The Asian Infrastructure Investment Bank's Role in Promoting Sustainable Hydropower Projects: A Comparative Analysis of the Mangdechhu and Punatsangchhu-I Projects

Abstract

This study compares the Asian Infrastructure Investment Bank (AIIB)-led Mangdechhu Hydroelectric Project with the World Bank-supported Punatsangchhu-I Hydroelectric Project. By comparing the approval and implementation process, multilateral and regional cooperation, sustainable development factors, and challenges and coping strategies of these two hydropower projects, it is concluded that AIIB has a clear advantage in promoting sustainable energy projects. AIIB has demonstrated an efficient project approval and implementation process, as well as close multilateral and regional partnerships. In addition, AIIB has systematically focused on the environmental, social and economic impacts of the project, so that sustainable development can be balanced in the progress of energy projects. However, the agency's pressing issues include technical difficulties, environmental protection, and population resettlement. In order to meet these challenges, AIIB needs to strengthen the learning of experience, optimize the project strategy, and expand the scope of cooperation. The findings of this study have guiding value for policymakers and academia. In future energy cooperation and investment, governments, multilateral development banks and relevant institutions should learn from the practical experience of AIIB and formulate more effective and targeted policies and plans. By tackling challenges together, we will contribute to solving global energy problems and promoting sustainable development.