The Multilateral Cooperation Center for Development Finance Special Fund was established for grants received by AIIB as Implementing Partner of the Finance Facility of the Multilateral Cooperation Center for Development Finance (MCDF). The MCDF is a multilateral financial mechanism designed to promote high-quality infrastructure and connectivity investments in developing countries in compliance with international financial institution (IFI) standards, including by encouraging other investors and financial institutions to adopt such standards.
*Independent from its role as Implementing Partner, AIIB also serves as the Administrator of the MCDF, and hosts the MCDF Secretariat.
The MCDF Finance Facility provides technical assistance grants that are meant to support the MCDF’s objectives to foster high quality infrastructure and connectivity investments, which clearly align with the mandate and priorities of AIIB. As Implementing Partner of the MCDF Finance Facility, AIIB can help its Members access grant resources for the following:
- Project Preparation Activities. To finance consultancy services and related costs to support project preparation activities, including, but not limited to pre-concept paper activities; feasibility studies and due diligence; debt sustainability assessments; and environmental and social assessments.
- Capacity Building Activities. To enhance relevant know-how, institutional capacity, and regulatory reform of developing countries and their development partners in areas including, but not limited to debt sustainability, environmental and social frameworks, governance, financial and operational performance improvements, gender equality, inclusion, investment climate, investment cycle capacity building that enhances the integration of standards, procurement, risk management, including risks related to environment and greenhouse gas emissions, and trade facilitation.
- Information and Knowledge Sharing Activities. For collection, storage, processing, and dissemination of data and knowledge products related to cooperation opportunities, preparation and implementation of high-quality connectivity projects, and adoption and implementation of IFI standards.
AIIB low- and middle-income Members, or territories that have an active program with the Bank, are eligible to directly benefit from MCDF-funded activities for both sovereign or non-sovereign infrastructure and connectivity projects.
The MCDF Special Fund is funded from approved grants from the MCDF Finance Facility.
