Cofinancing

Grant Cofinancing

Grant cofinancing provides ADB's DMCs -- especially low-income DMCs -- with development assistance in the form of:

• technical assistance for project preparation, project implementation, advisory services, and regional activities

• grant components of ADB loan projects

Sources of grant cofinancing

• Funds provided under Channel Financing Agreements (CFAs) with Australia, Belgium, Canada, Denmark, Finland, France, Italy, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, and United Kingdom.

  Grant funds provided under CFAs are administered by ADB on behalf of the donor and are untied, which means that they may be used to finance goods and services from any member country of ADB. They support either stand-alone technical assistance projects or components of ADB-assisted loan projects. The purposes for which these funds are to be used are agreed between the donor and ADB based upon the donor's preferences.

  
  

• Funds provided on an ad hoc basis under Letters of Agreement by Australia, Canada, Denmark, France, Germany, Japan, New Zealand, Netherlands, Norway, Sweden, Switzerland, United Kingdom, and the United States.

Grant funds provided under Letters of Agreement by ADB donor countries are also used to finance ADB's technical assistance program as well as specific components of ADB-assisted loan projects (usually capacity building and training). ADB administers these grants if they are untied, and charges an administration fee to recover the incremental cost it incurs in supervising the implementation of such grants.




• Funds provided by multilateral agencies, such as UNDP, Global Environment Facility, Global Mechanism, and Post Conflict Fund.