that affected project approval

1

2
3

timetables, AIIB’s financing for cross-border
connectivity projects declined 20% from
the previous year. Cross-border connectivity
financing amounted to USD550 million, or 13%
of total approved regular financing volume.
The transport sector received the largest share
of cross-border connectivity project financing.
At the same time, digital infrastructure and the
energy sector also registered an increase,
with some funded through financial
intermediary instruments.
The Bank’s private sector financing in 2022
amounted to USD1.69 billion, or 39% of total
approved regular financing, a substantial increase
from 26% in the previous year. The Bank has
been actively originating the private sector
pipeline, executing high-quality transactions,
while implementing a distinctive, efficient
client experience.
The year 2022 holds many accomplishments of
which we are proud, including the expansion of
our membership and the provision of financing to
new client Members. AIIB’s total project portfolio
at the end of 2022 numbered 202 projects. Of
the 42 projects approved this year, there was an
even split between sovereign and non-sovereign
lending. Our membership grew to 106 as we
welcomed Mauritania as a prospective Member,
while four others also completed the membership
process and became full Members of AIIB. We
have invested in 33 of our 106 Members, 16 of
them in 2022, and approved projects in Côte
d’Ivoire and Brazil for the first time.
Our Corporate Strategy requires that all of the
Bank’s investments across infrastructure and other
productive sectors must add value through one
or more of the four thematic priorities. In 2022,
of the total number of regular financing projects,
90% were aligned with our Green Infrastructure

Our four thematic priorities set out in the Corporate Strategy are Green Infrastructure, Technology-enabled Infrastructure,
Connectivity and Regional Cooperation, and Private Capital Mobilization.
AIIB calculated its 2022 climate financing share excluding financing approved through the COVID-19 Crisis Recovery Facility.
AIIB tracks its climate finance using the joint MDB climate mitigation and adaptation finance tracking methodologies. Five percent
of AIIB’s climate adaptation finance had dual benefits of mitigation and adaptation.

FROM OUR PRESIDENT AND CHAIR OF THE BOARD OF DIRECTORS

  9

thematic priority, while 48% were aligned with
the Technology-enabled Infrastructure, 29%
were aligned with the Connectivity and Regional
Cooperation, and 45% were aligned with the
Private Capital Mobilization.
In particular, I would like to highlight the sterling
achievements of AIIB staff in mobilizing private
capital for infrastructure. By leveraging AIIB’s
own balance sheet and our strong network
of institutional investors and development
partners, promising advances have been made
in promoting infrastructure as an asset class.
In 2022, we reported a total of USD2.4 billion
in private capital mobilization,4 up from
USD1.3 billion in 2021, through private equity
fund investments, loans and intermediary
financing projects.
Many of our Members were affected by various
crisis in 2022 and we have done our best to
support them in their moment of greatest
need. Early in February 2022, we extended our
COVID-19 Crisis Recovery Facility until end2023, with a more focused approach and scope
of financing, to sustain the Bank’s support to our
Members in their efforts to overcome their most
pressing pandemic and recovery challenges. The
extension comes with an increase in its financing
volume, bringing our total Facility financing to
USD20 billion, up from USD13 billion. There were
11 projects financed under the Facility in 2022,
four of which were vaccine financing projects for
Cambodia, Côte d’Ivoire, India and Türkiye.
We have been working diligently to meet our
clients’ short-term needs while holding true to the
goals of our Corporate Strategy. We have added
new tools to our toolbox to better support our
Members, including a newly introduced ResultsBased Financing modality approved by the Board
in September 2022. These new instruments allow
more synergies with our MDB partners at times
when the multiple crises affecting many of our
Members are also stretching the capacity of the
MDB system to respond.

4

10

Our effort to introduce a Special Fund Window,
created in May 2020, that assists lower income
by with loan interest buy downs is bearing fruit.
As of Dec. 31, 2022, two vaccine financing
projects, in Cambodia and Côte d’Ivoire
respectively, benefited from USD9.95 million
of special fund resources. In light of the clear
additional value of the Special Fund Window to
serve the needs of less developed Members in
the region, the Board approved the extension
of the SFW-Facility as a regular instrument for
AIIB’s financing to low-income Members in
March 2022.
As we pursue our growth phase, we will
continue to make strategic choices as a project
finance bank with a business model based on
multilateralism, partnerships and mobilization.
The newly established Operational Partnership
Department and the first overseas hub under
our Global Presence approach will, over
time, increase the breadth and depth of our
partnerships, helping us stretch the impact of
limited resources further.
Gender equality constitutes an integral
component of the Bank’s development mandate.
The Corporate Strategy elaborates on the Bank’s
intent to improve gender equality outcomes
in Asia by translating gender considerations
into actual implementation within the projects
financed by the Bank. To better operationalize
our gender equality approach, we took stock of
the extent to which gender considerations were
integrated into AIIB’s policies and portfolio, with
the intent of aligning squarely with the Bank’s
peer institutions and other development partners
to showcase our firm commitment to gender
equality in both our policies and our practice. The
gender review was presented to the Board in June
2022 and identified areas for further progress in
effectively achieving gender equality, including
the need to build up staff capacity and develop
an operational approach for gender.

Private capital mobilization amount is reported based on project commitment instead of approval. The 2022 reported private
capital mobilization amount included projects approved in previous years. The data is provisional until the submission to the joint
MDB group by June 2023.

  2022 AIIB ANNUAL REPORT

In addressing the challenges of 2022, the
Management put a premium on maintaining
regular and direct interaction with our Members,
clients and stakeholders for enhanced mutual
understanding. Now that the Covid-19 pandemic
is behind us and travel restrictions have lifted,
we are enjoying greatly increased opportunities
for in-person communication with all of our
stakeholders in various forms, bringing us closer
together for essential exchange.
I am very proud of our staff who remain
steadfastly focused on delivering the Bank’s
services with integrity and a high sense of
responsibility. Being part of AIIB requires
commitment and dedication, and staff
exceeded the expectations placed on them.
AIIB’s achievements in 2022 would also not
have been possible without the guidance of our
Board of Directors, whose strategic oversight
and direction to the Bank’s Management team
are most invaluable. The Board’s efficiency and
effectiveness, and their unqualified support for
the Management team, are vitally important for
AIIB’s governance and is the foundation of our
ambition to be an MDB for the 21st century.

In 2023, we will focus on supporting our
Members’ sustainable recovery, building strong
client relationships, strengthening the quality
of our investment operations, bolstering our
financial sustainability and strengthening the
institution and the AIIB Way.
The 2022 Annual Report is an opportunity for us
to share our vision and provide our perspective
on the Bank’s performance and progress toward
its Corporate Strategy goals. I would like to share
our story with you and invite you to join us as we
continue to grow and finance Infrastructure
for Tomorrow.

JIN LIQUN
President and
Chair of the Board of Directors

FROM OUR PRESIDENT AND CHAIR OF THE BOARD OF DIRECTORS

  11

FROM OUR BOARD
OF DIRECTORS
2022 was a year of important milestones for the
Asian Infrastructure Investment Bank (AIIB). In a
challenging global environment marked by a wide
range of uncertainties that severely disrupted
economic activity, our Bank continued to display
steadfast resilience, providing our Members with
swift and much needed financing in support of
transformative projects in infrastructure and
other productive sectors. As of Dec. 31, 2022,
AIIB had invested USD38.81 billion in 202
projects in 33 economies, impacting the lives
of millions of people in Asia and beyond. These
achievements would not have been possible if
not for the Bank’s strong financial position,
prudent risk management policies and its
shareholder support, which continue to be
reflected in our AAA rating affirmed by major
credit rating agencies.
Throughout the year, the Bank consistently
demonstrated its commitment to sound
and exemplary governance. In its quest for
continuous improvement, Directors discussed
and approved the Revisions to the Regulation
on the Accountability Framework, as part of
a package to enhance Board efficiency and
strengthen the governance of AIIB. This package,
and the roadmap for its implementation, which
was developed by Management at the request of
Directors, introduced several measures, including
the strengthening of Management reporting

12

  2022 AIIB ANNUAL REPORT

PRESIDENT
AND CHAIR
OF THE BOARD
OF DIRECTORS

DIRECTORS

Jin Liqun

ALTERNATE DIRECTORS
VICE PRESIDENT
AND CORPORATE
SECRETARY

Ludger Schuknecht

(FIRST ROW FROM THE TOP, LEFT TO RIGHT)
Abdulmuhsen S. Alkhalaf (Saudi Arabia), Mehmet Alper Batur (Türkiye), Ishwori Prasad
Aryal (Nepal), Pavel Snisorenko (Russia), Zhijun Cheng (China), Ahmed Kouchouk (Egypt)
(SECOND ROW FROM THE TOP, LEFT TO RIGHT)
David Osborne (Australia), Stefan Denzler (Switzerland), Fabrizio Costa (Italy), Manisha
Sinha (India), R.M.P. Rathnayake (Sri Lanka), Kyunghee Kim (Korea)
(THIRD ROW FROM THE TOP, LEFT TO RIGHT)
Adel Al Hosani (UAE), Mohammed Abdullah Al Hashimi (Qatar), Nasira Batool (Pakistan),
Mohamed Iaad Hameed (Maldives), Sukmeena Bhasavanich (Thailand), Kourosh Taherfar
(Iran)
(FOURTH ROW FROM THE TOP, LEFT TO RIGHT)
Bin Han (China), Martin Tabi (Canada), Ian Wong (Singapore), Mark Collins (United
Kingdom), Styrkär Hendriksson (Iceland), Camillo von Müller (Germany)
(FIFTH ROW FROM THE TOP, LEFT TO RIGHT)
Minna Aaltonen (Finland), Prasanna V. Salian (India), Era Herisna (Indonesia),
Phanomphone Keovongvichith (Lao PDR), Eyal Medan (Israel)
Not in photo: Nurussa'adah Muharram, Alternate Director, Brunei Darussalam

to the Board, the empowerment of Board
Committees and increased project approval
delegation to the President. This reform agenda
is ultimately designed to allow the Board to better
undertake its strategic oversight function.
From an operations standpoint, the Bank
continued to make progress toward the
achievement of its Corporate Strategy’s
ambitious targets of directing 50% of overall
approved investments toward climate finance by
2025, reaching a 50% share of private sector
financing by 2030, and achieving 25% to 30%
cross-border connectivity financing by 2030.
As part of these efforts, the Board of Directors
approved the establishment of an Interim
Operational Hub, the Bank’s first overseas office
in Abu Dhabi, with the aim of strengthening client
relations and business development, project
implementation and monitoring, and the Bank’s
market position. This Interim Operational Hub will
be instrumental in the years ahead as AIIB strives
to diversify its business portfolio, expand its pool
of clients, and better respond to the growing
demands of our Members.
The Board of Directors also approved relevant
operational strategies and policies, including the
Energy Sector Strategy (ESS) Update and the
Update to the Operational Policy on Financing
(OPF). Both policies and strategies benefited
from extensive engagement with a wide array of
stakeholders, ranging from Board members, Bank
staff, experts, public and private sector clients
and civil society organizations. The ESS Update
is centered around Sustainable Development
Goal 7 and the Paris Agreement. As such, it
contributes to addressing climate change and
supporting our Members’ clean energy solutions,

while clearly excluding any financing of coal and
projects functionally related to coal. The Update
to the OPF, for its part, introduced Resultsbased Financing (RBF) in the range of financing
modalities offered by the Bank, with the ultimate
aim of better responding to clients’ needs and
achieving the Corporate Strategy’s targets.
Partnerships were central to the Bank’s work
and success in 2022, and we consolidated our
position as a partner of choice in the multilateral
development bank community through our
responsiveness and delivery. While we pursued
the expansion of our standalone portfolio,
we continued to leverage cofinancing and
partnership opportunities and to strengthen
international engagement with a range of
stakeholders. Our Bank’s participation at the
United Nations Climate Change Conference
of the Parties (COP27) was an opportunity to
reaffirm our commitment to climate finance
and was marked by the signing of several
important cooperation agreements. Held under
the theme of “Sustainable Infrastructure
Toward a Connected World”, the 2022 Annual
Meeting of the Board of Governors – the Bank’s
flagship event – also provided an opportunity to
engage partners, business leaders, civil society
organizations and experts from a range of
fields on topics of mutual interest, with a focus
on infrastructure’s crucial role in supporting
recovery, growth and connectivity.
Looking ahead, we remain more than ever
committed to continue supporting our Members
in their journey toward sustainable economic
development and look forward to further
strengthening our collaboration with partners to
achieve this objective.

FROM OUR BOARD OF DIRECTORS

  13

2022 FINANCIAL SNAPSHOT
Cumulative Data from 2016 to 2022

APPROVED PROJECTS, 2016–2022
TOTAL AMOUNT NUMBER OF TOTAL AMOUNT OF
OF SOVEREIGN- SOVEREIGN- NONSOVEREIGNANNUAL
BACKED
BACKED
BACKED
APPROVALS
FINANCING
FINANCING
FINANCING
(IN USD MILLION)
(IN USD MILLION) PROJECTS

YEAR

NUMBER OF
NONSOVEREIGNBACKED
FINANCING
PROJECTS*

TOTAL
(as of Dec.
31, 2022)

202

30,615.4

127

8,192.8

75

2022

42

4,945.4

21

1,860.5

21

2021

51

8,015.4

32

1,823.5

19

2020

45

8,669.5

33

1,311.0

12

2019

28

3,091.1

15

1,555.7

13

2018

12

2,593.4

8

710.0

4

2017

15

1,590.6

10

912.1

5

2016

9

1,710.0

8

20.0

1

Note: Sovereign-backed and nonsovereign-backed financing is defined in the AIIB Operational Policy on Financing.

APPROVED PROJECTS, REGIONAL OR NONREGIONAL, 2016-2022
Total (as of Dec. 31, 2022) 202

200

150

100

50

1
1

0

9

1
14

1
11

27

2016

2017

2018

2019

Regional

14

  2022 AIIB ANNUAL REPORT

Nonregional

4

44

47

2020

2021
Multicountry

3
36
2022

3

NUMBER OF MEMBERS IN WHICH AIIB INVESTS, 2016-2022
Total (as of Dec. 31, 2022) 151
150

120

90

60

8

30

0

1

7
7

5
12

13

2016

2017

2018

21
2019

7

3

28

2

21**

2020

2021

16
2022

Number of Members that Availed of AIIB Financing for the First Time

Members in which AIIB Invests*

* = Represents actual Members, and excludes projects classified as ‘Multicountry’
** = Updated to reflect change in methodology

MEMBERS
110
100

60
40
20

57
37

106

54

55

50

51

51

2020

2021

2022

103

52

53

50

2019

93

84

80

105

102

50

48

43

36

20

0
2016

2017

2018
Regional

Nonregional

Total approved

Note: Figures are aggregated and include full AIIB Members and approved Members. As of end-2022, AIIB’s full membership totals
92 Members, with 14 more that have either signed the AIIB Articles of Agreement (pending ratification), or whose membership
applications have been approved by the Board of Governors, pending their ratification of the AIIB Articles of Agreement, or required
payment for their subscribed capital stock of the Bank (commonly known as Prospective AIIB Members).

2022 FINANCIAL SNAPSHOT   15

PROJECTS BY SECTOR, 2016-2022
AIIB updated its sector classification in June 2022 to better reflect and align with AIIB’s evolving business focus and
strategies. The figures below reflect the updated sector classifications.
TOTAL
2017 2018 2019 2020 2021 2022 (as of Dec.
31, 2022)

YEAR

2016

TOTAL

9

15

12

28

45

51

42

202

ENERGY

4

6

3

10

4

9

8

44

TRANSPORT

4

3

3

4

5

6

8

33

WATER

–

2

3

3

3

2

2

15

MULTI-SECTOR

–

2

2

6

1

6

13

30

URBAN

1

1

1

2

2

6

–

13

–

1

–

1

3

3

–

8

–

–

–

1

–

–

–

1

EDUCATION INFRASTRUCTURE

–

–

–

–

–

1

–

1

HEALTH INFRASTRUCTURE

–

–

–

–

–

–

–

–

OTHER PRODUCTIVE SECTOR

–

–

–

–

–

–

–

–

OTHERS

–

–

–

1

–

–

–

1

CRF-PUBLIC HEALTH
COVID-19
CRF-FINANCE/LIQUIDITY
CRISIS
RECOVERY CRF-ECONOMIC
FACILITY
RESILIENCE / POLICYBASED FINANCING

–

–

–

–

8

6

4

18

–

–

–

–

7

6

2

15

–

–

–

–

12

6

5

23

DIGITAL INFRASTRUCTURE AND
TECHNOLOGY
RURAL INFRASTRUCTURE AND
AGRICULTURAL DEVELOPMENT

Notes: Key changes to the sector reclassification are: (1) removal of ‘Finance’ as a sector and introduction of a Multi-sector’
category. Intermediary finance projects, previously classified under the ‘Finance’ sector, and are operating in a single sector, are now
classified as an investment in that sector. The Multi-sector category is used to capture intermediary finance projects covering more
than one sector by project component or investment thesis; and (2) updates to reflect current sector strategies. The ‘ICT’ sector is
now referred to as the ‘Digital Infrastructure and Technology’ sector.

COVID-19 CRISIS RECOVERY FACILITY PROJECTS, 2020-2022
YEAR

2020

2021

2022

TOTAL
(as of Dec. 31, 2022)

TOTAL

27

18

11

56

PUBLIC HEALTH

8

6

4

18

FINANCE/LIQUIDITY

7

6

2

15

ECONOMIC RESILIENCE /
POLICY-BASED FINANCING

12

6

5

23

19

14

9

26*

MEMBERS WHO AVAILED OF THE FACILITY

* = represents actual count of number of Members who availed of the Facility per year. Numbers do not sum up because of
repeat availments.
Notes: The COVID-19 Crisis Recovery Facility was created in April 2020 to help AIIB Members address their diverse emergency
health care, liquidity and economic needs. In June 2021, the Board of Directors approved an extension to the COVID-19 Crisis
Recovery Facility until April 16, 2022. In February 2022, the Board of Directors approved a further extension of the Facility until
end-2023, together with a more focused approach to the scope of Facility financing. The Facility’s financing envelope was also
increased up to USD20 billion. See the section on COVID-19 Crisis Recovery Facility for more information.

