Established in June 2016, the Project Preparation Special Fund (PPSF) is a multidonor facility created to provide technical assistance grants to support the preparation of high-quality bankable projects for AIIB Members, especially less developed Members. Project preparation activities supported by these grants are critical to improve project quality and ensure economic, environmental and social sustainability and implementation readiness.

The resources of the PPSF are used to finance technical assistance grants for preparatory activities required during the preparation and early implementation of a project. 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. The technical assistance provided can include, among others, consultancy services, equipment necessary for the preparation or delivery of such services or for the implementation of the recommendations made under such consultancy services, and related training.

PPSF grants can be provided to (1) AIIB Members eligible to receive financing from the International Development Association (IDA); and (2) AIIB Members not eligible to receive IDA financing but have substantial development needs and capacity constraints. Preference will be given to IDA-only AIIB Members.

PPSF may finance AIIB projects that are included in AIIB’s investment pipeline, under both its sovereign and nonsovereign operations, including projects financed under the COVID-19 Crisis Recovery Facility (CRF).

PPSF is funded by voluntary contributions from AIIB’s Members. Currently, the total committed contributions to the PPSF amounted to USD128 million. These contributions came from China (USD50 million), the United Kingdom (USD50 million), Korea (USD18 million) and Hong Kong, China (USD10 million).