Summary of ADB Financial Instruments and Approval Procedures
This booklet provides an overview of the financial instruments used by ADB and outlines the approval procedures for ADB financial operations. It gathers information from the Operations Manual, the Project Administration Instructions, the Revision of the Summary Procedure, and various documents to provide a quick guide on the approval processes for each ADB financial instrument.
About the Asian Development Bank
ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.
Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
Printed in the Philippines
Summary of ADB Financial Instruments and Approval Procedures
January 2011
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.orgISBN 978-92-9092-262-9Publication Stock No. TIM102828
© 2011 Asian Development Bank
All rights reserved. Published in 2011.
Printed in the Philippines
ISBN 978-92-9092-262-9
Publication Stock No. TIM102828
Cataloging-In-Publication Data
Asian Development Bank.
Summary of ADB financial instruments and approval procedures.
Mandaluyong City, Philippines: Asian Development Bank, 2011.
1. Financial instruments. 2. Asian Development Bank. I. Asian Development Bank.
The views expressed in this booklet are those of the authors and do not necessarily reflect the views and
policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility
for any consequence of their use.
By making any designation of or reference to a particular territory or geographic area, or by using the term
“country” in this document, ADB does not intend to make any judgments as to the legal or other status of
any territory or area.
ADB encourages printing or copying information exclusively for personal and noncommercial use with proper
acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for
commercial purposes without the express, written consent of ADB.
Note:
In this booklet, “$” refers to US dollars.
Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
Tel +63 2 632 4444
Fax +63 2 636 2444
www.adb.org
For orders, please contact:
Department of External Relations
Fax +63 2 636 2648
iii
Contents
List of Tables iv
Abbreviations v
Introduction 1
Financial Instruments 2
Approval Procedures 13
Board Consideration 13
Delegated Authority 15
iv
List of Tables
1 Sovereign and Sovereign-Guaranteed Operations 3
2 Nonsovereign Operations 11
3 Procedure for Board Consideration 13
4 Approval Authority for Technical Assistance 15
5 Approval Authority for Change in Scope or Implementation Arrangements 17
v
Abbreviations
ADB – Asian Development Bank
ADF – Asian Development Fund
CDTA – capacity development technical assistance
DMC – developing member country
IED – Independent Evaluation Department
JFPR – Japan Fund for Poverty Reduction
MFF – multitranche financing facility
OCR – ordinary capital resources
PATA – policy and advisory technical assistance
PFR – periodic financing request
PPTA – project preparatory technical assistance
RDTA – research and development technical assistance
RRP – report and recommendation of the President
TA – technical assistance
1
Introduction
This summary describes the financial instruments used by the Asian Development Bank (ADB) and outlines the approval procedures for ADB’s financial operations. ADB’s financial instruments include loans, grants, equity investments, guarantees, technical assistance (TA), multitranche financing facilities, and additional financing. This summary is based on information gathered from the Operations Manual,1 the Project Administration Instructions,2 and the Revision of the Summary Procedure.3
1 The Operations Manual (OM) contains ADB’s operational policies known as bank policies (BPs). The OM also includes operational procedures (OPs) that spell out procedural requirements and guidance on the implementation of policies. http://www.adb.org/documents/manuals/operations/default.asp?p=aadb
2 Project Administration Instructions (PAI) outline the policies and procedures to be followed by ADB staff involved in the administration of ADB-financed loan and technical assistance (TA) projects. http://www .adb.org/Documents/Manuals/PAI/default.asp
3 ADB. 2005. Revision of the Summary Procedure. Manila. http://www.adb.org/Documents/Board/2005/R249-05.pdf
2
Financial Instruments
ADB provides financing for sovereign and nonsovereign projects. Most financing is in sovereign operations and primarily for the benefit of ADB developing member countries (DMCs). ADB also provides direct financial assistance to public and private sector entities in its DMCs, with or without a sovereign guarantee. Technical assistance generally is only available to ADB DMCs. However, on an exceptional basis, TA may also be provided to regional nonmembers (as in the case of Timor-Leste before it became a member of ADB), or to ADB members that are not classified as DMCs (e.g., Brunei Darussalam).
In its sovereign and sovereign-guaranteed operations, ADB has a range of financial instruments to offer its DMCs, such as loans and grants for projects and programs, TA loans and grants, and credit enhancements.
