The Asian Infrastructure Investment Bank ( AIIB ) has approved a US$10 million equity co-investment alongside Patria Infrastructure Fund V to support the development of the Aguas Pacifico project ( Project Aqua ).

This marks AIIB’s first investment in Chile, and aligns with the development bank’s strategy to finance climate mitigation efforts of non-regional members, particularly those addressing critical water scarcity.

Project Aqua is a multiphase water desalination project under construction in Chile’s central region. Phase I includes the construction of a 1,000 liters-per-second desalination plant, a 104-kilometre aqueduct, and an electricity substation. Phase II will double the plant’s capacity to 2,000 liters per second.

The project was initiated in 2016 by Patria Infrastructure Fund III and is now held by Patria Infrastructure Fund V, of which AIIB is a limited partner alongside a group of co-investors. The Patria Group is a global alternative asset manager with over US$45 billion in assets under management.

Chile is currently experiencing severe water scarcity, especially in its central and northern regions, where most of the country’s industrial activities are concentrated.

These areas contribute 79% of Chile’s GDP, meaning water stress disproportionately impacts its economic output. The persistent, record-low rainfall over the past decade has further worsened the availability of water resources.

The project site, in the Valparaiso and Santiago metropolitan regions, lies within the most water-stressed areas in the country.

Once operational, Project Aqua will provide a sustainable infrastructure solution for Chile’s central region. The desalination plant will alleviate water stress in the region and help both residents and industries adapt to climate change by providing them with desalinated water powered by clean, renewable energy.