Skip to main content

Funding 233 projects for $44 billion, AIIB 'accepts no complaints' from affected people

Counterview Desk 

Even as the Asian Infrastructure Investment Bank (AIIB) announced its long-awaited review of its Project-affected People’s Mechanism at its annual meeting in Egypt 25-26 September 2023, a new research, published by Recourse, Inclusive Development International and Accountability Counsel, has highlighted that the AIIB has not accepted a single complaint since its establishment five years ago.
A note on the report said, nearly half of all AIIB projects were found to be ineligible for the accountability mechanism, meaning that the mechanism cannot address complaints from communities adversely affected by those projects, adding, AIIB’s accountability mechanism lags behind those of its multilateral development bank peers* on nine key indicators.
The report seeks urgent review of AIIB’s “roadblocks to accountability.”

Text:

As the Asian Infrastructure Investment Bank (AIIB) met for its first in-person annual meeting in four years, civil society groups are questioning the bank’s track record on accountability. In seven years, with 233 projects funded and over $44 billion spent, the AIIB has yet to accept a single complaint from people adversely affected by its investments.
The AIIB, the world’s newest multilateral development bank, established an accountability mechanism, known as the Project-affected People’s Mechanism (PPM), in 2019 to provide recourse to communities affected by projects and to learn from the mistakes made in previous projects. The AIIB announced a long-awaited review of its PPM at its annual meeting in Egypt 25-26 September 2023.
However, a new report, Roadblocks to Accountability, released by Recourse, Inclusive Development International and Accountability Counsel, endorsed by groups from around the world, shows that the AIIB is lagging behind its peers on nine key indicators and exposes the reasons why the PPM has not accepted a single complaint to date. The report looked both at the AIIB’s current portfolio and also at policies guiding the scope and implementation of the PPM. It found that, of projects funded by the AIIB:
  • Nearly half of projects are ineligible: Of 219 projects funded by end June 2023, 46% (101 projects) are not eligible for consideration by the PPM, meaning that communities adversely affected by those projects cannot hold AIIB accountable.
  • The main reason for ineligibility is investments being co-financed with other MDBs: Under AIIB’s rules, this excludes them from accountability under the PPM, with some exceptions. The AIIB is an outlier among multilateral development banks on this exclusion – it is the only one to exclude co-financed projects from accountability to its mechanism.
  • Largest proportion of eligible projects supported through financial intermediaries (FIs): Of eligible projects funded since October 2021, when the bank’s new Environmental and Social Framework came into force, the largest proportion – 56% – are FI investments. These are difficult to trace as there is extremely limited transparency about where money ends up. If communities don’t know that the AIIB is investing in the project affecting them, then their access to remedy is effectively blocked.
The report also compares the AIIB to its peers among multilateral development banks on nine fundamental indicators of good policy (see diagram below). The AIIB lags behind on every indicator.
Report author Kate Geary, Co-Director of Recourse, said, “The AIIB clearly has an accountability deficit when its accountability mechanism does not apply to nearly half of its portfolio and it has accepted no complaints. This blocks communities affected by the AIIB’s investments from ensuring the AIIB is living up to its environmental and social commitments. We call on the AIIB to close accountability loopholes when it reviews the PPM.”
Lawyer and report author Radhika Goyal of Accountability Counsel said, "The AIIB’s decision to establish its Project-affected People’s Mechanism so soon after it started operations was significant, but unfortunately the PPM Policy that followed and the mechanism’s record in the past five years has failed to meet its mark. When compared to international good practice prevalent at peer financial institutions, AIIB’s PPM Policy falls short on the key indicators of accessibility and remedy." 
The report features three case studies – an infrastructure investment trust project In India, a gas-fired power plant in Bangladesh and a metro project in India – which illustrate what the report calls ‘roadblocks to accountability’. These include an ill-defined requirement to engage with AIIB management in ‘good faith’ before filing a complaint. Despite four years of requests to the AIIB to address their concerns about the Bhola gas plant, communities in Bangladesh saw their complaint rejected for what the PPM deemed lack of ‘good faith’ efforts.
Hasan Mehedi of Coastal Livelihood and Environmental Action Network, Bangladesh said, “AIIB throws up roadblocks to accountability so that communities in Bangladesh harmed by its projects cannot get justice. Only radical change at the PPM will show communities that the AIIB is sincere about being an accountable and responsible bank.”
Annabel Perreras of NGO Forum on ADB said, “AIIB can no longer hide behind the excuse that it is a young bank thus it should be held to a different standard. Excluding co-financed projects from the PPM’s mandate essentially deprives communities of their options in filing a complaint." 
Natalie Bugalski, Legal Director at Inclusive Development International said, “Independent accountability mechanisms can be a lifeline for communities who are harmed by development projects, but only if those communities can actually access the mechanisms. The AIIB must ensure that the PPM is fully accessible to anyone at risk of harm from projects that it finances, both directly and through intermediaries.”
---
*IFC - International Finance Corporation; EBRD - European Bank for Reconstruction and Development; AfDB - African Development Bank; EIB - European Investment Bank; IDB - InterAmerican Development Bank; WB - World Bank; ADB - Asian Development Bank; GCF - Green Climate Fund; UNDP - United Nations Development Programme. Note edited for style 

Comments

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Overriding India's constitutional sovereignty? Citizens urge PM to reject WHO IHR amendments

By A Representative   A group of concerned Indian citizens, including medical professionals and activists, has sent an urgent appeal to Prime Minister Narendra Modi, urging him to reject proposed amendments to the International Health Regulations (IHR) before the ratification deadline of July 19, 2025. 

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.