16

  2022 AIIB ANNUAL REPORT

TOTAL PROJECTS APPROVED, 2016-2022
APPROVED AIIB FINANCING
(IN USD MILLION)

NO. OF PROJECTS

MEMBER
SBF

NSBF

TOTAL

SBF

NSBF

TOTAL

Azerbaijan

2

–

2

700.0

–

700.0

Bangladesh

15

2

17

3,029.0

170.0

3,199.0

Brazil

–

1

1

–

100.0

100.0

Cambodia

2

3

5

110.0

250.0

360.0

China

6

9

15

2,455.0

990.0

3,445.0

Cook Islands

1

–

1

20.0

–

20.0

Côte d'Ivoire

1

–

1

100.0

–

100.0

Ecuador

1

–

1

50.0

–

50.0

Egypt

3

2

5

920.0

360.0

1,280.0

Fiji

2

–

2

100.0

–

100.0

Georgia

3

1

4

264.0

100.0

364.0

Hungary

1

–

1

216.1

–

216.1

India

26

13

39

7,928.7

1,070.5

8,999.2

Indonesia

10

1

11

2,979.9

150.0

3,129.9

Jordan

1

–

1

250.0

–

250.0

Kazakhstan

1

1

2

750.0

46.7

796.7

Kyrgyzstan

1

–

1

50.0

–

50.0

Lao PDR

2

1

3

70.0

150.0

220.0

Maldives

3

–

3

67.3

–

67.3

Mongolia

3

–

3

221.0

–

221.0

Multicountry*

–

20

20

–

2,820.0

2,820.0

Myanmar

–

1

1

–

20.0

20.0

Nepal

1

1

2

112.3

90.0

202.3

Oman

2

4

6

301.0

408.1

709.1

Pakistan

9

–

9

2,211.8

–

2,211.8

Philippines

4

–

4

1,507.6

–

1,507.6

Russia

1

2

3

500.0

395.0

895.0

Rwanda

2

–

2

200.0

–

200.0

Singapore

–

3

3

–

214.0

214.0

Sri Lanka

3

–

3

460.0

–

460.0

Tajikistan

2

–

2

87.5

–

87.5

Türkiye

10

7

17

3,035.2

611.0

3,646.2

Uzbekistan

9

1

10

1,919.0

100.0

2,019.0

Viet Nam

–

2

2

–

147.5

147.5

Total

127

75

202

30,615.4

8,192.8

38,808.2

SBF = sovereign-backed financing; NSBF = nonsovereign-backed financing.
* Multicountry covers projects financed through financial intermediaries (e.g., private equity funds, bonds). Projects categorized as
“multicountry” may benefit AIIB Members indirectly even though AIIB is not providing direct financing to these beneficiary Members.
Note: This table includes information about AIIB’s projects, including projects approved under the COVID-19 Crisis Recovery Facility (CRF).

2022 FINANCIAL SNAPSHOT   17

USD INVESTMENTS
With the adoption of the Investment Management Information System (IMIS) in 2022 to better manage our growing
portfolio, we also realigned our reporting to better reflect the data now available to us and strengthen our ability
to make data-driven decisions. The figures for Annual Approvals below reflect updated data based on our revised
reporting system.
ANNUAL APPROVALS*
(IN USD BILLION)

DISBURSED
(IN USD BILLION)

TOTAL (as of Dec. 31, 2022)

38.81*

13.76

2022

6.81

6.38

2021

9.84

4.62

2020

9.98

6.23

2019

4.65

1.48

2018

3.30

0.62

2017

2.50

0.79

2016

1.73

0.01

YEAR

* = Figures reflect updated data based on AIIB’s revised reporting system.
Notes: ‘Approved’ investment figures reflect the maximum amount approved. ‘Disbursed’ refers to the amount of cash disbursement
and capitalized charges.

STAFF

18

YEAR

PROFESSIONAL STAFF

FEMALE
PROFESSIONAL STAFF

ECONOMY
REPRESENTATION

End-2022

454

187 (41% of total)

62

End-2021

359

141 (39% of total)

51

End-2020

316

121 (38% of total)

54

End-2019

279

108 (39% of total)

50

End-2018

186

59 (32% of total)

44

End-2017

131

42 (32% of total)

36

End-2016

79

18 (23% of total)

23

  2022 AIIB ANNUAL REPORT

TOTAL SPECIAL FUNDS APPROVED (CUMULATIVE AMOUNTS IN USD MILLION)
TOTAL
CUMULATIVE SF
APPROVED

PPSF

MCDF

GIF

SFW

End-2022

95.38

47.58

7.76

0.35

39.69

End-2021

65.21

33.64

1.83

-

29.74

End-2020

55.18

25.44

-

-

29.74

End-2019

11.31

11.31

-

-

-

End-2018

7.18

7.18

-

-

-

End-2017

1.70

1.70

-

-

-

YEAR

* These figures refer to grants provided by AIIB through its Project Preparation Special Fund (PPSF), the Multilateral
Cooperation Center for Development Finance (MCDF) special fund, the Global Infrastructure Facility (GIF)special fund from
2021, and the Special Fund Window to support the preparation of projects to be financed by AIIB. See section on Special Funds
for more information.

PRIVATE CAPITAL MOBILIZED
SHARE OF
PCM FROM
THE PCM
TOTAL
NSBF PROJECT
FROM NSBF
(CUMULATIVE)
(CUMULATIVE)
(CUMULATIVE)

COMMITMENT
CONTRIBUTIONS
(ANNUAL)

PCM FROM
NSBF
PROJECT
(ANNUAL)

SHARE OF
THE PCM
FROM NSBF
(ANNUAL)

(IN USD
MILLION)

(IN USD
MILLION)

(%)

(IN USD
MILLION)

(IN USD
MILLION)

(%)

2022

2,434.9*

2,434.9

100

7,112.14

6,259.2

88

2021

1,332.6

1,285.6

96

4,677.06

3,824.3

82

2020

1,450.1

1,137.6

78

3,344.46

2,538.66

76

2019

1,178.4

685.1

58

1,894.36

1,401.06

74

2018

150

150

100

715.96

715.96

100

2017

561

561

100

565.96

565.96

100

2016

4.96

4.96

100

4.96

4.96

100

YEAR

PCM = private capital mobilized; NSBF = nonsovereign-backed financing
* = The 2022 reported private capital mobilization amount included projects approved in previous years. The data is provisional
until the submission to the joint MDB group.
Note: Private capital mobilized includes direct and indirect involvement of AIIB that led to the commitment of private entities’
financing.

2022 FINANCIAL SNAPSHOT   19

NUMBER AND SHARE OF NONSOVEREIGN-BACKED FINANCING
PROJECTS, 2016-2022
NUMBER OF NSBF
PROJECTS
(EXCLUDING CRF)

NSBF FINANCING AMOUNT
(EXCLUDING CRF)
(IN USD MILLION)

SHARE OF NSBF OF
THE TOTAL PORTFOLIO
(EXCLUDING CRF)

2022

19

1685.5

39%

2021

16

1523.5

26%

2020

9

811

28%

2019

13

1555.7

33%

2018

4

710

21%

2017

5

912.1

36%

2016

1

20

1%

Total

67

7217.8

29%

YEAR

Note: This table reflects Nonsovereign-Backed Financing (NSBF) projects excluding projects approved under the COVID-19
Crisis Recovery Facility (CRF). For information about the 2022 CRF projects, please see COVID-19 Crisis Recovery Facility graphs.

INTERNATIONAL OPEN COMPETITIVE TENDERING AND SELECTION
(IOCT & IOCS) PROCUREMENT
Total (as of Dec. 31, 2022) 7,848.6

8,000

6,000

4,000

2,000
2,621.1
0

489

396

2016

2017

165.5
2018

1,410.4

1,336.8

2019

2020

1,429.8
2021

2022

Annual Contract Award (in USD million)
Note: Contract award amounts are based on the (i) International Open Competitive Tendering method for goods, works and nonconsulting services contracts, and (ii) International Open Competitive Selection method for consulting services under sovereignbacked financings and the Project Preparation Special Fund.

20

  2022 AIIB ANNUAL REPORT

PROJECTS BY THEMATIC PRIORITY, 2016-2022
With the adoption of our Corporate Strategy in 2020, all our AIIB investments across infrastructure and other
productive sectors are required to add value through one or more of the four cross-cutting themes of our Corporate
Strategy to finance Infrastructure for Tomorrow (i4t). In 2021, we realigned our reporting to reflect this and
reclassified our projects under these thematic priorities going forward. The figures below represent the distribution of
regular projects (excluding projects approved under the COVID-19 Crisis Recovery Facility).

GREEN
INFRASTRUCTURE

CONNECTIVITY
AND REGIONAL
COOPERATION

TECHNOLOGYENABLED
INFRASTRUCTURE

PRIVATE CAPITAL
MOBILIZATION

121

32

36

66

2022

28 (90.32%)

9 (29.03%)

15 (48.39%)

14 (45.16%)

2021

30 (90.91%)*

8 (24.24%)

13 (39.39%)

16 (48.48%)

2020

15 (83.33%)

5 (27.78%)

5 (27.77%)

8 (44.44%)

2019

24 (85.71%)

4 (14.29%)

3 (10.71%)

15 (53.57%)

2018

9 (75.00%)

—

—

6 (50.00%)

2017

11 (73.33%)

2 (13.33%)

—

5 (33.33%)

2016

4 (44.44%)

4 (44.44%)

—

2 (22.22%)

YEAR
TOTAL (as of
Dec. 31, 2022)

Note: Some projects may fall within one or more priorities.
* = Figure updated to reflect the reclassification of one project (Keppel-Pierfront Private Credit Fund) under Green Infrastructure.

2022 FINANCIAL SNAPSHOT   21

Data from Jan. 1 to Dec. 31, 2022

TOTAL PROJECTS APPROVED, 2022

TOTAL PROJECTS APPROVED, REGIONAL OR NONREGIONAL, 2022

REGIONAL

22

NON-REGIONAL

  2022 AIIB ANNUAL REPORT

TOTAL NONSOVEREIGN-BACKED FINANCING PROJECTS, 2022

NUMBER
OF NSBF
PROJECTS

YEAR

NSBF
FINANCING
AMOUNT
(WHOLE
PORTFOLIO)
(IN USD
MILLION)

2022

21

SHARE OF
NSBF OF
THE TOTAL
PORTFOLIO

NUMBER
OF NSBF
PROJECTS
(EXCLUDING
CRF)

27%

19

1,860.5

NSBF
FINANCING
AMOUNT
(EXCLUDING
CRF)

SHARE OF
NSBF OF
THE TOTAL
PORTFOLIO
(EXCLUDING
CRF)

(IN USD
MILLION)
1,685.5

39%

CRF = COVID-219 Crisis Recovery Facility; NSBF = nonsovereign-backed financing.

REGULAR FINANCING
TOTAL PROJECTS BY THEMATIC PRIORITY, 2022

YEAR

GREEN
INFRASTRUCTURE

CONNECTIVITY
AND REGIONAL
COOPERATION

TECHNOLOGYENABLED
INFRASTRUCTURE

PRIVATE
CAPITAL
MOBILIZATION

TOTAL (2016-2022)

121

32

36

66

2022

28

9

15

14

Note: Some projects may fall within one or more thematic priorities.

GREEN INFRASTRUCTURE
PROJECTS, 2022

GREEN INFRASTRUCTURE
PROJECTS, BY REGION, 2022

MEMBER

NUMBER OF PROJECTS

REGION

NUMBER OF PROJECTS

Bangladesh

2

Central Asia

2

Brazil*

1

Eastern Asia

4

China

4

Multicountry

4

Egypt

1

North Africa

1

India

8

Oceania

–

Indonesia

1

South America

1

Lao PDR

1

South-Eastern Asia

3

Multicountry

4

Southern Asia

10

Oman

1

Western Africa

–

Singapore

1

Western Asia

3

Türkiye

2

Total

28

Uzbekistan

2

Total

28

*First time to avail of AIIB financing; the project Brazil: BDMG
Renewables and Asia Connectivity Facility also falls within the
Connectivity and Regional Cooperation thematic priority.

2022 FINANCIAL SNAPSHOT   23

CONNECTIVITY AND REGIONAL
COOPERATION PROJECTS, 2022
MEMBER

NUMBER OF PROJECTS

Brazil*

1

REGION

China

2

Central Asia

1

India

3

Eastern Asia

2

Lao PDR

1

Multicountry

1

Multicountry

1

North Africa

–

Uzbekistan

1

Oceania

–

Total

9

South America

1

South-Eastern Asia

1

Southern Asia

3

Western Africa

–

Western Asia

–

Total

9

*First time to avail of AIIB financing; the project Brazil: BDMG
Renewables and Asia Connectivity Facility also falls within the
Green Infrastructure thematic priority.

TECHNOLOGY-ENABLED
INFRASTRUCTURE PROJECTS, 2022
MEMBER

NUMBER OF PROJECTS

NUMBER OF PROJECTS

TECHNOLOGY-ENABLED
INFRASTRUCTURE PROJECTS,
BY REGION, 2022

3

REGION

NUMBER OF PROJECTS

India

6

Central Asia

1

Multicountry

4

Eastern Asia

3

Türkiye

1

Multicountry

4

Uzbekistan

1

North Africa

–

Total

15

Oceania

–

South America

–

China

24

CONNECTIVITY AND REGIONAL
COOPERATION PROJECTS,
BY REGION, 2022

South-Eastern Asia

–

Southern Asia

6

Western Africa

–

Western Asia

1

Total

15

PRIVATE CAPITAL MOBILIZATION
PROJECTS, NUMBER OF
PROJECTS, 2022

PRIVATE CAPITAL MOBILIZATION
PROJECTS, BY REGION, 2022

MEMBER

NUMBER OF PROJECTS

Central Asia

–

Bangladesh

2

Eastern Asia

2

China

2

Multicountry

5

India

2

North Africa

–

Lao PDR

1

Oceania

–

Multicountry

5

South America

–

Singapore

1

South-Eastern Asia

2

Türkiye

1

Southern Asia

4

Total

14

Western Africa

–

Western Asia

1

Total

14

  2022 AIIB ANNUAL REPORT

REGION

NUMBER OF PROJECTS

TOTAL NUMBER OF PROJECTS, BY SECTOR, 2022
NUMBER OF
PROJECTS, 2022

PERCENTAGE,
2022

TOTAL NUMBER OF
PROJECTS (20162022)

ENERGY

8

19.05%

44

TRANSPORT

8

19.05%

33

WATER

2

4.76%

15

MULTISECTOR

13

30.95%

30

URBAN

–

0%

13

DIGITAL INFRASTRUCTURE
AND TECHNOLOGY

–

0%

8

RURAL INFRASTRUCTURE
AND AGRICULTURAL
DEVELOPMENT

–

0%

1

EDUCATION

–

0%

1

HEALTH INFRASTRUCTURE

–

0%

–

OTHER PRODUCTIVE
SECTORS

–

0%

–

OTHERS

–

0%

1

CRF-PUBLIC HEALTH

4

9.52%

18

CRF-FINANCE/LIQUIDITY

2

4.76%

15

CRF-ECONOMIC RESILIENCE /
POLICY-BASED FINANCING

5

11.90%

23

TOTAL

42

100%

202

SECTOR

COVID-19 CRISIS RECOVERY FACILITY

CRF = COVID-19 Crisis Recovery Facility
Note: Numbers may not add up to 100% because of rounding.

2022 FINANCIAL SNAPSHOT   25

ENERGY SECTOR PROJECTS, BY MEMBER, 2022

ENERGY SECTOR PROJECTS, BY REGION, 2022

TRANSPORT SECTOR PROJECTS, BY MEMBER, 2022

TRANSPORT SECTOR PROJECTS, BY REGION, 2022

26

  2022 AIIB ANNUAL REPORT

WATER SECTOR PROJECTS,
BY MEMBER, 2022

WATER SECTOR PROJECTS,
BY REGION, 2022

MULTI-SECTOR PROJECTS, BY MEMBER, 2022

MULTI-SECTOR PROJECTS, BY REGION, 2022

2022 FINANCIAL SNAPSHOT   27

COVID-19 CRISIS RECOVERY FACILITY
COVID-19 CRISIS RECOVERY FACILITY PROJECTS, BY SECTOR, 2022

MEMBER

REGION

SECTOR

AIIB FINANCING
(IN USD MILLION)

NO. OF
PROJECTS

Bangladesh

Southern Asia

Economic Resilience/PBF

250

1

Oceania

Economic Resilience/PBF

50

1

Mongolia

Eastern Asia

Economic Resilience/PBF

100

1

Pakistan

Southern Asia

Economic Resilience/PBF

500

1

Uzbekistan

Central Asia

Economic Resilience/PBF

530

1

Cambodia

South-Eastern Asia

Finance/Liquidity

175

2

Cambodia

South-Eastern Asia

Public Health

50

1

Côte d'Ivoire*

Western Africa

Public Health

100

1

India

Southern Asia

Public Health

500

1

Türkiye

Western Asia

Public Health

Fiji

Total

250

1

2,505

11

* = First time to access AIIB financing

VACCINE FINANCING PROJECTS
MEMBER

REGION

NUMBER OF PROJECTS

Cambodia

South-Eastern Asia

1

Côte d’Ivoire*

Western Africa

1

India

Southern Asia

1

Türkiye

Western Asia

1

Total

4

* = First time to access AIIB financing
Note: Vaccine financing projects are classified under the COVID-19 Crisis Recovery Facility-Public Health sector.

COVID-19 CRISIS RECOVERY FACILITY PROJECTS, BY MEMBER, 2022

COVID-19 CRISIS RECOVERY FACILITY PROJECTS, BY REGION, 2022

28

  2022 AIIB ANNUAL REPORT

SPECIAL FUNDS
LIST OF PROJECTS SUPPORTED BY THE PROJECT PREPARATION
SPECIAL FUND, 2022
MEMBER

REGION

SECTOR

NUMBER OF
PROJECTS

Bangladesh

Southern Asia

Water

2

Bangladesh

Southern Asia

Urban

1

Cambodia

South-Eastern Asia

Water

1

LIST OF PROJECTS SUPPORTED BY THE SPECIAL FUND WINDOW
UNDER THE COVID-19 CRISIS RECOVERY FACILITY (2022)
MEMBER
Cambodia
Côte d’Ivoire*

NUMBER OF
PROJECTS

REGION

SECTOR

South-Eastern Asia

COVID-19 Crisis Recovery
Facility-Public Health

1

Western Africa

COVID-19 Crisis Recovery
Facility-Public Health

1

* = first time to access AIIB financing

LIST OF PROJECTS SUPPORTED BY MULTILATERAL COOPERATION
CENTER FOR DEVELOPMENT FINANCE, 2022
MEMBER

REGION

NUMBER OF
PROJECTS

SECTOR

Indonesia

South-Eastern Asia

Transport

2

Lao PDR

South-Eastern Asia

Transport

1

Multicountry

Multicountry

Environmental and Social Frameworks;
Gender Equity; Risk Management

1

Multicountry

Multicountry

Other

1

LIST OF PROJECTS SUPPORTED BY THE GLOBAL INFRASTRUCTURE
FACILITY, 2022
MEMBER

REGION

SECTOR

NUMBER OF
PROJECTS

Bangladesh

Southern Asia

Social

1

2022 FINANCIAL SNAPSHOT   29

2022 TIMELINE
JANUARY
14

Peru becomes a full Member on fulfilling the
terms and conditions set out in the Board of Governors
Resolution No. 31.

21

We approved USD100 million for our first
project in Brazil. Under the BDMG Renewables and
Asia Connectivity Facility, we are going to on-lend
funds to Brazilian development bank Banco de
Desenvolvimento de Minas Gerais S.A. (BDMG),
which will be used to support companies or institutions
operating in renewable and infrastructure-related
fields in and around Minas Gerais.

