The AIIB funding support platform for InfraTech and technology innovation

Image courtesy AIIB

Policy approach(es) used to catalyse investment: Integration into project preparation process for investment leads, clients, and partners

Commercial approach(es) used to catalyse investment: An innovative, new revenue source providing a platform for the InfraTech ecosystem

Finance approach(es) used to catalyse investment: A new public fund / investment platform providing traditional project financing to infrastructure projects that have high technology content/components.

Key benefits:	Climate mitigation Climate adaptation Enhanced social inclusion Enhanced pandemic preparedness and response Improved infrastructure delivery and performance Capex and opex efficiency
Additional benefits	Financing infrastructure projects with technological components Investing in technologies that are key to improving infrastructure sectors and outcomes Connecting and convening insights, services, business opportunities, and networks together Creating an ecosystem and facilitating technology development as well as application in infrastructure
Scale of deployment:	Applies to all AIIB members, projects, and partners
Project value:	2019–2021: Financed and supported 18 projects applying technology in infrastructure and three projects developing technology for infrastructure, USD3.49 billion total financing provided (the total project size, including other components)
Project start/end dates:	2019–ongoing
Current status of the project:	Ongoing

The Asian Infrastructure Investment Bank (AIIB) platform takes a holistic approach to financing support for the development and deployment of technology for infrastructure projects. This support is in the form of knowledge, networks, capital, innovation services and regulatory dialogue with members, investment leads, and clients.

The platform consists of 5 pillars:

Insight: Assist clients to gather information and develop insights and knowledge tools to identify technologies during the financing process.
Interconnect: Bring partners together to share experience and facilitate collboration.
Invest: Leverage knowledge and networks to support investment execution from upstream preparation to execution. Develops longer-term investment relationships with projects.
Innovate: Partner with projects and stakeholders to organise innovation events and support new solutions to be commercialised and adopted.
Influence: Contribute to and facilitate international dialogues on the InfraTech and Digital Infrastructure agenda and regulatory discussions through roundtables and workshops for all members.

AIIB Platform Pillars

Image courtesy AIIB

Replicability

Macquarie Capital Venture Studio, Ardian and InfraVia have also developed their own technology ecosystems to provide value-added services to partners and clients. AIIB has also seen major infrastructure sponsors developing their own technology ecosystem and provide value-add service to partners and clients.

Challenges experienced/overcome in implementation

Establishing the platform initially required significant time and effort, particularly because technology is not a major topic for infrastructure decisionmakers, and infrastructure is not a target for most technology companies. Generating a framework to categorise the massive and expanding body of information and make it accessible was also time consuming and took considerable effort.

Other approaches that enabled investment

AIIB has developed knowledge tools and is providing support to help clients and their investment teams advance digital/technology adoption. These tools include:

An interactive Infratech Solution Database for quick access to more than 300 potential solutions
Thematic research on key technologies transforming and optimising infrastructure sectors
Smart infrastructure index to assess digital readiness and digital technology feasibility (developed in partnership with Mott Macdonald)
Independent advisory support to public and private sponsors
A platform for accessing case studies and transferring knowledge.

To date, AIIB's platform has facilitated the deployment of more than 20 InfraTech projects with technology applications and technology development. Of these, 29% are equity projects and 71% are debt projects. The ratio of digital and non-digital technologies is 13:11.

Note: This case study and all information within was submitted by AIIB in response to our global call for InfraTech case studies.

Last Updated: 24 October 2022