ASEAN Infrastructure Fund (AIF) - Asian Development Bank

Donor: 
Any donor
International Finance Institutions
Geographical focus: 
Global
East Asia and the Pacific
South Asia
Thematic focus: 
Tourism in general
Energy in Tourism
Infrastructure in Tourism
Sustainability of natural resources in Tourism
Intro text: 
ASEAN is one of the world's most dynamic and fast-growing regions. The ASEAN Infrastructure Fund (AIF) supports ASEAN's Master Plan on Connectivity, which calls for a better-connected ASEAN region that brings people, goods, services and capital closer together.

Official website

 www.adb.org/site/aif/main

Geographic focus

Southeast Asian Nations.

Who can apply?

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.

Objectives and activities

Objective: The objective of the AIF is to finance projects that promote infrastructure development within the territories of ASEAN developing member countries by mobilizing regional savings, including foreign exchange reserves.

Activities: The ASEAN Infrastructure Fund (AIF) is a dedicated fund established by ADB and member countries of the Association of Southeast Asian Nations (ASEAN) to address the ASEAN region’s infrastructure investment needs.

  • AIF will cofinance a project with ADB that will support Viet Nam’s drive for more efficient, sustainable power supply in Ha Noi and Ho Chi Minh City. This will ensure smoother electricity supply, improved system reliability, fewer power losses caused by overloading, and reduced greenhouse gas emissions.
  • The AIF has provided a loan to Indonesia that will support improved urban wastewater services.
  • Indonesia: Java-Bali 500 Kilovolt Power Transmission Crossing. The proposed investment project will strengthen the Java-Bali power transmission grid by constructing 220 km of extra high voltage transmission lines with associated substations. The project forms part of the governments regional economic development master plan and its long-term power development plan

Type and level of funding

All AIF-financed projects are also cofinanced by ADB. The AIF aims to provide loans of around $300 million a year.

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).