MARCH
23

Our Board of Directors approved the Special
Fund Window for Less Developed Members (SFW),
an extension of the SFW under the COVID-19 Crisis
Recovery Facility, to make financing more affordable for
our less-developed Members by providing interest rate buy
down to eligible sovereign-backed financing projects that
are aligned with our Corporate Strategy.

Infrastructure investments and connectivity
are crucial for lower-income countries to
regain a growth momentum and to achieve
long-term sustainable development goals in the
post-COVID-19 era, while also dealing with
climate change. Through the Special Fund
Window for Less Developed Members, AIIB
can support its less-developed Members with
affordable pricing while still being consistent
with the core elements of our business model to
finance Infrastructure for Tomorrow (i4t).
JIN LIQUN
AIIB President and Chair of the Board of Directors

FEBRUARY
24

We extended our COVID-19 Crisis Recovery
Facility until end-2023, with a more focused approach and
scope of financing, to continue supporting our Members
overcome their most pressing pandemic and recovery
challenges. The extension comes with an increase in its
financing volume, bringing our total Facility financing from
USD13 billion to USD20 billion.

30

  2022 AIIB ANNUAL REPORT

APRIL
12

We chaired the third Digital Infrastructure
Regulatory Risks Forum, organized in the context of the
Working Group on Digital Infrastructure Regulatory Risks,
with participants from multilateral, bilateral development
banks and international organizations. Theme of this
year’s forum was on data privacy and the implementation
challenges, including in the European Union and China.

29

Tunisia becomes a full Member on fulfilling the
terms and conditions set out in the Board of Governors
Resolution No. 78.

MAY
4

Morocco becomes a full Member on fulfilling the
terms and conditions set out in the Board of Governors
Resolution No. 72.

12

We signed an MOU with the OPEC Fund for
International Development to expand our operational
and strategic cooperation to finance global public
and private sector projects, and promote sustainable,
resilient and high-standard infrastructure development

JUNE
28

We received our Economic Dividends for Gender
Equality (EDGE) reaccreditation at the Assess Level, which
reinforces our commitment toward gender balance across
our talent pipeline, pay equity, effectiveness of policies and
practices to ensure equitable career flows as well as the
inclusiveness of our culture.

JULY
12

We initiated the AIIB-China Ministry of Transport
Cooperation Program to share experiences and support
regional connectivity with international standards through
working groups and regular dialogue.

30

We partnered with Sinovation for the first
DeeCamp, to provide workshops to computer scientists
working on artificial intelligence solutions for relevant
infrastructure sectors.

31

We published our Statement on Retaliation, which
describes how we assess and manage risks of retaliation
under our Environmental and Social Policy.

JUNE
9

At G20, we hosted the Digital Infrastructure Highlevel Seminar with the theme ‘Closing the Digital Divide,’
which was attended by all G20 delegates in person and by
more than 200 global participants virtually.

21

We obtained approval for our first Global
Infrastructure Facility (GIF) grant to support digital health
intervention in Bangladesh, specifically to design and
structure a technology-enabled healthcare project. We
established our GIF Special Fund for grants we received as
a Technical Partner of GIF.

28

Our Board of Directors approved the Global
Presence program, allowing the eventual establishment
of an Interim Operational Hub in Abu Dhabi, United Arab
Emirates, our first overseas office.

AUGUST
2

Together with Mastercard, we co-hosted the hybrid
session on ‘Post-Pandemic Future City’ in conjunction
with the World Cities Summit Singapore. The topic was on
exploring the latest technologies for building and running
cities and effective application methods.

4

Iraq becomes a full Member on fulfilling the
terms and conditions set out in the Board of Governors
Resolution No. 110.

SEPTEMBER
28

We launched our second Sustainable
Development Bonds Impact Report, which illustrates
how the proceeds from AIIB’s bonds are used to realize
AIIB’s mission to finance Infrastructure for Tomorrow.
This second edition shares insights on AIIB’s financing in
key infrastructure sectors, including sustainable energy,
transportation, water, digital infrastructure and AIIB’s
COVID-19 Crisis Recovery Facility.

28

We welcomed our first Graduate Program cohort
of 25 analysts and our second Legal Associates Program
cohort of 3 lawyers, representing a total of 16 economies.

2022 TIMELINE

  31

OCTOBER
10

We published our inaugural Annual Operational
Procurement Report, which provides highlights of the
procurement profile of projects approved during 20162021, covering procurement contracts of sovereignbacked projects and Project Preparation Special
Fund grants.

13

We signed an MOU with the Development
Bank of Latin America to enhance our collaboration on
promoting renewable energy and green initiatives in Latin
America and the Caribbean. The agreement will catalyze
additional resources through cofinancing measures to
maximize impact and deliver greater value to common
Member economies in the region.

OCTOBER
26-27

We held our Seventh Annual Meeting of
the Board of Governors virtually.

27

We launched our Asian Infrastructure Finance
Report 2022, Moonshots for the Emerging World: Building
State Capacity and Mobilizing the Private Sector Toward Net
Zero, which examines what state-owned institutions and the
private sector can do to achieve net zero, including finding
new ways of mobilizing capital and sharing risks.

NOVEMBER
1

Together with the Multilateral Cooperation Center
for Development Finance and China International
Contractors Association, we organized a workshop on
MDB’s Procurement and Project Finance Policy and
Business Opportunities, which was attended by more than
200 participants.

3

16

We signed an MOU with German national
promotional bank KfW to strengthen collaborative ties as
a means of facilitating economic, social and environmental
support to its Members. The MOU creates opportunities
for us to tap into broader client connections and jointly
finance projects in line with our thematic priority of
Connectivity and Regional Cooperation.

17

On the basis of AIIB’s approval of USD200
million equivalent for the CNY Green On-lending facility
to China EXIM (CEXIM) Bank, we signed an MOU
with CEXIM to jointly work in various areas including
climate and other financing related to the Sustainable
Development Goals. Our cooperation with CEXIM is
expected to create opportunities for us to tap into wide
client connections and jointly finance projects.

32

  2022 AIIB ANNUAL REPORT

Our Board of Directors approved our participation
as one of 13 pre-selected implementing entities to the
Pandemic Fund, a financial intermediary fund established
for pandemic prevention, preparedness and response (PPR)
housed at the World Bank and funded by sovereign donors
and philanthropies or private foundations. The Pandemic
Fund will provide a dedicated stream of additional financing,
channelled through its implementing entities, to strengthen
PPR capabilities and address critical gaps in low- and middleincome countries through investments and technical support.

6

Together with other MDBs, we issued a forwardlooking joint statement at the United Nations Climate
Change Conference of the Parties (COP27) global climate
summit, affirming our commitment to expand our support
to countries seeking finance to mitigate climate change
and adapt to a warming planet. The MDBs also vowed to
address the challenges of sustainable development, climate
change and biodiversity loss in an integrated way.

9

We officially joined the Energy Transition Accelerator
Financing Platform, the global climate finance program
of the International Renewable Energy Agency (IRENA),
aimed at mobilizing capital to scale up renewable project
funding in developing countries by 2030. We intend to
deploy USD300 million as part of the relationship.

NOVEMBER
8

We participated in COP27, with President
Jin heading the delegation. We led strategic events
and initiatives focused on (1) Scaling Climate
Finance-Bridging the Gap Between Concessional
and Private Finance, (2) Unleashing the Power of
Climate Tech, InfraTech expansion to climate tech
and (3) the Role of Capital Markets in Mobilizing
Finance for Climate-resilient Infrastructure.

NOVEMBER
21-22

President Jin led an AIIB
delegation to meet with UAE officials to discuss
the establishment of the Interim Operational Hub.

8

At COP27, we announced a strategic
investment partnership with the Global Energy
Alliance for People and Planet (GEAPP) to mobilize
up to USD1 billion for the financing of green energy
transition and renewable energy projects, in both the
public and private sectors. The project will identify
cofinancing opportunities for projects and programs
in grid-based renewables, distributed renewables and
energy transitioning areas.

14

We joined the Coalition for Climate Resilient
Investment (CCRI), fostering a strategic partnership to
apply climate-resilient solutions. CCRI supports investors
and policy makers to better understand and manage
physical climate risks. The coalition includes governments,
international organizations, technical institutions, ratings
agencies and private financial institutions worldwide.

18

At COP27, we joined development partners in
signing a partnership agreement with Egypt’s Ministry of
Electricity and Renewable Energy, Ministry of Environment
and Ministry of International Cooperation, to jointly
support the country’s efforts to boost renewable energy
and stimulate climate action through its country-led
program: Nexus on Water, Food and Energy.

22

Our Board of Directors approved an update to
the Bank’s Energy Sector Strategy. Under the updated
Energy Sector Strategy, we will focus our energy
investments on supporting our Members to achieve their
long-term climate goals and net-zero/carbon neutrality
commitments and to accelerate the just transition toward
secure, affordable, and sustainable energy access for
all. The Strategy also highlights our commitment to
sustainable development and Paris Alignment, and our
client-centric approach.

NOVEMBER
22

Our Board of Directors approved the updates
to the Operational Policy on Financing, the Environmental
and Social Framework (ESF), and the Procurement Policy
to include provisions enabling AIIB to provide Resultsbased Financing (RBF) as a new Sovereign-backed
Financing (SBF) modality on a standalone basis. The RBF
complements AIIB’s regular SBF and broadens the choice
of financing instruments for our clients. The updated ESF
also codifies the Bank’s long-standing practice of excluding
AIIB financing from coal and projects functionally related
to coal.

27-28

The Office of the Controller hosted
the 2022 MDB Controller’s Forum, in Vienna, Austria with
13 international financial institutions (IFIs) in attendance.
One of the key areas of discussion was the developments
in ESG (environmental, social and governance) and
Sustainability Reporting.

DECEMBER
7

We participated in the Montreal Biodiversity COP15
to show support for a shared future of the post-2020
Global Framework for Biodiversity with client countries,
IFIs, think tanks and other partner institutions.

28

Our Board of Governors approved Mauritania’s
application to join AIIB. Mauritania became AIIB’s 55th
nonregional Member, bringing the Bank’s approved
membership to 106 (92 Members and 14 Prospective
Members). As of end-2022, AIIB has 21 Members
from Africa.

28

After completing seven fiscal years of operation,
we crossed the USD38 billion investment mark and
approved 202 projects. By end-2022, we had invested in
33 Members, with two receiving funding for the first time
(Brazil and Côte d’Ivoire).

2022 TIMELINE

  33

OUR
GROWTH

02

MEMBERSHIP
As of Dec. 31, 2022, we have 106 approved Members
(92 ratified and 14 prospective) representing
approximately 81% of the global population and
65% of global gross domestic product.
In 2022, our membership grew from 105 approved
Members to 106, with the admission of Mauritania as a
prospective Member. Furthermore, Iraq, Morocco, Peru and
Tunisia completed the membership process, becoming full
Members of AIIB.
To ensure that new and prospective Members are
introduced to the various services and support available to
shareholders, an induction was organized during the second
quarter of 2022.

OUR GOVERNANCE
Our Board of Governors
All powers of the Bank are vested in our Board of
Governors, which is the highest decision-making body
under the Articles of Agreement. It consists of one
Governor and one Alternate Governor from each Member
that serve at the pleasure of the appointing Member.

In 2022, the Board of Governors approved the
audited financial statements and the allocation
of net income, the election of the Board Directors
for 2022-2024, the extension of the deadlines
for accessions of prospective Members to the
Bank, and the admission of Mauritania to
AIIB membership.

READ MORE
BOARD OF GOVERNORS VOTING POWER

The Annual Meeting
The Annual Meeting of the Board of Governors
is the flagship event of AIIB. Since 2016, this
gathering provides a forum for the Board of
Governors to provide strategic guidance and
facilitate discussions among senior official
delegates from AIIB Members, as well as partners,
business leaders, civil society organizations and
experts from various fields.
The Seventh Annual Meeting of the Board of
Governors was held virtually on October 2627, 2022. Among the business taken up by the

36

  2022 AIIB ANNUAL REPORT

Board of Governors were the acceptance of the
invitation from Egypt to host the 2023 Annual
Meeting, as well as the election of the Governor of
Egypt as Chair and the Governors of Maldives and
Portugal as Vice Chairs of the Board of Governors.
During the Annual Meeting, guidance from the
Governors was also sought during the Business
Roundtable on two areas of business: (i) Financing
Infrastructure in a Crisis-Prone World and
(ii) Supporting Energy Access and the Net-Zero
Transition. Both topics aimed at providing an
opportunity for constructive dialogue with the
Bank’s shareholders and to identify areas in which
AIIB could best leverage its resources in support of
its Members. Continual strengthening of facilities
for our virtual presence and connectivity to foster
engagement with Members were also key topics of
discussion in 2022.

Our Board of Directors
Our Board of Directors, comprising 12 members
elected by our Governors, is responsible for the
strategic direction of our general operations,
including setting of policies and strategies and

overseeing their implementation. The Board
of Directors is nonresident in line with our lean
culture, exercising all powers delegated to it by
the Board of Governors. The Board of Directors
meets quarterly, with additional meetings
scheduled throughout the year, as business
requires, and maintains regular communication
with Bank Management.
The Board of Directors held 16 virtual meetings
in 2022. In addition to project approvals, they
discussed and approved several major policies
and strategies, including the establishment of
the Special Fund Window for Less Developed
Members, AIIB’s Approach to Global Presence,
significant updates to the Energy Sector
Strategy and the Operational Policy on
Financing (OPF), and approval of the Board
Efficiency and Governance Package.
To support the work of Directors and allow
thorough review and discussions, 20 briefings

were also organized. Additional events, such as
dedicated Directors’ Forums and roundtables,
were organized to allow in-depth review of
various issues including the Accountability
Framework, the Performance Review of the
President, and review of the Board Efficiency
and Governance package.
In accordance with our Articles of Agreement,
we held our regular biannual election in 2022 to
appoint new Directors. To facilitate the transition
between the outgoing and incoming Board of
Directors, the Secretariat organized a Board
retreat as an occasion for handover. It was an
opportunity for outgoing and incoming Directors
to dialogue on AIIB’s governance, Corporate
Strategy implementation and economic
environment. In addition, the Secretariat also
organized a Board induction to provide members
of the Board an in-depth overview of the Bank’s
work, priorities and modus operandi and a
Technical Briefing on our Reporting Tools.

OUR GROWTH

  37

Board Committees
To ensure that our Bank is operating in a manner
that is efficient, effective and grounded in sound
strategies and best practices, we rely on the
guidance of three committees that operate under
the oversight of the Board of Directors. Following
the 2022 Election of Directors, the membership of
these three committees was recomposed, upon a
decision of the Board of Directors. The leadership
of the three committees was renewed accordingly.

International Advisory Panel
The International Advisory Panel (IAP) supports
the President and senior management on the
Bank’s strategies, policies and general operational
issues. It comprises world-leading experts on
issues related to governance, economics, finance,
sustainability and international development. The
IAP met twice in 2022 to discuss and advise on
issues of strategic importance. The President
selects and appoints IAP Members to an initial
two-year term renewable on completion. In 2022,

38

  2022 AIIB ANNUAL REPORT

Dean Rachel Kyte was appointed to the panel while
Lord Nicholas Stern stepped down on Sep. 22. The
total number of panelists remains at 12.

Accountability Framework Review
In 2018, the Board of Directors approved the
Accountability Framework, which came into force
in January 2019. The document clarifies the
division of responsibility between the Board of
Directors and Management, in respect of policy
and strategy and the financing operations of the
Bank. The framework provides additional tools for
the Board of Directors to hold the President and
Management accountable.
Following a transparent process, the President
may approve projects that fulfil predefined
requirements and submit summaries of projects
based on predetermined criteria to the Board
of Directors. As an important safeguard, any
Director can call any of these projects before the
Board of Directors if deemed necessary. In 2022,
the President approved seven projects.

READ MORE

y Bukhara-Miskin-Urgench-Khiva Railway
Electrification Project
y China Zhengzhou International Logistics
Hub Expansion
y GreenCell Electric Bus Financing Project
y Haryana Orbital Rail Corridor (HORC)
Project - Part A
y Lionbridge Leasing EV Transport Green
Transition Facility
y Unique Meghnaghat IPP
y West Bengal Electricity Distribution Grid
Modernization Project
READ MORE

y Connecting the Center of China to the
World: China: Zhengzhou International
Logistics Hub Expansion
y Opening New Routes to Ease India’s
High-Density Rail Networks: India:
Haryana Orbital Rail Corridor

As a part of the decision to establish the
Accountability Framework, we are required to
conduct a comprehensive review of it three
years from its adoption. Building on preparation
work carried out in 2021, we undertook a
comprehensive review of the Accountability
Framework in April 2022. The review concluded
that the division of labor between the Board
and Management set out in the Accountability
Framework is appropriate for a modern
international financial institution but also
highlighted that further efforts would be needed
to ensure that this balance can be maintained as
the Bank’s business grows.
Board Efficiency and Governance
After the completion of the comprehensive
review of the Accountability Framework, the
President and Management presented to the
Board of Directors a package of proposals
designed to allow the Board to better undertake
its strategic function and to increase the
efficiency of Board operations. After extensive

consultation with the Board members and
guidance from experts on AIIB’s International
Advisory Panel, the package was approved by the
Board of Directors in December 2022.
The package and the roadmap for its
implementation constitute one step in the
process to strengthening Board efficiency and
governance. The President and the Management
team will continue to strategize to ensure that all
Members have sufficient support to effectively
participate in AIIB’s governance processes.

Performance Review of the President
The annual Performance Review of the President
is a demonstration of our commitment to sound
and effective governance and enables the
Board of Directors to appraise the performance
of the President in his chairmanship of the
Board of Directors and management of the
Bank. The Review is carried out pursuant to the
Accountability Framework, in line with the
highest professional, ethical and corporate
governance standards.
In April 2022, our Board of Directors approved
the scope and methodology of the Review. It
focused on six competencies—strategic vision
and implementation, stakeholder and shareholder
management, operational and administrative
management, leadership behaviors and culture,
governance and innovation. The Review also
included a consideration of the President’s
management of the COVID-19 pandemic and
geopolitical challenges and their impact on AIIB.
The findings of the Review, highlighted, among
others, the President’s strong leadership and
sense of strategic vision, his ability to maintain
relationships with different stakeholders and
build consensus, his effective management of the
Bank in a complex context marked by geopolitical
challenges and the COVID-19 pandemic, and
his commitment to innovation, all in the best
interest of the Bank. The Review found that the
President is a decisive leader who is effectively
leading the organization toward the delivery of its
mandate as per the Bank’s Articles of Agreement
OUR GROWTH

  39

and Corporate Strategy. He has been a prudent
steward of physical and financial resources, and
has successfully preserved the integrity of the
Bank’s governance.