Starting from 2005, ADB has introduced several innovative financing modalities, including program clusters and the multitranche financing facility. Table 1 summarizes the key features and approval processes for financial instruments under sovereign and sovereign-guaranteed operations.
Financial Instruments
3
Table 1: Sovereign and Sovereign-Guaranteed Operations
Financial Instrument Key Feature Approval Processa
Lendingb
Project lendingc Stand-alone sovereign and sovereign-guaranteed loan and/or grant for investment project.
Board discussion or summary procedure
Financial intermediation lendingd
Direct lending to financial intermediaries to finance specific development projects whose individual financing requirements are not large enough to warrant the direct supervision of ADB.
Financial intermediation lending can be provided on a stand-alone basis, or as components of sector development programs or sector or project loans or grants. Financial intermediation lending can be provided under ADB’s public and private sector windows.
Sector lendinge Assistance to a developing member country (DMC) for project-related investments based on considerations relating to a sector or subsector of the DMC as a whole. Appropriate when a large number of subprojects in the sector or subsector are to be financed.
Emergency assistance lendingf
Provision of immediate short-term transitional assistance to mitigate immediate losses to priority assets, capacity, or productivity rather than to provide relief or comprehensive reconstruction.
Board discussion or summary procedure; processed on an accelerated basis (Board circulation period: 1 week).
4
Summary of ADB Financial Instruments and Approval Procedures
Financial Instrument Key Feature Approval Processa
Program lendingg Assistance for developing a sector (or subsector) and improving the performance of a sector through appropriate policy and institutional improvements. Relatively quick disbursing.
The Operations Manual provides for three program lending products: the standard program loan (stand-alone or with tranches), the program cluster approach, and the special program loan.
Board discussion
Tranching: tranche release is authorized by the President when conditions have been met (after a progress report has been circulated for the Board’s information; the Board may request a discussion).
If a tranche release is proposed through a progress report even though compliance with condition(s) is incomplete, the Board approves necessary waivers and the release on a no-objection basis.
The tranche release will be effected not less than 10 working days after the progress report has been distributed to the Board.
Sector development program lendingh
Combination of an investment (project or sector) component and a policy-based (program) component as well as, where appropriate, related technical assistance (TA).
Board discussion
The policy and investment components (as well any related TA) are processed, approved, and administered jointly.
Financial Instruments
5
Financial Instrument Key Feature Approval Processa
Sector development program lending is considered when a sector requires both an investment component and a policy reform component, and where the former is unlikely to be accomplished in full and on time without the support of a policy-based lending component.
Multitranche Financing FacilityMultitranche financing facility (MFF)i
Financial resources are provided in a series of separate financing tranches (loans, grants, guarantees, or administered cofinancing) over a fixed period of time. An MFF enables ADB to provide assistance programmatically by aligning the provision of financing with project readiness and the long-term needs of a client, thus facilitating a long-term partnership between ADB and its clients.
Board discussion or summary procedure to approve the facility amount for each MFF.
The facility amount approved by the Board is converted into financing for individual tranches based on periodic financing requests (PFRs).
Tranches are processed by the regional departments and approved by the President.
Additional Financingj
Loans and grants
Equity investments
TA loans
Guarantees
MFF
Additional financing of ADB’s sovereign and nonsovereign operations is provided in the form of additional financial assistance beyond the amount specified in the original financing agreement for investment operations (to finance cost overruns, change of project scope, scaling up of operations that were performing well, or a combination of these).
Board discussion or summary procedure
6
Summary of ADB Financial Instruments and Approval Procedures
Financial Instrument Key Feature Approval Processa
The eligibility status of the DMC concerned is guided by the Asian Development Fund (ADF) frameworkk whether the assistance is provided from ADB’s ordinary capital resources (OCR) or from its Special Funds resources.
Grantsl
Japan Fund for Poverty Reduction (JFPR) project grants
JFPR grants support innovative poverty reduction and social development activities through activities that normally cannot be funded under ADB loans and/or other ADB resources. JFPR grants range from $200,000 to $3 million. Grants up to $4 million may be considered under exceptional circumstances.
The Board approves on a no-objection basis the grant proposal paper if JFPR financing exceeds $1.5 million.
The President approves the grant if JFPR financing is $1.5 million or less.
