Catalog

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p. 22 of 24 BACK | NEXT The Asian Development Bank Mobilizing Private Capital Assistance to Private Enterprises Eligibility for ADB Assistance Advantages of Working with ADB Extent of ADB Assistance Appraisal Criteria Loan Terms Security Procurement Accounting and Auditing Arrangements Corporate Governance Environmental Considerations Role of ADB in Supervising Investments Risk Principles for Investment Funds Sale of ADB Equity Investment Commercial Cofinancing Complementary Financing Scheme Guarantees Export Credit Agency Cofinancing Applying for ADB Assistance Processing Procedures Illustrative Private Sector Projects of ADB Contact Information

ADB’s Private Sector Operations: Catalyzing Private Investments Across Asia and the Pacific

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Processing Procedures

Processing of a project by ADB includes the following major steps: (i)concept clearance,(ii)fact-finding,(iii)appraisal,(iv)negotiations, (v)consideration by ADB ’s Board of Directors,and (vi)financial closing.

As a first step,there is an initial screening of the sponsors ’request for assistance.If the information provided to ADB indicates that the project (i)is prima facie technically,economically,socially,and financially viable; (ii)needs ADB to play a catalytic role in developing and financing the project; and (iii)supports ADB ’s strategy in the country or region where the project is to be located,a concept clearance paper is prepared and submitted to ADB ’s Management for approval.At this point,the sponsors must provide an agreement to pay ADB ’s out-of-pocket expenses for processing the project.

Shortly after concept clearance,a project team (the Mission)will visit the project site,offices of the sponsors,and other locations,if necessary. The Mission will meet the sponsors,government agencies concerned,and local and international financial agencies to review the feasibility and environmental impact studies,including any resettlement of project-affected persons,and the overall viability of the project.Project costs and the project financing and implementation plans will also be reviewed.In addition,the need for cofinancing under ADB ’s CFS will be critically assessed and alternatives examined.

An important item on the critical path of processing for projects that appears to have a significant environmental and/or social impact,is the submission of a summary of the environmental impact assessment (including resettlement aspects)report to ADB ’s Board of Directors.It is compulsory that this summary report,prepared in accordance with ADB ’s guidelines,be circulated at least 120 days before the project can be considered by the Board.

For large and complex projects,the Mission will coordinate with the sponsors and other senior lenders about appointing an independent counsel and engineering and other technical advisers needed to represent the lenders on a collective basis.In the case of smaller projects,a lower level of outside assistance will be required but in all cases the sponsors will be required to pay for these services.

Next,the Mission undertakes appraisal of the project.Appraisal includes an in-depth examination of the project and its sponsors and the issues identified at the fact-finding stage.

After negotiations of the terms and conditions of ADB ’s investment, the internal documentation for the project is finalized and circulated to ADB ’s Board of Directors for consideration.Once Board approval is given, the project can proceed to financial closing and then the ADB loan and/or equity investment can be disbursed subject to compliance with the conditions agreed upon.

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