Leadership Team
The staff is headed by the President, who is elected
by the Board of Governors of AIIB shareholders
for a five-year term and may be re-elected once.
AIIB’s Senior Management is led by the President,
who is supported by five Vice Presidents responsible
for policy and strategy, investment operations,
administration and the corporate secretariat and
the General Counsel, Chief Risk Officer, Chief
Financial Officer and Chief Economist.
In 2022, new personnel were appointed to key
positions, including Urjit Patel as Vice President
for Investment Operations (Region 1), Antoine
Castel as Chief Risk Officer, and Rodrigo
Salvado as Director General of the newly formed
Operational Partnership Department. Gregory
Liu assumed the role of Director General of the
Infrastructure Investment Department (Region 2)
in an acting capacity, and Laval Wong Sick Wah
was appointed as Head of Office of the Interim
Operational Hub concurrent with his duties as
Chief Internal Audit Officer, until the temporary
assignment of Alma Dolot as Acting Chief
Internal Audit Officer.

Sanctions Panel
As part of AIIB’s two-tier sanctions system,
AIIB maintains a three-person Sanctions Panel
comprised of a Chairperson (Enery Quiñones)
and a member (Muhammad Shoaib Suddle) who
are external to the Bank and another member
(Nicolette DeWitt), who is a Bank personnel.
It reviews appeals of sanctions imposed by
the Sanctions Officer (Vice President Ludger
Schuknecht) pursuant to the Policy on Prohibited
Practices. The Sanctions Panel’s decision is
final and cannot be further appealed. In 2022,
there were no cases submitted for appeal to the
Sanctions Panel.

40

  2022 AIIB ANNUAL REPORT

Complaints-resolution, Evaluation
and Integrity
Our Complaints-resolution, Evaluation and
Integrity Unit (CEIU) was established in 2016 in
accordance with our Articles of Agreement as an
independent unit with functions further defined
in the Bank’s Oversight Mechanism. The provision
empowers the Board of Directors to regularly
supervise the management and operation of
the Bank and establish an oversight mechanism
for that purpose in line with the principles of
transparency, openness, independence and
accountability.
CEIU has three main functions, namely,
complaints-resolution, evaluation and integrity.
CEIU is led by a Managing Director, and reports
directly to the Board. The CEIU Managing
Director is also an observer on the Executive
Committee of the Bank. Management can invite
CEIU to bring its independent but engaged
perspective and experience to the creation
or review of Bank policies and strategies. For
example, CEIU took part in discussions on
updating the Bank’s Energy Strategy and the
Accountability Framework in 2022.
Complaints-resolution
CEIU also serves as the focal point for external
requests or complaints regarding compliance with
our Environmental and Social Policy (ESP) under
the Project-affected People’s Mechanism (PPM).
The PPM team in CEIU responded to a third
year of COVID-19 conditions by convening
hybrid virtual/in-person outreach sessions with
civil society organizations as well as project
implementing agencies in various Members of
the Bank (See Related Topics: Outreach to Civil
Society Organizations through the CEIU Projectaffected People’s Mechanism Function).
In addition, the PPM undertook awarenessraising activities for AIIB staff. These
included launching a PPM e-learning course,
Accountability Alerts that profile selected
cases of peer MDB Independent Accountability

Mechanisms (IAM) and developing an associated
IAM case dashboard, Practitioner Dialogues with
presentations by peer international institutions
on topics including responsible project exit and
remedy in development finance, and formal
training programs for staff. PPM received
its second submission in 2022 which is a
demonstration that Project-affected People
are becoming more aware of CEIU’s role and
the mechanisms available to report any
concerns or complaints. Where applicable, PPM
also closely collaborated with independent
accountability mechanisms of peer multilateral
development banks on cases handled by them
on cofinanced projects.
Learning and Evaluation
CEIU also selectively evaluates AIIB’s operations
in accordance with the Bank’s Learning
and Evaluation Policy to support the Bank’s
continuous improvement, its corporate and
learning culture.
An important milestone was achieved in late
2022 when AIIB became an International

Institution Observer of the Organisation for
Economic Co-operation and Development
(OECD) Development Assistance Committee
(DAC) Network on Development Evaluation
(EvalNet). EvalNet brings together evaluation
managers and specialists from development
cooperation ministries and agencies in OECD
DAC members, the United Nations and
international financial institutions, including nine
other MDBs. EvalNet has been instrumental in
developing key international norms and standards
for development evaluation and promoting
agency collaboration. The network’s guidance
documents on evaluation have a wide influence
on development evaluation practice and are
frequently used in evaluations of development
programs worldwide, including in AIIB’s 2021
Learning and Evaluation Policy.
CEIU convened five Practitioner Dialogues with
peer MDB independent evaluation department
speakers and AIIB staff to inform the Bank’s
2022 Energy Strategy Update. Two Early
Learning Assessments (ELA) were also completed
in 2022, and CEIU’s Annual Activity Review
presents the lessons of more general interest.

OUR GROWTH

  41

Integrity Function
Under its Integrity function, CEIU continued its
anti-fraud and corruption work in accordance
with AIIB’s Policy on Prohibited Practices, which
included internal and external training and
outreach activities, integrity advisory work, and
investigations of alleged Prohibited Practices in
AIIB-funded projects and activities.
In 2022, CEIU participated in international
anti-corruption events such as the Private
Sector Integrity Conference, the Conference

of International Investigators, and the
International Anti-Corruption Conference.
CEIU also convened Practitioner Dialogues
on COVID-19-related corruption and fraud
detection tools in MDB operations, which were
presented by peer agencies. As part of AIIB’s
International Anti-Corruption Day celebration,
CEIU hosted a lecture by Professor Nikos Passas
of Northeastern University on what it means
to be ‘Lawful but Awful’ and produced an anticorruption video on Integrity at AIIB.

RELATED TOPICS
OUTREACH TO CIVIL SOCIETY ORGANIZATIONS THROUGH THE CEIU
PROJECT-AFFECTED PEOPLE’S MECHANISM FUNCTION
LEARN MORE
Civil society plays a vital role in holding AIIB to account, pointing to issues where they arise and helping the
Bank improve its processes and practices. Despite continued COVID-19-related travel constraints in 2022,
the Complaints-resolution, Evaluation and Integrity Unit (CEIU) undertook hybrid digital/in-person outreach
with civil society and peer MDBs. Staff of CEIU’s Project-affected People’s Mechanism (PPM) benefitted
from discussion with civil society organizations (CSOs) in these meetings and wish to thank all involved:
Outreach in Pakistan. CEIU led a virtual outreach event with CSOs in Pakistan on March 29-30. It was
jointly organized with Independent Accountability Mechanisms (IAMs) of the World Bank, the International
Finance Corporation (IFC) and the Asian Development Bank (ADB). The event was attended by more than
50 participants from nearly 40 CSOs in Pakistan. Participants mainly focused on environmental and social
issues, governance, accountability and human rights in development projects.
Outreach in Nepal. On June 7-8, together with IAMs of the World Bank, IFC, ADB and the European
Investment Bank (EIB), CEIU also organized a Joint IAM Outreach Event in Nepal. The event was attended
by more than 65 participants, including more than 40 from CSOs in Nepal. Indigenous people also attended
the session.
Outreach in Lebanon. On July 27-28, together with the IAMs of the World Bank, IFC, EIB and the United
Nations Development Programme (UNDP), CEIU organized a Joint IAM Outreach Workshop in Lebanon on
the margins of the Annual General Assembly of the Arab Watch Coalition (AWC), which also acted as the
counterpart organizers of the workshop. It was attended by CSOs from seven countries (Egypt, Iraq, Jordan,
Lebanon, Morocco, Tunisia, and Yemen) in the Middle East and North Africa. The workshop covered wideranging topics related to independent accountability on development projects and the work of IAMs. CEIU
Managing Director Hamid Sharif participated in the workshop in-person and spoke with participating CSO
representatives about the origins and evolution of IAMs and PPM.

OUTREACH TO IMPLEMENTING AGENCIES THROUGH THE CEIU
PROJECT-AFFECTED PEOPLE’S MECHANISM FUNCTION
Outreach in Pakistan. CEIU conducted a virtual PPM outreach event with implementing agencies in
Pakistan on April 14. The event was coordinated by the Economic Affairs Division and implementing agencies
from all provinces participated in the event. Implementing agencies asked questions and sought clarifications
about PPM Policy and highlighted the challenges of land acquisition in urban areas.

42

  2022 AIIB ANNUAL REPORT

CEIU continued to review and update its
Debarment List that includes AIIB debarments
and debarments under the cross-debarment
agreement of other MDBs. Entities in AIIB’s
Debarment List are ineligible to participate in
AIIB projects and receive AIIB funds.

Number of Requests Received from the
Public
Portal,
2022
Jan. Feb. Information
March April May Request
June July Aug.
Sep. Oct.
Nov. Dec.
60
50
40
30

Policy on Public Information
The Policy on Public Information (PPI) embodies
our commitment to transparency. Under the
PPI, we regularly monitored our disclosure
practices and provides quarterly reporting on the
implementation of the PPI.
In 2022, AIIB continued to have high compliance
with the PPI and its Directive in the proactive
disclosure of financial, institutional, and
operational information, as well as disclosure
of information upon requests. We received 360
requests from the Public Information Request
portal, up 8% from 2021. All requests were
processed within 30 working days as required by
the PPI.
We automated the tracking of proactive
disclosures of project information with the
adoption of our Investment Management
Information System (IMIS). The IMIS
manages project workflows, project data and
documentation across the project cycle. We
conducted trainings on the IMIS to facilitate
the adoption of the system and increase the
awareness of disclosure requirements. We
enhanced the Information Disclosure System
(IDS), the back-end platform for processing
and tracking the requests received from the
Public Information Request Form, to facilitate
compliance with the PPI and improve data quality.
We maintained engagement with international
organizations specialized in the field of
transparency. We provided feedback to and
shared our disclosure practices with Publish
What You Fund during its development of the

20
10
0

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul. Aug.

Sep. Oct.

Nov.

Dec.

Development Transparency Initiative (DTI)
Transparency Tool. We invited the International
Aid Transparency Initiative (IATI) to provide
trainings on the IATI standards, which
helped raise awareness on IATI among
relevant colleagues.

Policy on Personal Data Privacy
We put considerable efforts in 2022 in
implementing our Policy on Personal Data Privacy
(PPDP), which our Board of Directors approved
on Oct. 13, 2021. The PPDP strengthens the
regulatory environment protecting personal data
within the Bank. It helps mitigate reputational
risks associated with managing personal data,
protect the Bank’s privileges and immunities,
safeguard the Bank’s information technology
(IT) infrastructure and facilitate international
procurement. It is aligned with the policies and
best practices of peer IFIs and MDBs.
In 2022, we carried out a wide range of activities
to implement the PPDP effectively. The President
approved and issued the Directive on Personal
Data Privacy pursuant to the Policy. In addition,
we established our Data Privacy Program and
developed and deployed associated procedures
and IT tools to responsibly manage personal data
under our custody.

OUR GROWTH

  43

OUR CORPORATE FINANCING
Treasury
2022 was a challenging year for capital market
issuers. Rising interest rates coupled with
increased volatilities resulted in a risk-averse
market environment. Despite the difficult market
conditions, AIIB was able to demonstrate our
access to global capital markets with a total of
USD7.25 billion equivalent issuance amount in
2022. As a frequent United States (US) dollar
benchmark issuer, we continued to build our curve
with a USD1.25 billion three-year issuance in June
and a USD2 billion 5-year issuance in September.
With the aim of being a frequent issuer in multiple
public markets, we also returned to the Sterling,
Kangaroo, and Panda bond market in 2022.
LIBOR Transition
Carrying over from the transition that began in
2021, we made substantial progress on shifting
from the London Interbank Offered Rate (LIBOR)
to the Secured Overnight Financing Rate (SOFR).
All bonds issued in 2022 for US dollar liquidity
were priced and managed on a SOFR basis.
Additionally, all variable spread loan assets have

FINANCIAL HIGHLIGHTS

2022
USD

USD

47.41

24.48

Total Assets

Borrowings

USD

USD

Billion

Billion

19.39

190

Capital

Operating Profits

Billion
44

Million

  2022 AIIB ANNUAL REPORT

made a transition from a LIBOR reference rate to
a SOFR reference rate. The basis of liabilities was
rebalanced at the balance sheet level to ensure
a close match between the basis of assets and
liabilities. In 2023, the remaining LIBOR transition
milestones will be met, which include the transition
of fixed spread loans, transition of nonsovereign
guaranteed loans and transition of remaining
LIBOR-referenced derivatives.
Sustainable Development Bonds Impact Report
In September 2022, we published our second
Sustainable Development Bonds Impact Report,
which covers AIIB’s overall portfolio and project level
results, reflecting environmental and social benefits
generated by the Bank’s financing activities in
2021. Compared to the case study-based projectlevel reporting last year, this year’s Report includes
selective quantitative and illustrative sector-level
environmental and social outcome indicators,
showcasing our commitment to the Sustainable
Development Goals and the Paris Agreement.

READ MORE
SUSTAINABLE DEVELOPMENT BONDS
IMPACT REPORTS

Investor Interactions
After two years of travel constraints, we were
able to resume in-person investor meetings in
2022. We appreciate the opportunity to have
face-to-face interactions and provide AIIB’s
most recent developments to our investors.
We also thank our global investor community
for their continued support in AIIB’s capital
market issuance and our mission of Financing
Infrastructure for Tomorrow.
Capacity Building
On the Treasury investment side, there has been
significant strengthening of the capabilities of
the Treasury Investments team in 2022. The
team now has extensive experience drawn
from fixed income and derivative trading, asset
management, structuring, central bank reserve
management and MDBs.

At the conclusion of the annual audit, the external
auditor prepares a management letter for senior
management, which sets out the observations
of the external auditor and recommendations
for improvements on internal controls and
other matters.
The Audit and Risk Committee, which comprises
four directors and two external members, meets
periodically with the external auditor and individual
committee members have independent access to
the external auditor. The Committee reviews the
external auditor’s approach and strategy for the
annual audit and receives regular updates from the
external auditor on the Bank’s financial reporting
and internal controls.
The external auditor is not allowed to carry out
any work of an advisory nature or act in any other
capacity that might compromise the independence
of their audit.

Stronger Portfolio

Internal Control Over Financial Reporting

The portfolio continued to increase sophistication,
building out our multi-currency bond
investments (hedged back to US dollar), adding
a significant number of new credit lines to
improve diversification, and reducing the share
of the portfolio in term deposits. There was
an establishment of a new stable income bond
portfolio, based on amortized costs accounting
treatment, which will help smooth income volatility
associated with the fair valued portfolios.

AIIB uses the internal control framework promulgated
by the Committee of Sponsoring Organizations
of the Treadway Commission, ‘Internal Control
– Integrated Framework (2013)’ (2013 COSO
Framework) in assessing the effectiveness of the
Bank’s internal controls over financial reporting.
Based on the 2013 COSO Framework, Management
has put in place robust systems and controls to
ensure the integrity of financial reporting.

External Auditor
The Bank’s external auditor is PwC, which has
held the role for seven years. The external
auditor performs an annual audit to enable them
to express an opinion on whether the financial
statements of the Bank present fairly the financial
position and results of the operations of the Bank.
In addition, the external auditor carries out an
independent review on the effectiveness of the
Bank’s internal controls over financial reporting.

Management assesses the effectiveness of the
internal controls over financial reporting and issues
management’s report signed by the President and
Chief Financial Officer, as well as the Controller.
A separate attestation is provided by the Bank’s
external auditor, PwC. The external auditor’s report
expresses an opinion on Management’s assessment
on the effectiveness of AIIB’s internal control over
financial reporting for the financial year ended
Dec. 31, 2022.

OUR GROWTH

  45

46

OUR RISK MANAGEMENT

How We Manage Risk

We have been following the best risk governance
practices since 2016. Our Risk Management
Framework (RMF) has supported diversified
and overall healthy portfolio growth since
operations started seven years ago. The RMF
follows the three lines of defense model with a
clear separation of duties to identify, measure,
monitor and control risks. This model has resulted
in positive feedback from the three main rating
agencies, which noted our commitment and
ability to diligently implement the RMF. It is
anchored on the Risk Appetite Statement (RAS),
approved by our Board of Directors in 2018.
We continued to implement risk identification,
mitigation and management measures while
identifying opportunities to improve risk
management practices, particularly those at the
portfolio level.

In 2022, despite a challenging environment, the
well-established risk management framework
enabled us to continue to meet our AIIB Member
and client needs. Our capacity to run together
significant growth with a solid risk approach is
key to delivering sustainable growth, particularly
important at our stage of development, including
in terms of diversification.

  2022 AIIB ANNUAL REPORT

A Coordinated, Cross-Functional, Bank-Wide
Response to Risk
Our Risk Management Department (RMD) is
organized to cover the credit and investment
risks, the market and liquidity risks, the nonfinancial risks including bank compliance and
integrity risks and operational risks, as well as the
portfolio and model risks inherent to an MDB in
line with the most advanced banking practices.

Credit Ratings, 2022
RATINGS

FITCH RATINGS

MOODY’S

STANDARD & POORS

LONG-TERM

AAA

Aaa

AAA

SHORT-TERM

F1+

Prime-1

A-1+

OUTLOOK

Stable

Stable

Stable

Risk Management Framework and Risk
Appetite Statement
As the keystone of our RMF, our RAS promotes
active involvement by the Board of Directors and
its Audit and Risk Committee in strategic risk
consideration.
The RAS defines our level of appetite for core
and noncore risks. It also confirms that there
is no appetite for risks such as reputational or
compliance-related risks that could threaten the
institution or jeopardize the Bank’s mandate. The
statement describes and sets thresholds for key
risk indicators in several tiers, which are reported
to Management and the Board of Directors. Any
breaches or deviations require an action plan
to steer either or both investment and treasury
operations. The statement is supported by our
risk culture and strengthened by training and
increasing awareness of the risk environment.
Well-Regarded by External Rating Agencies
For the sixth consecutive year since 2017,
Fitch, Moody’s and S&P have reaffirmed our
AAA rating. Within S&P’s assessment, AIIB was
assigned a ‘very strong’ enterprise risk profile,
with solid liquidity ratios and capital buffers,
which underpin its financial risk profile and which
S&P deemed to be ‘extremely strong.’ They
noted that AIIB has established a comprehensive
RMF, and that the Bank’s financial strength
remains unparalleled among multilateral
lending institutions. Fitch noted that AIIB has
‘excellent’ capitalization and a ‘low’ risk profile,

which translates into an ‘aa+’ assessment of
solvency. They observed that Risk Management
Policies are ‘strong’, as our risk-management
limits have not been breached, nor have the
limits themselves been relaxed since inception.
In addition, it was noted that AIIB continues to
benefit from ‘strong’ preferred creditor status.
With the liquidity assessment, Fitch awarded
AIIB their highest score of ‘AAA.’ Moody’s rating
evaluation reported that the credit profile of AIIB
reflects solid capital adequacy, a strong liquidity
profile as well as a robust governance framework
and very high shareholder support. They noted
that AIIB’s capital base will continue to be very
large relative to its assets as the Bank ramps up
its lending operations, providing ample financial
capacity to fulfill the Bank’s mandate.
Credit and Investment Process
The Credit and Investment Risk team screens
the projects presented to the various committees
from the Screening Committee toward the final
review. The team actively engages with the
Investment Operations (IO) team on multiple
types of projects to optimize the added value
brought to every transaction entering the
balance sheet of the Bank, be it sovereign or
nonsovereign financing.
Market and Liquidity Risk
We have continued to enhance the policy
framework, risk assessment methodologies,
reporting and relevant systems to support

OUR GROWTH

  47

Treasury business. We enhanced counterparty
credit limit framework to support our Treasury
to expand our investment universe. To measure
counterparty credit risk accurately and timely, we
implemented the counterparty credit risk system.
Non-financial Risk

Compliance and Integrity Risk
Following developments arising from geopolitical
challenges, the RMD led the identification
and management of the Bank’s exposure to
sanctions risk. The team continues to closely
monitor the situation and safeguard the Bank.
Operationally, the Department oversaw the
Know Your Counterparty (KYC) of more than
150 counterparties across IO, Office of the
Treasurer (TRE) and Facilities and Administration
Services Department (FAS) and conducted the
review of 122 IO projects that pre-dated the
development of the KYC Administrative Guidance.
Advisory activities were supported by framework
enhancements in many areas including sanctions
compliance risk, the revision of the TRE and FAS
Administrative Guidances and the development
of additional guidance materials. The RMD also
procured and implemented the SAS KYC system
into TRE and the Human Resources Department
(HRD) and successfully onboarded key subscription
services such as Kharon and Control Risks.