JFPR TA grants JFPR TA grants (i) assist ADB DMCs or their agencies in preparing ADB projects or programs, providing sector- or economy-wide context, institution and capacity building and knowledge management, and (ii) support regional activities. The maximum amount per proposal is $2 million; however, this may be exceeded where the need is justified and adequately explained.
TA grants Refer to “Technical Assistance”ADF grants Refer to “Lending”
Financial Instruments
7
Financial Instrument Key Feature Approval Processa
Technical Assistancem
Project preparatory TA (PPTA)
For a single project or a series of subprojects, in one or more sectors.
For a single project, the PPTA is provided for preparing a feasibility study. PPTA may be used to prepare projects for financing by ADB and/or other external sources.
Technical assistance is approved by heads of departments or offices, a vice-president, the President, or the Board of Directors, depending on the proposed TA amount (see Tables 4 and 5).
Policy and advisory TA (PATA)
Usually extended in a sector- or economy-wide context, PATA may be on a stand-alone basis or accompanying a project. It assists in preparing national and sector development plans and programs, particularly in small DMCs, and carrying out sector-, policy-, and issues-oriented studies.
Capacity development TA (CDTA)
CDTA may be on a stand-alone basis or accompanying a project to assist in establishing or strengthening organizations and institutions in DMCs, implementing ADB-financed projects, and/or enhancing knowledge management. It is designed to meet specific institutional and organizational development needs.
Research and development TA (RDTA)
RDTA strengthens ADB’s role as a knowledge platform and addresses development issues of a global or Asia and Pacific nature. It is the principal instrument for financing ADB’s research agenda for Asia and the Pacific, thus it usually covers more than one DMC.
8
Summary of ADB Financial Instruments and Approval Procedures
Financial Instrument Key Feature Approval Processa
Regional TA (R-) PPTA, PATA, or CDTA covering more than one DMC.
Technical assistance is approved by heads of departments or offices, a vice-president, the President, or the Board of Directors, depending on the proposed TA amount (see Tables 4 and 5).
Cluster TA (C-) Series of TA subprojects over an extended period.
C-TA assumes a long-term perspective and partnership between ADB and the DMC concerned. It is provided to support reforms and capacity building in a sector or subsectors, to strengthen macroeconomic management, or to advance a crosscutting theme in a DMC or in the region.
Small-scale TA (S-) TA not exceeding $225,000 and not requiring substantial logistical support from the recipient. For providing rapid expertise, e.g., during emergencies.
TA loans Capacity development or smaller-scale projects not warranting investment project status. For example, financing for detailed engineering design that is not included under a stand-alone PPTA and must be financed by a TA loan or grant.
TA loans are financed from ADB’s OCR or from ADF resources subject to normal ADF eligibility requirements. TA grants may be sourced from ADB’s own resources or from the resources external to ADB.
Board discussion or summary procedure
The processing of a TA loan usually follows the same procedures as those for a project loan.
Financial Instruments
9
Financial Instrument Key Feature Approval Processa
Credit Enhancementsn
Guarantees (e.g., partial credit guarantees and political risk guarantees)
Guarantees allow ADB to share a wide range of risks that are inherent to its own lending operations. Any ADB financing instrument (such as project loans, program loans, MFF, sector loans, sector development programs, equity, project grants, TA grants, or any other financing form that the Board may approve) can satisfy the participation requirement for a guarantee provided that both the guarantee and ADB’s anchor intervention have the same development objective and relate to the same sector or project, and that the guarantee is processed according to standards that are no less rigorous than those for direct, noncontingent investments by ADB.
Board discussion or summary procedure
When undertaken in conjunction with a loan, equity investment, or TA, credit enhancement operations are processed in conjunction with that loan, equity investment, or TA for consideration by the Board in a single report and recommendation of the President (RRP) or TA paper.
If the financing has previously been approved, a separate RRP detailing the credit enhancement operation is prepared for approval by the Board.
Partial credit guarantees Partial credit guarantees provide comprehensive cover for a specified portion of the commercial debt provided by cofinanciers.
Political risk guarantees Political risk guarantees are designed to facilitate commercial cofinancing by covering specifically defined sovereign or political risks.
10
Summary of ADB Financial Instruments and Approval Procedures
Financial Instrument Key Feature Approval Processa
Syndications Loan syndication (or B loan), guarantee-of-record, reinsurance, and unfunded risk participation.
