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Frequently Asked Questions
General Information
arrange official loans on nonconcessional terms for growth-oriented projects in DMCs, and concessional official loans and grants for low-income DMCs
for commercially viable public sector projects, mobilize cofinancing from market sources
for commercially viable private sector projects, use ADB's Complementary Financing Scheme to encourage commercial cofinanciers to provide financing that complements ADB funds
make otherwise unbankable development projects bankable for private sector cofinanciers by providing Political Risk Guarantees
expand debt financing available to DMCs by using Partial Credit Guarantees to extend the maturity of commercial debt and lower spreads
obtain financing from export credit agencies on the best possible terms for development projects in DMCs
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comprehensive risk mitigation under ADB's Partial Credit Guarantee
sovereign/political risk mitigation under ADB's Political Risk Guarantee
sharing of ADB's preferred creditor status and special immunities and privileges under the Complementary Financing Scheme (CFS)
sovereign risks reduced through ADB's involvement in the project and its ongoing dialogue with the government of the borrowing country
access to ADB research and studies to help assess the scope for private sector participation in host countries, including commercial cofinancing and direct investments additional comfort from ADB's direct participation in all of its cofinanced projects CFS loans administered by ADB
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maximizes the impact of each dollar of development assistance, since ADB coordinates its projects with those of cofinanciers that offer complementary or synergistic benefits
avoids duplication of effort and promotes a consistent approach to development assistance
ADB shares the results of its project feasibility studies with cofinanciers
ADB shares project information with cofinanciers during implementation
for untied cofinancing, ADB provides administration and supervision services (for both loans and grants)
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Official Cofinancing
maximizes the impact of development assistance through coordination of projects with complementary or synergistic benefits
avoids duplication of effort and promotes a consistent approach to development assistance by funding institutions
expands availability of concessional and nonconcessional development assistance, particularly for DMCs that have yet to gain direct access to commercial financing
Commercial Cofinancing
increases the total amount of funding available
enables financing of large-scale projects unlikely to be funded by any one institution
facilitates or improves access to international financial markets
provides access to ADB's experience and expertise in arranging borrowings from market-based sources on the best possible terms
facilitates longer maturities and lower spreads on public sector borrowings from market sources
can assist development of domestic capital markets through support for local currency debt transactions
makes export credit financing available on the best possible terms
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Since 1970, ADB has arranged a total of $49.5 billion of cofinancing for 692 projects.
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The $49.5 billion raised is less than the amount raised by ADB in the international capital markets for its ordinary capital resources (OCR), and it is more than double the amount ADB obtained from Asian Development Fund (ADF) donors.
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Resource Mobilization: ADF, OCR, and Cofinancing, 1970--2005
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People's Republic of China received 38%, the highest amount of cofinancing in the last 5 years, followed by Indonesia.
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During the same period, the annual amount of cofinancing averaged about $3.3
billion, more than the average annual amount of ADB loans for projects with
cofinancing ($2.6 billion).
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Opportunities 