Operational Risk
We are exposed to operational risk through the
execution of our typical business functions. While
it is not possible to avoid operational risks and the
potential for associated financial and non-financial
losses, it is possible to mitigate such losses through
sound governance and appropriate policies and
procedures. The purpose of operational risk
management within AIIB is to reduce the likelihood
and consequences of avoidable operational
risk events. The Bank has a comprehensive
approach to business continuity management
that addresses our response to a broad range of
potential major operational disruptions involving

48

  2022 AIIB ANNUAL REPORT

material unavailability of staff, premises, systems,
or key suppliers, or a combination of these.
In 2022, our Legal and other departments worked
on how to deal with the impact of geopolitical
challenges, including assessment and advice on
various sanction and export control-related issues
to mitigate potential regulatory risks.
Portfolio Management & Model
At the Portfolio level, we benefit from a solid and
recognized RMF and are continuously working
to adjust the parameters on concentration,
the Weighted Average Credit Rating (WACR),
Expected Credit Loss (ECL) and Economic Capital
(ECap) on the best practices, be it on quantitative
criteria or on the stress analysis performed to the
Board. We also benefit from Capital Adequacy
Framework Panel Review discussions to help
ensure our capital base may be used most
efficiently for the purposes of delivering the Bank’s
mandate, while retaining our AAA rating.
Throughout 2022, the Quantitative Analytics
team delivered the analytical mandate to ensure
the Bank’s risks are appropriately and timely
quantified and monitored. The team led the
revision to the Bank’s Risk Management Policy
with a focus on concentration limit and supported
communications with Rating Agencies to secure
the Bank’s AAA rating. To support the Bank’s
continuous growth, the Quant team also made
efforts to further advance the Bank’s analytical
capacity, including providing analytical and
system support to the Bank’s development of new
products, evaluating and approving additional
models to accommodate business needs, and
enhancing digitalization of risk dashboards.
Restructuring and Workout
In 2022, we have been managing one nonperforming loan, achieving recovery of
outstanding fees and periodic partial payments.
We also participated in the early warning system
development and the improvement of
collateral management.

OUR INTEGRITY PRACTICES
Internal Audit
Our Internal Audit Office (IAO) provides
professional and objective assurance and advisory
services designed to add value and improve
AIIB’s operations. The mission of internal audits
is to enhance and protect organizational value
by providing risk-based and objective assurance,
advice and insight.
In 2022, the IAO accomplished its objectives
by bringing a systematic, disciplined approach
in assessing whether the key risks of the Bank
are adequately and effectively managed. This
year’s work program covered providing assurance
over our nonsovereign-backed financing (NSBF)
products including loans; COVID-19 Crisis
Recovery Facility (Facility), environmental, social
and governance (ESG) bonds, cybersecurity,
and corporate processes. Several engagements,
however, will be carried over to the 2023 work
program as our operations have experienced
unprecedented changes due to COVID-19 during
the last two months of the year.

The IAO continued to adjust to these changed
circumstances; and to ensure delivery of
quality engagements, it carried out a readiness
assessment (or gap assessment) to determine its
current level of conformance with the Institute of
Internal Auditors (IIA) International Professional
Practices Framework and carry out course
corrections in a timely manner.
The IAO continued to align with the best practices
of multilateral financial institutions (MFIs) by
participating in the creation of the ESG IFI
Auditors Network and MFI Quality Assurance
Auditors Network where innovative approaches,
good practices, lessons learned and ways to
tackle challenges in providing assurance over
new asset classes such as ESG and sustainability
financial instruments; and in ensuring that the
IAO continues to conform to the IIA International
Professional Practices Framework. Moreover,
sharing of agile audit methodology was carried
out during the United Nations Representatives of
Internal Audit Services (UNRIAS) annual meeting.

OUR GROWTH

  49

Ethics
Our Ethics Office promotes an ethical
organization based on the Bank’s Core
Values of Lean, Clean and Green and Basic
Standards of Conduct as set out in the Bank’s
Code of Conduct for Bank Personnel. Its key
responsibilities include: (a) developing training
and other awareness-raising measures on
the Code of Conduct for Bank Personnel; (b)
contributing to the Bank’s standard-setting and
policy development; (c) receiving, assessing
and conducting investigations into allegations
of misconduct; (d) providing confidential and
independent advice to Bank Personnel on
any ethical issue; (e) administering the Bank’s
Statement of Financial Interest Programme;
and (f) handling retaliation claims and related
requests for protection against retaliation.
In July 2022, the Ethics Office rolled out a
mandatory online training course for Bank
personnel on Creating and Maintaining a
Respectful Work Environment, which aims to
create lasting behavioral change by increasing
staff awareness on how to build and maintain
a respectful workplace. It also developed and
offered nine facilitator-led online workshops on
the respectful workplace to all Bank Personnel,
as well as arranged two facilitator-led online
workshops on speaking up and the respectful
workplace for the Bank’s People Managers. At
the end of the workshop, participants individually
committed to contribute to a respectful work
environment. The workshops were conducted
between July and November 2022 and attended
by 175 Bank Personnel.
As part of our institutional capacity building
efforts in 2022, the Ethics Office also
prepared Guidance Notes on the Respectful
Work Environment and on Speaking Up and
Protection against Retaliation and conducted
one-on-one ethics conversations and internal
information campaigns to promote awareness.
One key achievement was the development of
the Respectful Workplace Integrated Action Plan

50

  2022 AIIB ANNUAL REPORT

which has been successfully implemented by
the Office of the Ombudsperson, HRD and the
Ethics Office, as well as other stakeholders since
January 2022.

Ombudsperson
The Office of the Ombudsperson (OMB) was
established on Sep. 15, 2021. Its three main
functions are (a) to serve as an informal resource
to facilitate resolution of workplace conflicts
independently, confidentially and impartially;
(b) to identify and analyze trends and broad
systemic issues, and make recommendations
or alert Management on issues that should be
addressed to improve the working environment
and (c) to help promote a respectful workplace
culture and administers the Respectful Workplace
Advisors Program.
The OMB observes the guiding principles of
independence, impartiality, confidentiality and
informality in delivering its services. The OMB
adheres to the Standards of Practice and Code
of Ethics of the International Ombudsman
Association. To ensure the OMB’s autonomy, the
Ombudsperson reports directly to the President.
The OMB serves as a confidential resource for
the AIIB community to raise or address their
workplace-related issues and seek guidance
on how to deal with them. Anyone who wants
to use the OMB services may contact the
Ombudsperson or the Senior Ombuds
Services Officer through various physical or
digital channels.
To ensure all AIIB staff are aware of the OMB’s
role and the internal resources available to
them, the Ombudsperson introduces the OMB’s
services to new colleagues during the induction
courses, gives presentations to AIIB departments,
and organizes other information campaigns.
It provided resources and support to those
who sought its services. It celebrated its first
anniversary on Ombuds Day with a Bank-wide
Happy Hour / Fireside Chat.

Externally, the OMB actively participates in
meetings and training sessions organized by the
Ombuds peers of other MDBs and international
organizations (including the United Nations, and
ombuds associations). Such efforts help the OMB
learn from the experiences of other reputable
organizations and align AIIB’s OMB services with
international standards and best practices.

Respectful Workplace Advisors
We launched the Respectful Workplace Advisors
(RWA) Program in April 2021 as an informal
service to foster a respectful workplace
environment for all AIIB staff. There are six
RWAs, and their role is to provide an informal,
confidential, trustworthy and readily accessible
source of early assistance for staff who have
concerns about a respectful workplace or who
need information on how to seek assistance.

OUR GROWTH

  51

OUR PARTNERSHIPS
We established the Operational Partnership
Department (OPD) in August 2022 to strengthen
the Bank’s efforts to scale-up partnerships and
promote regional cooperation in addressing
development challenges by working in close
cooperation with other multilateral and bilateral
development institutions. OPD’s main function
is to spearhead the Bank’s engagement with a
variety of development partners and facilitate
the Bank’s participation in global and regional
coordination mechanisms to build relationships.
It also administers AIIB’s Special Funds resources,
manages engagement with global and regional
coordination mechanisms and mobilizes additional
resources for the Bank’s investment operations.
With the establishment of the OPD, we aim to
enhance resource mobilization with MDBs, IFIs,
development financial institutions and other
partners, expand and effectively manage AIIB’s
special funds resources (Special Funds) and
widen AIIB’s global and regional presence in G20,
COP and other international cooperation forums
enhancing AIIB’s image.
Promoting the Bank’s Agenda in the G20
and MDB Heads Meeting
G20 Finance Ministers and Central Bank
Governors endorsed three deliverables presented
by AIIB related to digital infrastructure: (a) the
Digital Infrastructure High-level Seminar with
the theme ‘Closing the Digital Divide’; (b) a G20
Blueprint for Scaling Up InfraTech Financing
and Development (in collaboration with the
Global Infrastructure Hub), accompanied by a
Stocktake of Approaches for Scaling Up InfraTech;
and (c) a G20 compendium of case studies on
digital infrastructure financing. President Jin
participated in the MDB Heads Meeting on
the side lines of the World Bank-International
Monetary Fund Spring Meetings in April 2022,
focusing on the role of MDBs in fostering resilient,
sustainable and inclusive growth and their role
related to climate adaptation and beyond.

52

  2022 AIIB ANNUAL REPORT

READ MORE
OUR KNOWLEDGE PRODUCTS

Contributing to Global Cooperation
on Climate Change
The 2022 United Nations Framework Convention
on Climate Change Conference of the Parties
(COP 27) was held on Nov. 6-18, 2022 and
hosted by Egypt in Sharm-El-Sheikh. As Asia’s
climate partner, we bring capital, capacity
and convening power to accelerate financing
solutions to climate change. We are focusing
on increasing investment into climate-resilient
infrastructure and technology where it is most
needed so that no country is left behind.
We signed partnership agreements with the Global
Energy Alliance for People and Planet (GEAPP)
and the Energy Transition Accelerator Financing
Platform (ETAF) in the margins of COP27. We
also joined the GEAPP, marking a step forward
in our commitment to developing new, inclusive
financial instruments and capacity building tools
that help unlock new capital, by bridging the gap
between public and private sector resources. Our
participation in the ETAF would contribute to our
ambitious green and climate commitments, as well
as the OPD’s aims of providing access to additional
resources to support investment operations.
Expanding Partnerships to Support Operations
We signed memorandums of understanding with
various partners to expand our operational and
strategic cooperation to finance global public and
private sector projects and promote sustainable,
resilient and high-standard infrastructure
development. These partnerships are aligned with
AIIB’s thematic priorities and will help the Bank
support the specific needs and commitments
of its Members for sustainable, climate-resilient
infrastructure, as well as help the Bank meet its
targets, including its climate finance commitments.
We signed agreements with the Organization of
the Petroleum Exporting Countries (OPEC) Fund

for International Development, the Development
Bank of Latin America, KfW, and the ExportImport Bank of China. We also co-initiated
and launched the Mechanism of International
Sustainable Infrastructure Promotion (MISIP
Initiative) with the China International Contractors
Association (CHINCA), GIZ, UN Environment
Programme and World Wildlife Fund.
Ongoing collaborations with multilateral
and bilateral partners and international
concessional and grant facilities such as the
Global Infrastructure Facility, the Multilateral
Cooperation Center for Development Finance
(MCDF), and the Pandemic Fund, among
others, would enhance the Bank’s expertise and
capacity to support its investment operations,
in areas including connectivity, private capital
mobilization, technology-enabled infrastructure,
health infrastructure, and climate-positive and
green infrastructure projects going forward.
Mobilizing Resources to Support
Investment Operations
Our resource mobilization efforts are focused on
contributing to the Bank’s investment pipeline

by identifying partners, forging partnerships,
programs and initiatives that create pathways
for business opportunities; as well as enhancing
the Bank’s reputation as a global infrastructure
financier of choice.
Through our participation in multilateral activities
such as the World Bank Group/International
Monetary Fund Annual Meetings in Washington,
D.C., COP27 in Egypt and COP15 in Montreal,
and the Water Security and Climate Change
Conference in Bangkok, we have successfully
built on our partner engagements to develop
new markets and new partners for projects (e.g.,
replicate AIIB’s and Gates Foundation’s Citywide Inclusive Sanitation infrastructure and
digital solution module piloted in 25 towns and
cities in Bangladesh), new client segments (e.g.,
municipalities and urban authorities where the
Multilateral Investment Guarantee Agency could
de-risk transactions with guarantee tools for
AIIB to extend lending in previously underserved
or high-risk markets) and access to technical
assistance grants (e.g., Global Water and
Sanitation Center, Cities Development Initiatives
Asia).We also deepened our engagements with
the World Economic Form and other partners.
OUR GROWTH

  53

OUR ENGAGEMENT
WITH CIVIL SOCIETY
Civil society organizations (CSOs) and
non-governmental organizations (NGOs) are some
of our key stakeholders. Since our inception, CSOs
and NGOs have been providing valuable inputs to
our strategies, policies and operations. In 2022, we
maintained the momentum of engagement with
CSOs and NGOs.
Project-level Engagement
We continued to engage with CSOs/NGOs
on concerns about AIIB-financed projects.
We shared information about our projects and
addressed the questions raised by CSOs/NGOs
in writing and via virtual meetings.
Strategy and Policy Engagement
In 2022, we held a total of 14 sessions and
interfaced with 86 CSOs and NGOs during the
public consultation on the Energy Sector Strategy
Update. We also communicated with civil society on
other topics of interest such as biodiversity, gender,
human rights and climate change.

READ MORE
ENERGY SECTOR STRATEGY UPDATE

54

  2022 AIIB ANNUAL REPORT

AIIB Management Dialogue
The AIIB Management Dialogue with CSOs/
NGOs serves as an open, direct platform
for CSOs/NGOs to engage with our senior
Management, as well as an opportunity for AIIB
Management to listen to diverse voices regarding
our operations and policies. We held the Dialogue
virtually during the 2022 AIIB Annual Meeting.
More than 90 CSOs and NGOs registered for the
session. During the Dialogue, AIIB’s Management,
led by President Jin, addressed questions from
CSO and NGO representatives on issues of
mutual interest covering topics on climate, gender,
information disclosure practices, among others.
Proactive Outreach
We proactively reached out to CSOs to seek
their feedback and learn about their expectations
for AIIB’s CSO/NGO engagement. As the
Bank continues to grow, we continue to build
up resources and capacity to strengthen
engagement and communications with CSOs
and NGOs.

OUR CULTURE AND
OUR PEOPLE

staff. These align with the culture we want to build
and how we want to grow as a team and a Bank.

Our Culture

To track our progress toward becoming an
employer of choice, we conduct engagement
surveys every two years. This gives us insights
into our ways of working and how we might
further strengthen and accelerate our culturebuilding journey.

AIIB launched the AIIB Way in 2021. Underpinned
by our values of “Lean, Clean and Green”, the
AIIB Way is about who we want to be as a Bank
and as a team. This is aligned with our Corporate
Strategy and defines how we serve our clients
and how we work with and treat each other. At
AIIB, this means we act with integrity and respect.
We welcome diversity, and we create an inclusive
environment where everyone can thrive. This is
how we will be an ‘employer of choice.’
Our commitment to diversity and equity is
reflected in our participation in the Economic
Dividends for Gender Equality (EDGE) survey
where we have been certified as an EDGE
ASSESS Organization in 2022 for the second
time. To embed this in our day-to-day work, we
defined a set of competencies (five core and three
leadership competencies) that apply to all Bank

Our Staff
As of Dec. 31, 2022, we had 465 staff members
onboard, including 454 professional staff and 11
support staff. There are 187 women professional
staff and overall representation reached 41%.
Bank staff comes from 62 economies, and the
percentage of those from regional economies is
at 69%. We are committed to a gender-balanced
workforce at all levels. In addition to our staff
members, we also engage individual consultants
and secondees working in different business
areas as well as outsourced staff who provide
valuable support to business operations.

OUR GROWTH

  55

Attracting Talents Worldwide
Our talent sourcing initiatives has transitioned
from physical to largely virtual since 2020 to
promote the AIIB employer brand to talents
worldwide. In 2022, we hosted or participated
in 29 virtual career events to meet talents from
various economies and industries. In view of the
travel restrictions during the pandemic, the Bank
introduced virtual onboarding arrangements to
welcome almost half of the new staff hired in
2022. We also formed a dedicated team to support
new staff and their families’ smooth transition and
relocation travel to the Bank’s Headquarters.
Young Talent Programs
For young talents who are looking for mentoring
and professional guidance, our Young Talent
Programs provide them an opportunity to
learn valuable skills by virtue of where we are
headquartered, the wide range of our products
and markets, and our unique business of
financing Infrastructure for Tomorrow. Our first

56

  2022 AIIB ANNUAL REPORT

Graduate Program cohort in 2022 comprised
25 analysts while three lawyers were admitted to
our second Legal Associate Program. Our 2022
Internship Program, composed of 30 interns, has
been our largest cohort so far.

Competency Framework
A critical step forward in our culture-building
journey is institutionalizing and embedding the
AIIB Way in our day-to-day work environment.
To create a common understanding and shared
language through a participatory process, we
have defined a set of competencies (behaviors)
that are important for all Bank staff, regardless
of their function or level. These competencies
will help us clarify expectations, define future
development needs and do more focused
recruitment and development planning.
Competencies provide a sound basis for
consistent and objective performance standards
by creating a shared language about what is
needed and expected within AIIB.