Syndications enable ADB to transfer some or all of the risks associated with its loans and guarantees to other financing partners.
a Refer to Approval Procedures for more information.b Lending refers to financial assistance from OCR and/or special resources, including ADF and externally funded
grants, unless otherwise specified.c OM Section D11 (Processing Sovereign and Sovereign-Guaranteed Loan Proposals). d OM Section D6 (Financial Intermediation Loans).e OM Section D3 (Sector Lending).f OM Section D7 (Disaster and Emergency Assistance).g OM Section D4 (Program Lending).h OM Section D5 (Sector Development Programs).i OM Section D14 (Multitranche Financing Facility).j OM Section H5 (Additional Financing). The additional financing section is currently under review, and it is
expected to become effective in February 2011.k OM Section A1 (Classification and Graduation of DMCs), OM Section A3 (Performance-Based Allocation of ADF
Resources), and OM Section D9 (Credit Enhancement Operations).l OM Section E1 (Cofinancing) and OM Section E2 (Japan Fund for Poverty Reduction). m OM Section D12 (Technical Assistance).n OM Section D9 (Credit Enhancement Operations).
ADB undertakes nonsovereign operations to provide direct financing and/or risk mitigation to entities, or for projects or business activities, in DMCs. Nonsovereign operations refer to any loan, guarantee, equity investment, or other financing arrangement that is (i) not guaranteed by a sovereign or government; or (ii) guaranteed by a sovereign under terms that do not allow ADB, upon default by the guarantor, to accelerate, suspend, or cancel any other loan or guarantee between ADB and the related sovereign (Table 2).
Financial Instruments
11
Table 2: Nonsovereign Operationsa
Financial Instrument Key Feature Approval Processb
LendingB loans
ADB provides loans, without sovereign or government guarantees, to private sector projects and enterprises.
If necessary to mobilize a larger amount of debt, ADB can extend its B loan.
Board discussion or summary procedurec
Delegation to the President:
– supplementary equity investments up to $2 million each in existing investee companies;
– loan restructuring proposals where no additional ADB funding is involved; and
– funding of costs and expenses related to divestments or investment recovery operations up to a cumulative amount not to exceed $2 million, net of recoveries.
Guarantees (e.g., partial credit guarantees and political risk guarantees)
ADB’s guarantee instruments cover those risks that the private sector cannot easily absorb or manage on its own.
Equity investments ADB provides equity investments in order to facilitate the launching of new ventures or the privatization of state-owned enterprises. ADB can choose to invest directly, or through financial intermediaries such as investment funds.
12
Summary of ADB Financial Instruments and Approval Procedures
Financial Instrument Key Feature Approval Processb
Nonsovereign TA A nonsovereign project prepatory technical assistance (PPTA), which is financed on a grant basis to a private sector entityd, is subject to arrangements for recovery of the full cost of the PPTA to the extent that the technical assistance (TA) results in further financial assistance from ADB. Nonsovereign PPTA to an entity that is not a private sector entity is financed on a grant basis without arrangements for cost recovery.
Technical assistance is approved by heads of departments or offices, a vice-president, the President, or the Board of Directors, depending on the proposed TA amount (see Tables 4 and 5).
Additional financing See Table 1.a OM Section D10 (Nonsovereign Operations).b Refer to Approval Procedures for more information.c ADB. 2005. Revision of the Summary Procedure. The paper excludes the complementary financing scheme from
recourse to the summary procedure.d OM Section D12 (Technical Assistance). A private sector entity is an entity that (i) is not a political division or
subdivision of a developing member country, and (ii) is not part of, or controlled by, a government body or agency.
13
Approval Procedures
Board Consideration
Table 3: Procedure for Board Consideration
Board Discussion Required Board Discussion Not Requireda
Upon the President’s approval for Board circulation, the relevant report and recommendation of the President (RRP) and supporting documents must be distributed to the Board usually at least 21 calendar days before the date for the consideration to approve the financial instrument. In the case of an emergency loan, Board approval is sought within 1 week after the RRP circulation. At the end of Board discussion, the President ascertains the sense of the Board meeting and, subject to the support of a Board majority, declares that the Board approves the financial instrument.
The President determines the procedure to be adopted for Board approval, which can be one of the following methods described below.
