Regions and Countries

	Table of Contents
p. 17 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Viet Nam

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VI. Cofinancing and Catalyzing External Resources

75. Since resumption of operations in 1993, ADB public sector loan projects have leveraged $458 million of cofinancing, equivalent to 25 percent of ADB lending to Viet Nam. In addition, $209 million of private sector cofinancing was generated for one private sector project in 1996. Given the scarcity and uncertainty regarding ADF resources, and in order to promote donor coordination through joint operations, continuing efforts will be made to leverage official and commercial cofinancing. As other aid agencies also narrow the scope of their operations and the focus of ADB lending shifts towards rural development initiatives, however, the potential for cofinancing may be reduced, and a more proactive approach will be required.

76. Stronger emphasis on complementarity between World Bank and ADB operations will result in increased consultation but reduced potential for joint financing. Consultations with other bilateral aid agencies, on the other hand, suggest that ADB’s strategy should focus on strengthening ties with a limited number of agencies which (i) due to their own ODA policies have accorded Viet Nam priority status; (ii) have a reasonably large amount of resources available; (iii) have a mandate to actively seek cofinancing opportunities with multilateral agencies; and (iv) are active in sectors which ADB will prioritize. An agreement in principle has already been reached with Agence Francaise de Developpement, covering 3-4 projects and up to $100 million during the 2001-2003 period. Niche opportunities with specific donors and sectors will be pursued. The greater focus on natural resource management envisioned in the program should increase the potential for recourse to the Global Environmental Facility (GEF), while there is good potential for cooperation with the UN system in the social sector, agriculture, and governance, not necessarily because of the amount of resources involved, but to access the expertise developed by such agencies. ADB will endeavor to mobilize $ 70-100 million a year in joint and parallel cofinancing with a leveraging ratio of 20-30 percent.

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