Young Talents Economy Representation, 2022
United Kingdom
4%

Cambodia
4%

Viet Nam
4%

Russia
4%

Canada
11%

Philippines
14%
China
18%
Pakistan
4%
Norway
4%
Mongolia
4%

India
4%

Malaysia
4%
Korea
11%

Kenya
4%

Italy
4%

Indonesia
7%

Note: The Young Talents Program is composed of Graduate Associates and Legal Associates.

Young Talents Gender Distribution, 2022

Total Number
of Young Talents

25

Women, 23

20
15
10
Men, 5

5
0

Women

Men

Note: The Young Talents Program is composed of Graduate Associates and Legal Associates.

Learning and Development
We supported staff learning and development
throughout 2022. We partnered with internal and
external subject matter experts and organized
21 flagship training programs to over 550 Bank
personnel covering a wide range of topics from
induction training, operational training, credit
and investment, private equity, soft skills, and
leadership training. Financial support continued
to be available for staff who wanted to avail of
training; 110 staff benefited from the scheme and
enrolled in training courses and workshops that
were not internally available.

The learning solutions remained resilient. While
most programs were delivered virtually, staff
were encouraged to participate in face-to-face
trainings such as the New Staff Induction Program
to promote information exchange and networking.

Supporting Staff Well-being
Well@AIIB
Continuing from the launch of Well at AIIB in
June 2022, we designed a series of well-being
sessions to address different needs of staff and

OUR GROWTH

  57

their partner. Staff have access to an online
counsellor as an additional well-being resource.
There is a choice of topics and opportunities for
those who wish to delve deeper into different
topics to develop good habits and apply learnings
to their professional and personal life.
We also launched a new legal service to all Bank
personnel to have external counsel provide advice
on personal legal matters.
Supporting Staff during COVID-19
Since the COVID-19 pandemic outbreak in early
2020, we have taken measures to care for our
staff’s security, safety and well-being. We have
proactively developed and enhanced initiatives to
support our staff during this period. We rolled out
support measures for home travel to help staff
plan and arrange home travel and work with more
flexibility and better certainty, such as rollover
of unused annual leave to the next year, remote
work arrangements during home travel, as well as
a subsidy for home travel. We conduct timely and
regular communications with staff to understand
and address their concerns, and review and
update the support measures constantly in view

58

  2022 AIIB ANNUAL REPORT

of the evolving situation and staff feedbacks. By
the end of 2022, more than 100 staff benefited
from these support measures.

Staff Council
Our Staff Council was established in August 2021
to serve as a platform for engagement between
staff members, and for consultations between
staff members and Management on relevant
matters to employment and general welfare.
In 2022, the Staff Council put in place key
governing documents, and successfully held
the second election of staff representatives. It
engaged with the staff, Management, and the
Board of Directors on issues that are critical to
the staff’s employment and welfare, especially in
relation to the impact of COVID-19 restrictions
on staff, new joiners, working culture and
environment, and compensation and benefits.
It held two surveys–on flexible working and
compensation and benefits–to obtain supporting
data as it represented staff’s interests. It launched
the first funding drive for AIIB social/sports clubs
and held cultural events as well as engaged with
staff associations of other IFIs for peer learning.

OUR ORGANIZATION
Our Headquarters and
Our Global Presence
Headquarters

staff. On Oct. 9, 2022, we were awarded
the Leadership in Energy and Environmental
Design (LEED) Platinum for Operations and
Maintenance of Existing Buildings, the most
prominent certification from the US Green
Building Council for green building standards.

Our permanent Headquarters are in Beijing,
China, between the Olympic Forest Park and the
iconic Bird’s Nest Stadium.
We are committed to improving our staff’s
working environment. In 2022, our Facilities and
Administrative Services Department led the
renovation of the office lighting and acoustics,
as well as refurbishment of the Sky Gardens that
serve as a multi-functional space for cultural
events and cross-team collaborations.
We are committed to enhancing our sustainable
operations in terms of corporate practices
by improving our Headquarters building’s
management in terms of energy and water
utilization, waste diversions,5 use of more
efficient materials and resources, and developing
and maintaining a healthy environment for

5

Aligning Our Internal Operations with the
Paris Agreement
We developed our Carbon Management Plan
(2022-2025), which provides a clear roadmap

Each kind of waste (e.g., food waste, recyclable waste) generated by AIIB is monitored and quantified before processed for
recycling, reuse, treatment or conversion into power generation by external suppliers.

OUR GROWTH

  59

and carbon management action plans over the
Bank’s internal operations. We also prepared the
first of our annual Carbon Footprint Reports to
monitor, report and verify the environmental
impact of our internal operations.
We announced our first Institutional Carbon
Emission Management Plan (ICEM Plan) in
January 2022 to help the Bank achieve carbon
neutrality by 2025 and align our internal
activities with the Paris Agreement goals. The
Plan presents a five-year overview of AIIB’s
institutional greenhouse gas (GHG) management
strategy. In addition, it identifies steps for
the Bank to monitor, verify, and report its
institutional carbon footprint, as well as the highlevel strategies the Bank might employ to cut and
decarbonize institutional energy use.
In July 2022, we set up an online data
management system through our Facilities and
Administration Services Department to monitor
the daily GHG emissions from our internal
operations and to standardize the monitoring of
our annual GHG inventory. In November 2022,
the British Standard Institution verified that
GHG inventory reporting of 2021 accurately
and consistently conforms to ISO 14064-1:2018
on Greenhouse gases. This demonstrates that
we have the scope of verification activities as
required by Paris Alignment Building Block 6 and
international standards.
Through multiple carbon emission reduction
initiatives in the past year, sources of GHG
emissions, such as electricity, water and waste
generation, saw a pattern of decline between
2020 and 2023 after we moved to our
permanent Headquarters.
Social Responsibility as a Global and Local
Corporate Citizen of Our Host City
As an MDB headquartered in Beijing, AIIB is keen
to join strategic cooperations and contribute
to Beijing’s sustainable development. On
Sep. 27, 2022, AIIB and the Beijing Municipal
Forestry and Parks Bureau signed a Letter
of Intent to establish cooperation on climate
60

  2022 AIIB ANNUAL REPORT

change and biodiversity. The agreement aims
to promote the implementation of our shared
vision and commitment to sustainability, as well
as to support Beijing to become a wildlife-rich,
wildlife-friendly and low-carbon capital city.
Areas of cooperation for both sides include
monitoring of migratory birds, developing policy
recommendations for Beijing, public education
and participation in related activities.
Interim Operational Hub
We have also begun to build AIIB’s global
presence, to strengthen our client focus and
build a high-quality, diverse investment pipeline.
Our Board of Directors approved our Global
Presence strategy and with it, the establishment
of an Interim Operational Hub on June 28, 2022,
which will be fully operational in 2023. Expanded
global presence will strengthen our client
relationships, enhance project preparation and
improve project implementation.
The city of Abu Dhabi in the United Arab
Emirates (UAE) has been designated as the
location for the Hub, chosen for its connectivity
to the Bank’s global membership. Our first
overseas office will help bring us closer to our
clients and to global financial centers, as well as
enable us to conduct effective supervision of our
growing investment portfolio, and strengthen our
project monitoring and implementation services
across the globe.

Our Investments in a
Digital-First Future
To support AIIB in becoming a digital-first MDB
in the 21st century, our IT Department (ITD)
made steady and consistent progress toward
implementing reliable, innovative, and efficient
digital solutions that ensured the security and
smoothness of the Bank’s daily operations.
In 2022, ITD worked on building an IT landscape
that is digitally reachable and reliable, and
focused on emphasizing consistent information
and automated connectivity and optimizing

the client experience with insights, with a focus
on digital services, data management and
developing IT excellency.
We accelerated our digital capability in terms
of enabling streamlined and integrated digital
operations and providing coherent business
operations data to support core business
functions such as investment management,
treasury services, and risk management
with consistent operations data, while also
safeguarding the Bank’s security and stability.
Throughout 2022, our data management
practices have been transitioning from the
initial foundation-setup stage to a more growthoriented phase. This year, we made significant
progress toward establishing a sustainable and
robust Bank-wide data ecosystem, thereby
future-proofing the Bank’s adaptability to the
evolving data landscape and meeting clients’
diverse needs. We solidified the technical
foundation of our data platform, enabling us
to ingest data sources from various business
systems successfully, and produced data
applications for pilot business cases.

With a comprehensive cybersecurity framework
in place, we enhanced the Bank’s overall cyber
protection capabilities by detecting and solving
cyber threats in a more timely and accurate
manner. As technology continues to evolve, we
remain committed to staying ahead of potential
threats and maintaining the highest level of
digital protection.
We have been promoting digital transformation
through learning and innovation experiments
to meet business needs. Our Digital Innovation
Lab creates practical, experimental business
tools using cutting-edge technologies, like the
newly launched Smart Translator. This leverages
artificial intelligence to translate documents in
real-time.
As we develop our digital landscape, we also
need to enhance our digital capabilities to
ensure operational efficiency and a positive user
experience while maximizing digitalization’s value.
To improve workspace efficiency and echo the
core competency model, we provided training
opportunities to encourage a digital mindset
among staff and help them develop better
digital confidence.

OUR GROWTH

  61

MAJOR INFORMATION TECHNOLOGY PROJECTS, 2022
y Enhancement of the Investment Management Information System (iMIS) aimed at optimizing and
streamlining business processes. Enhancements include automated cross-system integration to ensure
consistent and reliable business data. iMIS, as the central application for investment management, has
been successfully integrated with eight surrounding solutions, facilitating daily usage by approximately
400 users.
y Launch of the new Enterprise Resource Planning (ERP) System S/4HANA. This serves as an
upgrade to the previous solution, enabling more comprehensive system functionality, better extensibility
and integration capability.
y Transition of data management practices from the initial foundation-setup stage to a more
growth-oriented phase. The objective was to build a sustainable and robust Bank-wide data ecosystem,
enabling more lines of business to adapt to the evolving data landscape in the years to come. In 2022, the
data platform technical foundation was solidified, various data sources were incorporated from business
systems, and reporting requirements and data applications were deployed for pilot business cases.
y Roll-out of the first and second phases of the Operational Risk Management System. This was
done to industrialize and integrate operational risk management processes, enabling better control and
monitoring mechanisms.
y Launch of a 24x7x365 IT Helpdesk Call Center. Launched on Sep. 1, the Helpdesk is designed to
accommodate our global presence, boost productivity in the digital workspace and better support flexible
work arrangements.
y Initiation of the Client Portal and InfraTech portals. These are designed to optimize the client
experience in loan disbursement operations and infrastructure technology-related knowledge exchange
and analysis.

62

  2022 AIIB ANNUAL REPORT

OUR KNOWLEDGE PRODUCTS
2021
Annual Report
AsiAn infrAstructure finAnce 2022

2021

AIIB ANNUAL
REPORT

Each year, we publish
an annual report
that summarizes our
programs and projects
and features highlights
of our work with our
clients in our thematic
priority areas.

2021 Sustainable
Development Bonds
Impact Report

AIIB
SUSTAINABLE
DEVELOPMENT
BONDS
IMPACT REPORT 2021

Under the Sustainable
Development Bond
Framework, the Bank
is committed to annual
impact reporting on our
overall portfolio- and
project-level results reflecting environmental and
social benefits generated by our financing.
aiib.org

We launched our second Sustainable
Development Bonds Impact Report in September.
The report illustrates how the proceeds from
AIIB’s bonds are used to realize AIIB’s mission to
finance Infrastructure for Tomorrow, and shares
insights on AIIB’s financing in key infrastructure
sectors, including sustainable energy,
transportation, water, digital infrastructure and
AIIB’s COVID-19 Crisis Recovery Facility.

Moonshots for
the eMerging World

Asian Infrastructure Finance
Report 2022

Building State Capacity and Mobilizing
the Private Sector Toward Net Zero

We launched the Asian Infrastructure
Finance (AIF) Report 2022,
“Moonshots for the Emerging
World: Building State Capacity and
Mobilizing the Private Sector Toward
Net Zero” in October at the Annual
Meeting, followed by an event at
COP 27. The 2022 AIF examines the main “tools” of the state
– the state-owned enterprises, the state-owned financial
institutions and public-private partnerships together with
national innovation and technology adoption frameworks –
and how these can work together to accelerate the net-zero
transition.

The net-zero transition is a “moonshot,”
and for emerging and developing
economies, this “moonshot” is very much
about speeding up adaptation and green
innovation in a mission-driven purposeful
manner. Reaching net zero in time will be
the greatest challenge for these economies
and the impact of climate change will
be most severe where state capacity is
in short supply. The state will need to
work with all the instruments it has at its
disposal, harnessing the private sector and
working with development partners, as well
as go beyond individual instruments and
collaborations to achieve net zero.
ASIAN INFRASTRUCTURE
FINANCE REPORT 2022

OUR GROWTH

  63

G20 Blueprint and Stocktake for
Scaling up InfraTech Financing and
Development

Operational
Procurement
Report

2022

ANNUAL OPERATIONAL
PROCUREMENT REPORT
June 2023

Upon the request of the G20 Infrastructure
Working Group, AIIB collaborated with the
Global Infrastructure Hub to develop the “G20
Blueprint for Scaling Up InfraTech Financing
and Development”. The Blueprint provides a
set of evidence-based, voluntary, non-binding
actions to advance the six elements of the
InfraTech Agenda. To complement the blueprint,
we created a “Stocktake of Approaches for
Scaling Up InfraTech”, which provides case
studies of InfraTech that attracted financing for
development and implementation and could be
scaled and replicated across sectors
and jurisdictions.

We published our
inaugural Annual
Operational Procurement
Report, which provides
a highlight of the
procurement profile of
projects approved from 2016 to 2021. The report
covers procurement contracts of sovereignbacked financed projects and Project Preparation
Special Fund grants.

*OFFICIAL USE ONLY
AIIB Working Paper No. 10 (2022)

AIIB WORKING PAPER No. 10

July 2022

AIIB Working Papers
report on research work
in progress by individual
staff members and
consultants. Research
may be in collaboration
with external parties
and published to share
knowledge, seek feedback and encourage debate.
They focus on infrastructure development
and finance.
Jang Ping Thia* and Anne Ong Lopez†

© Asian Infrastructure Investment Bank
(AIIB). 2021.
CC BY-NC-ND 3.0 IGO.
Some rights reserved.

Abstract

G20 Digital Infrastructure Financing:
a Compendium of Case Studies

Working Papers

INFRASTRUCTURE QUALITY
AND TRADE LIBERALIZATION

It is difficult to establish the impact infrastructure has on trade
balances due to confounding factors. Our empirical approach
leverages on episodes of trade liberalization, interacting such
episodes with infrastructure. Providing a simple extension to the
gravity model, we find that infrastructure quality differences
between trade partners result in trade imbalances, which
liberalization then accentuates. For robustness checks, we interact
the liberalization indicator against other confounding variables and
do not find such consistent effects. We conclude that lack of quality
infrastructure in developing economies contributes to larger trade
deficits, and infrastructure development should be supported
alongside trade liberalization.
The data that support the findings of this study are openly
available in http://dx.doi.org/10.17632/2vvn2rxc7x.1.

Acknowledgments

The authors would like to thank their colleagues at the Asian
Infrastructure Investment Bank (AIIB) for their helpful comments
and inputs, and Jiaqi Su, Research and Data Assistant,
Economics Department, AIIB, for the excellent data support.

The Asian Infrastructure Investment
Bank (AIIB) uses a Creative Commons
license for all intellectual property
contained in this work except where
specified. Copyright designations may or
may not apply to third-party content
found herein. AIIB does not necessarily
own each component of the content
contained in or linked from this work and
will not be held accountable for any such
third-party content. AIIB does not
guarantee the accuracy of the data
contained in or linked from this work and
accepts no responsibility for any
consequences of their use. The mention
of companies or any trademarked entity
or object in this work does not imply that
they are being endorsed or
recommended by AIIB in preference to
others that are not mentioned.

The contents of this work are the authors’
own and do not necessarily represent the
views or policies of AIIB, its Board of
Directors or its members. Any
designation of or reference to a specific
territory or geographic area, or the use of
the term “country” in this work does not
constitute and shall not be construed as
constituting an express or implied
position, endorsement, acceptance or
expression of opinion by AIIB as to the
legal or other status of any territory or
area.

Keywords: Infrastructure; Gravity model; Trade; Trade deficits
JEL classification: O18; F14; F40

We collaborated with the Indonesian G20
Presidency to develop and launched the “Digital
Infrastructure Finance: Issues, Practices and
Innovations—G20 Compendium of Case
Studies,” which contains several case studies
on replicable innovative financing structures in
digital infrastructure. The main findings of this
report were presented at the G20 Infrastructure
Working Group meeting in September and later
unanimously endorsed by the G20. The report
provides, among others, a view on the issues,
practices and innovations in digital infrastructure,
and identifies the critical factors that go into the
level of innovation, the financial tools available
to or used by public and private sectors and the
risks and vulnerabilities that may arise.

64

  2022 AIIB ANNUAL REPORT

* Lead Economist, AIIB. Email: jangping.thia@aiib.org (corresponding author)
Investment Specialist, AIIB. Previously, with the Economics Department,
anne.onglopez@aiib.org.
†

AIIB.

Email:

1

A working paper on the impact of quality
infrastructure on trade balances and the need
to support infrastructure development alongside
trade liberalization was published in 2022.

Other Knowledge Products
Through our various departments, we convened,
cohosted or participated in a number of activities
to promote dialogue and knowledge transfers. In
2022, we:

y Convened the extraordinary meeting of
the Council of the Chief Economists of the
international financial institutions in response
to geopolitical challenges.
y Continued building the AIIB Geospatial
Platform, adding the first complete analysis of
road connectivity within and across states in
India, and completed the impact assessment
of AIIB’s Gujarat Rural Roads project.
y Engaged in the G20 Joint Finance and Health
Task Force on the Pandemic Fund, for which
AIIB is one of the initial implementing entities.

y Produced the China Net Zero report in
collaboration with an international expert
group and two Chinese institutions, and
presented it at the Boao Forum in March.
y Organized a series of training sessions on
various topics, including on the Cape Town
Convention and Its Protocols, the role of law in
delivering climate results, international secured
transactions law, equity investments and
structuring projects in specific jurisdictions.

OUR GROWTH

  65

IMPLEMENTING
OUR CORPORATE
STRATEGY

66

03

  2022 AIIB ANNUAL REPORT

OUR INVESTMENT FOR
STRATEGIC VISION
2022 was the second year of implementing our Corporate
Strategy in an operating environment that remained
complex and challenging. We focused our efforts on
creating the basis for stronger growth and quality of
operations necessary to meet the aspirations of our
Corporate Strategy.
Our impact ranged from projects that address the effects
of climate change in terms of expanding renewable
energy, enhancing electricity transmission and distribution
infrastructure and supporting energy efficiency measures;
ensure wider access to clean water through water resource
management and water supply, sanitation and wastewater
treatments; improve affordability, access and quality
of digital connectivity; help people and goods reach
their destinations by financing the building of roads and
deployment of electric vehicles, among others.
In doing so, our projects helped people gain access to
basic livelihood necessities, created employment and
livelihood opportunities; facilitated the transfer of skills
to build a pipeline of diverse talent; enabled people
to stay connected, remain in the workforce, continue
their schooling online and gain access to health care;
and addressed the distinct needs of women and girls
and contributed to promoting gender equality when
opportunities arise.