Summary Procedure No-Objection BasisRRPs for the approval of loans (including technical assistance loans), guarantees, grants, and equity investments are eligible for Board consideration under summary procedureb if they are consistent with the relevant country partnership strategyc and if they meet the following criteria:
(i) The amount of the financial assistance should not exceed $200 million for a public sector operation, and $50 million for an operation without a government guarantee.
(ii) The project should not involve any exception to an existing ADB policy.
A variety of proposals are submitted to the Board on a no-objection basis, such as non-delegated grant-financed technical assistance. In the absence of a request for discussion and of a sufficient number of abstentions or objections, the proposal will be deemed to be approved on the date specified in the paper. For program loans, second and subsequent tranche releases are effected not less than 10 working days after the progress report has been distributed to the Board.
14
Summary of ADB Financial Instruments and Approval Procedures
Board Discussion Required Board Discussion Not Requireda
(iii) The financial assistance should not be for a program, a sector development program, or a project with a major policy reform component.
(iv) The project should not involve an important new approach for ADB in the developing member country concerned.
(v) The project should not have the potential for significant adverse environmental, economic, and/or social impact, particularly on vulnerable groups that may be unable to absorb such impact.
(vi) The project should not involve use of a complementaryd financing scheme or a novel financing arrangement.
In the absence of a request for discussion and of a sufficient number of abstentions or objections, Board approval on a no-objection basis is assumed 21 calendar days after RRP circulation to the Board, and for emergency projects meeting the above criteria, after 1 week.
a No Board discussion is required unless specifically requested by the Board, prior to the Board consideration date.b ADB. 2005. Revision of the Summary Procedure. Manila. www.adb.org/Documents/Board/2005/R249-05.pdfc ADB. Country Partnership Strategies. www.adb.org/Documents/CSPs/default.aspd Based on www.adb.org/privatesector/finance/com_financing.asp
Approval Procedures
15
Delegated Authority
The Board has delegated authority to approve specific operations to the President, e.g., (i) periodic financing requests under an MFF; (ii) TA, provided that the highest financing amount from any one source (ADB or cofinancing funds) does not exceed $1.5 million (Table 4); and (iii) private sector operations, such as supplementary equity investments up to $2 million each in existing investee companies, loan restructuring proposals where no additional ADB funding is involved, and funding of costs and expenses related to divestments or investment recovery operations up to a cumulative amount not exceeding $2 million, net of recoveries. In such cases, the President reports all approvals to the Board.4
Table 4: Approval Authority for Technical Assistance
Heads of Departments or Offices Vice-Presidents President
Board of Directors
S-TA up to and including $225,000
To enhance the independence and effectiveness of the Independent Evaluation Department (IED), the director general, IED, has been granted authority to approve TA proposals to be implemented by IED up to $750,000.
PPTA if financed by an ADB source and one or more grants from external sources, and each of these grants does not exceed $1.5 million (even if the combined amount of the grants is more than $1.5 million).
PATA, CDTA, RDTA, and regional TA up to $750,000 (even if the combined amount of the grants for the TA exceeds $750,000).
TA excluding PPTA, where financed on a grant basis from ADB’s and/or other resources, provided that the highest financing amount from any one source (ADB or cofinancing funds) does not exceed $1.5 million (even if the combined amount of the grants is more than $1.5 million).
TA exceeding $1.5 million
No-objection basis: grant-financed TA in excess of the amounts delegated for approval by the President, regardless the source of financing.
TA loan project proposals are approved by the Board after discussion or summary procedure.
The President reports all TA approvals to the Board.
4 The Board can request discussion for any matter.
16
Summary of ADB Financial Instruments and Approval Procedures
Projects should be implemented as approved by the Board. However, flexibility should be built into project design to allow changes in project scope and implementation arrangements in response to unexpected changes in circumstances during implementation. Moreover, project design should be receptive to changes in project scope and implementation arrangements that would improve the development impact and reflect stakeholder interests during implementation. Midterm review missions assess the appropriateness of the project scope and implementation arrangements in detail. The borrower/recipient, executing agency, or ADB may propose changes in scope and implementation arrangements. A change in scope or implementation arrangements is classified as major or minor. Several factors are considered in making such a decision. A major change substantially affects the project’s purpose (immediate objectives), components, costs, benefits, procurement, or other implementation arrangements. A minor change does not substantially affect the project’s purpose (immediate objectives), benefits, procurement, or other implementation arrangements (Table 5).5
5 ADB. 2008. Change in Project Scope or Implementation Arrangements. Project Administration Instructions. PAI 5.04. Manila.
