Show Your Tongue: AIIB’s Dirty Energy Agenda in Bangladesh

Key findings    

1. The Asian Infrastructure Investment Bank (AIIB) began financing in Bangladesh in 2016 with a single USD 165 million project in the power sector. Since then, its finance has grown substantially to USD 4.53 billion for 24 projects, potentially reaching USD 6.91 billion if seven additional proposed projects are approved.  

2. Bangladesh ranks as the fourth-largest recipient of financing from the AIIB on a global scale, and fifth-largest when considering only approved projects, with a potential allocation of 9.4% of the AIIB's total finance. India receives the most significant share, with 17.9%. 

3. Out of USD 2.326 billion in Bangladesh's energy sector financing, fossil fuel infrastructure is most prominent, totaling USD 2.056 billion, which accounts for 88.40%. Despite funding 11 energy projects and being the second-most recipient country, the AIIB has not invested a single penny in Bangladesh's renewable energy.

4. The capacity charge from Unique Meghnaghat, Bhola IPP and proposed Dhaka WTE power plants will be USD 204.30 million (BDT 2,398 crore) annually and USD 4.68 billion (BDT 54,943 crore) in their lifetime. 

5. Under the base scenario, these three infrastructures may emit 3.23 million tons (mt) (2.24 mt - 4.22 mt) of CO2e annually and 71.88 mt (49.76 mt - 93.79 mt) of CO2e in the atmosphere in their lifetime. However, AIIB’s contribution through its financial support will remain at least 14.56 mt only for these three projects.  

6. These lands were acquired at an unfair price from villagers for the Unique Meghnaghat, Bhola IPP, and Dhaka WTE power plants—the construction of these power plants displaced at least 2,589 families, contributing to human rights violations.

7. Bangladeshi civil society representatives have urged the AIIB to shift its financing away from fossil fuels and false solutions and increase its support for renewable energy projects to fulfill its ambitious commitment to decarbonization. As a "green" bank, the AIIB should support Bangladesh's existing commitments to renewable energy.