Official Cofinancing Defined
Official cofinancing is an arrangement under which ADB and other official
funding agencies--bilateral as well as multilateral--finance an ADB-assisted
project or program.
Funding from official sources includes
official development assistance provided by donor governments from their budget appropriations, usually in the form of
funds obtained from nonbudgetary official sources and/or capital markets which are provided on semi-commercial terms
These official funding agencies may provide funds on a parallel or joint basis:
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JOINT |
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ADB and the cofinancier each finances separate components of the project, with the cofinancier following its own procurement procedures for the components it finances.
Most official cofinancing is arranged on a parallel basis.
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ADB and the cofinancier together finance common goods and services for the project on a pro rata basis.
This type of cofinancing works well when a cofinancier does not tie its assistance to procurement from its own country, and agrees to follow ADB's procurement guidelines.
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