Approval Procedures
17
Tabl
e 5:
A
ppro
val A
utho
rity
for
Chan
ge in
Sco
pe o
r Im
plem
enta
tion
Arr
ange
men
ts
Ope
rati
ons
Dir
ecto
rD
irec
tor
Gen
eral
Vice
-Pre
side
nts
Boar
d of
Dir
ecto
rsSo
vere
ign
and
nons
over
eign
a
The
dire
ctor
, use
r di
visio
n or
cou
ntry
di
rect
or, r
egio
nal
or re
siden
t miss
ion,
ap
prov
es th
e m
inor
ch
ange
.
A m
ajor
cha
nge
that
doe
s no
t m
ater
ially
alte
r or f
unda
men
tally
af
fect
the
over
all p
roje
ct p
urpo
se
(imm
edia
te o
bjec
tives
) and
sco
pe
(incl
udin
g pr
ojec
t obj
ectiv
es,
com
pone
nts,
and
ben
efits
and
/or
if th
e co
st c
hang
e is
estim
ated
in
exce
ss o
f 15%
of t
he to
tal p
roje
ct
cost
) is
appr
oved
by
the
vice
-pre
siden
t co
ncer
ned.
The
vic
e-pr
esid
ent
conc
erne
d de
cide
s, a
fter
rece
ivin
g in
terd
epar
tmen
tal c
omm
ents
, w
heth
er B
oard
app
rova
l is
requ
ired.
A m
ajor
cha
nge
that
mat
eria
lly
alte
rs o
r fun
dam
enta
lly a
ffec
ts th
e ov
eral
l pro
ject
pur
pose
(im
med
iate
ob
ject
ives
) and
sco
pe (i
nclu
ding
pr
ojec
t obj
ectiv
es, c
ompo
nent
s, a
nd
bene
fits
and/
or if
the
cost
cha
nge
is
estim
ated
in e
xces
s of
15%
of t
he
tota
l pro
ject
cos
t) is
usu
ally
app
rove
d by
the
Boar
d on
a n
o-ob
ject
ion
basis
.
Tech
nica
l as
sista
nceb
The
dire
ctor
, use
r di
visio
n or
cou
ntry
di
rect
or, r
egio
nal
or re
siden
t miss
ion,
ap
prov
es th
e m
inor
ch
ange
.
The
dire
ctor
ge
nera
l, IE
D, h
as
been
gra
nted
th
e au
thor
ity to
ap
prov
e a
maj
or
chan
ge in
sco
pe o
f TA
that
he
or s
he
has
appr
oved
.
A m
ajor
cha
nge
in s
cope
of T
A w
here
th
e co
st o
f the
cha
nge
is $1
.5 m
illio
n or
less
. The
Pre
siden
t rep
orts
suc
h ap
prov
al to
the
Boar
d.
A m
ajor
cha
nge
in s
cope
of T
A w
here
th
e co
st o
f the
cha
nge
exce
eds
$1.5
mill
ion.
a O
M S
ectio
n D
10 (N
onso
vere
ign
Ope
ratio
ns).
b O
M S
ectio
n D
12 (T
echn
ical
Ass
istan
ce);
AD
B. 2
009.
Adm
inist
erin
g G
rant
-Fin
ance
d Te
chni
cal A
ssist
ance
. Pro
ject
Adm
inist
ratio
n In
stru
ctio
ns. P
AI 5
.11.
Man
ila (p
ara.
34)
.
Summary of ADB Financial Instruments and Approval Procedures
This booklet provides an overview of the financial instruments used by ADB and outlines the approval procedures for ADB financial operations. It gathers information from the Operations Manual, the Project Administration Instructions, the Revision of the Summary Procedure, and various documents to provide a quick guide on the approval processes for each ADB financial instrument.
About the Asian Development Bank
ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.
Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
Printed in the Philippines
Summary of ADB Financial Instruments and Approval Procedures
January 2011
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.orgISBN 978-92-9092-262-9Publication Stock No. TIM102828