ASEAN Infrastructure Fund (AIF)
What is the ASEAN Infrastructure Fund?
The ASEAN Infrastructure Fund (AIF) is a dedicated fund established by ADB and ASEAN member nations to address the ASEAN region's infrastructure development needs by mobilizing regional savings, including foreign exchange reserves. All AIF-financed infrastructure projects are also cofinanced by ADB funds. The AIF is an integral part of ASEAN’s efforts to strengthen regional connectivity.
ADB is the AIF's administrator, and ADB also provides technical support. ADB's Regional Cooperation and Operations Coordination Division, Southeast Asia Department, is the focal point for the administration of the AIF. ADB also acts as a cofinancier and the lender of record for AIF loans.
What are the priorities?
The AIF aims to provide loans of around $300 million a year to finance infrastructure investment projects in the transport, energy, water and sanitation, environment and rural development, and social infrastructure sectors. Examples include renewable energy plants, roads or highways, and transmission and power grid development.
Projects are selected based on sound economic and financial viability, positive impact on social development and poverty reduction, promotion of regional cooperation and integration, and enhancement of private sector participation and/or public-private partnerships (PPPs).
AIF's projects are part of ADB's project pipeline, based on ADB’s Country Partnership and Strategy and Country Operations Business Plan with the member countries. The AIF project pipeline is confirmed by the respective ASEAN developing member countries through ADB's country programming missions, and must also be approved by the AIF's Board of Directors.
What kind of activities are eligible for the fund?
The AIF provides financing to sovereign or sovereign-guaranteed projects in the ASEAN region. It expects to allocate up to 10% of its annual financing to nonsovereign projects in the region, probably starting in 2017.
Project proponents for national and subregional infrastructure projects in ASEAN developing countries can apply for funding to be cofinanced by ADB and AIF.
Who supports the fund?
Shareholders include Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Viet Nam, and ADB.