Is AIIB's complaint mechanism failing affected communities?

The Asian Infrastructure Investment Bank (AIIB) has a complaint mechanism in place to address issues related to its funding of infrastructure projects in Asia. However, the effectiveness of this mechanism, known as the Project Complaints Mechanism (PPM), has come under scrutiny, particularly for affected Indigenous communities. In Lombok, Indonesia, members of the Indigenous Sasak community filed a complaint with the bank in September, alleging that a tourism and infrastructure project financed by the AIIB has led to the expropriation of their land and destruction of their livelihoods.

Despite the bank's acknowledgment that no cases had been deemed admissible out of 45 complaints listed on its website as of mid-September, the AIIB maintains that the PPM is only one part of its grievance redress ecosystem. The bank encourages affected parties to first resolve concerns directly with the project team at the local level before seeking intervention.

However, critics argue that the mechanism is not easily accessible and that vital information regarding environmental impacts and resettlement plans is often missing or inconsistently published. This lack of information makes it difficult for affected communities, especially those without formal land titles, to respond promptly and report violations.

The AIIB has undergone reforms to its complaints mechanism, but only three of eight key recommendations made by an independent expert have been adopted. Despite these changes, concerns about accessibility, the availability of information, and potential risks posed by fear of reprisals remain significant challenges for the mechanism.