AIIB Board approves revisions to the Policy on Project-affected People’s Mechanism

The Asian Infrastructure Investment Bank's (AIIB) Board of Directors on December 18, 2025, unanimously approved a revised policy that introduces several important clarifications and improvements to its Project-affected People's Mechanism (PPM). Effective from January 1, 2026, the updated policy:

• Allows for a single requestor when allegations involve gender-based violence, sexual harassment, or sexual exploitation and abuse.
• Clarifies the broad discretion afforded by the policy to enable requestors to approach the PPM in cases where they have failed to resolve their issues with the project-level grievance redress mechanism (GRM) and AIIB management.
• Removes the clause that made Compliance Review submissions ineligible if under arbitral or judicial review, while providing for consideration of the implications of such parallel proceedings on these submissions.
• Introduces a provision that when AIIB relies on a co-financier's independent accountability mechanism (IAM) and that IAM makes a finding of noncompliance, AIIB's Management will report to the Board on the implications for AIIB and the opportunities for institutional learning resulting from the IAM's findings.
• Provides for an independent verification by the PPM, under exceptional circumstances and with Board approval, of specific measures included in Management action plans.
• Strengthens the text regarding the granting of confidentiality for requestors.

The PPM was established in 2018 by AIIB to provide an independent and impartial mechanism to receive submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB's failure to implement its Environmental and Social Policy.

The revisions follow a rigorous two-year long review of the PPM policy that was conducted by the Complaints-resolution, Evaluation and Integrity Unit (CEIU) of the Bank. The review aimed at enhancing the visibility, accessibility, and responsiveness of the PPM to communities affected by AIIB-financed projects. The process included an external review, two phases of public consultations, and extensive engagement with AIIB Management and staff, AIIB members, clients, peer IAMs, and civil society organizations.

In tandem with the revisions to the PPM policy, AIIB management committed to implement several operational enhancements to support PPM's visibility and accessibility.

"PPM is a critical piece in AIIB's governance architecture," said AIIB President Jin Liqun. "We want the communities around the projects we finance to fully own the projects and benefit from them. If they are inadvertently harmed, their grievances must be addressed. Enhancing PPM complements project-level grievance redress mechanisms and AIIB management's processes. We are committed to strengthening the whole ecosystem of grievance redress and I hope that it will serve the communities we work for and the Bank well in the years to come."

Alaa Abdel-Rahman, the Board Director from Egypt, said: "Allowing a single requestor in cases involving gender-based violence, sexual harassment and sexual exploitation and abuse is an important change for PPM and is aligned with AIIB's push for gender inclusion in its operations." He emphasized that the Bank should also take measures to provide capacity building for the project-level grievance redress mechanism, which is the first line of recourse at the local level.

Hwee Tin Kng, the Acting MD-CEIU, said that "AIIB's co-financing model has matured significantly over the past decade. AIIB's reliance on co-financiers' environmental and social policies and accountability mechanisms has led to efficiency gains for AIIB clients. The revised PPM policy's requirement that AIIB management report on potential institutional learnings if there is a non-compliance finding by a co-financier's accountability mechanism will be an important step in strengthening learning from co-financing."

Kng added "these revisions reinforce AIIB's commitment to transparency and accountability while enabling project-affected communities to have a fair, trusted, and accessible avenue to raise concerns. The enhanced PPM policy reflects extensive stakeholder feedback and significantly moves the needle on PPM's accessibility."

Following the issuance by AIIB's President of an updated PPM directive, the MD-CEIU has issued updated PPM Rules of Procedures (RofP) in order to facilitate implementation of the revised policy and provide procedural clarifications regarding its implementation.

CEIU will be conducting several outreach activities to socialize the newly approved revisions. The revised PPM policy, updated directive and PPM RofP can be found here. Further information about PPM can be found here.

About PPM

The PPM was established in 2018 by AIIB to provide an independent and impartial mechanism to receive submissions from project-affected people who believe they have been or are likely to be adversely affected by AIIB's failure to implement its Environmental and Social Policy. The PPM is one of the functions of the CEIU, an independent unit that reports directly to the Board. The review of the PPM policy, which included extensive stakeholder consultations, has aimed at enhancing the visibility, accessibility and responsiveness of the PPM to communities affected by AIIB-financed projects.

About AIIB

The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing "Infrastructure for Tomorrow," with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.