IMPLEMENTING OUR CORPORATE STRATEGY   67

AIIB reports on its portfolio-level performance
indicators, sector outcomes and selected project
stories in the annual Sustainable Development
Bonds Impact Report. The Bank is committed to
impact reporting, and the information from this
reporting help us make data-driven decisions for
best results.

READ MORE
SUSTAINABLE DEVELOPMENT BONDS
IMPACT REPORT 2022

A number of major developments to support
our strategic vision and implementation of the
Corporate Strategy occurred in 2022.
These include:
y Energy Sector Strategy Update. Our Energy
Sector Strategy was updated to address
Members’ evolving needs and increased focus
on climate change and energy transition as
well as AIIB’s own commitment on climate
finance and the Paris Agreement. The update
included increased focus to support Members’
energy transition and took a stricter approach
for the financing of fossil fuel. The six guiding
principles for AIIB energy financing were

68

  2022 AIIB ANNUAL REPORT

maintained on the basis that they continue to
offer sufficient flexibility to represent Members’
needs and meet client demand.

READ MORE
ENERGY SECTOR STRATEGY UPDATE

y Update of policies and guidelines. We
continued to update our policies and guidelines
to uphold the Bank’s high standards and
reflect our operational needs as we continue
to grow and broaden our financial offerings. In
particular, we updated our Operational Policy
on Financing (OPF) in November 2022 to
include provisions enabling the Bank to provide
results-based financing to sovereign clients
on a standalone basis. Associated updates
to the Environmental and Social Framework
and Procurement Policy were also adopted
to reflect this new provision. The updates to
the OPF demonstrate the evolution of the
financing needs of our clients and the
Bank’s willingness and ability to respond to
this demand.
In the coming years, we will continue to bolster
our culture, expand our capacity and increase the
rigor with which we manage the Bank’s funds.

Al Rajef Wind Farm, Jordan (photo from Alcazar
Energy Partners).

WHAT IS INFRASTRUCTURE
FOR TOMORROW
AIIB’s mission of Financing Infrastructure for
Tomorrow (i4t) reflects our firm commitment to
sustainability and clear focus on aligning with our
thematic priorities. By investing in sustainable
infrastructure, AIIB unlocks new capital, new
technologies and new ways to address climate
change and to connect Asia and the world. It is
also a dynamic concept that will be shaped by the
operating environment – in the way markets function
and people live, move and work. In this regard, how
and where I4T is built will continue to evolve to
respond to the needs of our clients and Members.
First, our commitment to sustainability is
demonstrated by requiring that all investments
be:
y Financially and economically sustainable
in terms of financial returns and economic
impact, which generate positive economic
returns and do not exacerbate a country’s
debt sustainability.

y Socially sustainable and inclusive in terms
of addressing direct and indirect impacts,
especially on displaced persons, vulnerable
groups and community health and safety.
y Environmentally sustainable in terms of
addressing direct and indirect impacts on
the physical and biological environment, such
as water and air quality, biodiversity, local
pollution, climate change and water use.
Second, our clear focus is demonstrated
by requiring all our investments across
infrastructure and other productive sectors to
ordinarily add value through one or more of these
four thematic priorities:
y Green Infrastructure encompasses both
(i) climate (mitigation and adaptation) and
(ii) other environmental activities, such as
those that involve water and air quality,
biodiversity, and land and water use.
y Connectivity and Regional Cooperation
encompasses (i) domestic connectivity and
cross-border connectivity, that covers both

IMPLEMENTING OUR CORPORATE STRATEGY   69

physical and non-physical connectivity;
and (ii) regional cooperation, such as cross
border trade, investment, digital and
financial integration.
y Technology-Enabled Infrastructure
includes investments in (i) technologies
for infrastructure and (ii) application of
technology to infrastructure. Technology
can be widely defined by and includes several
categories such as digital, engineering and
scientific.
y Private Capital Mobilization includes
(i) direct private capital mobilization and
(ii) indirect capital mobilization, adhering to
the Joint MDB definition of private capital
mobilization.

AIIB has identified three corporate strategy
targets to monitor and report our progress in
realizing our mission. These corporate strategy
targets reflect the Bank’s focus areas and
thematic priorities.
y Climate Financing: reaching or surpassing
by 2025 a 50% share in actual approved
financing. This specifically refers to the joint
MDB definition of climate finance, including
mitigation and adaptation.
y Cross-border Connectivity: reaching by
2030 a 25% to 30% share in actual approved
financing. This specifically refers to crossborder connectivity and regional cooperation,
excluding domestic connectivity.
y Private Sector Financing: reaching by 2030
a 50% share in actual approved financing.
This refers to the Bank’s portfolio composition,
consisting of 50% nonsovereign-backed
financing.

AIIB Corporate Strategy: Four Thematic Priorities and Three Corporate Strategy Targets
GREEN
INFRASTRUCTURE

CONNECTIVITY AND
REGIONAL COOPERATION

TECH-ENABLED
INFRASTRUCTURE

PRIVATE CAPITAL
MOBILIZATION

Encompasses both
(i) climate (mitigation and
adaptation); and (ii) other
environment activities, such
as water and biodiversity

Encompasses (i) domestic
connectivity and crossborder connectivity, that
covers both physical and
non-physical connectivity;
and (ii) regional cooperation,
such as cross border trade,
investment, digital and
financial integration

Includes investments in
(i) technologies for
infrastructure and (ii) application
of technology to infrastructure.
Technology can be widely defined
by and includes several categories,
such as digital, engineering and
scientific.

Includes (i) direct
private capital mobilization;
and (ii) indirect capital
mobilization, adhering to the
joint MDB definition of
private capital mobilization

Climate Financing

70

  2022 AIIB ANNUAL REPORT

Cross-border Connectivity (CBC)

Private Sector Financing
(50% of actual
approved financing)

HOW WE IMPLEMENTED
OUR CORPORATE STRATEGY
IN 2022
In 2022, we continued to be committed to its
mission pillars and core principles despite the
compounded effects of the COVID-19 pandemic,
climate crisis, rising inflation and geopolitical
challenges that have affected our Members and
clients. Taking such an operating environment
into consideration, we have adopted the following
key principles in 2022:
y Be responsive to client demand, while
remaining focused on Corporate Strategy
priorities. We continued our crisis response
to stay adaptive to client demand while
proactively aligning financings with the
thematic priorities.
y Adopt a focused approach to scaling
up business activities, ensuring that
our institutional capacity, high project
standards and financial sustainability are not
compromised.
y Strive to build our institutional capacity at
a pace commensurate with our Corporate
Strategy ambition.
The 2022 business plan consisted of five focus
areas enabling AIIB to proactively respond to
client demand and support the implementation of

the Corporate Strategy: (i) supporting economic
recovery and resilience, (ii) advancing green/
climate financing and Paris Alignment, (iii)
strengthening client-oriented culture, (iv) ensuring
high portfolio quality and (v) bolstering financial
sustainability. Additional efforts to increase
knowledge and expertise in our thematic priorities,
reinforce strong multilateral governance and
strengthen the institution’s staffing and stafforiented culture were prioritized.
In particular, we focused our operations to
dedicate more efforts and resources to ensure
alignment to our thematic priorities. For green
infrastructure, we continued to focus on meeting
our climate financing target, and commitment
to be fully Paris Aligned by July 1, 2023, as well
as addressing nature and biodiversity issues.
In 2022, global challenges demonstrated the
importance of our investments in connectivity
and regional cooperation and technologyenabled infrastructure. Project teams dedicated
more effort to building the longer-term pipeline
for connectivity and regional cooperation
projects, especially those that cross borders,
and broadening the financing available. We
maintained our focus on development and
application of technology in projects financed by
the Bank to make infrastructure more efficient
and resilient. Our InfraTech Portal supports
these efforts by proactively positioning AIIB as

IMPLEMENTING OUR CORPORATE STRATEGY   71

facilitator of technology-enabled infrastructure
and to transfer knowledge and create a
demonstration effect. Finally, we continued
to mobilize private capital through a range of
financial instruments, particularly through private
equity fund investments.
In January 2022, our Culture Steering Group
also commissioned a client study to understand
how the Bank can become the Preferred Partner
of Choice to our clients and understand how we
need to adapt to better meet our clients’
diverse needs.
In terms of our investment operations, our
climate financing in 2022 amounted to
USD2.39 billion, or 56% of total approved
regular financing,6 up from 48% in the previous
year and surpassing our 2025 target. Of the
total climate financing, climate mitigation
projects account for 81%, with the remaining
19% being adaptation finance.7 Despite
adaptation ranging between 15-20% annually,
we have increased total adaptation from
USD557.6 million in 2017 to a cumulative
USD3.3 billion in 2022. As an infrastructure
bank, the imperative to provide finance that
strengthens the resilience and adaption of
infrastructure presents opportunities to develop
new dedicated financial structures, which will
bolster AIIB’s climate adaptation agenda.
Further, we made an active effort in increasing
representation in international forums, including
President Jin Liqun’s participation at the 27th
Conference of the Parties to the United Nations
Framework Convention on Climate Change
(COP27) and high-level delegation to the
UN Biodiversity Conference (COP15) while
continuing close collaboration with peer MDBs.

Green Infrastructure
Under the Green Infrastructure thematic priority,
the Bank is committed to work on advancing
climate financing — to be fully Paris Aligned
— as well as nature and biodiversity topics in

6
7

72

an integrated way to efficiently manage the cobenefits and trade-offs among these strategic
priorities. In 2022, AIIB continued to originate
and structure green infrastructure projects with
climate adaptation, climate mitigation and other
environmental benefits to support Members’
low-carbon, climate-resilient transition and
environmental sustainability and, as the crisis
subsides, their pursuit of a sustainable economic
recovery and development. We engaged with
clients to identify climate and green financing
opportunities across key infrastructure sectors
and work in close coordination with other MDBs
and partners to support a green recovery.
Notably, AIIB expanded its approach toward
financing for biodiversity and nature. In addition
to the application of its biodiversity safeguards
and standards in the Environmental and Social
Framework (ESF) applicable to all projects, it
has started to explore the use of nature-based
solutions in key infrastructure sectors, and to
develop a strategic approach toward scaling
up nature-positive investments and financing
natural infrastructure to support Members
in implementing their commitments under
the Kunming-Montreal Global Biodiversity
Framework as well as the Paris Agreement on
climate change.
In 2022, 28 approved green infrastructure
projects accounted for 90% of the total number
of approved regular financing projects.

READ MORE

y Climate Financing
y Our Partnerships

Connectivity and Regional
Cooperation
To increase support for connectivity and regional
cooperation issues we have been steadily working
on increasing the number and type of projects

AIIB calculated its 2022 climate financing share excluding financing approved through the COVID-19 Crisis Recovery Facility.
AIIB tracks its climate finance using the joint MDB climate mitigation and adaptation finance tracking methodologies. Five percent
of AIIB’s climate adaptation finance had dual benefits of mitigation and adaptation.

  2022 AIIB ANNUAL REPORT

that help us fulfil this mandate. Under the
Connectivity and Regional Cooperation thematic
priority, the Bank is committed to prioritize
projects that facilitate better domestic and
cross-border connectivity and address current
challenges to regional cooperation in Asia such
as geopolitical challenges and disruption of
regional supply chain.

Technology-Enabled Infrastructure

In 2022, the impact of geopolitical challenges
and disruptions to the regional supply chain
continued to test the resolve for fostering
connectivity and regional cooperation. These
developments introduced further complexities in
the energy and transport markets, particularly
affecting trade between Asia and Europe.
Unfolding events shed light on the delicate
nature of connectivity and the ongoing need
to address existing impediments to regional
cooperation in Asia.

As a response, and in line with our Digital
Infrastructure Sector Strategy and Corporate
Strategy, we continued supporting our
Members to address opportunities from digital
infrastructure and technology. Firstly, we
continued seeking opportunities to strengthen
our Members’ hard digital infrastructure, which
forms the foundation for creating more social,
environmental and economic resilience as well
as growing the digital economy. Secondly,
we invested in soft digital infrastructure, by
financing the development and application
of technology in infrastructure (InfraTech)
to improve efficiency and sustainability, e.g.,
digitalization of water supply and sewerage,
electric buses and electricity distribution grid
modernization. In support of these efforts, the
InfraTech Portal was developed to promote the
application of technology in infrastructure as well
as to stimulate innovation.

Despite the downturn in the second half of
2022, the pursuit of connectivity and regional
cooperation remains important in Asia, with a
particular emphasis on demand for new crossborder connectivity projects in transport, energy,
and digital infrastructure sectors. With the
reconfiguration of global supply chains, longerterm trends call for more optimized logistics
infrastructure in the shipping sector in South,
Southeast and Central Asia. This will result
in demands for more infrastructure that will
enable trade and cross-border connectivity in
underdeveloped areas. The Bank’s financing in
connectivity infrastructure aimed to improve
the resilience, flexibility, efficiency and
accessibility of both physical and digital
connectivity infrastructure.
In 2022, nine approved connectivity and regional
cooperation thematic priority projects accounted
for 29% of the total number of approved regular
financing projects.

8

Recent global challenges (such as the COVID-19
crisis, the climate imperative and the problems
of energy security) have demonstrated the
importance of digital infrastructure and the
usage of technology to enhance traditional
infrastructure.

We also worked closely with reputable market
players, including leading fund managers, to
finance the development, application and
commercialization of digital infrastructure and
infrastructure technology.
In 2022, the Bank approved 15 projects across
all infrastructure sectors that are aligned to the
technology-enabled infrastructure thematic
priority. This accounts for 48% of the total
number of approved regular financing projects.
Out of these, 14 projects focused on application
of the technology to infrastructure, bringing
the total since 2016 to 32, and two8 projects
focused on development of technology for
infrastructure sectors, bringing the total to five.

One project approved in 2022 financed both application of the technology and development of technology.

IMPLEMENTING OUR CORPORATE STRATEGY   73

Private Capital Mobilization
AIIB aims to support private capital mobilization
for infrastructure financing by leveraging our
balance sheet and promoting infrastructure as an
asset class. According to our Corporate Strategy,
the Bank supports projects that directly or
indirectly mobilize private financing into sectors
within our mandate.9
We continued our efforts to mobilize private
capital through a range of financing instruments
to meet client needs. In 2022, a total of
USD2.4 billion in private capital mobilization10
was reported, a remarkable increase from
USD1.3 billion in 2021.
y The private equity fund investment has
become the major financing instrument for
NSBF projects’ private capital mobilization.
Projects that mobilized private capital through
investing in funds and developing capital
market, served our vision of developing
emerging market in infrastructure as an
asset class.

9

y Project loan and intermediary financing
projects continued to mobilize private capital
and supported the realization of the Bank as
a champion and leading institution to catalyze
private capital for infrastructure investment in
the region.
In 2022, the Bank approved 14 projects aligned
to the private capital mobilization thematic
priority. This accounts for 45% of the total
number of approved regular financing projects.
Aligned with our Strategy on Mobilizing Private
Capital for Infrastructure, we have actively
pursued the opening of new markets and creating
deal flow through its financing. A series of
capital markets projects have been developed to
establish Asian emerging market infrastructure
as an asset class by mobilizing private capital
through anchoring the next issuance of
infrastructure asset-backed securities. In 2022,
AIIB approved investment in the Singapore: Asia
Infrastructure Securitization Program III, which is
a second issuance of infrastructure asset-backed
securities (IABS) following the AIIB-anchored
first IABS issuance in June 2021.

Private capital mobilization should be distinguished from private sector financing which means AIIB has extended its own financing
for its clients in the private sector (NSBF). Not all private sector financing involves private capital mobilization. In addition, while
sovereign-backed financing are loans to, or guaranteed by, an AIIB Member, these types of financing can also have a private
capital mobilization component, such as when there is a private sector partner.
10
Private capital mobilization amount is reported based on project commitment instead of approval. The 2022 reported private
capital mobilization amount included projects approved in previous years. The data is provisional until the submission to the joint
MDB group by June 2023.

74

  2022 AIIB ANNUAL REPORT

SUSTAINABLE CAPITAL
MARKETS INITIATIVE
The Sustainable Capital Markets Initiative
(SCMI) aims to catalyze ESG investing strategies
by developing the ESG Framework. It also acts as
an engine of change to improve ESG standards
and build capacity around responsible investing
with various market participants, (such as
corporate bond issuers, rating agencies and index
providers) to improve disclosure and expand ESG
rating coverage in emerging Asia.
It consists of four pillars: (a) AIIB capital markets
portfolios, including the AIIB Asia ESG
Enhanced Credit Managed Portfolio and the
Asia Climate Bond Portfolio; (b) sustainability
research on the emerging issues and key

trends relevant to the portfolios that drive
sustainability investing in infrastructure
and other productive sectors in Asia;
(c) promoting expanded sustainability
coverage of corporate issuers from targeted
Asian countries with better transparency and
disclosure; and (d) deepening the debt capital
markets in emerging Asia and improving
the understanding of sustainability through
knowledge sharing and industry engagement.

READ MORE

y AIIB Asia ESG Enhanced Credit
Managed Portfolio: An Award-winning
ESG Strategy Focused on Asia

IMPLEMENTING OUR CORPORATE STRATEGY   75

SUSTAINABLE
DEVELOPMENT BONDS

CLIMATE FINANCING

Every AIIB financing is aligned with one or more
of our thematic priorities. We uphold the use
of high international standards and principles,
which serve to maximize the financial, economic,
environmental and social sustainability of all the
projects the Bank supports. Prior to extending
financing for a project, we conduct thorough
analyses of the project’s financial and economic
viability, as well as the debt sustainability
of our borrowers. Projects financed by AIIB
are governed by our ESF, including the ESP,
Standards and Exclusion List, reflecting good
international practice and in line with standards
and principles of peer MDBs.
We report on the results of our financing in our
annual Impact Report.

