Project Preparation Special Fund (PPSF)

Established in June 2016, the Project Preparation Special Fund (Special Fund) is a multidonor facility with the primary purpose of supporting eligible AIIB members— especially low-income members—prepare bankable infrastructure projects AIIB may finance.

Asian Infrastructure Investment Bank (AIIB)
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Verified by the AIIB
Sep 30th, 2021

About

Established in June 2016, the Project Preparation Special Fund (Special Fund) is a multi-donor facility with the primary purpose of supporting eligible AIIB members—especially low-income members—prepare bankable infrastructure projects AIIB may finance. The Special Fund provides technical assistance grants for preparing bankable infrastructure projects. Through these grants, clients can hire experts and consultants to carry out the required preparation work. Project preparation activities supported by these grants are critical to improve project quality, ensure bankability in terms of economic, environmental and social sustainability and implementation readiness.

Further information on the Special Fund can be found at the following links.

https://www.aiib.org/en/projects/preparation-special-fund/index.html

https://www.aiib.org/en/projects/preparation-special-fund/.content/index/_download/rules-and-regulations.pdf

https://www.aiib.org/en/projects/preparation-special-fund/.content/index/_download/Final_Toolkit-for-Special-Fund.pdf

Assistance Criteria

The resources of the Fund shall be used with a view to:

  1. Giving preference to members classified as eligible to receive financing from the International Development Association.
  2. Diversifying the Bank’s portfolio.
  3. Prioritizing projects that are aligned with AIIB’s thematic priorities of green infrastructure, connectivity and regional cooperation, technology-enabled infrastructure and private capital mobilization.
  4. Avoiding creating unfair competitive advantages to recipients of grants under the Fund.

More information is available in the PPSF Rules and Regulations.

PPSF grants can be provided to or for the benefit of AIIB members which are:

  1. Eligible to receive financing from the International Development Association (IDA).
  2. Not eligible to receive IDA financing but have substantial development needs and capacity constraints.

It should be noted that preference is given to AIIB members eligible to receive IDA financing.

Countries

Support

USD 1-5 million.

Average support time: 1-2 years of implementation.

Application Process

Applications follow a 5 step process:

  1. Project is screened and included in AIIB’s rolling investment pipeline.
  2. Client completes and submits a formal application and supporting documents to AIIB requesting a PPSF grant. The application is usually prepared in close coordination with the AIIB Project Team.
  3. Based on the application, the AIIB Project Team assesses the request and may prepare a grant proposal for consideration by the AIIB Special Funds Committee. If the Committee recommends approval of the grant, the proposal is sent to the President/Board for final approval.
  4. If the grant is approved, a grant agreement is prepared by AIIB and signed by the client and AIIB.
  5. Disbursements can be made as per the schedule and conditions stipulated in the grant agreement.

The application form can be found here.