READ MORE

y Sustainable Development
Bonds Framework
y Sustainable Development Bonds
Impact Report 2022

Despite the challenging global economic
situation in 2022, investments in sustainable
infrastructure to address climate change
continued to increase. AIIB advanced ahead
to achieve its commitments to scale up annual
climate finance approvals to at least 50% by
2025 set in the Corporate Strategy and to
achieve full Paris Alignment of its new financing
operations by July 1, 2023 as announced by
President Jin Liqun during AIIB’s 2021
Annual Meeting.
AIIB’s climate financing in 2022 amounted
to USD2.39 billion, or 56% of total approved
regular financing,11 up from 48% in the
previous year and surpassing our 2025
target. Of the total climate financing, climate
mitigation projects account for 81%, with the
remaining 19% being adaptation finance.12
We are accelerating adaptation financing by
institutionalizing climate adaptation into the
project cycle both internally and externally. For
example, a series of thematic staff trainings
have been conducted and integration of climate
risk has been emphasized early on at the time of
client engagement. Despite adaptation ranging
between 15-20% annually, we have increased

AIIB CLIMATE
FINANCE IN 2022
In 2022, AIIB's climate finance amounted to
56% of total approved regular financing,
up from 48% in the previous year.
AIIB climate finance is estimated using the joint MDB climate mitigation and adaptation finance tracking
methodologies. 5% of climate adaptation finance had dual benefits of mitigation and adaptation.

AIIB climate finance for 2022 excludes financing approval through the COVID-19 Crisis
Recovery Facility.

By sector
By financing
By type of project

11
12

76

CLIMATE FINANCE TARGET:
50% OF TOTAL APPROVED
REGULAR FINANCING
BY 2025

ALIGNMENT OF
NEW INVESTMENT
OPERATIONS WITH THE GOALS
OF THE PARIS AGREEMENT
BY JULY 1, 2023

AIIB calculated its 2022 climate financing share excluding financing approved through the COVID-19 Crisis Recovery Facility.
AIIB tracks its climate finance using the joint MDB climate mitigation and adaptation finance tracking methodologies. Five percent
of AIIB’s climate adaptation finance had dual benefits of mitigation and adaptation.

  2022 AIIB ANNUAL REPORT

total adaptation from USD557.6 million in 2017
to a cumulative USD3.3 billion in 2022.
Transport (31%) and energy (30%) sector
projects contributed the highest share of climate
finance, followed by multi-sector (26%) and
water (13%). By client type, the vast majority
(70%) of climate financing accrued to sovereign
clients, while the balance was approved to private
sector and subsovereign clients, presenting the
continued need for the Bank to enhance its
capability, partnerships and toolkits to work with
private sector clients.
The Bank is fully committed to Paris Alignment
and has been making significant efforts toward
its full operationalization. On the other hand,
the Bank considers it a great opportunity to
focus and maximize the value-add of the Bank’s
limited resources on areas that are supporting
our Members’ domestic and international
climate pledges. In 2022, the Bank has been
actively building its readiness to take both the
opportunities and challenges in the efforts to
align with the Paris Agreement goals. Externally,
it has closely worked with peer MDBs in
contributing to the development of the joint MDB
approach for Paris Alignment assessment. The
joint MDB approach for direct lending operations
has been finalized and made publicly available at
COP26. Since then, the Bank has continued its
active engagement in the MDB group to finalize
the joint approach for indirect lending operations
(including those through financial intermediaries),

13

for which significant progress has also been
made. Internally, the Bank has focused its efforts
on providing additional sector-specific technical
guidance to facilitate the operationalization
of the Paris Alignment commitment. To ensure
its full implementation, timely and extensive
road-testing of potential approaches at the
project level has also been conducted in 2022,
contributing positively to the awareness-raising
and capacity-building efforts of the Bank.

COP27
AIIB participated in COP27, with President
Jin leading the delegation. Our COP27
activities were organized around three main
strategic messages aligned with our Corporate
Strategy and to achieve our climate targets
and commitments. We hosted, co-hosted and
participated in several events and activities,
signed initiatives and investments, and had
bilateral discussions with partners at high levels,
clients and with the private sector, MDBs and
other international organizations.
The final COP27 decision, the Sharm El
Sheikh Implementation Plan, called on MDBs
to significantly scale up climate finance and
reform.13 AIIB will continue its effort to diversify
the financing tools and products in its toolkit
as well as enhancing partnerships with both
the public and private sectors to scale up
climate finance.

Related paragraphs 37, 38 and 39 of the UNFCCC COP27 Sharm El-Sheikh Implementation Plan.

IMPLEMENTING OUR CORPORATE STRATEGY   77

Further to AIIB signing a joint statement on
nature at COP26, AIIB was accredited by the
UN Convention on Biological Diversity (UN
CBD) in 2022, enabling the Bank to attend
COP15 in December 2022 for the first time.
AIIB’s Delegation participated in high-level
panels organized by the CBD Secretariat,
UN Environment Programme, Partnership of
Biodiversity and Finance (PBF), The Nature
Conservancy (TNC), and co-organized the joint
MDB side event on Nature at COP15.

78

  2022 AIIB ANNUAL REPORT

AIIB has indicated its readiness to support
Members in implementing the Kunming Montreal Global Biodiversity Framework (GBF),
which sets the ambition to halt and reverse
biodiversity loss by protecting 30% of Earth’s
land and sea by 2030. AIIB’s aspirations to
develop natural infrastructure as an asset class
and to scale up financing toward nature-based
solutions (NBS) were positively received.
The joint MDB nature working group was
launched in November 2022 by MDB presidents,
signaling high-level leadership toward nature and
biodiversity, similarly to climate change.

ENERGY SECTOR
STRATEGY UPDATE
The Board of Directors of AIIB approved an
update to the Bank’s Energy Sector Strategy
on Nov. 22, 2022. Under the updated Energy
Sector Strategy, AIIB will focus its energy
investments on supporting its Members achieve
their long-term climate goals and net-zero/
carbon neutrality commitments and accelerate
the just transition toward secure, affordable, and
sustainable energy access for all.
Today, AIIB Members continue to face
significant challenges in gaining access to
secure and affordable energy. The challenge is
further compounded by disruptions caused by
COVID-19, the energy crisis, and geopolitical
challenges. In addition, climate change-related
events are threatening billions of lives and
economic activities in the most vulnerable
economies. Recognizing this, governments in
Asia and around the world have been raising
their commitments as manifested by the scores
of net-zero and carbon neutrality pledges since
2020. Yet, a significant finance gap remains
to drive this transformation, requiring the
international community to step up their support
and mobilize resources at all levels.

AIIB’s 2017 Energy Sector Strategy was the
first sector strategy developed by the Bank and
has been effectively guiding the Bank’s energy
sector investments over the past five years.
The 2022 Energy Sector Strategy builds on
and updates the previous version to reflect the
evolving energy sector landscape and increased
focus by its Members on climate change and
energy transition and includes AIIB’s latest
climate commitments and strategic priorities.
It is underpinned by AIIB’s vision, mission, and
institutional goals set out in the Corporate
Strategy and aligns with the climate finance
target of 50% of total approved financing
by 2025 and the alignment of investment
operations with the goals of the Paris Agreement
by July 1, 2023.
The updated Energy Sector Strategy presents a
heightened focus for AIIB to support Members’
energy transition by prioritizing renewable
energy, energy efficiency, as well as their
supporting infrastructure and technology
development. To fully align the Energy Sector
Strategy with AIIB’s commitment to Paris
Alignment, the update also imposes stricter limits
on the financing of fossil fuels. Specifically:

PUBLIC

AIIB Energy Sector
Strategy Update
(2022)
Summary of the Consultation

September 12, 2022

IMPLEMENTING OUR CORPORATE STRATEGY   79

y The update confirms AIIB’s approach to not
finance coal and projects functionally related
to coal.14
y The update excludes oil sector investments
with very limited exceptions to ensure basic
access in remote island communities and
hard-to-reach areas and to reduce
methane emissions.
y AIIB will only selectively finance natural gas
projects that are transitional in nature based
on a stringent set of criteria that considers
the evolving global climate pathways as well
as the Members’ Nationally Determined
Contributions and Long-term Low Greenhouse
Gas Emissions Development Strategies.
Under the updated Energy Sector Strategy,
AIIB’s support to its Members will continue to be
guided by the following six principles:
1: Promote energy access and security.
2: Support transition to a clean energy
system.
3: Realize energy efficiency potential.
4: Manage local and regional pollution.
5: Mobilize private capital.
6: Promote connectivity and
regional cooperation.
In the process of implementing the updated
Energy Sector Strategy and fulfilling its mission
of Financing Infrastructure for Tomorrow, AIIB
will continue to grow its energy portfolio to
meet the increasing needs of Members and
promote sustainable development and economic
prosperity in Asia and beyond.

OUR CONTRIBUTION
TO THE SUSTAINABLE
DEVELOPMENT GOALS
Understanding the Sustainable Development
Goals (SDGs) is important for AIIB as an MDB
with a mandate of improving economic and social
outcomes in Asia to effectively serve its clients.
AIIB’s Corporate Strategy includes a framework
of how we support our Members’ efforts toward
the SDGs in four broad ways:
(a) Priority sectors and cross-cutting themes of
AIIB’s infrastructure investments,
(b) Project benefits capturing direct and indirect
benefits emerging from AIIB Investments,
(c) Safeguard actions through the application
of high standards in AIIB’s Environmental and
Social Framework, and
(d) Enablers, by working in cooperation with
its partners.
The SDGs are inherently interlinked, and
these interrelations are critical to achieving
development benefits. An SDG listed under one
category does not mean that the impact of AIIB
on that SDG is linked only to that category.
These four categories, therefore, aim to offer
a conceptual framework that captures the
most representative and primary alignment of
respective AIIB operations with relevant SDGs
while acknowledging the interlinkages.
We report on our contributions to the SDGs
through our Annual Impact Report.

READ MORE

y Sustainable Development
Bonds Framework
y Sustainable Development Bonds Impact
Report 2022

14

80

Meaning those associated facilities that are dedicated to enable the mining and use of coal or projects that would not be carried
out without dedicated coal-based power supply.

  2022 AIIB ANNUAL REPORT

SOCIAL INFRASTRUCTURE
Our Social Infrastructure Department (SID)
further firmed up its approach to be aligned with
the four thematic priorities of AIIB, with a specific
focus on technology-enabled infrastructure
such as in health and education. Technology is
transforming social sectors for higher efficiency
and performance at an astonishing speed.
Technology helps the development of the minds of
students through access to unlimited information
on the internet. Digitalization combined with
artificial intelligence is reforming clinical practices,
service delivery, hospital management, and drug
research and development. Strong demand for
financing is expected in digital health, health
data integration, artificial intelligence for
pharmaceuticals in research and development
and technology verification, and commercial
applications of digital technologies in individual
health care services.
While continuing its support to pandemic
responses of Members, AIIB is also helping
prepare a more resilient health system in the
post-pandemic world by improving health
infrastructure. In its third year of operations,
SID’s projects under development include diverse
technology-based interventions using both SBF
and NSBF. For instance, the pandemic exposed
that laboratories, primary health centers, and
referral hospitals are not adequately equipped
with the necessary technologies to combat
widespread health crises. AIIB is preparing
projects to support the Members to build modern
hospitals using the private-public partnership
modality, introduce a hub-spoke model of

digital health, and modernize public health
infrastructure by upgrading medical equipment.
AIIB is also introducing the One Health
Approach which leverages the idea that problems
impacting human health, animals, plants, and the
environment can be effectively resolved through
improved coordination, communication, and
collaborative actions across disciplines. As part
of this effort, AIIB successfully obtained a grant
from the newly established Pandemic Fund to
support the One Health Project in Cambodia.
The COVID-19 pandemic also disrupted the
job market, especially for young people. With
the widening job polarization between the
traditional informal sector and the new economy,
we are focusing on skills development to equip
the youth with the necessary mix of skills that
promote employment and entrepreneurship
and enable them to compete in the job market.
Our ongoing Education Infrastructure and
Technology Modernization Program in the
Gujarat state of India successfully demonstrates
how modern digital technologies can increase
school attendance, academic performance
monitoring, teacher quality improvement, and
access to worldwide knowledge. There are also
discussions with potential sponsors to build new
schools based on private-public partnerships and
replicate the Gujarat experience.
We remain open to the existing and emerging
challenges in social infrastructure and other
productive sectors. We will carry out extensive
consultations with all stakeholders including our
Members, peer MDBs and international and bilateral
agencies, as we continue to develop and refine our
focus in line with our Corporate Strategy.

IMPLEMENTING OUR CORPORATE STRATEGY   81

ENVIRONMENTAL AND
SOCIAL FRAMEWORK
In November 2022, the Board of Directors
approved an update to the OPF to expand its
SBF modalities to include results-based financing
(RBF). The RBF, which is designed to enhance
development effectiveness, involves: (a) the
financing of the expenditures of a specific
development project (Results-based Project or
RBP) through the disbursement of the RBF’s
proceeds on the basis of the achievement of
key results under the RBP; (b) using and, as
appropriate, strengthening the systems utilized
for the RBP to provide assurance that the
funds allocated to it are used appropriately
and that environmental and social impacts
are adequately addressed by the RBP; and
(c) strengthening, where appropriate, the
institutional capacity necessary for the RBP to
achieve its intended results.
Since this modality requires a different type of
review of the various fiduciary and environmental
and social risks associated with the RBP than
is applicable to other Projects supported by
SBFs, associated revisions were made to the
Procurement Policy and ESF to elaborate on
the nature of the procurement and
environmental and social reviews and oversight
of these Projects.
In addition, to complement the updated Energy
Sector Strategy (ESS), the ESF’s Environmental
and Social Exclusion List was also revised to exclude
from Bank financing Projects involving thermal
coal mining, coal-fired power and heating plants or
Projects that are functionally related to coal.15

15

82

GENDER
Gender equality constitutes an integral component
of the Bank’s development mandate. The Corporate
Strategy elaborates on the Bank’s intent to
improve gender equality outcomes in Asia by
translating gender considerations into actual
implementation within the projects financed by
the Bank. To better operationalize our gender
equality approach, we took stock of the extent
to which gender considerations were integrated
into AIIB’s policies and portfolio, with the intent of
aligning squarely with the Bank’s peer institutions
and other development partners to showcase our
firm commitment to gender equality in both our
policies and our practice. The gender review was
presented to the Board in June 2022 and identified
areas for further progress in effectively achieving
gender equality, including the need to build up staff
capacity and develop an operational approach
for gender.

PORTFOLIO MANAGEMENT
In 2022, portfolio management continued to play
a pivotal role at AIIB as the world faced multiple
unanticipated and systemic challenges, resulting
in a complex macroeconomic environment
and volatile markets. Many economies in Asia
and beyond continued to battle the long-term
economic and social consequences of the
COVID-19 pandemic while confronting fresh
challenges. Against this background, AIIB
embarked on a demanding growth trajectory,
with an expanding portfolio and an increasing
array of financing products being offered to
our clients.

Projects functionally related to coal means associated facilities that are dedicated to enable the mining and use of coal or projects
that would not be carried out without dedicated coal-based power supply. To assist Clients to reduce their coal use, the Bank may
support Projects that aim at early retirement of coal plants, replacement of coal with lower-carbon fuel sources, or Projects for
decommissioning, remediation, and redevelopment of affected coal facility sites and communities.

  2022 AIIB ANNUAL REPORT

As an increasing number of AIIB projects reached
the implementation stage and new financial
instruments were incorporated, effective client
relationship management became crucial for
several reasons. First, to ensure that approved
operations yield strong results and lessons
learned throughout implementation; and
second, to pave the way for future successful
engagements with strategic clients. Our
client-oriented approach was instrumental in
meeting the Bank’s global challenges in 2022.
For example, the Implementation Monitoring
Department (IMD) helped private sector clients
successfully implement and operate AIIB-funded
projects while ensuring financial returns and
mission-critical outcomes. Given the diversity
of the Bank’s client base, we differentiated
our approach, addressing clients’ needs while
preserving the Bank’s financial sustainability as
the ultimate objective. Increased opportunities
for travel and physical missions after restrictions
started to ease in 2022 facilitated project
monitoring and supervision compared with the
earlier years of the COVID-19 pandemic.
This, in turn, helped us to further strengthen
client relationships.

Besides individual project management activities,
the Bank could also count on corporate portfolio
monitoring functions that supported informed
decision-making by Management with robust
data and analysis and evidence-based learning
from day-to-day portfolio management.
Throughout 2022, we continued to report on
portfolio performance against operational
and corporate targets, provide dashboardbased pipeline forecasts and expected project
approvals, stress-test the portfolio for external
shocks, and adopt tailored monitoring regimes
for projects needing closer attention or
remedial action.
2022 was also a critical year when we
consolidated and advanced IT-based systems
and solutions that were successfully launched
in late 2021 to support the Bank’s investments
across the project life cycle and to facilitate
access to portfolio information and analysis.
For example, over the past year, the IMD
deployed a dedicated equity management and
valuation system, extended automated reporting
to different financing instruments (including
newly introduced ones), optimized the Bank’s
project reporting schedule, and streamlined
and automated several project preparation and
monitoring processes. All system enhancements
were delivered on a solid technical base, suitable
for further expansion and optimization in the
years to come.

IMPLEMENTING OUR CORPORATE STRATEGY   83

CASE STUDIES
ENEL GREEN 300 MW SOLAR PROJECT – RAJASTHAN:
FIRST PRIVATE SECTOR INFRASTRUCTURE INVESTMENT
IN INDIA
The Enel Green Solar Project is AIIB’s first private sector infrastructure
investment in India and expands the Bank’s renewable energy portfolio in
South Asia.
PROJECT DETAILS:
Project Title: 	India: Enel Green 300 MV Solar Project - Rajasthan
Project Number:
000473
Member:
India
Sector:
Energy
Financing Type:
Nonsovereign
Financing:
USD50 million
Financing Approval: July 15, 2021

84

The Project

The Challenge

To promote electricity generation from solar energy
resources, the Asian Infrastructure Investment
Bank (AIIB) has partnered with the International
Finance Corporation (IFC) and British International
Investment (BII) in providing financing to Enel Green
Power S.P.A (EGP, one of the largest renewable
energy developers in the world) and Enel Green
Power India for the development, construction and
maintenance of a solar power project in the Bikaner
district, Rajasthan, India. The Enel Green 300
Mega-Watt (MW AC) Solar Project – Rajasthan
is intended to promote electricity generation from
solar energy resources, as well as improve access
to energy, advance economic development, and
mitigate climate change. Offtake of the project
is underpinned by a 25-year power purchase
agreement with the Solar Energy Corporation
of India.

As a part of its COP26 commitments, the
Government of India set an ambitious target
of achieving 500 gigawatts (GW) of non-fossil
fuel capacity by 2030 with 50% of its energy
requirements from renewable energy sources. To
achieve this, the Government of India wishes to
harness India’s vast solar potential.

  2022 AIIB ANNUAL REPORT

As reported by the Central Electricity Authority of
the Government of India, the installed capacity of
renewable energy in the country was 167.75 GW
as of Dec. 31, 2022, with solar representing only
15% of the country’s 410.34 GW total installed
capacity. Despite the small share of solar energy in
domestic production, India ranks fourth in the top
solar energy markets of the world.16 Nonetheless,
the share of solar power has been increasing from
9.98% of total installed capacity at the end of
2020 to 15.43% at the end of 2022. Solar energy
generation has been experiencing rapid growth over
the past few years and installed capacity has grown
at a compounded annual growth rate of about 35%
between 2017 and 2021.